Recently, while browsing CNN for interesting articles I came across one about holiday shopping and sustainability. Titled How to shop without harming people or the planet, this article talks about socially responsible and sustainable shopping for the holiday season. However, the way to shop sustainable is made possible by an app on the iPhone! The app is named Aspiration and was launched in 2014 with $20 million from investors. The article on CNN Money states:

"When you use the account to make a purchase, Aspiration shows you two scores for the vendor: a "people score" based on employee pay and workforce diversity, and a "planet score" that takes into account factors such as emissions and energy efficiency. It also shows you scores for similar businesses. Aspiration analyzes information about thousands of companies. It's also working on ways to track customer behavior, to see whether they change their spending habits in response to their sustainability score."

If aspiration can be implemented and used on every iPhone, people could become more educated on sustainability and the products they buy. But would they use it?

Here is the link to the CNN article:

http://money.cnn.com/2017/11/14/news/companies/shopping-good-bad-impact/index.html

Will Tesla's Semi Disrupt the Trucking Industry?

This week our group analyzed arguably the world's hottest new company. Tesla disrupted the auto industry when they introduced their fast, sleek, stylish, fully electric Tesla Model S. Elon Musk, Tesla's CEO, recently decided that he wanted his company to branch out and produce not only sports cars, but also sedans and semi-trucks. Many were confused by the company's move into the trucking industry. The industry, especially long-distance trucking, is by far the hardest automobile industry to break into as an electric company. Electric cars employ batteries as their fueling device, instead of traditional gasoline. The problem is, long-distance route trucks need to have a very long range. In order for a battery to enable long ranges, it would have to be massive. About 25 to 30 percent of the time, trucks are driven empty. A truck with a massive electric battery would spend "a significant slice of the Semi's energy...hauling around its massive power plant."

However, it is important to note that the above article was published before the Tesla Semi was revealed, along with all its specs. Some notable characteristics are that the Semi will have a 500 mile range at maximum weight, going 60 mph, its design was modeled after a bullet, and it has a better drag coefficient than the new Bugatti supercar, and lastly it runs on solar power and will be able to plug into the new "Mega Charger" network.

It seems to us that many of the concerns about the Semi were addressed during the launch (especially thanks to the specs). However, we ask, what do you think? Is Tesla entering the trucking industry a good move? Will they be able to disrupt it much like they did to the automobile market with their Model S? Will Tesla entering the trucking industry damage their brand as a luxury car manufacturer?

Group 9 - Yassine Hamdouni Alami, Leyla Farzaneh, Maxim Guzman, Zachary Alter

Articles:

https://www.washingtonpost.com/business/teslas-power-plant-on-wheels-wont-upend-trucking-gadfly/2017/11/17/8b64c044-cb74-11e7-b506-8a10ed11ecf5_story.html?utm_term=.54df753f94ce

https://www.express.co.uk/life-style/cars/880631/Tesla-Semi-truck-range-price-specs-performance

Energy Star No More?

This week, our group discussed the value and effectiveness of the EPA’s Energy Star eco-label. The label provides a clear and widely recognized message, aiding consumers in making cost-effective and environmentally friendly purchases in product categories such as appliances, electronics, and lighting and fans, and has become one of the most widely recognized eco-labels in the United States. However, all of this could very well disappear as it was reported by the Los Angeles Times in late April of 2017 that the Trump administration intends to kill the program in its quest to cut back on government efforts to fight climate change. The administration claims that eliminating the eco-label program will cut down on taxes and can be replaced by a privatization scheme in which the industry self-polices and regulates the products entering the market. While Energy Star does cost $60 million annually to taxpayers, it has also allowed consumers and businesses to cut energy bills by more than $30 billion per year and has prevented 2.8 billion tons of greenhouse gas emissions. Energy Star has been a pillar of the federal government to fight climate change and its elimination can put Energy Star into the hands of the private sector.

What are the potential ramifications of Trump eliminating the Energy Star program? Would this move actually benefit businesses, or could it cause more harm than good? Do you think Trump’s push to defund the program is motivated more by corporate interests or as a means of cutting taxes? Do you think government has a role in managing the energy efficiency of businesses?

Article: http://www.latimes.com/politics/la-na-pol-trump-energy-star-20170412-story.html

Group: Allison Wolhart, Andrea Mahieu, Brisa Aviles, Corey Ly, and Kalei Aricayos

The Honest Company

This week, our group presented on the case of Lululemon and their commitment to the environment. They claimed “Corporate Social Responsibility” and prided themselves in their innovative approaches to the environment, specifically in using environmentally friendly fibers such those found in their VitaSea line. They claimed to make athletic leggings with a seaweed-based fiber that promised health and beauty benefits. However, when tested, the results could not conclusively prove seaweed was a component in the fiber.

Much like this scandal, Jessica Alba’s “The Honest Company” has faced similar problems with environmental ethics. With a company that “prides itself on truthful marketing and using only safe, non toxic ingredients in its household cleaners, diapers, and personal care products,” why then is it facing a toxic scandal? The Honest Company faced backlash for using a chemical ingredient in their laundry detergent that the labeling promises is not contained within. Sodium Lauryl Sulfate (SLS) can irritate the eyes and skin has been linked to being toxic. So, in light of the scandal, samples of the laundry detergent were sent to independent labs in order to discover if “The Honest Company” was, in fact, being honest. Both results were positive with a representative from one of the labs (Impact Analytical) confirming “there is a significant amount of sodium lauryl sulfate (in the detergent).” “The Honest Company,” dissatisfied with the results, decided to conduct their own test. Their results were negative. However, their lab results came from the company’s chemical supplier, who didn’t test for the presence of SLC.

