By touting its minimal use of fertilizer and bug spray, Dole is able to mark up its products in Japan and still outsell cheaper local brands. Chasing Quality, Not Certificates Admittedly, being greener than rivals can push up initial costs and even recurring costs. Even Worsdale acknowledges that some of Dole s eco-friendly practices drive up the company s costs. So unlike competitors which use aircraft, we have to spray plants individually. But he believes the ability to sell Dole s environmental image more than offsets any additional expenses.
Pricing has nothing to do with cost, anyway.
Companies will charge what they think they can get. The trick, greening advocates say, is to see environmental management as part of the overall process of making and selling a better product. And in truth, CFOs who view greening the supply-chain solely as a corporate image enhancer, rather than a component of total quality management, will likely be disappointed in the results. Obviously a cleaner factory, or more careful treatment of product, will result in less waste and better bottom-line results. Mitchell has advised potential suppliers to Ford s huge new Manila-based production plant due to open later this year that environmental standards will count in the company s purchasing decisions.