This case is about FINANCIAL MANAGEMENT, SOCIAL RESPONSIBILITY, SUSTAINABILITY
PUBLICATION DATE: February 01, 2006
Competitive Environmental Strategies: When Does It Pay to Be Green? Case Solution
Proactive organizations have invested in challenging sustainability initiatives. Nevertheless, the managers should identify the circumstances favoring the generation of both public benefits and corporate gains. For some companies, better utilization of resources may result from some environment-related investments.
As far as others are concerned, getting ISO 14001 certification or having some eco-labeled products can empower them to pursue competitive advantage. However, no one strategy that is generic makes business sense for all firms. This article gives a framework regarding categorizing different types of competitive strategies regarding environment to help the managers define and prioritize areas of organizational action, thereby optimizing the overall economic return on environmental investments and making them into sources of competitive advantage.