Bonnie J. Bachman, Shristy Bashyal, Margaret Baumann, May 2012
In the past green business evolution among business organizations has gone through “three waves of change” (Makeower, 2009, p. 12). In the 1960s businesses started being green with the notion “Do no harm” and companies started minimizing the environmental impacts (Makeower, 2009, p. 12). In the 1960s, companies mainly focused on pollution control that included stopping illegal activities such as “spewing smokestacks and drainpipes” (Makeower, 2009, p.12). In the 1970s, the U.S. Environmental Protection Agency and similar agencies were formed in the United States and in the other countries with standard laws about pollution of air and water (Makeower, 2009, p. 9). The second wave occurred in the 1980s and emphasized “Doing well by doing good” as companies realized that taking a few proactive steps could reduce costs and enhance a company’s image (Makeower, 2009, p. 10). Later, companies started being concerned about issues like pollution prevention, waste reduction, and energy efficiency. Then in the 1990s came the third wave: “Green is green” (Makeower, 2009, p. 12). During the third wave companies paid more attention to the environmental issues. As stated by Makeower (2009), “Companies recognized that environmental thinking can do much more than improving the bottom line i.e. it can help grow the top line through innovation, new markets, and new business opportunities”. In September 1996, the ISO 14001 environmental management system was issued and applied, establishing “a baseline set of rules for how companies should be organized environmentally” (Makeower, 2009, p. 10). According to Makeower (2009), “as companies scrutinized their operations, they understood how much of their environmental impacts were affected by their external stakeholders hence Supply-chain Environmental Management became the watchword after that the concepts of industrial ecology, zero waste, and carbon-neutrality emerged” (p. 11). Today companies are finally concerned about the “S-word, sus