the new green

Following on inspired minds that want to grow, and some feedback I received, here's a corporate viewpoint.

Maybe it's the optimist in me, but especially now when trust in corporations is so low, companies must not only assert a vision that is inspiring, but also make it a public mission to live up to, and be held to a standard of performance.

The green movement started this way. A few saw the light and began to behave in a new way. Green funds were created, VCs for green start-ups were formed, etc. When it began, most were skeptical. Cynics said that green was more expensive - organizations that were green would be less profitable; they/it would never succeed, it was just a fad.

Despite this and no major legislation (outside of emission controls), green continues to be a strong and powerful force. Our government is now investing in green; new companies are touting their commitment to green every day, hiring green "czars," moving into green(er) buildings; green-specific industries have sprung up; even students now more than ever use green and social responsibility as criteria by which to judge potential employers.

Green is a largely self-policed or socially-policed phenomenon based on the idea of good and environmentally-sensitive behavior. Can it be repeated?

Companies that step forward and demonstrate their integrity, transparency and accountability could be the ones where customers choose to shop, whose shares investors choose to buy, in whom people choose to believe.

Integrity, transparency and accountability (ITA) are not where a company will out-innovate or out-perform their competitors, but rather where a company out-behaves. This could also be where a company creates market advantage, where they can capitalize on the perception of mistrust and outshine the rest to be recognized as having a management ethos and discipline that can be trusted, that won't be rapacious, that will be open and honest and accountable. This could also be a really effective marketing strategy, one that results in (like Whole Foods) market and price advantage.

There will need to be a way to judge performance, and ensure actively good behavior. Could it, like green, be a more socially-driven vs. regulation-driven mechanism? I hope so.

My gut says companies that out-behave are more sustainable than those that don't. They are potentially better long-term investments because they are less likely to get caught out, but will be able to capitalize on the those that do, capturing market share, talent, etc. when the ill-behaved are outed (AIG, GM, Madoff, etc.). Imagine if there was an ITA-compliant directory of companies from which you could choose your insurance, banking, investment provider, or where you could buy your car, etc. Would you go there if you just found out that you'd been "Madoff'ed"?

They, like the tortoise, will get there in the end, perhaps with less flash than the hare, but with a stronger and more sustainable business.

It's different spin on inspiration and vision, one that could be table stakes for tomorrow's companies because society (and not necessarily regulation or law) wants and expects good behavior.