The Unique Added Value Of The Blue Economy Commerce Essay


This chapter may serve as a chapter that highlight the positive effects of the Blue economy. That this is still one of the best future plan that actually works in certain places. The utopia is not so popular to scientists and to pragmatic personalities. The report of these currently viable business opportunities are providing a true hope and serving as a potential mainstream option. The Blue economy is many of be the best nor the only solution to save our planet but the goodwill and the necessary properties are acquired. The achievements which the Blue economy is demonstrating are able to evolve into a mass change in the global consumer behaviour, global stakeholders mind-set.

The main essence is the semantic of words, the advertisements positive influence to sustainable paradigms shift. This is the place where researcher can argue that the added value of the blue economy is the marketing, and the "1 for all" concept. The slogans like "substitutes something with nothing" or "No waste" , "based on physics" are just way to sounds like cheap marketing. Everybody know that the material and the energy cannot be created nor destroyed, there is not perfect 100% transformation of matter, even chemistry and biology is based in physics if we are breaking it down to the atomic or subatomic levels. Still these slogans and metaphors are able to compress a set of good examples, the linking business opportunities, the connecting sustainable principles and theories. This is how the entrepreneurs, the students, and politicians, and even ordinary people can be educated and still catch their attention and push them out of the box. The inspirational power of the book and Mr Pauli presentations are extra ordinary. (The researcher had attended on two of them.) The way the positive and optimistic scenarios are demonstrated as superior of the traditional is so suggestive that very few is anybody would start it with a critique. Still after several month later and hundreds of literature question are articulated. Still it is the distinctive marketing and the personality of Dr. professor Gunter Pauli is the guarantee that the Blue economy is on a growing curve.

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Green branding is a type of marketing tool that helps to shape the company's brand image according to a more sustainable way. There are several reasons why the firms are willing to swift to green branding. However not all company has the capital (financial, technological, educational, social) to market their green brand to their customers. The tendencies are showing that more institutions have to invest into green brands. Launching a green brand is challenging because the whole marketing and operation function have to impregnated with the sustainable paradigm. If the green thinking is not embedded in every level of the organisation the outcome will be momentary or questionable. There are researches and evidences that the green brand equity as positive relation to its three key drivers the green brand image, green satisfaction, green trust. (Chen, Yu-Shan 2010)The explanation is logical. If the companies are able to fulfil the environmental needs of the consumers than the customers will prefer them or traditional technology products. The green brand image will be built which increase brand loyalty and after a successful marketing the green trust will be expanded to the whole company not only to the green brand. Due to the sustainable or environmentalist increasing popularity the sales of the green good have drastically increased. because the people are willing to pay extra amount of money for green products or services. "Findings indicate an overall positive influence of green brand positioning on brand attitude. Further findings suggest distinct functional and emotional dimensions of green brand positioning with the interaction of both dimensions in the formation of brand attitude. Highest perceptual effects were achieved through a green positioning strategy that combined functional attributes with emotional benefits." (Hartmann, P., Ibáñez, V.A. & Sainz, F.J.F., 2005. Green branding effects on attitude: functional versus emotional positioning strategies. Marketing Intelligence Planning, 23(1), p.9-29.) The green branding is observable in any industry. from the car manufacturing the IT, chemical firms and service providers. There is a certain research that an ecologically proactive hotel can gain competitive advantage by way of 'green' branding. It shows that not all green branding options are suitable for everybody. The two most widely recognized options, unilateral commitments and participation in voluntary environmental programs. These have significant persuading power on environment conscientious buyers. (Darnall, N., 2008. Creating a Green Brand for Competitive Distinction. Asian Business Management, 7(4), pp.445-466..)There are on the other hand green banding solutions that should be criticized.


