Mario goes green Essay

Nintendo Corporation Limited was founded in 1889 as a playing card company, and since so it has evolved and go an electronic picture game company. Nintendo has sold over 255 million picture game consoles and 1.5 billion package units as of March 31, 2009 with one-year net gross revenues of $ 18.76 billion and a net income of $ 2.85 billion. Presently, Nintendo has operations worldwide and it employs 4,306 people.In 2006, Nintendo introduced the Wii, which has become a radical console in the picture game industry, celebrated for its usage of wireless gesture detector technology.Since so, Nintendo has sold 25.95 million units of the Wii along with 204.58 million units of package for the Wii ( Annual Report, 2009 ) .

On October 1, 2009, BusinessWeekpublished itsWorld ‘s Best Companies 2009report, naming Nintendo at the top of the list. To bring forth this study, BusinessWeek analyzed public presentations of 2,500 publically traded corporations. To be considered in the ranking, a company must hold had at least $ 10 billion in gross, a one-fourth of which must hold been coming from international gross revenues. Companies were ranked harmonizing to their gross revenues growing and value creative activity. Qualification standards besides include “ commitment to invention, diversified portfolios, aggressive enlargement, strong leading, and a clear vision for the hereafter ” . From 2004 to 2008, Nintendo ‘s gross revenues went up by 36 per centum and its value increased by 38 per centum ( World ‘s Best Companies 2009 ) . Nintendo is the lone company from the picture game industry included in this study. Sony and Microsoft, Nintendo ‘s chief rivals, were non even listed.

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Despite the fact thatBusinessWeek named Nintendo the best company, Nintendo seems to overlook the environmental issues it creates in society. Nintendo does non hold its ain recycling plan, nor has it taken any stairss towards constructing more sustainable merchandises. Harmonizing to the official Nintendo web site, Nintendo has contracts with sellers that guarantee proper recycling and disposal of all electronic equipment, but it neither lists any of its sellers ‘ names, nor does it advert any ways to recycle its consoles. The web site has merely a little portion in its Frequently Asked Questions ( FAQs ) subdivision, which simply mentions its recycling plan. Furthermore, Nintendo has non decently addressed the turning job of e-waste.

Electronic waste, normally referred to as “ e-waste, ” is a term used to depict electronic merchandises that are approaching the terminal of their utile life. Televisions, computing machines, DVD participants, stereos, cell phones, facsimile machines, and video game units are all illustrations of electronic merchandises. Most electronic merchandises can be reused, refurbished, or recycled ( Bily, 2008 ) . However, some constituents of certain electronic merchandises contain stuffs that render them risky and, as a consequence, must be disposed properly.These merchandises have toxic chemicals, such as lead, quicksilver and Cd, and can pollute land over clip, impacting nearby communities every bit good as the overall environment ( Grossman, 2006 ) . The toxins found in electronic devices can do multiple wellness jobs, foul the environment, and destruct the ozone bed.

E-waste presently makes up to two per centum of the entire waste of the universe and histories for 70 per centum of the universe ‘s entire toxic waste ( “ Three Pathways to Greener IT, ” 2008 ) . Grossman ( 2006 ) writes that about 80-85 per centum of all cast-off electronics is disposed in landfills.Some states, chiefly in Europe, have restricted electronic waste due to its risky content. In other developed states, electronics recycling has been moved to purpose-made recycling workss under controlled conditions. However, 60 to 80 per centum of e-waste collected by developed states is shipped overseas, largely to China, India, and Pakistan ( Bily, 2008 ) .There is small to no control on e-waste in the landfills of these less developed countries.Instead, the recycling is done by manus in bit paces of these states, frequently by kids. This frequently violates international law.In 2005, about half of the exported waste, including e-waste, was found to be illegal in Europe.In the United States, it is estimated that the bulk of the waste collected for recycling is being exported illegitimately ( Grossman, 2006 ) .

