Advantages and Disadvantages of Corporations Going Green

In an increasingly environmentally conscious world, “Going Green” has become the new hot trend. It is gaining so much recognition that corporations, not merely individuals, are beginning to take notice. Going green, becoming more environmentally aware and then putting that awareness into practice, is increasingly common among both individuals and businesses. But what advantages – and for that matter what disadvantages – are there for a corporation that decides to go green?

This article from eHow.com breaks down both sides of the argument. Does going green really save money and help the planet or is it just another over-hyped fad?

Advantages:

•     Saving Money: According to Microsoft, turning off your machine every night, or putting it into "hibernate" mode so that the screen uses no energy, can save $90 per computer over the course of a year. When you imagine how many computers large corporations use, you can see how greener practices can save businesses money.

•     Customer Preferences: Customers prefer companies that care. It is that simple. Going green will give you an advantage over corporations that do not.

•     Tax Benefits: The 2009 federal stimulus bill contained approximately $50 billion in funding to promote clean energy. Among the incentives are tax deductions for businesses that can cut their building's energy consumption by 50 percent.

Disadvantages:

•     Cost Effectiveness: The initial cost of going green can be fairly high. Solar cells have become more efficient over the last 20 years, but still take around three years to pay back their upfront costs in the form of lower power bills, according to the Brookhaven National Laboratory. The decision to go green is a long term investment.

•     Market Size: A recent article in Harvard Business Review argued that "brands that truly appeal to the environmentalist consumer can't reach the mainstream." It cites research showing that protecting the environment is rarely the key reason why people choose to buy a product.

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