Op-Ed in Register Guard
GUEST VIEWPOINT: Going green a tough sell for business
BY LYNN KAHLE
Published: (Wednesday, May 11, 2011 05:15AM)Many companies want to know, “If we follow sustainable business practices, will customers buy the resulting green products?†The answer is often no.In spite of the public’s increased endorsement of environmental protection and many Americans’ more positive attitude toward sustainability, barriers such as cost have kept many consumers from changing their buying habits. Without customers’ support at the cash register, companies may be discouraged from committing to sustainable business practices.Some experts have predicted that the next big trend in business, similar to trends with computers and the Internet in the past, will involve the green economy. But this trend will never develop if consumers do not embrace it.Recent consumer research reveals a less-than-optimistic picture of the consumer/business relationship concerning environmental sustainability. A Harris Interactive poll released earlier this year showed that fewer Americans are going green, even though a greater number think of themselves as green.For example, fewer adults in 2010 purchased organic products or locally grown produce than in 2009. Fewer Americans bought Energy Star appliances or hybrid and fuel-efficient cars. And only 36 percent of adults in 2010 said they are concerned about how they are leaving the planet for future generations, down from 43 percent in 2009. This disconnect between attitude and action has appeared in other surveys as well.A closer look reveals that the way people think about the environment and their commitment to sustainability can vary according to age, gender, education and other demographic characteristics.A Crowd Science study showed that women will spend more for eco-friendly products, and that one in four people older than 55 believe that shopping green does not make a difference. A recent study released at a conference in Eugene last weekend also showed that religious affiliation can predict of consumer behavior toward environmental sustainability.A key barrier is consumers’ perception that some green products cost more or are inferior. In a tight economy, when every dollar counts, this view is a significant hurdle to overcome, and one that demonstrates a communication failure on the part of businesses.From the companies’ perspective, Fortune 1000 executives believe the biggest obstacles preventing companies from going green are an insufficient return on investment and the unwillingness of customers to pay more for green products. Although these businesses report few immediate financial benefits, nearly 9 out of 10 executives reported to Harris Interactive that their company is going green.That commitment is too often lost on consumers. Most don’t believe it, in part because some companies have engaged in misleading green marketing.A profusion of self-made “natural†or “Earth friendly†claims, which do not have to meet any type of certification standards, can be found on store shelves. For some companies it’s trendy to go green. For others, it’s a true commitment. However, most consumers do not have the expertise or information to differentiate legitimate claims from misleading marketing ploys.As deceptive tactics are exposed, the public’s trust erodes in both the deceptive companies and the honest ones. Such backlash ultimately harms businesses committed to sustainability, consumers, and our ability to build a green economy.Ironically, some companies with a sincere commitment to sustainability carry on their work but do not brag much about what they do. For a local example, King Estates Winery often does not claim on its labels that its wines are organic, even when they are.Sustainability is a local issue and a global one, which is why researchers from around the world came to Eugene recently to discuss these issues. To build a green economy, it takes a commitment from companies and consumers as well as government. Consider, for example, the many factors in which sustainability can play a role as communities are developed: retail, transportation, architecture and the reasons that drive individuals to choose urban living or the suburbs.Although much attention has focused on motivating companies to act in environmentally responsible ways, we also need to understand how to encourage consumers to buy truly sustainable products, or even to refrain from buying unnecessary products. Companies need to foster an honest dialogue with consumers on this issue.That way, when businesses ask, “If we follow sustainable business practices, will customers buy green products?†The answer will be yes.Lynn Kahle, the Giustina Professor and head of the marketing department at the University of Oregon, is affiliated with the Center for Sustainable Business Practices.
BY LYNN KAHLE
Published: (Wednesday, May 11, 2011 05:15AM)Many companies want to know, “If we follow sustainable business practices, will customers buy the resulting green products?†The answer is often no.In spite of the public’s increased endorsement of environmental protection and many Americans’ more positive attitude toward sustainability, barriers such as cost have kept many consumers from changing their buying habits. Without customers’ support at the cash register, companies may be discouraged from committing to sustainable business practices.Some experts have predicted that the next big trend in business, similar to trends with computers and the Internet in the past, will involve the green economy. But this trend will never develop if consumers do not embrace it.Recent consumer research reveals a less-than-optimistic picture of the consumer/business relationship concerning environmental sustainability. A Harris Interactive poll released earlier this year showed that fewer Americans are going green, even though a greater number think of themselves as green.For example, fewer adults in 2010 purchased organic products or locally grown produce than in 2009. Fewer Americans bought Energy Star appliances or hybrid and fuel-efficient cars. And only 36 percent of adults in 2010 said they are concerned about how they are leaving the planet for future generations, down from 43 percent in 2009. This disconnect between attitude and action has appeared in other surveys as well.A closer look reveals that the way people think about the environment and their commitment to sustainability can vary according to age, gender, education and other demographic characteristics.A Crowd Science study showed that women will spend more for eco-friendly products, and that one in four people older than 55 believe that shopping green does not make a difference. A recent study released at a conference in Eugene last weekend also showed that religious affiliation can predict of consumer behavior toward environmental sustainability.A key barrier is consumers’ perception that some green products cost more or are inferior. In a tight economy, when every dollar counts, this view is a significant hurdle to overcome, and one that demonstrates a communication failure on the part of businesses.From the companies’ perspective, Fortune 1000 executives believe the biggest obstacles preventing companies from going green are an insufficient return on investment and the unwillingness of customers to pay more for green products. Although these businesses report few immediate financial benefits, nearly 9 out of 10 executives reported to Harris Interactive that their company is going green.That commitment is too often lost on consumers. Most don’t believe it, in part because some companies have engaged in misleading green marketing.A profusion of self-made “natural†or “Earth friendly†claims, which do not have to meet any type of certification standards, can be found on store shelves. For some companies it’s trendy to go green. For others, it’s a true commitment. However, most consumers do not have the expertise or information to differentiate legitimate claims from misleading marketing ploys.As deceptive tactics are exposed, the public’s trust erodes in both the deceptive companies and the honest ones. Such backlash ultimately harms businesses committed to sustainability, consumers, and our ability to build a green economy.Ironically, some companies with a sincere commitment to sustainability carry on their work but do not brag much about what they do. For a local example, King Estates Winery often does not claim on its labels that its wines are organic, even when they are.Sustainability is a local issue and a global one, which is why researchers from around the world came to Eugene recently to discuss these issues. To build a green economy, it takes a commitment from companies and consumers as well as government. Consider, for example, the many factors in which sustainability can play a role as communities are developed: retail, transportation, architecture and the reasons that drive individuals to choose urban living or the suburbs.Although much attention has focused on motivating companies to act in environmentally responsible ways, we also need to understand how to encourage consumers to buy truly sustainable products, or even to refrain from buying unnecessary products. Companies need to foster an honest dialogue with consumers on this issue.That way, when businesses ask, “If we follow sustainable business practices, will customers buy green products?†The answer will be yes.Lynn Kahle, the Giustina Professor and head of the marketing department at the University of Oregon, is affiliated with the Center for Sustainable Business Practices.