Ecomagination: Driving Sustainable Growth for GE
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Case Code: BSTR387 Case Length: 20 Pages Period: 2005-2010 Pub Date: 2011 Teaching Note: Available |
Price: Rs.600 Organization: General Electric Company Industry: Diversified Countries: Global Themes: Corporate Social Responsibility, CSR as Strategy, Green Marketing |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Winds of Change at GE
GE was formed in 1892 by the merger of the Edison General Electric Company (EGEC) and the Thomas-Houston Electric Company (TEC). By the 1950s, GE had grown into a large industrial conglomerate with interests in diverse businesses...
The Launch of Ecomagination
According to some analysts, GE had not been known over the years as a particularly environment-friendly company. In fact, it was considered for a long time as one of the biggest corporate polluters in the US. Though the company delivered outstanding returns to shareholders, it lagged behind on the social responsibility front...
Ecomagination at Work
On May 9, 2005, Immelt announced the launch of the US$ 150 billion environmental initiative. According to GE's Ecomagination website, Ecomagination is "a business initiative to help meet customers' demand for cleaner and more energy-efficient products and to drive reliable growth for GE."...
Ecomagination Products
To ensure that Ecomagination products and services improved environmental performance, GE employed a rigorous review and qualification procedure known as the Ecomagination Product Review (EPR) process to assess which products and services should be included in the Ecomagination portfolio...
Results
According to analysts, Ecomagination was a turning point for the company, which had been grappling with the problem of an inconsistent green image. Since its launch in 2005, the initiative paid off in a big way as it helped GE to evolve as a sustainable enterprise and contributed to the rise in its brand value, they said...
The Other View
Despite the positive aspects of this green initiative, some experts felt that GE could not call itself an eco-friendly company because of its history of pollution, particularly the dumping of PCBs in the Hudson River and the delay in cleaning it up...
Looking Ahead
According to GE, Ecomagination was not a short-term proposition and the company planned to make it a part of its identity and market the brand aggressively to the world. GE planned to increase revenues from Ecomagination products and services to at least US$25 billion by the end of 2010...
Exhibits
Exhibit I: GE-Business Groups
Exhibit II: General Electric Company-Consolidated Statement of Earnings
Exhibit III: Top 10 in Fortune's Ranking of America's Largest Corporations (2010)
Exhibit IV: Ecomagination Statistics
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