Learning Center
Plans & pricing Sign in
Sign Out



									        Sustainability at ^

            Lynelle Preston

      "The Internet and related information technologies hold the promise of rapid,
      sustainable economic growth that directly benefits everyone on the planet. How-
      ever, the same forces could also trigger traumatic social, environmental and eco-
      nomic disruption. . . . If technology firms simply follow strategies of maximizing
      short-term shareowner value by encouraging maximum consumption of products
      by customers, we exacerbate two of the most significant issues facing the planet
      today: damage to the natural ecosystem that sustains life for all of us, and the
      exclusion from participation in the world economy of most of the world's
                                                —Carly Fiorina, CEO, Hewlett-Packard

        ustainability has become a strategic imperative for all businesses in the
        21st century. It has become a fundamental market force affecting long-
        term financial viahility and success. Customers are requiring sustainable
        husiness practices. Shareholders are using "sustainability" as a measure
of financial success and are developing sustainability indices.' Stakeholder
groups are organizing conferences and partnerships to raise awareness and
encourage sustainable business practices between the private sector and
       At its core, the concept of sustainability is about recognizing that the
world is a closed rather than boundless system, with limits that modern society
is heginning to approach. The traditional definition of sustainability from the
World Commission of Environment and Development is: "Sustainahle develop-
ment is the ability of current generations to meet their needs without compro-
mising the ability of future generations to meet theirs."

      Sustainability at Hewlett-Packard: From Theory t o Practice

       Hewlett-Packard has been evolving through three distinct phases of envi-
ronmental sustainability over the past two decades. In the 1980s, the environ-
mental concerns were primarily pollution control and prevention with a focus on
reducing emissions from existing manufacturing processes. During the 1980s,
HP made great strides in pollution control and prevention, risk management,
and facility improvements such as reducing toxic materials and emissions. In the
1990s, the focus shifted to product stewardship, which focuses on earlier interven-
tion to minimize environmental impacts associated with the full life cycle of a
product. HP established a Product Stewardship function which focused on devel-
oping global processes for tracking and managing regulatory compliance issues,
customer inquiry response systems, information management, public policy
shaping, product take-back programs, green packaging, and integrating "design
for the environment" and life cycle analysis into product development processes.
Today, sustainability is about developing technologies that actually contribute a
positive impact to environmental challenges. HP has recognized that pollution
prevention and product stewardship have become baseline market expectations.
To be an environmental leader in the 21st century, HP needs to integrate envi-
ronmental sustainability into its fundamental business strategy.

Laying the Foundation for Sustainability
       Prior to the 1990s, environmental initiatives and issues at HP were han-
dled by the Environmental Health and Safety (EHS) group and were focused
largely on pollution control and prevention—interpreting new environmental
regulations, auditing divisions for environmental compliance and performance,
and reporting to various environmental agencies. In the early 1990s, a new
function called Product Stewardship emerged within EHS to focus specifically on
the environmental attributes of products. The Product Stewardship function
consists of a network of over 70 product stewards, each responsible for the envi-
ronmental attributes of a particular product line. Product Stewards work at all
levels of product design, development, launch, delivery, and support to ensure
that HP products meet market and customer environmental expectations.
       Toward the end of the 1990s, product stewards along with other staff
from EHS and HP Labs began informally exploring the concept of sustainability
and how this might apply to HP. In 1998, HP Labs and the Product Stewardship
function organized an internal 2-day conference to explore this concept. Exter-
nal experts, HP customers, and environmental organizations were invited to join
in the discussion. The goal of the meeting was simply to generate some discus-
sion and begin brainstorming about how sustainability could be a business driver
for HP, rather than to make any major strategic decisions. The conference did
however inspire the formation of an internal e-mail group created specifically
to share information and ideas about sustainable development. The e-mail group
included a range of staff—from senior to junior level, from engineers to market-
ing people, and from Europeans to Asians. Over the two years, these employees

       CALIFORNIA MANAGEMENT REVIEW            VOL 43, NO. 3    SPRING 2001     27
       Sustainability at Hewlett-Packard: From Theory to Practice

formed informal networks, from which "champions" emerged and ideas brewed.
Over the next two years, these sideline conversations about sustainability even-
tually triggered two new initiatives: the World E-Inclusion program, which
addresses the social equity side of sustainability, and a reinvention of the former
Product Stewardship function to focus on sustainability, a program called Envi-
ronmental Strategies and Solutions (ESS).

