Environmental product differentiation: Implications for corporate strategy

California Management Review

Volumn , Issue 4, 1998, Pages 43-73

  Reinhardt, Forest L ^a  

^a NONE

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EID: 0032381871     PISSN: 00081256     EISSN: None     Source Type: Journal    
DOI: 10.2307/41165964     Document Type: Article

References (86)

1. Giulio M. Gallarotti, "It Pays to Be Green: The Managerial Incentive Structure and Environmentally Sound Strategies," Columbia Journal of World Business, 30/4 (Fall 1995): 38-57. Similar approaches appear in Stuart Hart, "Beyond Greening: Strategies for a Sustainable World," Harvard Business Review, 75/1 (January/ February 1996): 66-76; Joel Makower, The E-Factor: The Bottom-Line Approach to Environmentally Responsible Business (New York, NY: Tilden Press, 1993); Tedd Saunders and Loretta McGovern, The Bottom Line of Green Is Black (New York, NY: HarperCollins, 1993).
2. Giulio M. Gallarotti, "It Pays to Be Green: The Managerial Incentive Structure and Environmentally Sound Strategies," Columbia Journal of World Business, 30/4 (Fall 1995): 38-57. Similar approaches appear in Stuart Hart, "Beyond Greening: Strategies for a Sustainable World," Harvard Business Review, 75/1 (January/ February 1996): 66-76; Joel Makower, The E-Factor: The Bottom-Line Approach to Environmentally Responsible Business (New York, NY: Tilden Press, 1993); Tedd Saunders and Loretta McGovern, The Bottom Line of Green Is Black (New York, NY: HarperCollins, 1993).
3. Giulio M. Gallarotti, "It Pays to Be Green: The Managerial Incentive Structure and Environmentally Sound Strategies," Columbia Journal of World Business, 30/4 (Fall 1995): 38-57. Similar approaches appear in Stuart Hart, "Beyond Greening: Strategies for a Sustainable World," Harvard Business Review, 75/1 (January/ February 1996): 66-76; Joel Makower, The E-Factor: The Bottom-Line Approach to Environmentally Responsible Business (New York, NY: Tilden Press, 1993); Tedd Saunders and Loretta McGovern, The Bottom Line of Green Is Black (New York, NY: HarperCollins, 1993).
4. Giulio M. Gallarotti, "It Pays to Be Green: The Managerial Incentive Structure and Environmentally Sound Strategies," Columbia Journal of World Business, 30/4 (Fall 1995): 38-57. Similar approaches appear in Stuart Hart, "Beyond Greening: Strategies for a Sustainable World," Harvard Business Review, 75/1 (January/ February 1996): 66-76; Joel Makower, The E-Factor: The Bottom-Line Approach to Environmentally Responsible Business (New York, NY: Tilden Press, 1993); Tedd Saunders and Loretta McGovern, The Bottom Line of Green Is Black (New York, NY: HarperCollins, 1993).
5. See, e.g., Noah Walley and Bradley Whitehead, "It's Not Easy Being Green," Harvard Business Review, 72/3 (May/June 1994): 46-52; Karen Palmer, Wallace E. Oates, and Paul R. Portney, "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?" Journal of Economic Perspectives, 9/4 (Fall 1995): 119-132.
6. See, e.g., Noah Walley and Bradley Whitehead, "It's Not Easy Being Green," Harvard Business Review, 72/3 (May/June 1994): 46-52; Karen Palmer, Wallace E. Oates, and Paul R. Portney, "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?" Journal of Economic Perspectives, 9/4 (Fall 1995): 119-132.
7. Dennis A. Rondinelli and Gyula Vastag, "International Environmental Standards and Corporate Policies: An Integrative Framework," California Management Review, 39/1 (Fall 1996): 106-122.
8. The best known of Nobel laureate George Stigler's pathbreaking writings on this subject is "The Theory of Economic Regulation," Bell Journal of Economics and Management Science, 2 (1971): 3-21. This topic is also covered in David Baron's excellent textbook Business and its Environment, second edition (Upper Saddle River, NJ: Prentice-Hall, 1996). In "Du Pont Freon Products Division (A)," Harvard Business School case #9-389-111, 1989, reprinted in Forest Reinhardt and Richard H.K. Vietor, Business Management and the Natural Environment: Cases and Text (Cincinnati, OH: South-Western, 1996), Reinhardt and Vietor describe an example of the strategic use of regulation.
