Is Wal-Mart Really Going Green: In Jeffrey Hollender We Trust

I have discussed in previous posts that with the craze for everything organic, companies and brands are collaborating marketing tactics and teaming up to meet the demand for environmentally friendly products. This common practice, when used appropriately and ethically, has yielded profitable results as well as received praise from consumers and environmental activists. It is interesting to note, however, when collaborative efforts raise controversy and stir debate. In that spirit, an interesting and timely move has been made between Seventh Generation, a leading brand in green household products, and Wal-Mart, a big box supercenter. This past weekend, Wal-Mart has extended its business model and launched a new retail concept called Marketside, which consists of four small stores (10,000-12,000 square feet) located in Arizona. Each Marketside store is dedicated to providing natural and organic offerings and will be operated and staffed independently of Wal-Mart, yet is a fully owned subsidiary of Wal-Mart. These stores are approximately 10,000-12,000 square feet and will be dedicated to natural and organic products and offerings. This new retail format comes as no surprise to consumers as Wal-Mart has made several attempts to eradicate harsh feelings towards the corporation and brand as a whole. However, it does come as a surprise that Seventh Generation is joining this movement in that CEO Jeffrey Hollender (see right) has made public statements that he will never do business with Wal-Mart, or at least not until hell freezes over. While Seventh Generation products will not be sold at Wal-Mart supercenters, they will be available for purchase at these four Marketside stores. We may look at this move with some skepticism and fear, and for good reason, but I have to wonder whether it is purely cynical to question that Wal-Mart may actually be going green.

Wal-Mart has received much criticism towards its labor practices, work hours, pay rates, aggressive market entrances that wipe out small businesses, environmental unfriendliness, and the list goes on. There are also those who swear by Wal-Mart and will continue to be devoted shoppers regardless; the debate over whether Wal-Mart is good or evil may never stop. And the sudden change of heart from the well-liked and trusted Hollender, who has made the long-anticipated decision to engage in business with Wal-Mart, has raised some eyebrows. We can trace the beginning of these friendly relations between Wal-Mart and Seventh Generation to the Wal-Mart Sustainability Milestone Meeting, when Wal-Mart CEO Lee Scott announced innovative plans to progress Wal-Mart's sustainability initiatives. These included selling greener products and local foods, and more efficient supply chain management which yields less waste. While not fully convinced, these efforts had traction enough to catch the attention and hope of Hollender. In Hollender's blog post titled "Whirl-Mart: Back In the Belly Of the Jolly Green Giant" he states, "I am exhilarated. I am watching the Jolly Green Giant bend down and pick daisies rather than run blindly across the field crushing all in its path. I am hopeful, glad to have come, and ready to provide any and all with advice". Hollender's optimism towards Wal-Mart and its business plans may in fact prove to be a good thing. 

In Hollender's recent blog entry Has Seventh Generation Sold Out by Working with Wal-Mart? he discusses the reasoning and logic behind the move to sell Seventh Generation products at Wal-Mart Marketside stores. He acknowledges that Wal-Mart has made improvements and changed for the better. They are currently the world's largest buyer of organic cotton, have energy-conserving stores with wind turbines and solar panels, use more efficient shipping methods, reduced "high-risk violations" by forty percent, as well as increased the amount of women in ranking position by forty percent. He notes that Wal-Mart's sales record from 2007 shows that they are "almost single-handily leading the switch from incandescent to energy efficient lighting", as well as have transformed the entire laundry detergent industry. For all those skeptics out there, these are no small feats. I would like to note that Hollender uses a tweaked version of Reagan's axiom "trust, but verify" as a model for this business relationship and we can rest assured he will hold true to this.

Does Hollender truly believe Wal-Mart has changed, or is the potential profit of a capitalistic maneuver too tempting to resist? Hollender is not only a well respected and praised CEO, his company has received awards and recognition over the course of his reign. In 2002, Seventh Generation received the Socially Responsible Business Award, which recognizes companies that have excelled in socially responsible business practices, marking the beginning of the company's acknowledgment in the eco-friendly realm. Since then Seventh Generation has received a Sustainability Award from the Alliance of Sustainability, a Social Capitalist Award, and a Customer Excellence Award in Environmental Stability, to name a few. This year Jeffrey Hollender was awarded the Entrepreneur CEO of the Year by Corporate Responsibility Officer magazine. Furthermore, Hollender asks for our understanding. In his blog he observes, "I realize this isn't going to make me a more popular guy, but I also believe -- to the core of my soul -- that it's the right thing to do". Even if Wal-Mart is not trusted based on its past actions, it is a year to believe in change and the opportunity for good, and we can trust that Hollender has made this decision with benign intent.

Hotels and Lodging: Eco-Friendly Renovations or Greenwashing?

