Lecture 4+5 Flashcards
What is the Butland report (1992) definition of sustainable development
Development that meets the needs of the current generation without compromising the ability of future generations to meet their own needs
What is the definition of sustainable business
Recognises that growth and profitability are important but the corporation must also pursue societal goals (Wilson, 2003)
What is the triple bottom line approach to sustainability
People- fair trading, employment conditions and well being
Profit- financial return, cost reduction
Planet- eco footprint, pollutants and emissions
What are the changing perspectives of business responsibility?
To do what is legal
To do what is ethical
To act responsibly towards stakeholder groups (direct and indirect)
To act in ways to achieve long term economic and social success
What is porter and Kramer’s (2011) model of shared value
Narrow conception of capitalism has prevented business from harnessing it’s full potential to meet societies broader challenges
Purpose of the firm must be redefined to create shared value not just profit per se
Environmental and social need, corporate assets and expertise and business opportunities converge
What do porter and Kramer say about shared value?
Companies widely thought to prosper at expense of others
Shared value reconnects company success with social progress
Obtain shared value by
Redefine products and markets
Redefine productivity
Build supportive industry clusters
What is Nestle’s example of shared value?
Provide productivity advice to farmers resulting in higher yields and a more reliable supply chain
How can we reconceive products and markets
Is the product good enough for customer well being?
Does it meet societal needs
Fortune at the base of the pyramid (5 billion people)
What is the role of marketing?
Cause related marketing
Environmental marketing
Customer responses to CSR
What is charters (2006) definition of sustainable marketing
Creating, producing and delivering sustainable solutions whilst continually satisfying customers and other stakeholders
What does marketing need to do to become more sustainable?
Take a broad view of meeting customer needs and consider impacts on all stakeholders
What is smiths (2010) vision for marketing practice?
Map company stakeholders
Determine their salience- harder with rhetorical arena
Research stakeholder issues
Evaluate current practices relevant to stakeholder issues
Manage improvement strategies
What are the sustainable characteristics of a product?
Designed to satisfy a genuine human need?
Not detrimental to human/ animal health
Greener throughout lifecycle
What changes need to be made to pricing?
Reflect costs of social and environmental externalities De market harmful offering Green tariff Incorporate philanthropic contributions - toms - iPhone product red - Andrew donate 25p to unicef
What changes need to be made to place?
Limit transportation distances- Wimbledon tennis ball travels 50,000 miles
Assess energy efficiency
Use vehicles and fuels that are less polluting- UPS reserve 125 Tesla trucks
Use local suppliers- whole food markets
Energy and waste management
Customer waste reduction and recycling
What does promotion need to do?
Communicate sustainability outcomes
Educate
Ensure legitimacy and based on evidence of greenwashing
Channel should avoid negative impacts
What about people, and process
Staff training
Changes to culture
What does Van Dam and Apeldoom say?
Marketing has show to have an inherent drive towards unsustainably
Environmental problems are explained as social dilemmas in which individual rational behaviour causes long range damage to the entire society
Within the objective of profit/ utility maximisation, any actor is tempted to shift to resources exhaustable or not to externalise cost
Individual rationality to enjoy the fruits of consumption leads to collective overconsumption
People are not sufficiently informed about how their behaviour effects ecology
Sustainable marketing should find a feasible trade off between business and environmental concerns. It’s an appeal to lengthen corporate time horizons
What does smith say about the new marketing myopia?
Occurs when marketers fail to see broader societal context of decision making
Stems from 3 points
- single minded focus
- narrow definition of the customer
- failure to recognise changed societal context of business
Fail to see the customer as a member of a global village with a long term stake in the planet
Must shift to a shareholder orientation
What does maignan et al (2005) say
The unintended consequences of marketing activity require consideration of key stakeholders and their relevant interests
Most approaches to market orientation select to elucidate the perspectives of one stakeholder the customer
While an organisation may display exemplary behaviour towards one issue it may fail to address another
Cultivating stakeholder friendly culture that is responsive to common needs can be a source of competitive advantage
Provides an illustration that the relationships between stakeholders are strong and can impact views -
Does a view of stakeholder power leave powerless stakeholders helpless
Businesses may want to exceed stakeholder pressure e.g Home Depot and Unilever
What method does Maignan propose for CSR to be initiated?
Discover values and norms Identify stakeholders Identify issues Address meaning Audit current performance Implement initiatives Promote Gain feedback
What do Charter and Peattie say?
Problems we face cannot be solved with the same level of thinking
In a CNN world where bad news can travel across the internet at the speed of light, companies have to be accountable for a broad set of stakeholders
How can companies address these issues without being accused of bandwagon jumping
Businesses can either be responsive or it can feel the eventual impact
Solving one problem may lead to another
What did Unilever find about it’s sustainable products?
The grow 50% faster than the rest of the business
Tell me about Vera shoes
Use organic cotton, wild rubber and ecological leather