Articulating the Concept of Sustainability
        After making a decision to reinvent the Product Stewardship function
building upon the concepts of sustainability, an important initial step was to
articulate the concept of sustainability in a business context. How does sustain-
ability affect one's business model and how is it relevant for Hewlett-Packard?
In an attempt to bring in outside perspectives and devote one person full-time to
sustainability issues, the ESS program hired an MBA candidate to conduct back-
ground research and make recommendations about building a strategy grounded
in the principles of sustainability. Sustainability has traditionally been a concept
that is difficult to "sell" to senior management because it describes a state in the
future that has never been experienced, rather than a specific process or meth-
odology for how to get there. At a theoretical level, the concept of sustainability
makes sense, but translating the concept into actionable steps and investments
has proven to be a significant stumbling block for a number of companies and
         After conducting extensive literature reviews, reviewing benchmark stud-
ies and competitive analyses, and holding conversations with independent con-
sultants and nonprofit organizations devoted specifically to this work (such as
Businesses for Social Responsibility, World Resources Institute, The Natural
Step), it was confirmed that sustainability does offer companies a strategic com-
petitive advantage. Furthermore, sustainability will become increasingly impor-
tant for businesses in the coming years. ESS bases its definition of sustainability
on the recognition that the world is a closed, rather than boundless, system with
limits that modern society is beginning to hit. As several scientists predict, this is
going to change today's fundamental economics, it is going to change prices, and
it is going to change what is socially acceptable. These limits clearly affect the
business environment in which HP operates. The environment, therefore, is no
longer just a concern for philanthropy or corporate citizenship, but rather needs
to be linked to HP's core business strategies in order to achieve long-term eco-
nomic success. This will enable HP to transform potential environmental liabili-
ties such as climate change, resource exhaustion, and the energy crisis into
strategic business opportunities and competitive advantage.
       This approach represents a significant shift from that of Product Steward-
ship in the 1990s. The Product Stewardship vision had been to minimize the
negative environmental impact of HP's products and services. Essentially, the
goal was to reduce HP's environmental footprint. While this was innovative in

28     CALIFORNIA MANAGEMENT REVIEW           VOL 43, NO. 3    SPRING 2001
       Sustainability at Hewlett-Packard: From Theory t o Practice

1990, the concept of sustainability now challenges HP to go beyond this and to
develop solutions that actually contribute positive solutions to environmental
        The high-tech information industry in general has been viewed as rela-
tively benign environmentally and has enjoyed a favorable position with respect
to the environment. Many even view the electronic and wireless communica-
tion industry as having the potential to increase energy efficiency and dramati-
cally reduce reliance upon paper resources, travel, and transportation, thereby
contributing positively to environmental sustainability. However, as the new
economy gathers steam and high-tech companies dominate the market place,
environmental impacts from IT are attracting more attention. Although contro-
versial, studies are reporting that the growth of information technology may in
fact be encouraging resource and energy consumption rather than reducing it.
The manufacturing processes, for example, require significant resource use and
toxic materials. Similarly, the disposal of products, after very short life spans, is
choking landfills and creating environmental burdens. As these challenges esca-
late, IT companies are being forced to confront these issues and redesign busi-
ness strategies that recognize the natural limits.
        HP is no exception. As it moves beyond product stewardship, HP must
redefine its core business utilizing the principles of both environmental and
social sustainability.