In a previous post, I explored some environmentally-ethical controversies within the fashion industry. The main issue I pointed out was that even if designers are not using animals as materials for their next clothing line, is it really fair to send exotic animals down the runway as a part of their fashion show. When it comes to marketing, it is important to know where the ethical line should be drawn. This is crucial for the consumer because marketing tactics do not want to be seen as misleading. This week I explored the blogosphere in search of what criteria marketing efforts go through to ensure they remain ethical; more specifically to avoid the practice of "greenwashing". Greenwashing is the practice of claiming environmental responsibility without backing up this claim. The term was coined by New York environmentalist Jay Westerveld in response to the hotel industry's efforts to go green. These efforts included displaying green placards, reusing guest's towels, and claiming overall environmental friendliness, which in fact proved to have little to no legitimacy and was used purely for profit. While we still see greenwashing today, and will continue to in the future, there are many hotels that are trying to combat this bad reputation by upholding to standards set by hotel search engines, the six sins set by TerraChoice, and the U.S. Green Building Council's LEED rating system. One interesting post I found titled "PKF: Green building operations favorably impact asset value" discusses how true profit can emerge from legitimately making hotels green. However we notice in this post that profit is the primary concern. On a more earth-friendly note, I found a very interesting post by Kerri titled "Touting eco-credentials is hot marketing trend for hotels", which discusses how one couple dedicated to helping the environment truly created a green bed and breakfast inn.

"PKF: Green building operations favorably impact asset value"
Comment:

This is a very interesting and informative post. I think the concept of greener hotels has been on a lot of owners minds for a while, and the prospect that new developments will undergo soon is a comforting thought. I find this post particularly interesting because it seems that there are only positives for company managers and owners to make their hotels greener. The problem that I see, which is a problem with all reconstruction for greener purposes, is timing and profit or funding. When it comes to new developments and renovation, the eventual return on investment needs to outway the costs. With the information you propose this deems true, however owners and investors will not see these returns for some time. That is where a huge drawback lies. Furthermore with the rising cost of fossil fuels, hotels will inevitably need to switch to alternative energy sources in the future, so why not now? I find the quote from Bose, “For every dollar you can add to the bottom line of a San Francisco hotel, more than $11 is added in value,” very interesting. This is definitely incentive for greener renovations, even if they will not immediately be seen. Another problem that I could see being a drawback is that state of the economy. The dark shadow looming over consumers disposable income means that there is a lot less vacationing and a lot less hotel room spending. Furthermore, with the high costs of renovation, there seems to be a lack of that extra push to get eco-friendly changes underway. Another issue that is very relevant to hotels and environmentally friendly actions is the idea of greenwashing. It is comforting to know that Bose claims that “in contract negotiations with companies, consortia and government agencies for all of their travel and meetings business, hotel operators are being asked not only to confirm that they use sustainable business practices, but to prove it by naming the awards and certifications they have earned.” It is time that we can move on to a greener world and hopefully the hotel industry will follow suit.

"Touting eco-credentials is hot marketing trend for hotels"
comment:

Thank you for your interesting and lively post. I am glad to see that there are true eco-friendly efforts being made, and success that follows. This couple whole-heartedly seems to believe in the environment and this shines through in the work they have done with their Bed and Breakfast. It seems that in order for a company, brand, or in this case lodging, to exercise authentic green practices, the brains behind the mission must genuinely have the environments best interest at heart. I find your main argument very insightful as well. Not only is green marketing a profitable tactic for marketers, it has come to the point where flaunting what you call “eco-credentials” is even more profitable. With consumer skepticism and the prospect of greenwashing seemingly everywhere it is no surprise that consumers want to know whether or not green marketers can back up their claims with legitimacy. I would like to point out that the Pinehurst Inn have every reason to be legitimately green, as you have pointed out. With the combination of tactics these owners are instilling it makes you wonder why other inns are not reaping the benefits of going green. It is environmentally friendly, cost saving in the long run, sustainable, and appealing to the modern day eco-friendly consumer. One question I would like to raise is about the rating system. The Pinehurst Inn is rated by the Wisconsin Travel Green rating system. When I looked into this it seems that it is voluntary, and as you noted “self-reporting.” Furthermore, there is a fee that one must pay in order to be rate. This seems a little bit of a skeptical source to receive a rating from, however the Pinehurst Inn holds true to what makes a hotel green. Do you think there is any reason to question the legitimacy is the credentials seem a little flaky, even if the experience at the hotel felt green?