9. The best known of Nobel laureate George Stigler's pathbreaking writings on this subject is "The Theory of Economic Regulation," Bell Journal of Economics and Management Science, 2 (1971): 3-21. This topic is also covered in David Baron's excellent textbook Business and its Environment, second edition (Upper Saddle River, NJ: Prentice-Hall, 1996). In "Du Pont Freon Products Division (A)," Harvard Business School case #9-389-111, 1989, reprinted in Forest Reinhardt and Richard H.K. Vietor, Business Management and the Natural Environment: Cases and Text (Cincinnati, OH: South-Western, 1996), Reinhardt and Vietor describe an example of the strategic use of regulation.
10. The best known of Nobel laureate George Stigler's pathbreaking writings on this subject is "The Theory of Economic Regulation," Bell Journal of Economics and Management Science, 2 (1971): 3-21. This topic is also covered in David Baron's excellent textbook Business and its Environment, second edition (Upper Saddle River, NJ: Prentice-Hall, 1996). In "Du Pont Freon Products Division (A)," Harvard Business School case #9-389-111, 1989, reprinted in Forest Reinhardt and Richard H.K. Vietor, Business Management and the Natural Environment: Cases and Text (Cincinnati, OH: South-Western, 1996), Reinhardt and Vietor describe an example of the strategic use of regulation.
11. The best known of Nobel laureate George Stigler's pathbreaking writings on this subject is "The Theory of Economic Regulation," Bell Journal of Economics and Management Science, 2 (1971): 3-21. This topic is also covered in David Baron's excellent textbook Business and its Environment, second edition (Upper Saddle River, NJ: Prentice-Hall, 1996). In "Du Pont Freon Products Division (A)," Harvard Business School case #9-389-111, 1989, reprinted in Forest Reinhardt and Richard H.K. Vietor, Business Management and the Natural Environment: Cases and Text (Cincinnati, OH: South-Western, 1996), Reinhardt and Vietor describe an example of the strategic use of regulation.
12. The best known of Nobel laureate George Stigler's pathbreaking writings on this subject is "The Theory of Economic Regulation," Bell Journal of Economics and Management Science, 2 (1971): 3-21. This topic is also covered in David Baron's excellent textbook Business and its Environment, second edition (Upper Saddle River, NJ: Prentice-Hall, 1996). In "Du Pont Freon Products Division (A)," Harvard Business School case #9-389-111, 1989, reprinted in Forest Reinhardt and Richard H.K. Vietor, Business Management and the Natural Environment: Cases and Text (Cincinnati, OH: South-Western, 1996), Reinhardt and Vietor describe an example of the strategic use of regulation.
13. See Mancur Olson, The Logic of Collective Action (Cambridge, MA: Harvard University Press, 1965); for an example of a private initiative aimed at solving collective action problems, see Jeffrey Rayport and George Lodge, "Responsible Care," Harvard Business School case #9-391-135, 1991.
14. See Mancur Olson, The Logic of Collective Action (Cambridge, MA: Harvard University Press, 1965); for an example of a private initiative aimed at solving collective action problems, see Jeffrey Rayport and George Lodge, "Responsible Care," Harvard Business School case #9-391-135, 1991.
15. See, for example, Michael E. Porter and Claas van der Linde, "Toward a New Conception of the Environment-Competitiveness Relationship," Journal of Economic Perspectives, 9/4 (Fall 1995): 97-118; Karen Palmer, Wallace E. Oates, and Paul R. Portney, "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?" Journal of Economic Perspectives, 9/4 (Fall 1995): 119-132.
16. See, for example, Michael E. Porter and Claas van der Linde, "Toward a New Conception of the Environment-Competitiveness Relationship," Journal of Economic Perspectives, 9/4 (Fall 1995): 97-118; Karen Palmer, Wallace E. Oates, and Paul R. Portney, "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?" Journal of Economic Perspectives, 9/4 (Fall 1995): 119-132.
