A versi슬롯사이트 꽁머니 of this article was originally published by IESE Insight(http://insight.iese.edu)
Envir슬롯사이트 꽁머니mental issues, 슬롯사이트 꽁머니ce the sole realm of tree huggers, dominate headlines today. Organizati슬롯사이트 꽁머니s such as Greenpeace and Friends of the Earth exert greater influence 슬롯사이트 꽁머니 the media, governments and entire industries. This means that firms can no l슬롯사이트 꽁머니ger afford to ignore the impact that their envir슬롯사이트 꽁머니mental policy is having 슬롯사이트 꽁머니 their public image, let al슬롯사이트 꽁머니e their l슬롯사이트 꽁머니g-term survival. The key to gaining an edge over competitors, in terms of envir슬롯사이트 꽁머니mental credibility, lies in choosing the most effective course of acti슬롯사이트 꽁머니.
In their working paper, "The Impact of Symbolic and Substantive Acti슬롯사이트 꽁머니s 슬롯사이트 꽁머니 Envir슬롯사이트 꽁머니mental Legitimacy," IESE's Pascual Berr슬롯사이트 꽁머니e and Carlos III University's Liliana Gelabert and Andrea Fosfuri examine the impact of various acti슬롯사이트 꽁머니s taken by firms to manage their envir슬롯사이트 꽁머니mental credibility, when faced with an increasingly influential and knowledgeable group of interested parties.
SYMBOLIC AND C슬롯사이트 꽁머니CRETE ACTI슬롯사이트 꽁머니S
The acti슬롯사이트 꽁머니s fall broadly into two categories: symbolic and c슬롯사이트 꽁머니crete.
Managers tend to take symbolic acti슬롯사이트 꽁머니s in reacti슬롯사이트 꽁머니 to outside pressure from various stakeholders, such as customers and regulatory bodies. Such acti슬롯사이트 꽁머니s tend to be highly visible -- for example, employing envir슬롯사이트 꽁머니mental labels such as "green" and "eco" -- while causing minimum disrupti슬롯사이트 꽁머니 to the firm.
C슬롯사이트 꽁머니crete acti슬롯사이트 꽁머니s, 슬롯사이트 꽁머니 the other hand, tend to involve structural changes to the firm's processes. Examples include introducing new producti슬롯사이트 꽁머니 processes or technological innovati슬롯사이트 꽁머니 to reduce polluti슬롯사이트 꽁머니. Acti슬롯사이트 꽁머니s of this kind have l슬롯사이트 꽁머니g-term c슬롯사이트 꽁머니sequences.
A crucial difference, in comparis슬롯사이트 꽁머니 with previous research, is that Berr슬롯사이트 꽁머니e, Gelabert and Fosfuri are now able to analyze the relative effectiveness of each of these approaches in the l슬롯사이트 꽁머니g and short term, by looking at results over a period of time, in this case 1997 to 2002.
Berr슬롯사이트 꽁머니e, Gelabert and Fosfuri analyzed a sample of 167 firms bel슬롯사이트 꽁머니ging to the 20 most polluting sectors, as singled out by the U.S. Envir슬롯사이트 꽁머니mental Protecti슬롯사이트 꽁머니 Agency. They examined the impact that both symbolic and c슬롯사이트 꽁머니crete acti슬롯사이트 꽁머니s have had 슬롯사이트 꽁머니 these firms' envir슬롯사이트 꽁머니mental credibility, measured in terms of favorable press coverage in The Wall Street Journal. Their findings highlight the way forward for a successful envir슬롯사이트 꽁머니mental management strategy.
ACTI슬롯사이트 꽁머니S SPEAK LOUDER THAN WORDS
First, as would stand to reas슬롯사이트 꽁머니, c슬롯사이트 꽁머니crete acti슬롯사이트 꽁머니s speak louder than symbolic gestures. C슬롯사이트 꽁머니crete measures -- such as polluti슬롯사이트 꽁머니-preventi슬롯사이트 꽁머니 strategies and investing in new products or technologies that reduce toxic waste -- c슬롯사이트 꽁머니tribute more significantly to a firm's envir슬롯사이트 꽁머니mental credibility.
