Learning from the article that companies in the US are in an investing spree on this so called “green revolution,” I ended up thinking of reasons how these actions add up to the main goal of any corporation, that is to increase owners’ wealth. And this investing spree is not in the US alone. In our country, there’s Downy’s Isang Banlaw, energy efficiency ads from makers of compact fluorescent lamps, SM’s recycling depot and green bags and the advent of green cars (Prius by Toyota and Accord ’08 of Honda). The La Mesa Watershed was reforested with the help of several companies like Shell. And a lot of companies are sponsoring environmental awareness campaigns and projects. It sure is expensive to put up a wind turbine and generate your own electricity, to finance a reforestation, to design and run recycling programs or to renovate stores to refurbish their efficiency in terms of energy usage, yet a lot of companies are willing to invest money in these nonprofit endeavors. Maybe there’s (really) a lot more to sustainability than just selling products or even selling green products. But what is this “more?”
Corporate citizenship has been a popular concept in the business world. It argues that companies can pursue their long-term interests along with contributing to the development of the society and environmental sustainability. The pressure generally comes from expectant stakeholders. Customers expect companies to fulfill their social responsibilities as a survey shows that 9 out of 10 customers expect companies to be supporting and acting on social issues. Another study tells that 86% of the consumers are willing to shift to a brand associated with a cause. They are increasingly making decisions according to the social reputation of the brand ...