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Green washing is disinformation disseminated by an organization so as to present an environmentally responsible public image. (10th edition of the Concise Oxford English Dictionary) The white washing was the action when the black market operations or illegal manipulations where transformed into legal. The new buzzword of the business is the green washing. There are numerous advertisements and CSR events that we do not really realise as green washing. The green washing is the action when the unsustainable, environment damaging, pollution, hazardous, ecologically bad action is presented as sustainable, green, environment friendly, and even some form saving the ecology and our lives. This definition can more simple and with less pathos. The shorter is how organisations lie to us about their product and make us believe they are green. There are lots of decent companies telling, their eco-friendly stories to the world, and even some who aren't but should be. Some of is doing a good job. Well others don't know where to begin. What is considered worthy green marketing? Green washing has disrupting impact in three areas: The environment, the business and the consumers. The environment will not be safe and not be respected, the environment will be continuously destroyed and the people are in the false dream that they are done their duty and using green products. The consumption of the "green washed" product are even doing the opposite action of their claims. Let just look at the biodegradable soap example. The biodegradable soap is marketed to be the green solutions which do not contain chemicals that would harm the environment. The aim and the solution can be regarded as green solution. The problem was in the operations. the new resource of the biodegradable soap was the palm oil which demand was drastically increased due to the soap manufacturing. The forests have been cut to flat, and the endangered orang-utan where scared away from their living environment. Mr Günter Pauil the author of the Blue economy was being that person. He believed that he is part of the green business and his product the biodegradable soap is really the way of the sustainable development. This is problem can be observed as the other parity who suffers from the green washing, indeed the customers. The costumers have been cheated and the most important stakeholder of the suitability is the people the consumers. The most customer have to be even more educated or careful he really want to buy environment friendly products or live an environmental friendly lifestyle. The green washing advertisements are just so difficult to distinguish from the honest green companies. The result is that the customers will be frustrated and they are actually realising that they did not get what they wanted. Soon they will lose the green trust. (http://www.greenwas

1. Figure The 10 sign of green wash The third who are negatively affected in green washing are the business. There are so many good companies who are really doing a good job and their sales have to be shared with the unethical green washers who are offering more efficient more environment friendly products that the honest business. This is a lost sale category. The other is the fact that being green and sustainable is actually make the company better off. With the green washing the firms does not realise this because the drastically campaigns are doing quite well so far. This a lost opportunity cost. The green washing is getting more important and the global firms are just do not realising the possible back fire till now. Only a few cases when the green washing companies had to face with. There are intuitions and several national officials who are controlling the validity of the marketing offering from environment protection point of view. The famous example of green washing is the BP. "British Petroleum quit the Global Climate Coalition, the climate change denial group funded by the oil industry, in 1998, thus beginning its green marketing campaign. Two years after British Petroleum merged with Amoco and changed its name to BP Amoco, it shortened its name to BP. The same year, BP unveiled its new slogan, "Beyond Petroleum," and a new logo. During the first quarter of this year, BP raked in $73 million, but only $700 million (less than two per cent) were for alternative energy. Five years after it began to market itself as "Beyond Petroleum," an explosion occurred at a Texas City refinery in 2005. The explosion killed 15 people and injured 170 " ( ) The simple green washing is the usage of the energy crops when the bioethanol is marketed to be so environment friendly solution to the us. If the investigation is deeper it can be conducted that the chemical used from the corn, the fuel used for the work on the fields, the transportation of the corn, the process of the corns, and the redistribution of the refined ethanol's ecological footprint and ecological burden is so great that no honest ecological economist should call green. The green wash had it own literacy that is updated by blogger environmental institutions and some international researchers are dealing with the topic. The next Olympic games is already suspected to be a medium of the green washing. There is a brash book which is showing some of the proven green wash examples like "Shell and Dow are still avoiding responsibility for pesticide poisonings from their product DBCP, DuPont executives still deny that their lead gasoline additive is harmful and claim they have taken the precautionary approach to ozone destruction. Tropical timber trader Mitsubishi blames poor people for tropical deforestation."(Jed Greer & Kenny Bruno 1996 Green wash: The Reality Behind Corporate Environmentalism.) The green wash is not easily stoppable.