Building the Business Case
       The next step for HP involved building a business case illustrating why it
should pursue a strategy grounded in the principles of sustainability. There are
several reasons this strategy is important not only for becoming a market leader,
but also for remaining competitive.
    • Meeting Customer and Market Expectations—As customers become more
       aware of global environmental conditions, they are demanding more
       environmentally responsible products and services. HP's survey of 20
       major customers in 1998 highlighted the expectations of its business and
       consumer customers. More than 80% of the enterprises studied
       mentioned the following criteria in purchasing decisions: an ISO 14001-
       certified environmental management system, documentation of continu-
       ous improvement against environmental performance objectives, and
       clear environmental attribute information for their products. Over 50%
       of the companies said they expected end-of-life programs, supply chain
       management programs, and energy-efficient, safe products. For a variety
       of reasons including total cost of ownership, it is becoming increasingly
       apparent that environmental factors are becoming a purchasing decision

       CALIFORNIA MANAGEMENT REVIEW             VOL.43, NO, 3    SPRING 2001        29
     Sustainability at Hewlett-Packard: From Theory t o Practice

     Improving Market Access—^The Government Affairs function at HP recently
     identified market access as one of the top three public policy issues. The
     linkage between market access and environmental performance is becom-
     ing increasingly clear with the surge of regulatory and legal requirements.
     For example, there are product take-back regulations in Europe, packag-
     ing take-back regulations, and increasing bans on certain hazardous
     materials. These regulations are spreading to Asia and eventually to the
     United States.
     Inaeasing Cost Savings—If the goal is to create value for shareholders and
     customers, it is critical to reduce the money spent on waste in order to
     enable greater profits from products. Waste costs money.^ By implement-
     ing waste and energy reduction projects, companies have saved millions
     of dollars. While there may be an initial investment required, the savings
     are substantial over time. As a side benefit, HP's customers can also save
     money by using energy efficient products.
     Creating Market Opportunities—As noted, changing environmental condi-
     tions create new market opportunities. A key characteristic of a successful
     company is one that is continuously adapting to change. For example, in
     addition to designing energy-efficient printers, HP is exploring business
     opportunities that would enable customers to monitor and ultimately
     reduce their overall household energy consumption.
     Enhancing Brand Image—Numerous marketing studies illustrate that peo-
     ple prefer to buy products associated with responsible business practices,
     given similar products and prices. While HP has significant environmental
     accomplishments, HP's brand is only loosely associated with environmen-
     tal responsibility, according to recent global marketing research. HP needs
     to make this linkage direct and explicit by moving beyond its reputation
     of being a responsible citizen to building a brand image around environ-
     mental sustainability.
     Leveraging Competitive Advantage—As noted, a recent competitive analysis
     conducted by HP reveals that practices that were considered "above-par
     environmental performance" five years ago are now becoming the merely
     baseline performance across the industry. While HP traditionally enjoyed
     a leadership role in the early 1990s, other competitors are now meeting
     these environmental expectations, thereby raising the bar. To maintain a
     competitive advantage and market share, HP needs to take the leap
     toward sustainability.
     Increasing Shareholder Value—While the link between environmental per-
     formance and shareholder value is lacking a universal metric, it is becom-
     ing difficult for companies to ignore. For example, investors are using
     environmental drivers, those actions taken by companies to improve
     their environmental performance, as measures of sustainability and ulti-
     mately as indicators of financially sound business strategies. The new U.K.

