The William Wrigley Jr. Company: A Multinational Corporation that Respects the Environment

The William Wrigley Jr. Company (Wrigley) operates chewing gum production facilities in 14 countries (All About Wrigley). Manufacturing facilities include four in North America, four in Europe, one in Africa, and five in the Asia/Pacific region. Wrigley has developed a long-term business plan based on six objectives, which include increasing the core gum business, purchasing confectionary businesses, expanding the business into new geographic and distribution areas, focusing on innovative products, processes, and systems, delivering products of the best quality at the lowest cost, and "growing and developing Wrigley people around the world" (All About Wrigley).

Locating production plants in numerous countries has been beneficial to Wrigley, and the comparative advantages are many. For example, the location of these facilities is helping Wrigley meet its business objectives, specifically by expanding into new geographic and distribution areas, as well as developing the Wrigley name around the world. Also, Wrigley is able to lower distribution costs by locating plants in areas closer to final delivery destinations. The decision to operate as a multinational company has resulted in Wrigley becoming "the world's largest manufacturer of chewing and bubble gum" (The Wrigley Way: Quality, Innovation & Integrity).

"The manufacture of chewing gum does not result in significant air or water pollution and contributes little to the solid waste stream" (Wrigley's Commitment to the Environment). However, the need for large amounts of wrapping and packaging materials carries the increased possibility of pollution due to excessive waste. Therefore, Wrigley has developed a formal Environmental Policy that addresses potential pollution and environmental issues caused by its operations. This policy specifically states the responsibility the company has to contribute to a clean and safe environment. It also contains detailed sections which discuss waste reduction and energy conservation.

Wrigley is also actively working toward reducing waste by employing scientists who are constantly working to change current packaging materials and develop new materials in order to meet disposal and recycling requirements. In addition, Wrigley attempts to use recycled materials whenever possible (Wrigley's Commitment to the Environment). Wrigley believes in respecting the environment, which is evidenced by the following two examples:

"Good environmental practices are as varied as the countries and cities where the Wrigley Company and its associates are located. An associated company in Plymouth, England, has turned part of its grounds into a natural wildlife habitat and sponsors environmental activities for the community. In Chicago, where air pollution is a concern, the company underwrites part of the cost for public transportation to encourage employees to leave their cars at home" (Wrigley's Commitment to the Environment).

Wrigley did experience an increase in short run costs that can be directly associated with its environmental programs. However, in the long run the goodwill gained through increased admiration from local communities and the positive feelings associated with the Wrigley name have almost certainly improved overall sales of Wrigley products, thus increasing market share and profits.

Other businesses can learn from the experience of Wrigley. It would be wise for all organizations to create an Environmental Policy that addresses environmental issues related to production of their products. In addition, these organizations could employ engineers to develop means to produce materials and products in ways that are more environmentally friendly. Short run costs will increase, but as the experience of Wrigley has shown, environmentally responsible companies achieve improved goodwill, which in the end should result in increased profits.

References

"Environmental policy." William Wrigley Jr. Company website. URL: http://www.wrigley.com/wrigley/about/about_environment_policy.asp

"Frequently asked questions: all about Wrigley." William Wrigley Jr. Company website. URL: http://www.wrigley.com/wrigley/about/about_faq.asp#q8

"The Wrigley way: quality, innovation & integrity." William Wrigley Jr. Company website. URL: http://www.wrigley.com.au/AboutWrigley/AboutWrigley.asp

"Wrigley's commitment to the environment." William Wrigley Jr. Company website. URL: http://www.wrigley.com/wrigley/about/about_environment.asp