Companies of all sizes and across all industries have begun to recognize the significant benefits of transitioning to a more sustainable business model. Following environmentally friendly business practices doesn’t just benefit the planet, it also benefits consumers, workers, and even shareholders. Even simple steps like reducing the amount of paper your office consumes can have major benefits. Here are some ways that going green can make your business more successful.
Ways Going Green Can Make Your Business More Successful:
- Increase Brand Recognition and Perception
Many consumers, especially younger buyers, have started to adopt responsible consumerism when they shop. Under responsible consumerism, people go out of their way to support businesses that care about the same social movements that they do. Consumers that care deeply about the environment will spend more money and deal with more inconveniences if a company has a proven track record of running sustainably.
In this way, many of the environmental initiatives companies commit to are also marketing opportunities. But consumers won’t just recognize your brand more easily. They’ll also build positive connections between your brand’s name and environmental causes. This means you’ll be recognized more often and seen in a positive light simply by caring for the environment.
But this benefit doesn’t end at the consumer level. Workers that are environmentally conscious will also be more attracted to working at your company because it shares the same values of protecting the environment. Your business could draw in top talent simply by caring for the planet.
However, you should be careful of advertising your green initiatives too heavily or consumers will begin to feel it is disingenuous. Some companies are even suspected of being guilty of greenwashing, a practice where businesses use environmentally friendly practices to gain notoriety but aren’t actually doing much to protect nature. If your company is accused of greenwashing, you may end up with more advertising struggles than successes.
- Increase Supply Chain Efficiency
Many of the practices that make your order fulfillment and delivery process kinder to the environment also make them more efficient. For instance, adding multiple products of a single order into one box as opposed to multiple boxes is more efficient from both a business and environmental perspective. It really is just a win-win scenario. Your company receives a streamlined fulfillment process and the environment benefits from a reduction in pollution.
Here are a few quick ways to make your supply chain more efficient:
- Reduce the amount of packaging around your products
- Minimize overproduction of products
- Optimize delivery routes to consume less fuel
- Pack delivery trucks and boxes to the brim when possible
- Include a USPS shipping calculator for your customers’ convenience
- Increase Shareholder Interest
With all of the ways that environmentally friendly business practices improve your business and increase its revenue, it’s obvious why shareholders love them. Shareholders own a portion of your company, so anytime your business becomes more valuable, they themselves become more valuable. The streamlined delivery process, increase in brand recognition and perception, and tax benefits your company get from green practices all make your shareholder more money.
This means that shareholders will continue to invest in your business and remain a partner for years to come. When your shareholders are happy with your brand’s performance they’ll also take more interest in your company’s future; meaning you’ll be in a much better position to continue growing your business’s success.
Photo by Tofros.com
Advantages of Being Environmentally Friendly:
- More Business Opportunities
As previously mentioned, sustainability is more than just a buzzword. Responsible consumers have started to rally behind companies that take an active interest in protecting the environment. By committing to sustainable business practices, your brand will also have more opportunities to sell a product or service. And on top of this, a significant portion of the population has reported that they will spend more money with brands that are environmentally friendly. So not only will your company be given more business opportunities, but those opportunities may also be more lucrative.
- Federal Tax Incentives
The federal government also offers incredible incentives to businesses that adhere to green practices. If you’re willing to go beyond the simple regulations manufacturers are required to meet put forth by the EPA, then you could earn some serious tax breaks. Remember, depending on your business’s location, you may also be able to earn tax incentives at the state level for being environmentally friendly.
- Employee Health
Another advantage that environmentally friendly practices bring to businesses is an improvement in worker health. Let’s take the example of an office workplace that keeps a vending machine stocked with snacks for its workers. One of the several green initiatives they commit to might be to stock that vending machine with locally sourced snacks and produce. This will support local businesses, reduce the amount of pollution resulting from transportation, and offers workers healthier options to eat throughout the workday.
Photo by Narcisa Aciko.
