232
mental costs as well as environmental income, savings or cost avoidance. These
refl ect actual costs associated with activities such as pollution control, environmental
fees for packaging, energy and water consumption. The Baxter statement rather
refl ects an approach akin to fi nancial LCC, as opposed to the Puma statement that
refl ects the application of an environmental LCC. In 2012, Baxter ranked number
86 in the Corporate Knights list of “Global 100 Most Sustainable Corporations in
the World” and for the 11th year was recognized as the Medical Products Industry
Leader of the Dow Jones Sustainability World Index (Dhanda 2012 ). In its annual
sustainability report Baxter prominently discusses the application of LCA and LCM
including the conducting of product sustainability reviews (PSRs) that are described
as providing the foundation for its sustainable product design. From 2008 to 2012,
its annual sales revenues grew from US$12.3 billion to US$14.2 billion.
2.2 Duration of Sales
Hypothesis on Duration of Sales Growth The business that (i) introduces greener
goods and services to the market, backed up consistently by recognized standards
and labels, will (ii) reap the benefi t of greater brand value and reputation, enabling
it (iii) to sustain a good growth of sales with longer duration.
Any assessment of the fi nancial health of a company needs to consider not only
its “growth of sales” over the last quarter or year. It also has to consider the “duration of sales,” for example, trends over a 5-year period. The ability to not only reach
new customers but also maintain their loyalty and trust over the longer term is
determined by a range of factors, all of which serve to build company or product
brand value. This is where credible use of LCM tools and consistent communication
of product performance based on LCA applications can be critical. It may
also require applying LCM in developing or assessing not just individual
products or product lines but a broader product portfolio with longer-term customer
relations in mind.
From surveys of senior managers and investment professionals in global fi rms it
is evident that brand and corporate reputation tends to be a key area where they see
a business case. The concern with reputation implies not only business to consumer
(B2C) but also business to business (B2B) relations. If brand is to provide a guarantee of product safety and quality, the ongoing performance of all tiers of suppliers in
the value chain becomes critical. This presents fertile ground for applying life cycle
methods in business value chains. Accompanying the attributes of greener products
and services with greener standards in operations will serve to further boost the
reputation of both product and company (cf Iraldo et al. 2014 ).
A survey in 2012 of 1,375 consumers and 575 senior executives of companies
with revenues of over US$500 million in China, Brazil, the USA and the UK found
that 78 % of respondents indicated they do not buy a product if they do not like the
parent company (Weber Shandwick and KRC Research 2012 ). In addition, 67 %
C.T. Van Der Lugt
mental costs as well as environmental income, savings or cost avoidance. These
refl ect actual costs associated with activities such as pollution control, environmental
fees for packaging, energy and water consumption. The Baxter statement rather
refl ects an approach akin to fi nancial LCC, as opposed to the Puma statement that
refl ects the application of an environmental LCC. In 2012, Baxter ranked number
86 in the Corporate Knights list of “Global 100 Most Sustainable Corporations in
the World” and for the 11th year was recognized as the Medical Products Industry
Leader of the Dow Jones Sustainability World Index (Dhanda 2012 ). In its annual
sustainability report Baxter prominently discusses the application of LCA and LCM
including the conducting of product sustainability reviews (PSRs) that are described
as providing the foundation for its sustainable product design. From 2008 to 2012,
its annual sales revenues grew from US$12.3 billion to US$14.2 billion.
2.2 Duration of Sales
Hypothesis on Duration of Sales Growth The business that (i) introduces greener
goods and services to the market, backed up consistently by recognized standards
and labels, will (ii) reap the benefi t of greater brand value and reputation, enabling
it (iii) to sustain a good growth of sales with longer duration.
Any assessment of the fi nancial health of a company needs to consider not only
its “growth of sales” over the last quarter or year. It also has to consider the “duration of sales,” for example, trends over a 5-year period. The ability to not only reach
new customers but also maintain their loyalty and trust over the longer term is
determined by a range of factors, all of which serve to build company or product
brand value. This is where credible use of LCM tools and consistent communication
of product performance based on LCA applications can be critical. It may
also require applying LCM in developing or assessing not just individual
products or product lines but a broader product portfolio with longer-term customer
relations in mind.
From surveys of senior managers and investment professionals in global fi rms it
is evident that brand and corporate reputation tends to be a key area where they see
a business case. The concern with reputation implies not only business to consumer
(B2C) but also business to business (B2B) relations. If brand is to provide a guarantee of product safety and quality, the ongoing performance of all tiers of suppliers in
the value chain becomes critical. This presents fertile ground for applying life cycle
methods in business value chains. Accompanying the attributes of greener products
and services with greener standards in operations will serve to further boost the
reputation of both product and company (cf Iraldo et al. 2014 ).
A survey in 2012 of 1,375 consumers and 575 senior executives of companies
with revenues of over US$500 million in China, Brazil, the USA and the UK found
that 78 % of respondents indicated they do not buy a product if they do not like the
parent company (Weber Shandwick and KRC Research 2012 ). In addition, 67 %
C.T. Van Der Lugt