Which Side of the Bottom Line Are You Standing On?
The Sustainability Business Case
by Wendy Jedlicka
We've all heard manufacturers complain, "We'd like to be 'eco' but are afraid our customers will reject the change," or "Eco doesn't sell." That might have been so once, but not anymore.
As sociologist Paul Ray reported in his study of consumer attitudes, approximately a quarter of U.S. adults fit into a segment he tagged "Cultural Creatives,". Concern for the power and loud willingness of this group to act on these attitudes were illustrated by a 2004 study by Price Waterhouse Coopers (PWC), researching concerns and strategies of today's top executives.
Cultural Creatives consider themselves strongly aware of: global warming, destruction of rainforests, overpopulation, lack of ecological sustainability, and exploitation of people in poorer countries. They want to see more positive action on these problems, and are more than willing and able to buy and invest according to their values - eco/sustainability values. It's these values, and the devastating effect a tarnished image has on brand equity, that the PWC study showed to be the number one concern of the executives surveyed.
Businesses take note: consumer activism works—and not to your advantage.
In Europe, responding to rate increases for rubbish removal, consumers staged a revolt. Rather than tote home packaging that would need to be disposed of on their dime, they repacked items purchased in reusable containers from home, and left the original packages piled at the end of the check-out line for the store to deal with.
This quiet revolution helped force the creation of producer responsibility laws. But rather than simply rollover and absorb the new costs, firms now having to dispose of their consumer and transport packaging themselves rather than pushing the problem down the distribution chain, started selling their waste to the expanding recycling industry as a valuable resource—turning a disposal liability into a profit center. In addition, more attention was paid to reduce packaging needs overall, increasing per-unit profitability.
In the best of all worlds, according to general sustainability models, goods would be produced and consumed locally. In the real world of course, that's not how it works. We live in a global economy, and not all communities are able to produce all the goods they need. But the fact that we're transporting goods outside the reach of our own laws doesn't mean manufacturers can or should want to produce products and waste with reckless abandon. Studies show there are sound bottom line arguments to be made for aligning profitability and positive image with sustainable business practices.
John Moes and Holly Robbins worked with Studio Flux to design little books printed with soy-based inks on 60-lb. Vision Paper, which is totally chlorine-free, tree-free kenaf fiber. The kit folder is printed the same way, and two tabs are glued with water-based, non-toxic adhesive.
The price behind the sticker
Beyond the general view of landfills bursting at the seams, ills related to packaging abound. Consider forests laid bare by clearcutting; the beloved dolphin Flipper (actually his cousin) washing up on a beach, starved to death by a plastic six-pack ring binding his mouth; and soda bottles and tampon applicators washing up on pristine shores. Not all award winning design is viewed in a gallery. Is being part of the flotsam and jetsam the place you're introducing your brand to a new audience?
This figure has been tossed around in marketing books over the years, but it's estimated it costs as much as five times more to win a customer back than it did to attract them in the first place. Even if the actual figure is a fraction of that, it makes good economic sense to take great care with the image you're conveying to your customers, past, present, and future.
Everything we purchase, produce, deliver, and sell makes a statement about how we feel about the environment and ultimately the consumers you serve. What is your packaging saying about you?
"Companies with an eye on their 'triple bottom-line'—economic, environmental, and social sustainability —outperformed their less fastidious peers on the stock market, according to a new index from Dow Jones and Sustainable Asset Management." (Economist - September, 1999).
Which side of the bottom line is your company standing on?
If you want to see real examples of producers taking a stand, visit these sites:
Wendy Jedlicka, CPP is president of Jedlicka Design Ltd. (www.jedlicka.com), chapter chair for o2-USA/Upper Midwest and liaison for the o2 Global Green Design Network (o2.org), and packaging and economics faculty for Minneapolis College of Art and Design's ground breaking Sustainable Design Certificate Program (www.mcad.edu).
Author Daniel Imhoff wrote this seminal book to give consumers, product designers, and policymakers information and direction to take steps toward a more sustainable future. Real solutions must incorporate new—or rediscovered—ways of producing, distributing, packaging, consuming, reusing, and reprocessing products and materials. Package Design Magazine is indebted to Mr. Imhoff for allowing the "Sustainable by Design" supplement to build on his Resource Appendix for the Toolbox of Resources, available now at www.packagedesignmag.com/sustainableresource. Imhoff is also cofounder, director, and publisher at Watershed Media (www.watershedmedia.org).
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