Tuesday, February 12, 2008

Boxing environmentalists

The famous Swedish boxer Ingemar Johansson used a tactic where he stayed so close to his competitor so that they weren’t able to hit him. This tactic where put into words by Sun Tzu for over 2500 years ago and also used by the former dictator of Zaire, Mobutu Sese Seko, “keep your friends close but your enemy closer”. What that says about the close friendship Mr Mobuto had with Ronald Reagan we leave for now and instead focus on how this tactic could be used in environmental strategy.

The story told in Harvard Business Review in May 1991 can serve as a good example. The article is about an American paper producer establishing both an eucalyptus plant age and paper mill in the Asian region. The young professional responsible for the set up was convinced to do it properly without any bribery. He makes personal relationship with the government and then turns to Pellona, a consortium of more than 100 environmental and community groups in order to gain their faith. Since the paper producing company suffers from a reputation of being insensitive the reaction from Pellona was clear.

“Because he worked for that company, we drew the obvious conclusion: the young man wasn’t true about his obligations in environment issues and the local communities.”

Among the NGO (non-governmental organization) Pellona where some militant organizations that opposed all further forest exploitation and now threatening the entire establishment through using its global network to vilify and thereby serious damaging the paper company’s branding. A branding including great investments in new technology decreasing emissions both to air and water as well as investments in making the processes more energy efficient. More resources where then needed to rescue the establishment in Asia and the branding globally. Convincing NGOs and building relationship is a process that might take a while to pay of when industries launch their going-green strategy. In this case the young professional also had to convince the top management that resources spent on relationship building local would pay of global.

This is just one example of how important the relationship with NGOs is since they in many times serves as a link between a company and its customer also having a great influence on media. So while having the boxer Mr Johansson’s tactic in mind we should also consider investment guru Warren Buffet’s vice words on branding.

“It takes twenty year to build a reputation and five minutes to ruin it”

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