Exploring the Blogosphere: Environmental Information is Bountiful

This week I extensively explored the Web in search of engaging and reputable sites that pertain to the multifaceted world of marketing, as well as will complement the subject matter presented in my entries. Using criteria determined by the Webby Awards and IMSA, I have created a linkroll of twenty sites as a compilation of blogs, associations, organizations, newspapers, magazines and news sites. I have evaluated each site based on content, depth of information, interactivity, functionality, visual appeal, and overall experience. My goal is to provide my readers with a comprehensive list of sites that acknowledge and critically analyze the constantly developing field of marketing as well as those which tackle emerging social issues resulting from these developments. I have added each site to my linkroll (right) and will provide my own critiques in this entry.

Within my compilation of Internet sites, the first grouping of links I will address can be categorized as resources for marketing strategies and trends across the market. The American Marketing Association (AMA) website is a primary tool for research, every day marketing information, and a venue for professional networking. This site offers rich, in-depth information on every facet in the field of marketing organized in a professional and sleek visual design. MediaPost is also a fundamental marketing site which provides a creatively crafted overview of the world of media. The site is frequently updated, provides insight to professional knowledge, and promotes interactivity through community membership. The next two sites I have found useful for specifically eco-friendly marketing updates and trends. GreenBiz provides updates for the intersection of marketing and the concept of going green. With features section, news, blog, GreenBiz is comprehensive, interactive, and geared towards those who are highly motivated to engage in complex information. Sustainable Life Media is not as professionally designed, and gives the reader a cautious vibe they are trying to be sold something. Though useful in the immediacy of updates and broad range of information, there seems to be a bias or alternate agenda behind the organization. Yankelovich is a site dedicated to sustainable brand equity. It is professional, has extensive research, visually appealing, and easy to navigate. Though similarly, the site is trying to sell you the techniques and knowledge of the author (Yankelovich), thus distracting the reader and losing some credibility.

The next cluster of sites I have collected deal with the social responsibility of going green by joining organizations and participating in green movements. GreenPeace is not only an ample resource for updated green news, it prompts activism through membership and donation. The Environmental Defense Fund site finds unity between updated green news, lifestyle choices, and green marketing. These are all framed within an active charitable context prompting readers to explore and confirm the credibility of the fund. It's Getting Hot in Here is a youth driven movement to aid the improvement of the environment. It effectively appeals to the target reader through interactive tools such as videos, voting, links, and shopping.

The next cluster of sites comprise what I spend most of my on when delving into my green marketing topic. One of my personal favorite go-to resources is TreeHugger. User-friendly, approachable, interactive, with a broad scope of content, TreeHugger (above right) is an acclaimed venue in the blogosphere with information on anything related to the environment-loving community. The Daily Green is more of a consumer-oriented junction for how the everyday consumer can go green, as well as remain updated on how going green is influencing our society. These two sites offer extensive and specific information geared toward the green community both nationally and globally. Similar in content, though more blog focused, Grist is nonprofit environmentally driven journalism resource. Gris is confusing because the user must scroll to the bottom of the page to access articles and blogs. This site is deprived of a cohesive feel to what the focus is, other than being green, and could benefit through using clear organization and formatting. Conversely, The Green Guide is a subcategory for the National Geographic website. The Green Guide effectively produces a lifestyle-oriented everyday guide for consumers. It engages users by offering fun quizzes, interactive videos, "smart shopper cards", and tips of the week to successfully enhance user awareness of how to be green. Planet Green is also a green lifestyle site, yet is uniquely effective in that it uses user-generated votes on various articles to guide reader navigation. This is a different approach than most sites I have visited, yet lacks some credibility when the highest voted articles lack any commentary from their voters. Ecorazzi takes on the format of a celebrity gossip blog. It uses updated information about what is trendy in the green world, as well as posts entries featuring celebrities and their green contribution. This site is creative in design, yet there is little interactivity with the pictures and links, and the content provided lacks incentive for the user to fully engage, comment, and remain interested. Nonetheless, at face value this is an innovative and interesting site I plan on returning to. Ecofabulous is similar to Ecorazzi. This site has a more sophisticated feel, yet lacks in current information, as well as depth of content and scholarly value.

Finally, I will conclude with online newspapers and scholarly driven resources dedicated to academic value. The Environmentalist is a web magazine dedicated to the history and impact and geopolitical effects of climate change. Many of the articles featured in the Environmentalist are published in The Huffington Post, an online newspaper that includes a green section. This site is visually appealing and offers several links to amazing photographs. These two sites are easy to navigate, very interactive, and offer in-depth content. EcoGeek and Marketing Green are similar in nature, content, structure and format. Both are scholarly driven blogs which prompt discussion on current issues. They both offer valuable opinion based on extensive knowledge and research in the author's field: Ecogeek is dedicated to environmental preservation, while Marketing Green is dedicated to effective and ethical green marketing. I will conclude my linkroll analysis with my personal favorite, the Ecologist (above left). Claiming the title of the world's leading environmental magazine, this site does not fall short of that statement. The Ecologist offers insightful and interesting articles, relevant videos, is clear in organization and structure, is visually sophisticated.