However, this behavior is legal because the United States has non ratified the Basel Convention ; an international pact designed to cut down the motions of risky waste between states and to forestall transportation of risky waste from developed states to undeveloped states ( Basel Action Network, n.d. ) . In 2000, Chinabanned the import of e-waste. However, the ordinance has non improved the state of affairs because e-waste is still geting in the metropolis of Guiya, the chief centre of e-waste disposal in China. Approximately 25,000 people are working illicitly at bit paces in Delhi, India. At these locations, 10,000 to 20,000 dozenss of e-waste is disassembled by manus each twelvemonth. Other e-waste bit paces have been found throughout Africa and India ( Grossman, 2006 ) .

The big bulk of electronic companies have started implementing recycling plans or selling green merchandises. A green merchandise can be defined as a merchandise or stuff that is made with recycled, refurbished, or agricultural waste content, conserves natural resources, avoids toxic emanations, saves energy or H2O, and helps lend to a safe, healthy environment ( Grossman, 2006 ) . Green merchandises are environmentally preferred and they protect the environment. Furthermore, green merchandises protect the wellness of employees and consumers.

Greenpeace is an independent non-profit organisation that works towards the saving of the environment and proctors the green index of a company.It has a world-wide presence with regional offices in more than 30 states and about 2.9 million members ( Greenpeace USA, n.d. ) . It is one of the largest and most recognizable non-profit-making organisations in the world.Due to the turning job of e-waste in recent old ages, this issue has become an of import precedence for Greenpeace. In seeking to keep electronic companies more responsible for their merchandises, Greenpeace created the Guide to Greener Electronics.

The Guide to Greener Electronics is a ranking of the top 18 companies in the universe that are makers of personal computing machines, nomadic phones, TVs, and video game consoles.The mark is based on each company ‘s policy on toxic chemicals, recycling, and clime alteration ( Greenpeace International, 2009a ) . Harmonizing to Greenpeace International ( 2009a ) , “ the superior standards reflect the demands of the Toxic Tech run to the electronics companies. ” The three demands are that the companies should “ clean up their merchandises by extinguishing risky substances, take back and recycle their merchandises responsibly once they become disused, and cut down the clime impacts of their operations and merchandises. ” Each demand has its ain standards for the ranking.The standard for toxic chemical and e-waste are connected issues.Since the recyclability of a merchandise depends on the toxic chemicals the merchandise contains, Greenpeace weighs the toxic chemical standards more to a great extent than the e-waste.Thus, if a company has a quality take back recycling plan, its mark might still be low if its merchandises contain toxic substances that prevent safe recycling.

The first edition of Guide to Greener Electronics was released back in August 2006. Since so, Greenpeace has released 13 editions of the ranking with about three months in between each edition. Nintendo broke into the top 18 list in the 6th edition of the ranking, which was released in December of 2007.Nintendo received a nothing in its first visual aspect, the first and merely nothing that Greenpeace has of all time given to a company for the ranking.The latest edition was released in September of 2009. Nintendo increased its mark to 1.4 out of 10.0 yet it was one time once more ranked last on the list.

In its response to the Greenpeace ranking, Nintendo stated that it decided non to take part in the study, and since it chose non to take portion, it does non see itself graded. The statement is a logical line of logical thinking, but Nintendo is seeking to avoid the issue and discredit the ranking.Nintendo states that it “ provides elaborate information sing its conformity to environmental Torahs and directives via the “ Consumer Information subdivision ” of its web site, and because of that, Nintendo felt that it was non obligated to be a portion of the study by Greenpeace ( The News Team, 2009 ) .However, the voluntary entry of the information to Greenpeace will merely assist advance Nintendo ‘s corporate societal image.

