Exploiting green strategies for competitive advantage

Abstract

I T IS NOW WIDELY accepted that environmental issues must be considered as strategic in a growing number of industries ; it is also generally claimed that a shift from the traditional reactive approach to environmental issues to a more proactive, anticipatory attitude is needed to take advantage of environmental-based business opportunities.’ So far, however, little attention has been devoted to a thorough comprehension of the actual advantages and disadvantages of such a proactive attitude. This article discusses the problem and suggests some strategic programmes that can support proactive environmental strategies, clarifying the conditions under which this attitude appears more effective. The paper is divided into three parts. Part one analyses the advantages and risks of an anticipatory attitude towards environmental problems. Part two discusses a contingent approach to the strategic analysis of environmental problems. According to where a company competes (in terms of public opinion, industry norms, and technology), this offers some implications for a company’s most effective strategy on and approach to environmental problems. Specific courses of action are suggested for companies operating in an anticipatory, proactive or creative mode to reduce the risk involved in the management of environmental problems. Part three discusses the application of the recommended approach, with The Challenge