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Athanasios Polychronopoulos General Manager POLYECO S.A. Business Ethics and Green DevelopmentIn this time of international economic recession, doubt is being cast on the business world and its moral aspect, or lack thereof. In fact, they are being completely demonized.
On the other hand, green development seems to be gradually becoming more that just “the latest fad” or that necessary ingredient that defines a nation or a business as modern. It is becoming part of the data of political and economic analysis, an object of social networking, a criterion of identification for citizens, politicians, political parties, groups, movements, organizations and NGOs.
Under the present circumstances, green development has emerged as some sort of panacea both for all the problems, concerns and profits that businesses have encountered as well as the lack of social responsibility that resulted from this unregulated economic over-development. But this being an act of social responsibility, as a concept of philanthropy, is a complementary role.
Nonetheless, green development is not another division of business activity. It is not the section of any business plan. It cannot be encountered as a necessary component of any business action in order to be declared a tax exemption, a donation or a bonding incentive.
Green development is a self-contained, autonomous, complete, new model of development. It is a new form of entrepreneurship and a standard that concerns and characterizes all types of economic activity.
Green development is a development standard that puts people in at the epicenter within a healthy and developing natural environment. Green development simultaneously presumes and directs the rational utilization and development of all natural resources, the continuous protection of the environment and guarantees health and quality of life for people
Even if this may sound like an oxymoron to many people, development can be achieved ethically. And what is more, the profit incentive need not be immoral.
Besides, ethics is not a relative concept. It does not exclusively regard theoretical philosophy and it is not a legal concept. Ethics is an absolute concept that has to do with personal and collective decisions and, mainly, behaviors which have serious repercussions on someone’s reputation and primarily collective social implications on the commercial and productive decisions it makes.
As such, the choice of business ethics in the operation, organization, production and administration of a company is a conscious business decision. And it is a decision made only by the company’s leadership. Within this context, the “leader” consists of the standard both within and outside the company. He/she is the person who sets the standards for commercial responsibility. He/she is the person for whom obeying the law and making special payments in order to make the consequences of the company’s production more social. But he/she also takes care to instill in the company’s activities principles and values of respect toward people and society. He/she is the person that sets the example for good behavior, lifestyle and business agreements based on ethics, honesty and fair competition without monopolistic superiority and trying to dominate the market, the consumers and the suppliers.
But can we talk about a comeback for principles, values and moral business behavior today? Is it possible, in this era of the golden boys and in the context of a crooked and – by consequence – unsuccessful economic development what with the global economic recession, to discuss incorporating business ethics into the existing business operation and planning models? Are cutbacks to executive bonuses or exotic destinations for business conferences enough?
The answer is a unanimous no. The international recession is not a random or a coincidental event. The recession represents the exposure of all the wrong decisions regarding development models, economic progress and profitability. This is shown by the results, in the worldwide economic slump, in the depletion of the world’s natural resources, in the destruction of the environment with the intensity of global warming and, of course, the increase in unemployment in every nation and in all sectors of economic activity.
What emerges, therefore, is the need to define a new development model with the ability to offer multifarious business activities. One that will isolate the pathogenesis of the system that is in crisis today. Naturally, the new model must be able to instantly win the maximum possible support by and have extensive acceptance of society.
Green development can be just such a model.
Green development is the economic and industrial revolution of the 21st Century. It is the next step but one that is completely safe for people, the natural environment, natural resources and the economy.
Taking into account – at the maximum possible level – new technologies, green development offers important advantages both at the business and social levels.
Specifically, in an era when young scientists are finding it difficult to find a job, much less a position in their careers, the green development model is based entirely on the development of new technologies. It is estimated that, in Greece alone, it may create 256,000 – 403,500 new jobs by 2020, according to Greenpeace. It is worth mentioning that it already employs 2.5 million people all over the world in the technological area of green energy.
This trend towards green development, besides the new jobs it creates, also creates new scientific opportunities. Significantly, the development of renewable sources of energy, the “green modes of transport”, ecological construction & waste management and utilization are just some of the examples that have excellent potential.
If we wanted to mention specific examples, then I would be remiss if I did not present the Polyeco Company.
The Polyeco Company was founded in 2001 and today it is the first and only waste management and utilization company in Greece.
To summarize, Polyeco, among other things, utilizes waste by transforming it into a fuel derivative. The company processes packaging material and provides temporary storage and transport of any waste that cannot be processed and utilized in Greece abroad. It administers used batteries, fluorescent lamps and waste from dry cleaning establishments and car painting shops.