17. Some marketers use "process differentiation" to refer to the sale of products manufactured in alternative (and putatively preferable) ways, reserving "product differentiation" to refer only to the sale of products whose characteristics in use are different. In this taxonomy, the sale of low-emission gasoline would be an example of product differentiation, but the sale of "green" electricity (produced from renewable energy sources, but indistinguishable in use from the electricity produced at coal-fired boilers or nuclear reactors) would be an example of process differentiation and not of product differentiation. This article, following common usage, employs the term "product differentiation" to encompass marketing strategies in both of these categories.
18. For some firms, the provision of this additional environmental quality can actually lower the producing firm's private costs; see the Porter and van der Linde article cited above. This article focuses on the case, widely thought to be more common, in which the provision of environmental quality adds to the selling firm's costs. From the standpoint of microeconomic theory, product differentiation is simply the creation of a new market, protected by barriers to entry or barriers to mobility, in which an individual producer faces finite elasticity of demand. See Richard E. Caves and Michael Porter, "From Entry Barriers to Mobility Barriers: Conjectural Decisions and Contrived Deterrence to New Competition," Quarterly Journal of Economics, 91/2 (1977): 241-262; Richard E. Caves and Peter J. Williamson, "What Is Product Differentiation, Really?" Journal of Industrial Economics, 34 (1985): 113-132. The economic literature on product differentiation focuses on the identification of the conditions that will lead to lesser or greater differentiation, and on the social welfare consequences of differentiation and advertising; for a survey, see Jean Tirole, The Theory of Industrial Organization (Cambridge, MA: MIT Press, 1988), chapter 7.
19. For some firms, the provision of this additional environmental quality can actually lower the producing firm's private costs; see the Porter and van der Linde article cited above. This article focuses on the case, widely thought to be more common, in which the provision of environmental quality adds to the selling firm's costs. From the standpoint of microeconomic theory, product differentiation is simply the creation of a new market, protected by barriers to entry or barriers to mobility, in which an individual producer faces finite elasticity of demand. See Richard E. Caves and Michael Porter, "From Entry Barriers to Mobility Barriers: Conjectural Decisions and Contrived Deterrence to New Competition," Quarterly Journal of Economics, 91/2 (1977): 241-262; Richard E. Caves and Peter J. Williamson, "What Is Product Differentiation, Really?" Journal of Industrial Economics, 34 (1985): 113-132. The economic literature on product differentiation focuses on the identification of the conditions that will lead to lesser or greater differentiation, and on the social welfare consequences of differentiation and advertising; for a survey, see Jean Tirole, The Theory of Industrial Organization (Cambridge, MA: MIT Press, 1988), chapter 7.
20. For some firms, the provision of this additional environmental quality can actually lower the producing firm's private costs; see the Porter and van der Linde article cited above. This article focuses on the case, widely thought to be more common, in which the provision of environmental quality adds to the selling firm's costs. From the standpoint of microeconomic theory, product differentiation is simply the creation of a new market, protected by barriers to entry or barriers to mobility, in which an individual producer faces finite elasticity of demand. See Richard E. Caves and Michael Porter, "From Entry Barriers to Mobility Barriers: Conjectural Decisions and Contrived Deterrence to New Competition," Quarterly Journal of Economics, 91/2 (1977): 241-262; Richard E. Caves and Peter J. Williamson, "What Is Product Differentiation, Really?" Journal of Industrial Economics, 34 (1985): 113-132. The economic literature on product differentiation focuses on the identification of the conditions that will lead to lesser or greater differentiation, and on the social welfare consequences of differentiation and advertising; for a survey, see Jean Tirole, The Theory of Industrial Organization (Cambridge, MA: MIT Press, 1988), chapter 7.
21. Philip Kotler's widely used basic marketing textbook, Marketing Management, ninth edition (Upper Saddle River, NJ: Prentice-Hall, 1997), includes (pp. 294-295) a list of seven criteria that managers should use to analyze potential "differentiators" of their products: "Important: The difference delivers a highly valued benefit to a sufficient number of buyers. Distinctive: The difference either isn't offered by others or is offered in a more distinctive way by the company. Superior: the difference is superior to other ways of obtaining the same benefit. Communicable: The difference is communicable and visible to buyers. Preemptive: The difference cannot be copied easily by competitors. Affordable: The buyer can afford to pay for the difference. Profitable: The company will find it profitable to introduce the difference." Of these seven criteria, the first, third, and sixth relate directly to willingness to pay; the fourth to credible information; the second and fifth to protection from imitation. The seventh follows from the first six.
