Contracts for Sustainable Business

bizmanwhOne of the oft neglected aspects of the sustainable business is the consideration of contracts already in place or up for bid.  Believe it or not, the idea of bringing up a sustainable consideration for contract is part of an ethical sustainable practice.  In layman’s terms, it is the “Walk the Walk as well as Talk the Talk” expectations that proves that Going Green is more than a marketing ploy for any company.  Green ethics adds dimension to the whole project of environmental empathy.  It seems inevitable that the present phase of widespread Greenwashing will eventually give way to Green verification.

If sustainable practices were furniture, most businesses would look like a warehouse with a few odd pieces of furniture made from orange crates as well as sawhorses and plywood desks, while still pretending to be high-end operations.  The failure to apply sustainable principles to all parts of the operation may seem of small concern now, but every passing year raises the Green IQ of the public and will certainly evoke more than a few new regulations.  It is time for Green pretenders to get honest and ethical.

In late 2009, President Obama signed Executive Order 13514.  This new order impacted all government agencies, requiring about a dozen basic compliance categories.  One of the demands was “Green Purchasing.”   If you feel somewhat relieved to learn that these rules only applied to government agencies, you won’t enjoy that feeling very long.  This executive order is the forecast of what is coming to all businesses in the next generation of rules.   This is a business issue that will continue to evolve and grow until it is as crucial a part of your business as payroll taxes.

Most people have heard about the obvious concerns for environmental improvement.  We know to install programmable thermostats, reduce energy consumption, and recycle our trash.  These are the introductory issues, and do not represent the the full application of a sustainable program.  One of the areas of constant neglect is in the contract and exchanges between your business and other companies.  WalMart showed its leadership in this area by not only imposing sustainability changes in its operation, but it then turned to all the vendors and services that they contracted and required them to step up to a higher standard of sustainable compliance or lose their relationship with WalMart.  That was bold, but it was also smart.  WalMart has emerged as a leader in environmental practices that took everyone’s attention off their pay scale issues and gave them a near halo in the business community.

If your company is Going Green, then I suggest that you put into your RFPs (Request for Proposal), bid requirements, and contract demands that any company doing business with your company must hold an “Audited Green Certification.”  Listen, anyone can fake Going Green for  a period of time.  There are even websites where phony “Green Business Certifications” are sold for a few hundred dollars and the submission a self-assessing form.  These programs are a sad joke on the purchasing public, and will eventually prove to be an embarrassment when the press looks at them with an investigative report.   Every bona fide Green or Sustainable business should prove up their environmental integrity by certification that requires an audit verification by an independent, national standard.

Even the EPA has proposed a “Environmentally Preferred Purchasing” protocol for businesses.  And, this does not mean taking the company’s word that they are “Green.”  One primary example of rampant Greenwashing is in the janitorial services.  The janitorial business is highly-competitive, cost conscious, and not above exaggerating their qualities to secure a contract to service your firm.  It is the nature of the business, and it is wise to know that their are two sides to nearly every business.  One is the sales representatives, and the other is the actual operation of the company.  Who hasn’t found a huge divide between what the sales guy promised, and what was actually provided after the deal was signed.

So, as the contract for your building comes up, why not put this kind of language in your RFP or bid requirements:

“As an environmentally concerned business desirous to participate in the sustainable practices that impact our community and our world, our company requires all services and vendors to demonstrate similar environmental commitment by providing a Green business certification that comes from an audited verification by a national organization.  Concerns for Greenwashing and ethical application of sustainable practices encourages our company to require all vendors to comply with verified environmental compliance.”

This simple inclusion in all contract will do more for the environmental cause than nearly any rule coming out of Washington, D.C.  We all know that this is no longer a casual commitment.  The environmental issues are a universal problem that requires universal participation.  By taking a page from the WalMart playbook, every business can play a powerful and important role in turning our world around.

Returning to the topic of the janitorial service, the industry standard is to solicit bids and award the contract to the lowest bidder.  The normal bid practice is to gloss over the Green issue by any means to capture the bid.   In most cases, a Green janitorial service’s only claim to Green is the purchase of a few Green cleaning products or the use of HEPA vacuums.  How does anyone know if the company really knows or applies the dozens of Green tactics?   Worse yet, numerous janitorial services have invented their own Green insignia to falsely impress their customers with their Green credentials.   The Green Clean Institute is the largest janitorial certification program in America and other countries.  Stepping up to the requirements of the Green certification is not difficult, but of great importance to the companies that janitorial businesses serves.

Apply the Green Certification clause to all contracts that are offered or renewed in 2010.  You will find that the impact within your own business is tremendous.  As with most important journeys, they all start with the first step.  Companies wishing to find an audited process  for Green business certification should go to the Green Business League.  The Green Business League is the only company with a field force of more than 300 Certified Green Consultants capable of conducting a legitimate Green audit, providing professional guidance, and offering an national recognition for companies committed to being ethically and authentically Green.

One Response to “Contracts for Sustainable Business”

Videos, Slideshows and Podcasts by Cincopa Wordpress Plugin