Transitional Holistic Planning

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This concept is a special understanding of system thinking. This is more oriented to the decision making problems and giving the decision make a decent set of tools. The knowledge management has an aim to develop a realistic and reliable decision support system. Allan Savory developed the Holistic Management Model, a decision making process intended to help people think and act in totalities. He was an environmentalist, biologist and businessman who had acquired international knowledge mostly from Africa, and America. He successfully forged an interdisciplinary bridge between ecology and human management to develop "a new framework for decision making that enables people to make decisions that satisfy immediate needs without jeopardizing their future well-being or the well-being of future generations." (Allan Savory with Jody Butterfield 1999 Holistic Management: A New Framework for Decision Making. Second edition.. Washington, DC: Island Press)

His ideal and effective charisma made it possible to induce a movement dedicated to Holistic Planning (HP). The holistic planning users have to be active thinkers. It definitely requires a certain level of analytical skill but most important is to have critical thinking. Those people who think the world of the twenty first century is not in a bad shape well these people will have a hard time to obtain the HP approach. There was very inspirational article from Wayne M. Hall who has written the: A holistic approach to thinking and planning in 1994 "Let me provide some facts to buttress my premise. face, for example, the societal hypocrisy of living in a land of milk and honey but in a land where one can't stroll through the streets of our cities without stumbling over begging, destitute waifs and adults. We live in a land where our populace has enormous and important freedoms, yet our prisons overflow. We live in a land of tremendous affluence, but 15% of our people live below the poverty level. We also live in a land with a growing underclass in our large cities, and underclass whose ethos is despair, whose daily way of life is violence" (Wayne M. Hall: 1994 A holistic approach to thinking and planning , This citation may give the necessary mental state to sit down in front of a mirror and start to be honest with ourselves. The power to admit that we made a mistake (or we are still doing it notoriously) is valuable personality feature. The HP is suggesting to look thought the momentary problems and admit that what we do now will have a certain effect on our living environment and in wider scale to the global ecosystem. The Holistic planning is offering tool to aid the managerial decision making and asses the ecological, social and financial feasibility of the action before implementing them. The Holistic planning is calculating cost-benefit analysis and take the environmental impact and externalities into the function. The most important that the Holistic planning is demonstrating the business (or other institution) linkage to the ecological processes like the water cycle, mineral cycle, energy flow, energy conservation, evolution, atmosphere creation and community dynamics. The real benefit of the Holistic planning is to provide a framework for managerial monitoring and diagnosing the unsustainable problems, guiding to take account of the shadow prices and externalities, to favour sustainable development.


The corporate social responsibility is a not a only a functional areas of the businesses but also the most rapidly growing marketing tool. The companies have already understood the importance to share their mission and vision to their customers and partners. This was enough in the 20th century. Those who was choosing the right goal and the right ways to achieve them are big multinational companies. The 21th century on the other hand has changed the customers and their information demand. now the communities are aware of the business effects and their potential damage or benefit. For instance if a company is painting the fences the local school or hospital, the sustainable action are quite weak. Similarly, it cannot be a CSR or sustainability is when the corporate support a program of social organizations. These small steps are important and add -up, but it still cannot be deliberated a complete organization level commitment or strategy. Those company in which the operation result of the environmental destruction, but he generously donated money to green, environmental programs, are the as living examples of green washing. Here it has t be mentioned that likely that the revenue of the company environment destruction, pollutions are exponentially greater than that paid good deeds. The corporate sustainability theories contribute to an employee as not only sustainable development but in corporate social responsibility (CSR), the stakeholder theory and corporate accountability Corporate sustainability is very complex, the entire corporate structure for strategic and operational process. One cannot be achieved overnight, but if the intention is correct then small steps and hard work is manage to create long-term value to the company and society as a whole. ( more educated (and the still developing societies as well) had urge to know what does the company is doing from them. The local communities and the global markets had to face with the problem of their unsustainable behaviour is punished. The punishment is appearing in lost sales. The CSR is trying to play the role of a mediator. The good mediator is proposing a situation in which the cost benefit analysis of the company impact on the population is bigger on the positive side. "The secret of sustainable business is that long term success is based on how employees and customers act today." The employee are the also serve as the most effective medium of the informal communication.. The sustainability and the perception of the company is greatly demand on the employees believe and actions. The company is using CSR to help the employees and encourage sustainable employee behaviours. The peer groups of the employees will also effected. The next part where the CSR is able to contribute is the society empowerment. Some companies are just survived the crisis because the communities had been actively involved. "Sustainable success is based on freedom to innovate within a strategic framework. People with an interest in your world are actively involved to help you achieve your purpose." ( The new green solutions or any advanced environment friendly method is only successful if the social commitment is supporting it. The windmills are not everywhere welcomed. The CSR is aiming to show the benefits of the windmills and educate them. If CSR is not a green wash it might be a viable tool for spreading the concept of the sustainable development.