30   GAUFORNIA MANAGEMENT REVIEW             VOL. 43, NO. 3   SPRING 2001
      Sustainability at Hewlett-Packard: From Theory t o Practice

        Turnbull Report urges business leaders to pay closer attention to reputa-
        tion management because "a company's social, ethical, and environmen-
        tal working practices can make or break a brand name and affect share
        prices."' Therefore, in addition to using traditional financial criteria,
        investment firms are increasingly using environmental performance to
        differentiate between companies."
        The first three points—meeting customer and market expectations,
improving market access, and increasing cost savings—represent the baseline
expectations and are important simply to remain competitive as an environmen-
tally responsibly company. However, the last four points—creating market
opportunity, enhancing brand image, leveraging competitive advantage, and
increasing shareholder value—are areas that ultimately distinguish true industry

Building aTeam of Internal "Champions"
       The next challenge for HP was to spread the word and educate people
within the company. There needed to be more champions throughout HP help-
ing to communicate these messages so that people from the research labs to the
executive council would begin to think about sustainability as a business driver.
       To facilitate widespread communication with each of the businesses and
each geographic region, a new operating model was put in place that leverages
the existing network of product stewards. A leadership council was formed with
the Product Stewardship manager from each of the major business units and
each of the major geographic regions. The council also included representatives
with functional expertise in marketing, regulatory issues, government relations,
supply chain management, and workplace operations. This new virtual council
set up weekly conference calls during the initial planning phase to increase com-
munication flows and dialogue.
        Getting each of these council members to embrace the concept of sustain-
ability involved a number of long discussions, presentations, and printed materi-
als. Perspectives from Europe differed from North America, and the supplies
business differed from the computing and printing systems. Individual conversa-
tions were held with each council member to listen to their concerns in an effort
to better manage the larger group discussions. An outside facilitator was brought
in to assist with the group operating processes. In addition, an outside expert on
sustainability was hired to field specific questions and to give the group confi-
dence in making this strategic shift. He was able to help move the group beyond
the daily operational issues and focus instead on envisioning for the future. He
encouraged the team to focus on the following types of questions: What business
could HP be in? Do we want to sell products or could we shift to services? How
can we rethink our printing model so that the supplies business is environmen-
tally sustainable? While there were many more questions than answers, the
expert was able to stretch HP's vision of what is possible.

      CALIFORNIA MANAGEMENT REVIEW             VOL. 43, NO. 3   SPRING 2001     31
       Sustainability at Hewlett-Packand: From Theory t o Practice

Developing a New Strategy
       After a series of phone calls, the council met for a three-day, face-to-face
workshop to draft an action plan and strategy for HP. Through this process, a
new mission, a set of goals, and three strategic initiatives evolved. The revised
mission became "to invent and deliver environmentally sustainable solutions for
the common good." The name was changed from Product Stewardship to "Envi-
ronmental Strategies and Solutions" to reflect the wider and more proactive
goals of the group.
       The council agreed on two overarching goals for the revised program.
The first goal is to "improve HP's environmental performance in today's products and
processes." This builds on the work of the product stewards and involves doing
what they currently do, but requires doing it better and more consistently. Previ-
ous HP environmental performance had begun to suffer from the decentralized
nature of the company and the resulting ad hoc implementation of environmen-
tal initiatives. While there were numerous accomplishments in the product
stewardship realm, HP lacked a clear and focused strategy. Therefore, this first
goal is about delivering sound and consistent baseline environmental perfor-
       The second goal is to "invent tomorrow's sustainable businesses." This deals
specifically with the challenge of implementing the third phase of sustainability.
It involves radically reinventing HP's business models and examining whether
HP wants to be in the business of selling disposable printers or in the business of
selling printing services? While the first goal is about incremental changes and
improvements, the shift to designing new sustainable businesses involves a leap
into a whole new way of thinking about what business HP wants to be in.
         From these goals, a set of key strategic initiatives was identified. Initially
this list was extensive with a wide range of potential priorities to focus on. Dur-
ing this reinvention process, ESS conducted an extensive global market research
study to identify concerns of customers and to identify what issues will be
important to them in the coming months and years. The result of these parallel
processes was a decision to focus on three strategic priorities: end-of-life product
solutions, energy efficiency, and de-materialization. Over the next few months,
committees were formed on each of these initiatives to develop objectives, goals,
tactics, and metrics.

