Your Green Review

Imagine a business. For the better part of the last 20 years, this business has worked to position itself as one of the nation's leading ‘socially responsible' providers of eco-friendly household products while pouring countless man hours into engaging and educating its customers in the importance of low-impact living. Business is good, customers are loyal and it would seem that only the potential for growth exists.

Now imagine, with the publication of one third party document, years of work spent establishing trust and credibility with a growing customer base coming undone in the blink of an eye. Such was the predicament of Seventh Generation last March when the Organic Consumers Association released a report revealing the presence of 1,4 Dioxane in one of its dish liquids. As Jeffrey Hollander, CEO of Seventh Generation, states "...it didn't matter that the product had the lowest dioxane levels of any dish liquid tested, or that the FDA deemed those levels "safe." All that mattered was that we failed to reveal the problem."

What Seventh Generation learned last spring is a lesson many businesses would do well to heed: the rules have changed and in green business, radical transparency is king. Consumers expect no less.

Transparency Best Practices:

• Corporate Social Responsibility (CSR) reports aren't only for fortune 500's. Just because your business doesn't have thousands to sink into comprehensive CSR reports doesn't mean that you're excluded from regular, quantified performance reporting. This means periodic reviews (aka, ‘audits') and continuous improvement strategies that can be openly shared online and off.

• Opaque spells ‘out of business' with today's consumer.. It's ok to be imperfect but non-disclosure is not an option if your business hopes to stay afloat. Full transparency, a la Patagonia's Footprint Project, is key. That means reporting the good and the bad to build trust and accountability.

• Get to the point: Consumers dislike ambiguity and detest false representation. Throwing around unregulated terms like ‘natural' and ‘eco-friendly' won't only raise a few red flags but can do irreparable damage to company reputation if claims can't be supported or clearly defined. Do what you say and say what you do. It's that simple.

• Verification on demand should be commonplace. Any company can claim environmental responsibility but full transparency demands supporting documents that aren't just available but easy to find. Consumers have learned a thing or two since the Horizon "organic" milk scandal and don't like the whole ‘Green when convenient' thing. Posting supporting documents online and in commonly-viewed areas lets your customers and employees know you've got nothing to hide.

• Social media is your best friend. If still you doubt, swing by Twitter some time and check out the lengthy list of corporations both large and small that are reinventing stakeholder engagement, viral marketing and, by default, transparency and accountability through open, unfiltered consumer dialogue. There is no better place to foster the growth of trust and credibility with your consumers than out in the open.

YGR RESOURCES:

Environmental Management Systems Step One: Commit and Plan

Environmental Management Systems Step Two: Do, Check, Act

Greening Your Business: Who, Why, What, How?

21 Best Green Business Tips

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