Business Changes The World
Green trade show/conference coming

by Michael Kramer

With a growing awareness of the threats posed by human activities on the planet, more people in this country are realizing the importance of improving our relationship with the natural environment on which our survival depends.
The consequences of 200 years of industrial economics-pollution, exploitation, degradation, diminishing biodiversity, and global warming-affect everyone on the planet. The tasks of saving civilization and restoring the ecosystems of which we are a part rest with people of all ages in all spheres of human activity. For generations, Americans left the job of caring for people and stewardship of the Earth to the gov-ernment or to activists. The business community did not assume this responsibility, even though Adam Smith theorized that those who seek wealth by following their individual self-interest inadvertently assist society as a whole. Smith claimed that, in capitalism, an individual pursuing his own good tends also to promote the good of his community, but throughout our history, this was primarily demonstrated through philanthropy. Indeed, the independent sector was funded from corporate barons of industry as a way to give back to communities

Triple bottom line
Today, ethics are more a part of "the business of business" than ever before. The notion of profit by any means is gradually being displaced by a more socially conscious position of "making money while making a difference." In redefining profit as the "triple bottom line" of social, environmental, and economic benefits, the activities associated with wealth creation can also demonstrate care for employees, customers, communities, and the environment.
The business community now boasts boom industries that reward values-based companies with ever-increasing shares of their respective markets. The emergence of what sociologist Paul Ray calls the "cultural creatives"-25% of the American and European populations who seek less stress, more health, lower consumption, more spirituality, and more respect for the earth-translates to conscious shopping across all sectors of the global economy: healthier, organic food; holistic preventive health care and herbal and homeopathic remedies; renewable energy; natural-dyed, organic, and sweatshop-free clothing; green building materials; biodegradable, recycled and recyclable products; exercise and yoga gear and equipment; fair trade agricultural products; and a wide array of efficient and resource-conservative products that simply use less.
But it isn't just about the products themselves; it's also about the ways in which a company conducts itself that may determine whether a conscious consumer will stay loyal to a brand. Ellis Jones' recent book, The Better World Shopping Guide (New Society, 2006) rates most of the major companies in 73 categories, using environmental criteria as well as human rights, community involvement, animal protection, corporate crime, discrimination, employee treatment, and philanthropy. His findings won't surprise HIJ readers: Seventh Generation, Patagonia, and American Apparel are the top three American companies, while Exxon Mobil, Altria (Philip Morris), Wal-Mart, and General Electric are among the bottom 10.
Ellis' criteria match those of socially responsible mutual funds. Of the 200 such funds which set high standards for screening companies in or out of their portfolios, many use criteria such as operations in repressive regimes, frequency of lawsuits and boycotts, impact on indigenous populations, participation in the military-industrial complex, escaping the American regulatory environment, excessive executive pay, workplace diversity, product and workplace safety, and company transparency.
While the movement towards socially conscious business practices emphasizes larger corporations, these principles apply to smaller, locally-owned businesses,as well. Coop America has been publishing the National Green Pages of such small businesses for over 20 years, highlighting businesses that are making a commitment to responsible production and operations.
Because of their commitment to the "triple bottom line" of financial, social and environmental performance, green businesses enjoy a number of competitive advantages: improved financial performance, in-creased profit and greater access to capital; greater efficiency, productivity and quality; increased sales from enhanced brand image, reputation, and customer loyalty; greater ability to attract, motivate and retain a talented workforce; and better management of risk to their reputation, finances, and business environment.

Kuleana in Kona
These issues are of great importance to small and large businesses alike here on Hawai'i Island. As such, the Kona-Kohala Chamber of Commerce initiated the first socially responsible business program in the state. The Kuleana Green Business Program, with its tagline, "Integrity and Stewardship in Action," recognizes Chamber members who embrace their kuleana to generate profits with positive impacts on their social and natural environments. As corporate citizens, these businesses set high standards of integrity, commitment and respect in their engagement with employees, customers, community, and the environment.
Inclusion in the Kuleana Program is based on compliant practices in the areas of production, purchasing, operations, sales, management and promotion in five categories:
Product/Service Quality: unique products or services that are documented as delivering benefits to consumers, society and the environment;
Community Relations and Benefits: activities that help the community to flourish socially, culturally, and economically;
Customer Relations: strategies to provide outstanding service and attain customer loyalty;
Employee Relations: policies and practices for hiring and retaining employees, and for promoting accountability; and
Environmental Stewardship: actions to minimize harmful impacts while also conserving and regenerating natural resources.
Kuleana Program members may display the program membership certificate and window decal in their physical location, use the logo in their marketing programs, participate in cooperative marketing efforts, and be highlighted in Chamber publications and its Web site.
Initiated in 2006, the program educates businesspeople and the public about the strategies and benefits of socially responsible practices. Through seminars, case studies, and industry-specific standards, any business can discover ways to improve its operations and customer base.

Green trade show
On May 10, the Chamber hosts the 2nd Annual Kuleana Business Program and Trade Show at the Sheraton Keauhou Bay Resort. The conference, part of the Kona Earth Festival (konaearthfesti-val.org/events/Kuleana-Conference.htm), promotes conscious business practices.
The agenda features Hawai'i's leaders in promoting socially and environmentally responsible business practices: Kelly King of Pacific Biodiesel shares Hawai'i's community-based biodiesel production strategy. UH Associate Professor Ira Rohter addresses how the Hawai'i business community can survive peak oil and global climate change, and Mitch Ewan from the Hawai'i Natural Energy Institute discusses hydrogen energy, including a proposed project at NELHA. Rosa Say of Say Leadership Coaching explores strategies for managing a business with aloha. Ian Chan Hodges, National Coordinator of the American Ingenuity Alliance, shares steps to define the responsible Hawai'i corporation, while Michael Kramer (yours truly) of Natural Investment Services details how business can meet values-based consumer spending habits. Lynn VanLeeuwen of Lynn VanLeeuwen & Associates examines national and local opportunities for green purchasing. Nancy Redfeather facilitates an expert sustainable-agriculture panel, and Kona Blue CEO Mike Wink shares strategies for how to make green business practices work.
The conference will also present the 2nd Annual Kuleana Award for exceptional socially responsible business leadership in West Hawai'i.
This year's conference features an inaugural trade show for businesses to demonstrate their efforts to contribute to the welfare of employees, customers, the community, society, and the environment.
Registration, available via kona-kohala.com, is $50 for Chamber members, $60 for non-members, and includes an organic, locally sourced lunch.
Michael Kramer, founder of the Kuleana Green Business Program, is an Accredited Investment Fiduciary® and co-owner of Natural Investment Services, LLC, one of the nation's leading social investment firms and the only advisor in Hawai'i, which exclusively manages portfolios of socially responsible investments. He can be reached at Michael@NaturalInvesting.com or 331-0910.

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