Making 'Green Giants': Environment Sustainability in the German Chemical Industry, 1950s–1980s

Geoffrey  Jones; Christina  Lubinski

Article | Business History

Making 'Green Giants': Environment Sustainability in the German Chemical Industry, 1950s–1980s

by Geoffrey Jones and Christina Lubinski

Abstract

This article examines the evolution of corporate environmentalism in the West German chemical industry between the 1950s and the 1980s. It focuses on two companies, Bayer and Henkel, that have been identified as "green giants," and traces the evolution of their environmental strategies in response to growing evidence of pollution and resulting political pressures. The variety of capitalism literature has suggested that the German coordinated market economy model was more conducive to green corporate strategies than liberal market economies such as the United States. This article finds instead that regional influences were more important, supporting sociological theories about the importance of visibility in corporate green strategies. It identifies major commonalities between corporate strategies in the German and American chemical industries until the 1970s, when the two German firms diverged from their American counterparts in using public relations strategies not only to contain fallout from criticism, but also as opportunities for changes in corporate culture aimed at promoting a positive bond with consumers based on new green brand identities.

Keywords: business history; chemical industry; Green Business; regional strategy; pollution; Henkel; Bayer; Globalization; History; Chemical Industry; Germany; United States;

Format: Print

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Citation:

Jones, Geoffrey, and Christina Lubinski. "Making 'Green Giants': Environment Sustainability in the German Chemical Industry, 1950s–1980s." Business History 56, no. 4 (July 2014): 623–649.

Working Paper | HBS Working Paper Series | 2018

Sustainability and Green Business in Latin America During Globalization Waves

Geoffrey Jones

This working paper examines the impact of modern business enterprise on the natural environment of Latin America during the globalization waves between the 19th century and the present day. It argues that although global capitalism created much wealth for the region, this was at the cost of massive ecological destruction in Latin America. During the first global economy considerable wealth was created from the exploitation of natural resources for the land-owning elite in Latin America, at the cost of large-scale ecological destruction. During the Great Reversal in the mid-20th century, public policies aimed at “catching up” resulted in the co-proliferation of hydro-electric schemes and resulting co-creation of ecological damage by firms and governments. In the new global economy since 1980, renewed economic growth and consumerism resulted in mountains of waste in increasingly polluted mega-cities. Biodiversity and the natural environment have been challenged across the subcontinent. However, there were interesting positives as these ecological horrors also created opportunities for a surprising cohort of green businesses across sectors ranging from beauty and health to ecotourism. In the 21st century, both business and governments in the region needed to address sustainability issues far more seriously, before a point of no return was reached.

Keywords: Globalization; Natural Environment; Outcome or Result; Business History; Pollution and Pollutants; Environmental Sustainability; Green Technology Industry; Beauty and Cosmetics Industry; Tourism Industry; Latin America;

Citation:

Jones, Geoffrey. "Sustainability and Green Business in Latin America During Globalization Waves." Harvard Business School Working Paper, No. 19-009, August 2018. View Details

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Making 'Green Giants': Environment Sustainability in the German Chemical Industry, 1950s–1980s

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