In the latest ranking, Nintendo remains in last topographic point with a mark of 1.4, up 0.4 from the old version. The ground for this addition is that Nintendo introduced a new low-power AC adapter for its handheld consoles.Nintendo was besides able to hit a point for extinguishing polyvinyl chloride ( PVC ) in the internal wiring of its consoles ( Greenpeace International, 2009b ) . Harmonizing to Greenpeace ‘s Guide to Greener Electronics ( 2009b ) and Nintendo ‘s Corporate Social Responsibility Report ( 2008 ) , Nintendo has banned phthalates, Cd, and Cd compounds. It is supervising the usage of Sb, Be, and arsenic stuffs and compounds. Nintendo has announced that it will finally extinguish the usage of PVC wholly, but it has non set a timeline. Nintendo besides lost a point due to a 2nd twelvemonth of additions in nursery gas emissions.This addition occurred despite a committedness by Nintendo to cut CO2 emanations and other nursery gases by two per centum over each of the old old ages. Finally, Nintendo scored a nothing on all e-waste criteria.This is a big ground why its mark continued to be so low.

On its web site, Nintendo inside informations ways for consumers to recycle its products.It provinces that clients who are looking to return all hardware and rechargeable batteries back to Nintendo for recycling can make so by reaching its office for agreement. It claims that it is free of charge for the clients to direct the hardware back to its office. This is the lone topographic point on its web site where Nintendo mentions a return back program.However, this information is hard for a user to happen, and the return back plan is hidden under several bill of fares. Nowhere on Nintendo ‘s web site or its studies does the company reference that it has its ain recycling centre that takes attention of all the returned merchandise.Nintendo does non supply any information about its recycling plan or its recycling seller ( s ) on its web site. This deficiency of information can do the company expression bad in the populace ‘s eyes.

Nintendo besides encourages consumers to recycle merchandises in their local countries by supplying a nexus to the U.S. Environmental Protection Agency ( EPA ) web site for more information on recycling plans. The full aggregation of recycling information on Nintendo ‘s web site is about less than half of a page. This creates an feeling that Nintendo is supplying the information simply to fulfill a status on its one-year CSR study. Furthermore, this manner of presenting the information can be instead confounding for the consumer.

In 2008, Greenpeace released another study called Playing Dirty ( Brigden et al. , 2008 ) , which showed elaborate analysis of the top three picture game console companies: Sony, Nintendo, and Microsoft.This study was portion of Greenpeace ‘s hunt for greener electronics that focused on video game consoles.Xbox360, PlayStation 3, and Wii wholly tested positive for risky stuffs such as PVC and brominated fire retardents ( BFRs ) .However, the study besides stated that each console had “ reduced or even avoided utilizations of single risky substances in specific constituents. ” The study besides showed that each company could replace harmful constituents in each of its consoles with toxic free materials.Greenpeace suggested that the three picture game companies look at each other ‘s merchandises to see how they can develop constituents without harmful materials.Microsoft, Sony, and Nintendo have already eliminated or lowered the presence of different chemicals, and if these three companies worked together, they could replace all toxic substances to do their consoles greener much quicker.

Effectss on Nintendo ‘s Stakeholders

Nintendo, as it stands today with or without an enforced recycling plan, affects assorted stakeholders across the market place. The major stakeholders affected by the company merchandises are stockholders, consumers, environmental groups, media, and the general populace.


Harmonizing to Yahoo! Finance, the Nintendo stock monetary values boomed in 2007 at about $ 78.50. The stock monetary value was high in portion due to the release of the Wii. However, due to the on-going recession and a recent bead in video game gross revenues, Nintendo ‘s stock has dropped to about $ 31.00 to day of the month. Stockholders should be surely concerned with the stock monetary value bead. Now is the clip for Nintendo to alter its growing scheme and to implement new ways to better its image and increase its stock monetary value.