The basis for and motivation behind its creation were the successful results of a research program conducted by the General Secretariat for Research & Technology in which the Universities of Patras and Crete, NRCPS Dimocritos, TITAN Cement Co and Technical Environmental Protection S.A, part of the Ioannis Polychronopoulos Group, had participated.
Of course, development of green entrepreneurship requires investments in logistical infrastructure, staff training, the creation of new sales networks, a reversal of traditional production procedures towards these new technologies and, of course, in time.
If this investment in time inhibits a few from turning their business towards green development, both the new and clean technologies and the other types of investment will yield immediate results.
Specifically, in an era of maximum utilization of the Internet, the so-called social networks (such as twitter, facebook, et al) can create and disseminate the product and the company in no time at all. In this way, on the one hand, the company’s image and the “reputation” of the green business model develops and disseminates to a tremendously large number of people at practically zero cost and, on the other hand, it creates new client bases and, potentially, interested partners for the sales network.
At this point, we should mention a new group in facebook, econews.gr which is the main news portal for the environment in Greece. In just one week, it registered more than 1,000 new supporters and potential clients of the portal.
Simultaneously, investors in the logistical infrastructure and in knowledge are a guaranteed success since the business will continuously be current and “in” on all scientific and technological developments.
But we must not overlook by any means the contribution of green entrepreneurship to the social fabric. Specifically, the new jobs, especially new scientific jobs, will create conditions of job security and potential which, in turn, will fortify social cohesion and balance and ensure a good quality of life.
In addition, we must not forget that green entrepreneurship offers significant potential for rural development and decentralizes economic activity. Greece is a country where the vast majority of the population lives and works in Attica which results in a burgeoning population imbalance and in a saturation even in clean air. This is accompanied by a rural “brain drain”. So a decentralization of economic activity will have multiple and numerous benefits.
For starters, the reversal of this rural exodus will result in the revival and, mainly, development of the countryside with activities that will surpass traditional activities that have been detrimental to nature and natural sources of wealth (for example, the creation of organic farming, the abolition of wasteful uses of water resources, economic activities, et al).
Secondly, it will create competitive products in the domestic and international markets in accordance with “green standards” and develop an important export activity.
Thirdly, the improvement of living conditions in rural areas with proper waste management and utilization that will ensure both the good health of the inhabitants (for example, with the abolition of uncontrollable landfill sites) and the introduction of a new attitude of respect for the finite natural environment with important ramifications even for the image of the country. This will help attract quality tourism.
Finally, the creation of new and modern infrastructures in large and small regions alike where the green businesses will open along with the concomitant infrastructures that will accompany them for the benefit of all citizens (for example, athletic centers, standard organizations, hospitals and clinics, et al).
Ladies and gentlemen, the word, crisis, in Chinese is associated with the meaning of opportunity. And in the country of moderation, ethics, humanist intellectualism, abundance in renewable resources, green development can be a new and very promising and ethical business opportunity.
But this opportunity cannot be created and utilized without some important preconditions.
Firstly, the financial institutions must enact motives for lending to businesses that select green activities. This can be achieved through existing financial institutions with the enrichment of their products with those that concern purely “green businesses”. This may be achieved with the creation of a new bank that will be dedicated exclusively to these green businesses.
In its turn, the State must seriously and responsibly decide to enforce existing laws, both domestic and European, in order to promote green entrepreneurship, green development and the protection of the environment.
Finally, it is especially important for everyone who chooses to operate with the principles of business ethics by implementing projects that will promote green development to accept the fact that the results of this choice requires time and patience.
In closing, I would like to note that, today, the main point at issue is the exclusion of business ethics from the ideological burden that attaches to it a philosophical and theological content. Business ethics is not a theoretical case study. It is a specific business practice that requires and presumes clear objectives, resources and a business plan. Correspondingly, green development is not an ideological proposition or exclusively for use by a political party. It is an economic proposal based on action, investment and teamwork.
Business ethics and green development are a common road to progress, sustainable development and a socially responsible economic activity. It is the only long-term choice without, of course an expiration date since it is based on rational utilization of natural resources and the environment. In other words, it is the best way to prevent corruption of the natural environment, the saturation of natural resources and to create a true and tangible social dividend. In other words, it will be beneficial for all citizens, workers and society.
Thank you very much
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