Environmental awareness coupled with a sense of social responsibility is leading many companies to assess their environmental policies and business practices. Some companies such as General Electric are developing environmentally sensitive products while others such as Starbucks have adopted tough recycling programs that minimize environmental waste. Companies worldwide acknowledge a concern for the environment, seek to minimize environmental damage, and commit resources to their environmental programs.

One challenge for manufacturers around the world is to transform environmentally harmful products into environmentally friendly products. In some industries, making products more environmentally safe has been relatively straightforward. For instance, air conditioner manufacturers moved from the refrigerant known by the brand name Freon to a more environmental friendly product, Puron, that reduced chlorine emissions and depletion of the ozone layer.

In other situations, it is more difficult to create environmentally sensitive products. Consider Nike, a company that built its running shoe business through outstanding products and creative marketing communications. A key product feature for Nike has been a small pocket of air in its Nike Air shoes. The extra cushion was a significant product innovation when it was introduced and proved to be a major market differentiator for the company. However, the pocket of “air” was not just air; it also contained a small amount of sulfur hexafluoride, or SF6, a gas that damages the ozone layer.

In the early 1990s, questions about Nike’s use of SF6 gas became public. While the Nike air cushion was a key factor in the company’s success, Nike realized that continued use of SF6 posed an environmental problem. Unfortunately, replacing SF6 with a solution that minimized environmental damage while providing the same product benefits (long-lasting cushion and support) proved challenging.

After millions of dollars and almost two decades, a team of 60 Nike engineers replaced the old product with a new, greener solution using sophisticated manufacturing techniques to replace the SR6 with nitrogen. The Air- Max was the first shoe to incorporate the new technology. Interestingly, the new shoe actually increases comfort and weighs less than older models, making the environmentally sensitive solution the best business solution as well. Nike’s focus on product performance and technical innovation created a better, environmentally friendly product that is successful in the marketplace.

As part of the product development process, Nike kept environmental groups informed of the progress. Although there were tensions as the process took longer than anyone planned, the communication between Nike and stakeholders helped minimize long-term negative publicity. The challenge for marketers is finding the right balance between consumer demand and environmental stewardship.¹⁵

Environmental groups: Nike took almost two decades to create a new sole for its air cushion; would you allow a company that much time to deal with an environmentally damaging product?