Building Support and Comnnitment
       The next step involved rolling out this new strategy to the global network
of product stewards. A second on-site workshop was scheduled with over 70
product stewards in attendance. The objective was to share the new strategy
with the field staff; get their feedback, comments, and concerns; and then begin
developing strategies to implement these changes within the various business
units. The event generated a significant amount of energy and excitement as the

32     CALIFORNIA MANAGEMENT REVIEW            VOL 43, NO, 3    SPRING 2001
      Sustainability at Hewlett-Packard: From Theory to Practice

ideas were translated into actionable steps. This proved to be an important step
in building the momentum and commitment of staff at different levels of the
       The goal was to have these people go back to their respective product
groups and geographic locations and spread the word to their colleagues about
the strategic changes. Led by council members, each business is now in the
process of writing detailed business plans for its business unit, articulating
exactly how it plans to implement the two broad goals and the three initiatives.
       While mobilizing these forces within ESS and the product steward net-
work, a significant amount of time and energy was spent educating and inform-
ing senior-level managers throughout HP about the ESS reinvention plan. This
involved a number of one-on-one phone conversations, presentations, written
descriptions, and consistent networking. The objective was to build support
throughout the company and identify synergies with other company initiatives.
       During the first few months of implementation, the group has been tar-
geting the early wins in an effort to keep the momentum high. This included
getting ISO 14001 certification for environmental management systems that had
previously been put in place but not certified. Similarly, a formal process was set
up for distributing standardized product data sheets with detailed environmental
information about each major product line to customers. Marketing and com-
munication has been another significant initiative. In the future, more informa-
tion and details about HP's new sustainability initiatives, accomplishments, and
progress will become available to the public.

Looking Forward: The Challenges Ahead
        In a study done by Businesses for Social Responsibility,' the following
emerged as traits that distinguish leadership companies in the area of sustain-
ability: executive-level commitment to environmental sustainability; publicly
stated future goals; consistent metrics linked to performance; solid internal and
external communications and marketing; strategic partnerships; and innovative
solutions for sustainability. As ESS looks to the future, these have been identi-
fied as key areas to focus on during the implementation.

Executive-Level Commitment to Environmental Sustainability
       The majority of companies have a corporate environmental policy or
statement but it stops there. The leading companies in the high-tech industry
have a CEO or high-level executive who has actively embraced the concept of
environmental sustainability and is actively integrating it into core business
strategies. For these companies, the CEO is often the chief spokesperson and
advocate for the environment. A CEO's involvement creates top-of-mind aware-
ness of environmental sustainability among employees as well as customers.

       CALIFORNIA MANAGEMENT REVIEW           VOL 43, NO. 3    SPRING 2001       33
       Sustainability at Hewlett-Packard: From Theory to Practice

shareholders, suppliers and other stakeholders. This senior-level involvement
plays a strong role in driving superior company performance.
       ESS has begun to put significant effort into building senior-level leader-
ship support. One approach has been to jointly co-sponsor initiatives with other
HP divisions specifically to raise the profile of these initiatives internally and

Publicly-Stated Future Goals
       Many companies widely communicate their environmental policy state-
ment and talk about past accomplishments. Few companies, however, provide
information to the public about future goals. While this is riskier, it also shows
a stronger commitment on the part of the company to work toward those goals.
Leading companies recognize that setting such target goals is critical internally
as well as externally. Internally, it enables employees to understand the cohesive
coordinated strategy and see the linkage between their performance and these
goals. Externally, it addresses investor's needs. As environmental drivers join the
ranks of financial drivers in the investment community, leading companies have
done a better job of articulating goals and measuring progress.
       ESS is currently producing environmental materials for external audi-
ences that articulate this new vision and strategy of sustainability. Additionally,
an environmental annual report will be produced for the year 2001 to summa-
rize accomplishments and state future goals and targets. Within several years, it
is hoped that these environmental goals will be integrated into the mainstream
business goals.