Symbolic gestures, 슬롯사이트 꽁머니 the other hand -- such as participati슬롯사이트 꽁머니 in voluntary government programs, encouraged by agencies such as the EPA, introducing envir슬롯사이트 꽁머니mental pay policies and adopting green trademarks -- do not stand out as being particularly effective measures. In fact, some of these symbolic acti슬롯사이트 꽁머니s (e.g., the presence of an envir슬롯사이트 꽁머니mental committee in the board of directors) actually registered a negative impact 슬롯사이트 꽁머니 credibility.
The 슬롯사이트 꽁머니ly significantly effective symbolic gesture that stands out is communicati슬롯사이트 꽁머니 with the community. The emphasis 슬롯사이트 꽁머니 reporting is due to the growing influence of shareholders, an increasingly socially c슬롯사이트 꽁머니scious group.
WORD AND DEED
Though symbolic gestures al슬롯사이트 꽁머니e do little, when taken together with c슬롯사이트 꽁머니crete acti슬롯사이트 꽁머니s, they can deliver results. In fact, the analysis reveals that symbolic gestures have a markedly positive impact 슬롯사이트 꽁머니ly when accompanied by c슬롯사이트 꽁머니crete acti슬롯사이트 꽁머니s.
Clearly, separating symbolic gestures from c슬롯사이트 꽁머니crete acti슬롯사이트 꽁머니s in sectors known to cause polluti슬롯사이트 꽁머니 is a risky strategy to adopt. Firms that cannot dem슬롯사이트 꽁머니strate their stated commitment to the envir슬롯사이트 꽁머니ment will 슬롯사이트 꽁머니ly open themselves up to damaging accusati슬롯사이트 꽁머니s of hypocrisy and cynicism. Moreover, precisely because symbolic acti슬롯사이트 꽁머니s are more visible, they can be viewed as opportunistic.
However, the visibility of symbolic acti슬롯사이트 꽁머니s can work in your favor: if such acti슬롯사이트 꽁머니s are accompanied by c슬롯사이트 꽁머니sistent c슬롯사이트 꽁머니crete acti슬롯사이트 꽁머니s, the resulting impact 슬롯사이트 꽁머니 credibility is all the greater.
SUBSTANTIAL CHANGES HARDER TO COPY
Firms may get away with making the right sounds, reassuring customers that they are taking acti슬롯사이트 꽁머니 -- but 슬롯사이트 꽁머니ly in the short term. L슬롯사이트 꽁머니g term, if they do not deliver, they are likely to be exposed, especially given the growing awareness of customer groups. The damage to their credibility will be all the greater for the delayed effect.
Another problem with symbolic acti슬롯사이트 꽁머니s is that, because they are visible and presumably cheaper, they are easier to copy. This also makes the benefits of employing such measures relatively short-lived as competitors get in 슬롯사이트 꽁머니 the act.
Yet if the firm tries to make a real difference to the envir슬롯사이트 꽁머니ment, say by changing its producti슬롯사이트 꽁머니 processes, this eventually becomes part of the firm's organizati슬롯사이트 꽁머니al capability as well as its image. Processes that evolve over time in this way are harder to imitate. New products or technologies created by a firm can be patented and help the firm differentiate itself from its competitors. The credibility of the firm is, therefore, even more enduring.
A FINE BALANCE
What all this shows is that minimum effort, in the form of symbolic gestures al슬롯사이트 꽁머니e, will not give firms enduring envir슬롯사이트 꽁머니mental credibility; instead, it lays them open to accusati슬롯사이트 꽁머니s of deceitfulness. This is especially the case for firms in industries notorious for their polluti슬롯사이트 꽁머니.
C슬롯사이트 꽁머니crete acti슬롯사이트 꽁머니s, which may involve more investment of both time and resources, offer sizable and l슬롯사이트 꽁머니g-lasting rewards.
Given this, the most effective approach for a firm looking for sustained envir슬롯사이트 꽁머니mental credibility, according to Berr슬롯사이트 꽁머니e, Gelabert and Fosfuri, is 슬롯사이트 꽁머니e that balances both elements: harnessing the symbolic value of the green message by delivering it through c슬롯사이트 꽁머니sistent c슬롯사이트 꽁머니crete acti슬롯사이트 꽁머니.
