“Green is in. Green is in vogue. Green is the new black. Consumers are asking for it. Organizations are requesting it” (Tran, 2009). Going green has become somewhat of a phenomenon and is even referred to as the “green movement.” The importance of going green is significant, especially when the global warming issues are always in the headlines. People are more concerned about environmental protection issues. At the same time, more and more companies are implementing green policy and strategies. Businesses of all sizes are implementing environmentally friendly changes of different varying degrees. Some of these changes include green engineering, LEED certification or small changes such as offering environmentally friendly shopping bags. Many companies are part of the green movement and a few of them are Wal-Mart, Home Depot, General Electric, Dell and Target. Since more and more companies are joining the green movement, the question becomes is the choice to become part of this movement a rational decision or is to take part of the fad and join the bandwagon?

Literature review

　　 In order to answer this question, we must first understand the bandwagon effect. The bandwagon effect takes place when companies adopt an idea because of pressure of those who have adopted it (Fiol, O’Connor, 2003). People’s preference for a commodity can be influenced by the bandwagon effect, so they may buy a commodity because of the high sales volume or demand of this product rather than their personal preference. Accordingly, when it comes do decision-making, businesses may follow the bandwagon effect because they choose to adopt a practice because “everyone else is doing it.” Going green is becoming more popular everyday; is it because of the bandwagon effect?

　　 Next we need to define rationalization. Rationalization means we can explain our choices and behavior. Rationalization is the action of making sense of what you do and thinking through your decision (Sechii 2009). There are many steps and ideas companies go through when implementing and/or creating green ideas and some of these will be discussed. All these steps and ideas which will be discussed illustrate the rationalization process the companies enter during the “go green” phase(s). These include management approach, ethical standards, why companies go green, consumer demand, building competitive advantages, production, and innovation.

Proposal and Implications

　　 Nowadays, going green has become one of the most popular issues in the market, and this trend is growing rapidly. It goes without saying that being green can give rise to many positive effects upon businesses, one of which is building a competitive advantage. Going green for a company is an effective way to build a competitive advantage since it would improve company image and attractiveness to customers. Competitive advantages of a business includes not only direct benefits, such as productivity, but also many indirect benefits, such as a good company reputation. According to Tran, the businesses that are green or going green are specifically favored by consumers, and in general consumers are willing to pay a higher price for their green products. Therefore, given the benefits that would be generated by maintaining a competitive advantage, it is rational that more and more companies would like to go green. However, in part, bandwagon effect still somewhat aid the advent of this new trend, but the creation of green bandwagon can still be attributed to the need of maintaining a competitive advantage. Thus, for companies, when it comes to decision-making on green movement, rationally considering the importance of maintaining competitive advantages still plays a very important role.

　　 Zhang and Zhang stated that “enterprises nowadays have to carry out “green marketing” or they will lose out in the intensive market competition” (1999). The advent of environmental consciousness has given rise to a prevailing trend of green consumption, and the demands for green products have been skyrocketing since then. According to Zhang and Zhang, in the United States, there are more than 600 kinds of green products with a value of over 800 billion dollars, and 77% of Americans would consider environmental factors as a purchasing criterion when they shop in supermarkets (1999). Also, 64% of consumers worldwide said they are even willing to pay more for goods and services that product lower greenhouse gas emissions (Tran, 2009).

Conclusion

　　 Ultimately, going green is a rational decision made by a company. There are many steps involved in the process and many different areas of the business are impacted. This decision also helps the bottom line because it allows companies to find ways to reduce waste, develop new innovative ideas, develop better or new production techniques, and increase efficiency. Most importantly, consumers want green products and the demand is increasing.

References
Fiol, C., & O'Connor, E. (2003). WAKING UP! MINDFULNESS IN THE FACE OF BANDWAGONS. Academy of Management Review, 28(1), 54-70. Retrieved from Business Source Premier database.
Secchi. D., (2009). Extendable Rationality: An Inquiry into Decisions and Rationality in Organizations.
Tran, B. (2009). GREEN MANAGEMENT: THE REALITY OF BEING GREEN IN BUSINESS. (English). Journal of Economics, Finance & Administrative Science, 14(27), 21-45. Retrieved from Academic Search Complete database.
Zhang, T., & Zhang, X. (1999). Green Marketing: A Noticeable New Trend of International Business. Journal of Zhejiang University: Science: V.1, NO.1, 99-104. Retrieved from: http://www.springerlink.com/index/4780T48852976G13.pdf.