Consistent Metrics Linked to Environmental Performance
        Another challenge is to design metrics to measure progress toward these
goals. When measuring conventional business performance, financial metrics
(such as ROI, ROE, or operating profit) are universal. When measuring progress
toward environmental sustainability, the metrics are neither universal nor
straightforward. However, since environmental drivers are designed to improve
the bottom line, some financial metrics still apply and can be used. Eor example,
redesigning products to utilize recycled materials must show improved profit
margins over the long-term. In regard to linking brand image, stakeholder satis-
faction, and an increase in market share to environmental performance, the
metrics become more complicated. As environmental products go to market, a
metric is needed to measure and correlate stakeholder satisfaction and increases
in market share with improved environmental attributes. The challenge lies in
identifying the causal relationships between environmental drivers and better
financial performance. What gets measured gets managed, and without appro-
priate measurement systems, the financial value of environmental drivers is lost.
        ESS has developed overall metrics for each of the three strategic initia-
tives. In the future, each of the business units is expected to translate the broad

34    CALIFORNIA MANAGEMENT REVIEV\/           VOL, 43, NO, 3   SPRING 2001
      Sustainability at Hewlett-Packard: From Theory to Practice

goals into specific business plans with accompanying metrics. ESS is currently
reviewing environmental annual reports to better understand which metrics are
most useful in measuring performance toward certain goals. ESS plans to work
with other divisions within HP to learn how these metrics can be better inte-
grated into the traditional metrics used throughout the company.

Strategic Partnerships
       As is the case at HP, leveraging partnerships and strategic alliances has
become a fundamental business practice and strategy. Companies are continually
looking to leverage skill sets and assets to achieve maximum return. With regard
to environmental sustainability, leaders are demonstrating the benefits of such
partnerships in designing innovative solutions. Partners—whether businesses,
governments, nonprofit organizations, or internal business units—each have
unique skill sets and experiences that are useful in addressing issues as complex
as sustainability. The recent drive toward sustainable business practices has
resulted in an array of new partnerships between business, government, and
nonprofit organizations where antagonistic relationships had previously
       During the reinvention process, ESS has focused on building internal
relationships and partnerships throughout HP to leverage the existing networks
within the company. For example, working relationships have been established
with EHS, Workplace Solutions, Government Relations, World E-Inclusion, Phil-
anthropy, and Marketing in an effort to better implement the new strategy. Such
relationships and partnerships are critical to accomplishing complex sustainabil-
ity goals. Similarly, ESS plans to work closely with HP labs so that engineers are
using the principles of sustainability in their technology development projects.
       The next step of the reinvention process involves exploration of external
partnerships that will strengthen the sustainability initiatives. HP's partnership
with a Digital Europe research project has just been formalized. This project is a
partnership involving ten major companies and will explore sustainable business
issues. Other potential partnership arrangements are being explored with promi-
nent organizations such as World Resources Institute, World Business Council
for Sustainable Development, Businesses for Social Responsibility, and similar
organizations dedicated to the cause of sustainability. ESS plans to embark on
one or two of these partnerships initially and perhaps others in the future. In
addition, ESS staff are building informal networks through business conferences
devoted to sustainable business issues.

Solid Internal and External Communications and Marketing
        Research conducted by Businesses for Social Responsibility indicates that
there is significant variation in communicating environmental performance
among HP's competitors. As the importance of environmental performance esca-
lates, leading companies are recognizing the need for increasing communication
and marketing of their environmental goals and accomplishments to customers.