Increasing competition and a downswing in the economic system have significantly impacted Nintendo ‘s gross revenues figures for the first half of 2009. Nintendo reported merely $ 766.1 million in net net incomes for the past six months, down 52 per centum from its net incomes of $ 1.6 billion during the same period in 2008 ( Kwok, 2009 ) . Anthony Gikas, a senior analyst at Piper Jaffray & A ; Co, stated that even with the vacation gross revenues and the reduced monetary value on Wii consoles, it would still be difficult for Nintendo to execute every bit good as many people expected from it. He says that “ Nintendo will fall abruptly in the U.S. by about 2 million units this twelvemonth, stoping with about 8.35 million units sold, down from 10.15 million units last twelvemonth ” ( as cited in Broek, 2009 ) .

Currently Nintendo ‘s chief competitory border is in its gesture accountant that attracts a batch of gamers to play Nintendo ‘s games. However, this competitory border is shortly to be challenged. In 2010, Microsoft and Sony are both set to come out with their ain versions of gesture detector accountants that might present a menace to Nintendo ‘s gross revenues and its overall success ( Newman, 2009 ) . A exhaustively implemented green run can make a new competitory advantage for Nintendo that will better the company ‘s image and repute. This green plan will assist retain current clients and attract extra consumers to its current market, ensuing in a possible addition in the company ‘s stock monetary values.

Stockholders should be concerned since the competition is turning non merely within the current industry but besides outside of it. So far, Nintendo ‘s chief rivals have been Sony with its Playstation 3 and Microsoft with its Xbox 360. However, the turning popularity of Apple ‘s downloadable games for its iPhone and iPod Touch present an extra menace to the company. In September 2009, Apple announced that more than two billion applications were downloaded through its Apple shop. Besides, out of 85,000 different applications available in the shop, approximately 80 per centum of the applications is free and include more than 21,000 games. The mean cost of a Nintendo DS game is $ 26.00, while the mean selling monetary value of a paid game application in Apple ‘s iTunes shop is about $ 3.00. With an addition in on-line downloads, Apple ‘s quarterly gross has grown from $ 60 million to $ 100 million ( Caulfield, 2009 ) . These new options should be dismaying to Nintendo ‘s stockholders.

Since a new recycling plan might temporarily diminish stockholders returns, some stockholders might experience loath towards implementing a new eco-friendly policy. However, since there is a tendency for eco-friendly merchandises, other stockholders might welcome this new chance to travel green. Harmonizing to research conducted by Mark P. Sharfman, professor of strategic direction, and Chitru Fernando, the Professor of Finance at Price University, companies with better environmental policies perform better in the market and pull more shareholders, therefore cut downing the cost of their equity capital and raising their stock monetary values.

The portions of these companies are considered to be less hazardous because the companies would confront less authorities ordinance, less menaces of cases, and have better public images that could increase overall net incomes ( as cited in Di Meglio, 2008 ) . In the article “ Sustainability Gets a Warm Embrace by US Companies, ” Mindy S. Lubber ( 2007 ) , the President of Ceres, writes, “ A company that does non cognize how to incorporate issues of sustainability into its long-run concern scheme is a ailing tally company and the investing community will take notice. ” She besides mentions that companies that are successful in incorporating sustainability rules exhibit an addition in their fight and economic underside line.

Some people argue that altering the merchandises to do them more eco-friendly could besides be clip devouring and expensive for the company. To rebut this point, Mark Tran ( 2006 ) , a newsman at the Guardian U.K. , states, “ The 1 in three companies that do n’t hold programs to go more environmentally friendly are losing out on the opportunity to better their underside lines. ” Furthermore, Al Gore ‘s An Inconvenient Truth, released in May of 2006, displayed a turning tendency of clients that are now purchasing merchandises based on a company ‘s environmental policy ( as cited in Boyes, 2008 ) .

In recent times, investors have had an impact on how companies have been acting. For case, Trillium Asset Management called on Apple stockholders to back up the thought of coercing Apple to fabricate merchandises that are green and free of risky toxins ( MacNN, 2007 ) . It is possible that Nintendo investors will coerce the house to alter its way to bring forth more eco-friendly merchandises.

