Martin Veitch

Going green will keep firms in the pink

There are good reasons for companies to pay more than lip service to corporate social responsibility

Written by Martin Veitch

For a long time, corporate social responsibility has been treated contemptuously in the UK. Perhaps because CSR is yet another three-letter acronym, it has been regarded as something American and has been handed to HR or other departments as a tick-box item. So long as we’re not doing anything our peers are not, we’re OK, right?

In IT, the attitude has been, if anything, worse than other departments. However, several factors are likely to push CSR into the minds of IT firms and IT buyers.

The first of these involves enlightened self-interest. The sheer cost of electricity is encouraging new approaches to hardware purchasing. For decades, bang-for-buck was the only important server metric. Today, it is still important but rivalled by performance-per-watt as it becomes clear that over the lifespan of a system, cost of power can quite easily overtake acquisition price.

The result of years of not measuring and not caring about power consumption also has another cost implication. Most datacentre servers today run too hot. They require cooling devices or more air space to avoid failing and that means yet higher fuel bills or else the requirement to build out new capacity.

Firms are also being encouraged to re-examine attitudes to energy by government projects such as carbon credits. And new rules such as the RoHS and WEEE directives are building awareness of the landfill and toxins issue.

All of a sudden, issues that were way below the radar of senior managers are being discussed by chief executives and boards. But far-thinking firms should not consider the environment solely as a cost-saving, badge-adding means of staying on the right side of finance and regulators. It will also represent an excellent tool for differentiation and marketing, and will create a recruitment advantage in a seller-driven job market.

Among IT vendors, a few are distinguishing themselves. Sun has appointed a green vice-president and has bet its hardware future on performance per watt. Greenpeace recently singled out Dell as a company that had gone beyond the legal essentials in manufacturing. Companies such as Oracle and Salesforce.com have also made good PR of programmes that aid local communities. Conversely, Motorola was singled out by Greenpeace as a firm that had failed to fulfil promises on the use of toxins in manufacturing.

Does it matter? To a generation acutely aware of climate change, the effect of hazardous substances and dwindling fuel resources, the answer is “yes”.

Any firm that can show it is not focused solely on profitability is more likely to win the hearts and minds of customers and partners. It is the reason that organic foods are selling well and Turkey Twizzlers are frowned upon. It is why Virgin Atlantic is often preferred to BA. Demonstrating some awareness that there is a world outside the boardroom – and the datacentre – is a win-win for all concerned.

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