Sustainability: Keeping Our Economy in a Green State-of-Mind.

In a time when our country is in an environmental and economical crisis, the popular campaign of “going green” is seeming every marketers dream. Seeing that our planet encompasses all consumers in every possible market, marketers can use the idea of “going green” to appeal to everyone. Thus, it is no surprise the idea of green seems to be everywhere: Fashion, beauty products, cars, computers, even food products. We have turned the earth, or the idea of it, into a commodity; and it sells. However, the obstacle arises with every marketing campaign or branding technique of sustainability, and keeping the consumer interested. And with the declining state of our economy, even the most creative marketers are going to have to find an innovative way to reach consumers.

With companies and organizations reducing their budgets, there is speculation about what will and what will not survive the cut. Chief Marketing Officers (CMO’s) are expecting that due to the state of the economy, there will be less-emphasis placed on green-marketing over the next year, according to a study conducted by Duke University’s Fuqua School of Business. The survey asked CMO's from leading companies and organizations their opinions of the current marketplace in order to “predict the future of markets, track marketing excellence, and improve the value of marketing in firms and in society.” The results are bitter for the world of cause-marketing. Based on the responses from 72 Fortune 1000 companies and Forbes Top 200 small businesses, cause-marketing was ranked at the bottom of five priorities for the upcoming year. Marketers are more pessimistic with the state of the business world and want to focus their money and resources on more promising ways to reach consumers. If consumers do not have money to buy essentials, it is reasonable to assume they will not buy products merely to support a cause.

Nevertheless, there remain marketers that keep green-marketing a budget priority. This is partly because consumers with enough disposable income are going to continue to buy products from brands they are loyal to. Steve Jobs, CEO and co-founder of Apple, undoubtedly one of the leaders in creative marketing, has gone to many efforts to market Apple as a greener company. Apple has redesigned many of their products in order to re-market and position themselves as a more environmentally friendly brand. Among the most recent efforts, Apple has released the new “cleanest ipod” (See above right). The latest version of the ipod is made with less toxins and has a “highly recyclable aluminum enclosure”. The Apple brand serves as an example for marketers and has proven time and again to have strong brand loyalty. Consumers who purchase Apple products tend to have a very strong felt connection and association between the brand and themselves. We have undergone a cultural shift towards a greener society, therefore with the addition of cleaner and more eco-friendly attributes to their products, consumers have more positive feelings towards the brand. These affirming feelings then parallel a positive association for owning the product. This not only keeps the brand equity, it revamps Apple’s products to keep arouse new interest, as well as boosts the corporate social responsibilityof their company.

While Apple has taken the approach of incorporating more eco-friendly attributes into the production and manufacturing of their products, brands such as Clorox have attempted to buy sustainability. Clorox has received much scrutiny from Greenpeace in the past, however, Clorox has added the new product line of Greenworks, which uses 99% natural ingredients, as well as purchased the Burt’s Bees brand, in hopes of increasing positive attitudes felt towards the overall brand. Carter Elenz, the executive Vice President of sales and marketing says that as a company they are “still thinking [this market] is expandable” for themselves “and others”. He also makes a strong argument with that, noting that the brand has increased it’s expenditures the highest level it has ever been, and their sales have increased more than 50% in the past year. Bill Morrissey, Vice President of Environmental Stability says that "Clorox is committed to its own journey of environmental stability". From a marketing perspective Clorox has made inventive attempts to reshape their image and to integrate new ideas and brands into their overall business model.

Overall, whether a company is repositioning their brand as greener or simply buying out already green brands for a more positive company image, green marketing takes a tremendous amount of creativity. Kindley Walsh Lawlor, Gap's (umbrella brand to Old Navy and Banana Republic) director of strategic planning and environmental affairs notes that when using green marketing to re brand, “it’s more of when it’s right for us as a company and when it’s right for the consumers.” Smart marketers have a knack for doing the right thing, at the right time, and targeting the right people. Companies who succeeded in sustainability must use this combination when it comes to green marketing. The consumer not only buys the product, they buy into marketing campaigns and it is essential to keep that at the forefront when creating a sustainable green marketing campaign. Lawlor, among other keynote speakers at the Branding for Sustainability (see above left) workshops, help companies and organizations find the right mix of branding, marketing, green initiatives, and corporate social responsibility to create a sustainable brand.

While this study offers an interesting perspective into what is to come in the next year, we cannot reject that we have undergone a cultural shift towards a greener economy which will continue to effect marketing tactics. While we are experiencing a tighter budget in many facets of life, which will of-course take a toll on marketing strategies, but will not end the age of green. Chief Marketing Strategist Bob Gilbreath argues that cause-marketing “ is still what will get the news” for marketers.