Business 10th Edition by Ferrell,Geoffrey Hirt,Linda Ferrell

Exercise 4

Finance Executives Recognize the Benefits of Method's Green Efficiencies
Method is a green company in more ways than one. Not only does it sell eco-friendly household supplies, but it also generates more than $100 million in annual revenues. Thanks to companies like Method, finance executives are beginning to realize the financial benefits of going green. At a time when the prices of commodities are rapidly fluctuating, finance executives are looking for ways to cut costs. Eco-friendly options such as decreasing energy use, using recycled materials, and reducing packaging are becoming viable methods for saving money and improving efficiency. A recent poll found that 40 percent of finance executives are increasing their facilities' efficiency through better energy management, while one-third are undertaking initiatives to increase the efficiency of their shipping, including the adoption of more fuel-efficient vehicles. Method, for instance, has significantly increased its use of biodiesel trucks, which emit 20 percent less carbon and air pollutants than traditional trucks.
Method aligns its environmental objectives with its cost-saving goals. The operations and finance departments routinely work together to look at what ingredients and processes would save money while also reducing Method's environmental impact. Sometimes, this requires the company to adopt additional costs in the short run in order to save money over the long term. Method's long-term perspective, efficient operations, and popularity with customers are catching on with competitors. It is estimated that eco-friendly household supplies consist of 30 percent of household cleaning products. And as green products and operational processes increase, Method already has a head start. 2
Do you think other household supply companies are beginning to realize how green products can improve their financial conditions?