      CALIFORNIA MANAGEMENT REVIEW            VOL. 43, NO. 3   SPRING 2001      35
       Sustainability at Hewlett-Packard: From Theory to Practice

shareholders, employees, and the press and media. While there is reason to be
cautious in reporting environmental performance, the leading companies are
taking bold steps to highlight not only the accomplishments, but more impor-
tantly the challenges they face and the strategies they are using to overcome
them. By confronting the challenges and addressing them directly, they earn
stakeholders' trust and respect. As the complexity of environmental issues
grows, such transparent communication strategies enhance credibility. In addi-
tion to reporting and communicating progress, companies need more aggressive
marketing strategies. With more customer and market research, companies will
be able to strategically position environmentally responsible products to capture
market share and gain competitive advantage more aggressively. By creating
expectations and then delivering, companies will distinguish themselves as lead-
ers. They will also help build customer awareness and sensitivity to environmen-
tal issues, which in turn should lead to greater demand for their
environmentally sound products and sustainable business solutions.
        ESS has recently begun to invest more resources toward marketing and
communication. HP has traditionally under-marketed itself in regard to environ-
mental performance. Previously, the focus was on accomplishing significant
environmental goals and little time was spent communicating or marketing
these accomplishments. Additional marketing expertise has been mobilized,
the internal and external websites are being completely revised and updated, a
global marketing research project has recently been completed, and an environ-
mental brochure describing ESS accomplishments and future directions has gone
to press. While these are important accomplishments, these are only the first
steps in a long-overdue global marketing and communication initiative. To
improve marketing and communication of ESS initiatives, ESS is working closely
with the global marketing department so that ESS messages will be appropri-
ately incorporated in the corporate branding and communication materials.

Delivering innovative Solutions: HP's Vision for the Future
        Each of the above points contributes to the ability to invent entirely new
solutions that address complex societal needs. The most innovative leading-edge
companies are designing whole new technologies to address climate change,
traffic congestion, air and water pollution, and resource depletion. Recognizing
the finite resources of the earth and its limitations, companies are transitioning
to sell services rather than products. Leading companies are reanalyzing their
fundamental business models and making dramatic shifts; they are actually sell-
ing solutions to problems rather than introducing more potential problems with
less negative impacts. This is the direction HP is headed.
        HP's vision is of a world that is completely networked, where there is
less stuff and more value. Products will be miniaturized, web-enabled, and ulti-
mately turned into services rather than traditional products. HP is already mov-
ing in this direction with its focus on selling e-services rather than remaining a

36    CALIFORNIA MANAGEMENT REVIEW             VOL. 43, NO. 3   SPRING 2001
        Sustainability at Hewlett-Packard: From Theory to Practice

hardware company. For example, through its PrintAdvantage program, HP is
leasing printers rather than selling them. Similarly, HP is leasing the new E-PCs
to business customers. Many customers don't necessarily care about owning the
actually piece of equipment on their desk as long as they have the ability to print
and to use a state-of-the-art, fully functioning computer. As a result, HP is
designing their products from entirely new perspectives. Leasing machines
means that HP will continue to own the product for its entire life. This provides
incentives to design equipment that is durable, has a long life cycle, is fully
upgradeable to accommodate new technological breakthroughs, and is easy to
recycle at the end of its life. HP is also designing a variety of new services that
specifically address environmental and societal needs of the 21st century. The
World E-Inclusion program, for example, is striving to bring information tech-
nology to poor people around the world to bridge the digital divide. Through
these sustainability-driven strategies, HP plans to be a company that is inventing
for the common good.

   1,   Dow Jones Sustainability Group Index,
   2,   Conversations with Gil Friend, Natural Logic, Berkeley, CA.
   3,   Special section in Financial Times, June 2, 2000.
   4,   World Business Council for Sustainable Development,
   5,   This competitive analysis of leadership qualities was not an exhaustive study, but
        instead used information already compiled by Portfolio 21 and Businesses for
        Social Responsibility. It provides a big picture overview of HP's gaps without going
        into a detailed competitive analysis.

        CALIFORNIA MANAGEMENT REVIEW            VOL 43, NO, 3    SPRING 2001              37

To top