Consumers are demanding more and more from the companies that they do business with. The rise of social media and growth of online communities has changed the global landscape forever, giving consumers unprecedented access to information about companies and brands.
As a result, businesses are no longer judged solely on the quality of the products and services that they provide; more and more people are taking an interest in supply chains and corporate ethics.
This is why demand for companies to demonstrate environmental responsibility is steadily increasing. People want their money to go to businesses that ‘do the right thing’ and now, more than ever, managing corporate reputation has a direct impact on purchasing behaviour.
I believe that, by being sensitive to this growing consumer desire for responsible and ethical business, caterers can not only do their bit for the environment and local community, but also improve their relationships, gain a crucial edge over competitors and help safeguard their own future profitability.
I speak to a lot of caterers about their environmental policies. Of course, many recognise that sustainability is a key issue and are actively working towards improving their green credentials; whilst others feel that the issue is more-or-less irrelevant to them.
This is understandable. Often caterers are responding to what the client wants, and so they feel that it’s not for them to be making the rules.
On the other hand, many clients now have fully established CSR programmes and are pushing suppliers to assist them in demonstrating sustainability. In these cases, caterers may win or lose the business dependent on their sustainability credentials.
Other clients have smaller budgets and are solely focused on price without any other considerations. In this context, it’s natural that some caterers will be less interested than others in environmental considerations.
So while sustainable products and services are always a ‘nice-to-have’ and are demanded by some clients, what about the rest? In the cold light of day, can caterers really afford to put the environment above their own profitability?
In answer to this question, I believe that we need to change the way we think about sustainability. The truth is, environmentally friendly packaging in particular has become a lot more affordable in recent years.
Economies of scale have meant that companies like ours are able to offer increasingly better rates, owing to greater demand. We are also working hard to develop new methods and materials to lower the cost of recycled and compostable packaging.
It’s also true that you can’t put a price on a managed reputation. Big brands and businesses have enough on their plates without the worry of potential crises occurring owing to the unethical practices of their suppliers.
One bad link in the supply chain can undermine corporate integrity entirely – and many of those at the top of the chain live in fear of this kind of exposure. This applies as much to those organisations at the ‘value’ end of the market as it does for those with huge budgets.
Investigating supply chains from start to finish is hugely time-intensive and can be very costly. By showing clients that you have already taken this into account on their behalf, you instantly become a much more attractive partner.
In today’s world, businesses and brands are judged on the company that they keep. Clients are increasingly realising that engaging ethical suppliers and using sustainable products are quick and easy ways of demonstrating a commitment to protecting the environment.
Putting sustainability at the heart of your offering will allow these clients to see working with you as a wider business opportunity – giving you the chance to build up a great new relationship.
In some cases, a move to environmentally-friendly packaging can also be used as a powerful marketing tool.
High-street names such as Waitrose and Marks & Spencer have done a great job of aligning good ethics with quality over the past few years. Thanks to them, many consumers now take pride in paying a bit more for a product or service that is environmentally and ethically sound – and this shift won’t have gone unnoticed by those responsible for budgets.
By developing your own ethical supply chain, you have the potential to give your clients access to marketing gold.
For these reasons and many more, I don’t think that sustainability should be seen as a ‘hard sell’. By adopting a collaborative approach to working with suppliers, clients and/or senior management, it is possible to balance environmental policy with profitability.
And in understanding the wider business benefits of building sustainability into the heart of your operation, you protect both your own reputation and the reputation of those that you supply.
London Bio Packaging
Founded in 2005, London Bio Packaging claims to be the original and leading supplier of compostable and recycled packaging to the food and catering industry.
The company designs, develops and supplies a wide range of affordable eco-packaging to businesses of all sizes, from independent food retailers to leading multinational catering companies.
London Bio Packaging also spearheaded the UK’s first 'closed loop' service for biodegradable packaging.
For more information visit: www.londonbiopackaging.com.