System's thinking

System thinking is a very complex section and the deepness of the topic would require several researches. The best introduction is the opinion the expert of system thinking Jeffrey J Shelsfud .: "Accelerating economic, technological, social, and environmental change challenge managers and policy makers to learn at increasing rates, while at the same time the complexity of the systems in which we live is growing. Many of the problems we now face arise as unanticipated side effects of our own past actions. All too often the policies we implement to solve important problems fail, make the problem worse, or create new problems. Effective decision making and learning in a world of growing dynamic complexity requires us to become systems thinkers to expand the boundaries of our mental models and develop tools to understand how the structure of complex systems creates their behaviour." (Thinking, S., 2000. Systems Thinking and Modelling for a Complex World Jeffrey J Shelsfud, eds., McGraw Hill Higher Education.) The meanings of complex systems have been formulated very long ago but the ecological and sustainability scientist just reinvented the theory for describing their field of actions.

The term "complex system" concept was introduced in the physics of systems with a large number of components and the interactions between the system's behaviour through the individual units of significantly different features shown. Simply put: the whole is greater than sum of its parts. The physics of complex systems can be accomplished in a number of examples of the magnet from the glass through the granular materials. The concept is clearly beyond the scope of physics: the cells of the brain, the economy, society, just a few more examples. (János Kertész, Tamás Vicsek, Magyar Tudomány, 2006/5 page 558. Komplex hálózatok a természetben és a társadalomban. ) The ecological system and the human impacts interaction is giving us an even more difficult system. The problem with the complex system is if they are more and more realistic than they are very sensitive to the initial status in the case of un foreseen impacts. The environment is a chaotic and dynamic system and the human society is also regarded as a chaotic and dynamic complex system. This give us the possibility to make the assumption that without knowing the system and their behaviour we cannot be successful in achieving any form of sustainability.

There several archetypes of the system which may aid the thinkers to lean and recognise the different system and their put come. The pollution is a common attributed to the system archetype called tragedy of the commons. It will be further discussed. "The reinforcing and balancing structures represent the first two of a set of structures first postulated by Ludwig von Bertalanffy in the 1930s. These structures were developed and finally labelled as Archetypes by Peter Senge in his 1990 work entitled The Fifth Discipline: The Art and Practice of the Learning Organization. " ( There eleven archetype which can be sufficient to any manager or economist who would like to recognise the rules and the performances of the economic and ecological systems. The first principles that have to understood is that every system has rules and the isolation of the system parts cannot be complete. The system has so called system traps. These are the unwanted or destroying actions that have to be reduced or eliminated. Those people who actively dealing with green business or sustainability are often facing with the system called "Fixing that Fail".

2. Figure (international environment analysis course slide, Source: A Framework and Methodology for Linking Individual and Organizational Learning: Applications in TQM and Product Development - by Daniel H. KIM (1986)

In a "fixes that fail" scenario the meet of a problem is faced by a corrective action or fix that look as if to solve the problem. However, this action leads to some unforeseen consequences. They form then a feedback loop that either worsens the original problem or creates a related one. In system dynamics this is described by circles of causality as a system consisting of two feedback loops. One is the balancing feedback loop of the corrective action, the second is the reinforcing feedback loop of the unintended consequences. These influence the problem with a delay and therefore make it difficult to recognize the source of the new rise of the problem. In solving sustainability problem the delay can be huge and irreversible damage has been made. The petrol is now regarded as a polluting fossil fuel. There should be a substitute for petrol, therefore use methane which is not a fossil fuel than it turns out after a delay that the methane is even worst to burn from climate change point of view. If the system thinking will be more regarded as basic tool for every sustainability strategy builder the Earth would be a better place. For most of the system traps there are solutions. The Solution for this archetype would be to let go, and invite all the agents in the problem and redirect the energy used to sustain the policy resistance to a greater synergy. The system thinking is an important tool which is inter disciplinary and over disciplinary at the same time. The sustainable development can be noticed as a strategic system where there are numerous element which are regarded as abundant or scares or unknown resource. The loops could be described as tactics which are green movements, sustainability initiatives, Blue economy, biomimicry and others. The outcome is still embedded in the system if the system is really right.