22. Ciba Specialty Chemicals, Global Offering of Registered Shares, Basel, Switzerland, 1997; Ciba Specialty Chemicals, Financial Review 1997 and Business Review 1997, Basel.
23. Ciba Specialty Chemicals, Global Offering of Registered Shares, Basel, Switzerland, 1997; Ciba Specialty Chemicals, Financial Review 1997 and Business Review 1997, Basel.
24. 2 = 84% of a bireactive dye will fix.
25. Ciba-Geigy Limited, Cibacron LS Reactive dyes for dyeing cellulosic fibres by the exhaust method, Basel, Switzerland, 1995; Ciba-Geigy Limited, Summary Report 1995, Basel, Switzerland, p. 20.
26. Ciba-Geigy Limited, Cibacron LS Reactive dyes for dyeing cellulosic fibres by the exhaust method, Basel, Switzerland, 1995; Ciba-Geigy Limited, Summary Report 1995, Basel, Switzerland, p. 20.
27. Monsanto Company, Roundup into the Twenty-First Century, St. Louis, MO, 1995. Glyphosate is N-(phosphonomethyl)-glycine.
28. Monsanto Company, Roundup: From Prairie to Pompeii, St. Louis, MO, 1991.
29. Monsanto Company, 1996 Annual Report to Shareholders, St. Louis, MO, pp. 11A-11B; U.S. Bureau of the Census, Statistical Abstract of the United States, 116th edition, Washington, D.C., 1996, p. 676.
30. Monsanto Company, 1996 Annual Report to Shareholders, St. Louis, MO, pp. 11A-11B; U.S. Bureau of the Census, Statistical Abstract of the United States, 116th edition, Washington, D.C., 1996, p. 676.
31. Monsanto Company, 1992 Annual Report, St. Louis, MO.
32. Monsanto Company, Roundup into the Twenty-First Century, St. Louis, MO, 1995.
33. Union of Concerned Scientists, Case Study: Roundup Ready Soybeans, http://www.ucsusa.org/agriculture/soybeans.html, accessed May 5, 1998. I am indebted to an anonymous referee at the California Management Review for emphasizing to me the degree of controversy concerning agricultural biotechnology.
34. Union of Concerned Scientists, Case Study: Roundup Ready Soybeans, http://www.ucsusa.org/agriculture/soybeans.html, accessed May 5, 1998. I am indebted to an anonymous referee at the California Management Review for emphasizing to me the degree of controversy concerning agricultural biotechnology.
35. See, for example, Peggy Duxbury and Forest Reinhardt, "Reading Energy," Harvard Business School case #9-794-102, reprinted in Reinhardt and Richard H.K. Vietor, Business Management and the Natural Environment: Cases and Text (Cincinnati, OH: South-Western, 1996).
36. See, for example, Peggy Duxbury and Forest Reinhardt, "Reading Energy," Harvard Business School case #9-794-102, reprinted in Reinhardt and Richard H.K. Vietor, Business Management and the Natural Environment: Cases and Text (Cincinnati, OH: South-Western, 1996).
37. See Forest Reinhardt and Richard H.K. Vietor, "Du Pont Freon Products Division (A)," Harvard Business School case #9-389-111, 1989; Jeffrey Rayport and George Lodge, "Responsible Care," Harvard Business School case #9-391-135, 1991.
38. See Forest Reinhardt and Richard H.K. Vietor, "Du Pont Freon Products Division (A)," Harvard Business School case #9-389-111, 1989; Jeffrey Rayport and George Lodge, "Responsible Care," Harvard Business School case #9-391-135, 1991.
39. Haig Simonian, "Business and the Environment: Plastic Fashion," Financial Times, April 12, 1995, p. 16.
40. David Clark Scott, "Sartorially Correct '90s Camper or Hiker Wears Soda Bottles," Christian Science Monitor, January 20, 1995, p. 8.
41. "Patagonia's Environmental Marketing - A Boomer Paradigm? Barry Lenson interviews Mike Harrelson of Patagonia," The Boomer Report, April 15, 1994, p. 4.