If Nintendo stays adamant on its current patterns and does non bring forth eco-friendly merchandises, opportunities are that Nintendo ‘s gross revenues will get down worsening and people will get down purchasing merchandises from greener rivals. If Nintendo is successful in presenting eco-friendly merchandises, it can besides avoid governmental ordinances, offset the costs associated with greener merchandises, and accrue a net addition, which will delight the stockholders.


Video games are by and large thought to be played by little kids. However, a big figure of gamers today include striplings and grownups. Harmonizing to the study by The Entertainment Software Association ( ESA ) ( 2009 ) , 68 per centum of American families play computing machine and picture games, and among those, 49 per centum are people whose age is between 18 and 49 old ages old. This age group has more purchasing power than any other group since it represents a on the job category of people with disposable incomes. The immature grownups in this group are even more of import for Nintendo since they will be possible clients for old ages to come. They are besides going more educated and more exposed to environmental issues. If Nintendo wants to retain these immature grownups as clients, it should do an attempt to bring forth a greener console.

It is a popular premise among clients that eco-friendly merchandises are more expensive. However, harmonizing to research conducted by George Mason University ( 2008 ) , “ 15 per centum of consumers routinely pay more for green merchandises, and another 15 per centum seek viridity merchandises if they do non be more. ” This indicates that an addition in the cost of a merchandise does non needfully intend lower gross revenues for Nintendo. Many clients will be willing to purchase an environmentally friendly console even if it is more expensive. Furthermore, there is no relationship between production cost and gross revenues monetary value of a merchandise. Even if the fabrication cost of a merchandise goes up, the company does non hold to increase the merchandise ‘s gross revenues monetary value. Although Nintendo might non do as much net income as it would hold otherwise, its concern will be more profitable in the long tally since holding an environmentally friendly merchandise will bring forth clients ‘ good will and a positive repute.

In order to remain profitable and better its repute, Nintendo besides needs to pull new clients and retain its current clients. The most effectual manner for Nintendo to accomplish this is by developing a better console that uses advanced engineering. Harmonizing to engineering intelligence author James Newman ( 2009 ) , the mean life of a Nintendo console is about six old ages, and in the United States no console has been in usage for more than seven old ages without being replaced by a new coevals of consoles.

In an interview with Financial Times, Yoichi Wada, the CEO of the game publishing house Square Enix, said that he expects a new version of Nintendo Wii to be released by 2011 ( Harding, 2009 ) . The debut of the new Wii will do more than 26 million consoles obsolete. When a new coevals console is released, there are merely three options for clients: recycle the old console, throw it off, or maintain it for future gambling. Many people will throw the consoles off either because it ‘s the most convenient option or because they find it difficult to obtain recycling information. In order to do more clients recycle their consoles, Nintendo needs to supply adequate information on recycling of its merchandises and make its ain recycling plan.

Militant Groups

Environmental groups monitor Nintendo ‘s merchandises for chemical substances that may be harmful to the environment and to human wellness. They can besides raise concerns about the fact that Nintendo is non making plenty to promote clients to recycle its merchandises after the terminal of their utile life. Greenpeace, as it was mentioned earlier, has put Nintendo on the underside of its list for holding harmful chemicals in its merchandises and for non holding a believable recycling plan. There are many other environmental organisations that monitor the company ‘s environmental policy and publicise their findings. These surveies and findings can either positively or negatively affect the gross revenues figures of Nintendo once they are published. The militant groups can besides research their legal powers by registering category action law-suits against Nintendo if it does n’t exert due attention of its clients and the environment. Due to these grounds, Nintendo should non disregard the influence of environmental organisations.

