For the past ten years, we have chosen to abandon an entire segment of our market due to

our environmental concerns. We abandoned approximately 15 per cent of our total sales, plus
accumulated growth in that time period, to avoid the industrial pollution generated by the
process. Today, our partners have introduced to us a new process which completely eliminates
the industrial portion of that pollution, and allows us an opportunity to reenter the market.
!owever, not all concerns have been eliminated. "gents used in the production process may still
leach, in minute #uantities, from finished garments during normal consumer laundering
processes, ad find their way to municipal water treatment systems and waterways. The choice
before us today is to either accept a product that is less than environmentally neutral, yet still
vastly superior to competing products, or to continue to avoid an important, growing market
segment while awaiting a $ero impact solution.
"ny action of this magnitude certainly has the potential for negative effects. Without
appropriate marketing, positioning, and consumer education, production could potentially be
perceived as hypocritical, more interested in pursuit of profit than environmental protection.
With our current support for freshwater conservation and associated grant systems, this is
especially true. "t best, the products are a compromise, eschewing a $ero pollution stance in
favor of a best effort position. Furthermore, although these agents have been in common use for
the previous decade, potential for future discovery of harmful effects and attendant legal
responsibility remain, although to a greatly reduced degree than that of our competitors.
"nother area of concern is public and industry perception of the relationship with our
technology partner, due to the informal nature of our agreements, or lack thereof, regarding this
particular process. The lack of a contractual obligation could lead to the appearance of undue
pressure exerted by our associates, or fear of the loss of an essential partner if we fail to follow
through. "s an aside, these do hold some actual concerns beyond perception if we elect to
decline this opportunity.
Fortunately, reengagement in this sector provides significant opportunity. %apitali$ing
on a void in our current strategy allows for the return of at least 15 per cent of our sales prior to
elimination of these types of product, growth in intervening years notwithstanding. Further
losses predicted by our &arketing 'epartment may also be avoided. This surge in profitability
creates multiple possibilities, improving overall market share, increasing revenue and
shareholder value, and providing environmentally sound (obs for our communities both in
production and retail positions. )ncreased profits benefit not only stockholders, but also increase
visibility of and funding for our philanthropic pro(ects and grantees. %onsumers will receive
improved options, now having a product choice that is more environmentally friendly than any
existing product, and a healthy relationship with our partner provides an opportunity for
continuing process improvement in pursuit of a perfect solution.
)t is crucial that we remember that no business venture is without some environmental
impact. *ur commitment to continual improvement and protection cannot be met without the
continuing prosperity of the business, and although this product line does have some concerns, it
will enter the market as the state of the art, most environmentally conscious product in its class
from its first day on the sales floor. +oom for improvement does exist, but our commitment
remains apparent by offering a product superior to that of our competitors, allowing consumers
the opportunity to purchase the products they desire while still protecting the environment.
)n closing, it is my recommendation that we approve the use and production of the fabrics
and associated garments. While production processes that exist are not perfect, it is far
preferable to chase perfection than to sit idly by and wait for its arrival.