42. Andrea Adelson, "Earning It; Casual, Worker-Friendly, and a Moneymaker, Too," The New York Times, June 30, 1996, section 3, p. 8.
43. Edward Welles, "Lost in Patagonia," Inc. (August 1992), p. 44.
44. Yvon Chouinard and Michael S. Brown, "Going Organic: Converting Patagonia's Cotton Product Line," Journal of Industrial Ecology, 1/1 (Spring 1997): 117-130.
45. Staci Bonner, "Patagonia: A Green Endeavor," Apparel Industry Magazine (February 1997), p. 46.
46. Yvon Chouinard and Michael S. Brown, "Going Organic: Converting Patagonia's Cotton Product Line," Journal of Industrial Ecology, 1/1 (Spring 1997): 117-130.
47. Patagonia, Inc., Patagonia Fall 1997 [mail-order catalog], p. 62.
48. National Research Council, Committee on Reducing Porpoise Mortality from Tuna Fishing, Dolphins and the Tuna Industry (Washington, D.C.: National Academy Press, 1992), pp. 34-37, 52-71.
49. Ibid., pp. 52-90; U.S. International Trade Commission, Tuna: Current Issues Affecting the U.S. Industry, USITC publication #2547 (August 1992), pp. 3-1 through 3-22, and 5-2 through 5-4.
50. Ibid., pp. 52-90; U.S. International Trade Commission, Tuna: Current Issues Affecting the U.S. Industry, USITC publication #2547 (August 1992), pp. 3-1 through 3-22, and 5-2 through 5-4.
51. See Richard H.K. Vietor and Forest Reinhardt, "StarKist (A)," Harvard Business School case #9-794-128, 1994, reprinted in Reinhardt and Vietor, Business Management and the Natural Environment (Cincinnati, OH: South-Western, 1996).
52. See Richard H.K. Vietor and Forest Reinhardt, "StarKist (A)," Harvard Business School case #9-794-128, 1994, reprinted in Reinhardt and Vietor, Business Management and the Natural Environment (Cincinnati, OH: South-Western, 1996).
53. H.J. Heinz internal file notes, February 1990, cited in Vietor and Reinhardt, ibid., p. 12. At the time, the retail price of branded tuna (StarKist, Bumble Bee, or Chicken of the Sea) ranged from 70 to 75 cents per can.
54. Philip Shabecoff, "Big Tuna Canners Act to Slow Down Dolphin Killings," The New York Times, April 13, 1990, p. A1.
55. See Richard H.K. Vietor and Forest Reinhardt, "StarKist (B)," Harvard Business School case #9-794-139, 1994; Reinhardt interview with tuna executive Philippe Charat, Boston, MA, April 1994.
56. See Richard H.K. Vietor and Forest Reinhardt, "StarKist (B)," Harvard Business School case #9-794-139, 1994; Reinhardt interview with tuna executive Philippe Charat, Boston, MA, April 1994.
57. Unpublished data from the Interamerican Tropical Tuna Commission (IATTC), cited, inter alia, in Brad Warren, "The Downside of Dolphin-Safe," Audubon (November/December 1993), pp. 20-22; Mexico Secretaria de Pesca, "Mexico's Commitment to Dolphin Protection," Mexico City, 1994.
58. Unpublished data from the Interamerican Tropical Tuna Commission (IATTC), cited, inter alia, in Brad Warren, "The Downside of Dolphin-Safe," Audubon (November/December 1993), pp. 20-22; Mexico Secretaria de Pesca, "Mexico's Commitment to Dolphin Protection," Mexico City, 1994.
59. David Phillips, "Breakthrough for Dolphins: How We Did It," and Sam La Budde, "Notes from the Field," Earth Island Journal (Summer 1990), pp. 26-28.
60. White House Press Office, "Clinton Statement on Dolphin Conservation Act," August 19, 1997.
61. The distinction between private consumption goods and public goods is similar to the distinction between "tangible, personal benefits" and "intangible, societal benefits" drawn by V. Kasturi Rangan, Sohel Karim, and Sheryl K. Sandberg, in "Do Better at Doing Good," Harvard Business Review, 74/3 (May/June 1996): 42-54.