General Public

The general public includes all gamers and non-gamers affected by Nintendo ‘s patterns. The general populace has the right to safety, which means they should non be subjected to hazards caused by the company merchandises or its actions. This issue matters most in the states where e-waste from other states is being dumped in unrevealed locations for low fees. The most common e-waste landfills are found in China, India, and some African states ( Grossman, 2006 ) . Peoples who live in those countries are invariably affected by the toxic chemicals that contaminate the air and H2O, and as a consequence, have a negative impact on their life conditions.

As it was mentioned before, Nintendo needs to take duty for the e-waste it creates in the universe. Nintendo needs to implement its ain recycling plan or engage a seller who will supply proper recycling for Nintendo ‘s consoles. However, merely supplying information or implementing a strong recycling plan is non plenty. There will ever be consoles that make their manner to the mopess and barrens of the developing states. Their toxicity will pollute the local environment and injury people ‘s wellness, and the lone manner to forestall that from go oning is to hold Nintendo bring forth greener consoles.


The media can hold a important impact on a company and its image. The public relies on the information the media provides in the intelligence and publications. Positive feedback from the media will hike Nintendo ‘s image, while negative reappraisals will decrease public perceptual experience about the company. As a leader in the picture game industry, Nintendo ‘s policies and processs are under great public examination. If Nintendo continues to disregard environmental issues environing Nintendo merchandises, the media will finally picture the company in a negative mode, harming Nintendo ‘s repute and diminishing its gross revenues. However, if Nintendo comes up with a green console and more environmentally friendly merchandises, the media will praise the company and aid advance its “ green ” image. This will assist increase Nintendo ‘s gross revenues and supply better client perceptual experience for the company.


Some may reason that incorporating these policies and plans into the company will incur extra costs, which might negatively impact economic efficiency and lower company net incomes. It is argued that these costs might be passed on to the stakeholders, chiefly to clients and to stockholders. Besides this, the extra outgos might coerce Nintendo to raise its merchandise monetary values, doing the company less competitory in the current market. Critics may besides reason that the execution of a new plan will necessitate adept cognition and accomplishments that Nintendo will hold to get at an expensive monetary value. However, the benefits will outweigh all of these costs and uncertainnesss in the long tally.

Traveling viridity will assist Nintendo better its repute and concern value. The company ‘s green enterprises will distinguish it in its industry and make public consciousness of its concern patterns which will finally increase its gross revenues and advance long-run net incomes for the concern. Once Nintendo launches a green console, it can market itself as the leader in green engineering of the picture game industry. It can besides advance its sustainability policies in order to derive positive repute and a larger market portion in the industry.

Another benefit of traveling green is that it discourages authorities ordinances. As more scientists, media, and militant groups are coercing the authoritiess of different states worldwide, there will finally be more rigorous ordinances on the picture game industry sing merchandise contents and recycling plans. By being proactive and taking the manner in these issues, Nintendo will discourage authoritiess from acquiring involved in its concern patterns.

As a leader in the picture game industry, Nintendo must besides admit its duty towards society and environment. Presently, the chief issues for Nintendo are to cut down e-waste and to extinguish toxic content in its consoles. Nintendo should develop a new fabrication procedure utilizing merely “ green ” stuffs in its consoles. The stuffs should be free from toxins and other harmful chemicals and should besides be easy reclaimable. Nintendo should besides implement a recycling plan to cut down e-waste. The recycling plan demands to be effectual and efficient. To guarantee high client engagement, Nintendo should supply a free return back plan that is easy accessible by clients. Nintendo can cut down its cost of natural stuffs by using reclaimable constituents and by recycling old consoles. This method is called cradle-to-cradle, and it ‘s widely used by companies that want to maximise the utility of their merchandises and minimise the waste those companies create ( The Dictionary of Sustainable Management, n.d. ) . By cut downing waste and toxic substances in its merchandises, Nintendo will rectify societal jobs it has been lending on the planetary graduated table.

By implementing all of these plans, Nintendo can keep its market leading in both gross revenues and invention. These stairss will assist Nintendo go a more responsible planetary corporate citizen and will do it a role-model for its rivals.

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