The Green Leadership approach to “eco-competitive advantage”
According to Michael Porter’s strategy model, firms create competitive advantage whether by cost leadership or differentiating products (Porter, 1998). However, traditional points of competitive differentiation have become obsolete forcing leaders to fundamentally “rethink” (Fineman, 2000) their identity by implementing green chromosomes into their DNA (Ottman, 2011). Conforming to the triple-line approach, today’s business inevitably requires companies to holistically balance out the three basic pillars to sustainability – also known as the social, environmental and economic commitments (Slaper & Hall, 2011) – in such an integrated way to best deliver profitable growth, sustainable profits and significant added value, as exemplified in figure 2 attached in the appendix (Fineman, 2000). By both thinking differently and embedding the additional challenges mentioned earlier to the heart of their strategy, tomorrow’s leaders are creating enduring eco-advantage, shaping the company’s future in a lasting way (Esty & Winston, 2011, p. 285). The implementation of green oriented strategy at all levels of a company, with a particular emphasis on environmental issues, may be condensed under the name of Green Leadership (Nienhaber, Liesenkötter, Adolphs, & Völker, 2012)
2.2 Definition & Controversial impact of Eco-labels
Eco-labels and related certifications were initially introduced to encourage consumers to adopt more sustainable consumption patterns through a responsible purchasing routine of environmentally friendly products. Likewise, they are expected to publically legitimate green credentials provided to the consumers and prevent abusive tendencies. In short, an eco-label attempts to provide relevant, accurate and meaningful information over the lifetime of a product to enable customers to quickly and easily embed human health and environmental consideration into their purchasing routine, with a statement of credibility, transparency and quality (Government Product
2.2 Definition & Controversial impact of Eco-labels
Eco-labels and related certifications were initially introduced to encourage consumers to adopt more sustainable consumption patterns through a responsible purchasing routine of environmentally friendly products. Likewise, they are expected to publically legitimate green credentials provided to the consumers and prevent abusive tendencies. In short, an eco-label attempts to provide relevant, accurate and meaningful information over the lifetime of a product to enable customers to quickly and easily embed human health and environmental consideration into their purchasing routine, with a statement of credibility, transparency and quality (Government Product