62. Mancur Olson explicitly excludes "philanthropic and religious organizations" from his classic study of collective action, arguing that they "are not necessarily expected to serve only the interests of their members; such organizations have other purposes that are considered more important, however much their members 'need' to belong, or are improved or helped by belonging....this study will focus on organizations with a significant economic aspect." Mancur Olson, The Logic of Collective Action (Cambridge, MA: Harvard University Press, 1965), p. 6, note 6.
63. For a summary, see, for example, W. Kip Viscusi, John M. Vernon, and Joseph E. Harrington, Jr., Economics of Regulation and Antitrust, second edition (Cambridge, MA: MIT Press, 1995), pp. 676-678.
64. Data on the income elasticity of the demand for environmental quality are surprisingly sparse. One recent study found voluntary contributions to American environmental groups like Ducks Unlimited, the Environmental Defense Fund, Greenpeace, and the Sierra Club to be significantly and negatively correlated with the unemployment rate, a finding broadly supportive of the idea that environmental goods behave like luxuries; see Jerrell Richer, "Green Giving: An Analysis of Contributions to Major U.S. Environmental Groups," Resources for the Future discussion paper #95-39, Washington, D.C., 1995.
65. David Besanko, David Dranove, and Mark Shanley, The Economics of Strategy (New York, NY: John Wiley & Sons, 1996), pp. 465-471; see also Pankaj Ghemawat, Commitment: The Dynamic of Strategy (New York, NY: Free Press, 1991), chapter 4.
66. David Besanko, David Dranove, and Mark Shanley, The Economics of Strategy (New York, NY: John Wiley & Sons, 1996), pp. 465-471; see also Pankaj Ghemawat, Commitment: The Dynamic of Strategy (New York, NY: Free Press, 1991), chapter 4.
67. The question of the prevalence of opportunities for vertical differentiation relates closely to the famous debate about the prevalence of private cost savings within the firm that can be discovered with the help of pressure to improve environmental performance. As noted in the footnotes above, this article concentrates on the more common case in which vertical differentiation is not possible because the provision of environmental quality adds to the selling firm's costs.
68. Psychologists and experimental economists have studied extensively the ways in which people's perceptions of the motives and intentions of others affect their own behavior toward the other people. For an overview, see Matthew Rabin, "Psychology and Economics," Journal of Economic Literature, 36/1 (1998): 11-46, especially pp. 16-24.
69. An anonymous reviewer pointed out that, owing to halo effects of this sort, the possibility arises that "an avenue to shareholder wealth is to sacrifice profitability on a single green product in order to benefit the firm's image and capitalize on that image elsewhere." In other words, it might be sensible for executives in multiproduct firms to use some of their products to enhance the firm's overall reputation among environmentally conscious customers, in effect subsidizing the firm's other products.
70. See Patricia Markovich and Forest Reinhardt, "Metsä-Serla: Environmental Labels in the European Forest Products Markets," Harvard Business School case #9-795-148, 1995; Jackie Prince Roberts and Forest Reinhardt, "Aracruz Celulose S.A.," Harvard Business School case #9-794-049, 1993, reprinted in Reinhardt and Richard H.K. Vietor, Business Management and the Natural Environment: Cases and Text (Cincinnati, OH: South-Western, 1996).
71. See Patricia Markovich and Forest Reinhardt, "Metsä-Serla: Environmental Labels in the European Forest Products Markets," Harvard Business School case #9-795-148, 1995; Jackie Prince Roberts and Forest Reinhardt, "Aracruz Celulose S.A.," Harvard Business School case #9-794-049, 1993, reprinted in Reinhardt and Richard H.K. Vietor, Business Management and the Natural Environment: Cases and Text (Cincinnati, OH: South-Western, 1996).
72. See Patricia Markovich and Forest Reinhardt, "Metsä-Serla: Environmental Labels in the European Forest Products Markets," Harvard Business School case #9-795-148, 1995; Jackie Prince Roberts and Forest Reinhardt, "Aracruz Celulose S.A.," Harvard Business School case #9-794-049, 1993, reprinted in Reinhardt and Richard H.K. Vietor, Business Management and the Natural Environment: Cases and Text (Cincinnati, OH: South-Western, 1996).