Still, the company denied all claims and the company began to explain that the surfactant Sodium Coco Sulfate, which like SLS is derived from coconut oil, was, in fact, the natural chemical alternative actually in the detergent. This is not the first allegations of false advertisement that the company has faced and with their reputation in jeopardy, “The Honest Company” should figure out how they are going to gain back their customer's trust. Rather than lying about great ingredients they could stick to just presenting the ingredient they do use in a simple way. Their value proposition focuses on natural ingredients; in addition, parents, who are the company's main customers, don't have to worry about the products being bad for the kids. Honest should move back towards natural and simple ingredients instead of creating false claims that they cannot live up to.

The Honest company agreed to pay $1.55 million to settle the lawsuit for the laundry detergent debacle (CNN). This isn't the first lawsuit that the company has had to deal with, yet it's customers continue to stay very devoted. It probably doesn't help that Jessica Alba, a very famous celebrity, is the face of the company. Anytime a celebrity is involved with anything, there is immediately a ton of attention drawn to the situation, which then can lead to controversy. Although the lawsuit has been settled the company still denies any wrongdoing in the case of the detergent. The company continues to grow every year and even has an estimated worth of $1.7 billion in 2015 (CNN). For the time being the company is still growing; however, with every lawsuit or scandal, the company takes another hit to its brand. How many more punches can the Honest company take before knocking out? Only time will tell.

-Group 5: Kelley Brennan, Keely Watland, Ashley Arcos, Daniel Begazo


Image: https://www.google.com/imgres?imgurl=http%3A%2F%2Fwww.schwimmerlegal.com%2Fwp-content%2Fuploads%2F2017%2F09%2FHonest-Comapny1.jpeg&imgrefurl=http%3A%2F%2Fwww.schwimmerlegal.com%2F2017%2F09%2Ftext-of-complaint-in-the-honest-company-v-honest-herbal.html&docid=mDrlCU-uWBhrhM&tbnid=_pvzzxd0WItDqM%3A&vet=10ahUKEwiRlczLl8fXAhVM_mMKHWCYDzYQMwjMASgGMAY..i&w=748&h=384&bih=949&biw=1920&q=honest%20company&ved=0ahUKEwiRlczLl8fXAhVM_mMKHWCYDzYQMwjMASgGMAY&iact=mrc&uact=8

Product Differentiaton: Unilever and SmartLabel

There exists a strong desire by sustainability oriented companies to bring attention to their environmentally friendly products. However, as demonstrated by the wine industry, confusion or misinterpretation caused by an imperfect eco-label can have an undesired effect on a consumer’s perspective.

The SmartLabel initiative appears to be leading the way in a new wave of product differentiation through transparency. Its online FAQ describes SmartLabel as a tool that provides customers access to detailed product information including nutrition facts, ingredients, third-party certifications, social compliance programs, relevant advisories, and other pertinent information. SmartLabel’s digital information can be accessed through an online product search feature or by scanning a product’s QR code through the app.

SmartLabel can potentially help consumers make more informed choices about the products they are purchasing while simultaneously allowing companies to environmentally differentiate themselves from their conventional counterparts. Although one might assume that this tool is used for exposing unfortunate realities within the production side of a business, that is not necessarily the case. For example, through SmartLabel, Hellmanns was able to discover that a key ingredient in their mayonnaise was actually domestically sourced. This allowed customers to resonate with their product, a food item that is a staple to traditional American foods.

Unilever is the most notable company to begin implementation of SmartLabel with over 1,700 searchable products. One of the main benefits to using this platform is that it presents factual information in an unbiased manner. This can be viewed as a trust-building mechanism for consumers who are looking to learn more about a product but are skeptical for the possibilities of being deceived. This provides the customer with the ultimate decision as to whether or not that truly want spend their money on that product or not to.

Such a service can be useful to customers that want as much knowledge as possible about their food and products, but there’s also an accessibility and convenience factor. People who don’t have smartphones won’t have access to this information, and as for people who do have smartphones, many of them may find it a hassle to try to use the SmartLabels. As opposed to reading typical label printed onto the product, consumers must 1) pull out their phone 2) open or download the app (which adds additional hassle), and 3) scan the code on the product. Even then they must wait for the app to work and the information to load. All of this can making shopping more complicated and time-consuming. Ultimately, having SmartLabels can provide information more clearly to consumers, but may be a hit or miss with the type of consumers examining the product.

1. Could this technological approach to bridging the transparency gap between the company and the consumer actually avoid eco-label confusion/misinterpretation indefinitely?
2. Would customers be willing to use SmartLabel technology in the future? Why or why not?
3. Do you see any flaws with the app? Do you have any suggestions for improvement?

Halibut 11: Mark Biedlingmaier, Jessica Li, Jamie Liu, Mark Nguyen, Erick Ocampo-Ramos

Unilever’s page on their smart labels: https://www.unileverusa.com/brands/smartlabel/?gclid=Cj0KCQiAi7XQBRDnARIsANeLIesURQ2jjAjqASc760sJaUMpjY55zrcR_tGx-_k0yNvq7bxoNfPj1fkaAulSEALw_wcB&gclsrc=aw.ds

Label Insight’s research on smart labelling: http://www.foodbusinessnews.net/articles/news_home/Business_News/2016/11/How_Unilever_is_embracing_tran.aspx?ID=%7BB3C5DB43-CB5F-4002-A8A4-5A7BA786B1DC%7D&cck=1