73. See David Vogel, Trading Up: Consumer and Environmental Regulation in a Global Economy (Cambridge, MA: Harvard University Press, 1995), chapter 4.
74. I am grateful to an anonymous reviewer at the California Management Review for emphasizing this point.
75. See, e.g., Janet Shaner, Mary Shelman, and Ray Goldberg, "Loblaw Companies Limited," Harvard Business School case #9-590-051, 1989, pp. 9-10.
76. See Jaclyn Fierman, "The Big Muddle in Green Marketing," Fortune, June 3, 1991, pp. 91ff.; Alex Pham, "Mobil in FTC Pact to Drop Claims of Plastic Degradability," Washington Post, July 28, 1992, p. C1; Dan Wascoe Jr., "FTC Issues Guidelines to Prevent Misleading Environmental Claims," Minneapolis Star Tribune, July 29, 1992, p. 1D.
77. See Jaclyn Fierman, "The Big Muddle in Green Marketing," Fortune, June 3, 1991, pp. 91ff.; Alex Pham, "Mobil in FTC Pact to Drop Claims of Plastic Degradability," Washington Post, July 28, 1992, p. C1; Dan Wascoe Jr., "FTC Issues Guidelines to Prevent Misleading Environmental Claims," Minneapolis Star Tribune, July 29, 1992, p. 1D.
78. See Jaclyn Fierman, "The Big Muddle in Green Marketing," Fortune, June 3, 1991, pp. 91ff.; Alex Pham, "Mobil in FTC Pact to Drop Claims of Plastic Degradability," Washington Post, July 28, 1992, p. C1; Dan Wascoe Jr., "FTC Issues Guidelines to Prevent Misleading Environmental Claims," Minneapolis Star Tribune, July 29, 1992, p. 1D.
79. See, for example, John Tierney, "Recycling Is Garbage," The New York Times Magazine, June 30, 1996. For rebuttals to Tierney, see "Too Good to Throw Away," Natural Resources Defense Council, New York, NY, 1997, and Richard Denison and John Ruston, "Anti-Recycling Myths," Environmental Defense Fund, Washington, D.C., 1996.
80. See, for example, John Tierney, "Recycling Is Garbage," The New York Times Magazine, June 30, 1996. For rebuttals to Tierney, see "Too Good to Throw Away," Natural Resources Defense Council, New York, NY, 1997, and Richard Denison and John Ruston, "Anti-Recycling Myths," Environmental Defense Fund, Washington, D.C., 1996.
81. See, for example, John Tierney, "Recycling Is Garbage," The New York Times Magazine, June 30, 1996. For rebuttals to Tierney, see "Too Good to Throw Away," Natural Resources Defense Council, New York, NY, 1997, and Richard Denison and John Ruston, "Anti-Recycling Myths," Environmental Defense Fund, Washington, D.C., 1996.
82. See David A. Aaker, Managing Brand Equity (New York, NY: Free Press, 1991), chapter 1.
83. This idea is central to Patagonia executives' own understanding of their initiatives: "Our experience reinforced for us that successful implementation of environmental improvements requires an integrated approach across the entire organization." Yvon Chouinard and Michael S. Brown, "Going Organic: Converting Patagonia's Cotton Product Line," Journal of Industrial Ecology, 1/1 (Spring 1997): 117-130, at 127.
84. See Forest Reinhardt and Richard H.K. Vietor, "Environmental Management: A Framework for Business Strategy," in Reinhardt and Vietor, Business Management and the Natural Environment (Cincinnati, OH: South-Western, 1996). See also Vietor, Contrived Competition: Regulation and Deregulation in America (Cambridge, MA: The Belknap Press of Harvard University Press, 1994).
85. See Forest Reinhardt and Richard H.K. Vietor, "Environmental Management: A Framework for Business Strategy," in Reinhardt and Vietor, Business Management and the Natural Environment (Cincinnati, OH: South-Western, 1996). See also Vietor, Contrived Competition: Regulation and Deregulation in America (Cambridge, MA: The Belknap Press of Harvard University Press, 1994).
86. See Robert H. Hayes, Steven C. Wheelwright, and Kim B. Clark, Dynamic Manufacturing (New York, NY: Free Press, 1988), pp. 74-76.