Sustainability in Retail

Question 1

Business and marketing activities have an impact on consumers, the planet and the society
For consumers the main issues are

Answer 1

• Paying too much
• Being deceived
• Encouraged to continuously consume and replace

Question 2

Business and marketing activities have an impact on consumers, the planet and the society
For society the main issues are

Answer 2

the adverse impacts that marketing creates for society as a whole and for the environment

Question 3

what is sustainable marketing

Answer 3

Sustainability in marketing embraces the idea of sustainable development, emphasizes the triple bottom line approach and encourages changes in behaviour from both producers and consumers

Question 4

what is Sustainable development

Answer 4

Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs”

Question 5

what are factors of Triple line bottom approach in terms of the Environmental performance

Answer 5

• Pollution prevention
• Waste management
  -Ethical sourcing
• Energy efficiency

Question 6

what are factors of Triple line bottom approach in terms of the Social performance

Answer 6

• Philanthropy and charitable donation
• Human rights protection
• Diversity in the workplace

Question 7

what are factors of Triple line bottom approach in terms of the Economic performance

Answer 7

• Transparency to stakeholders
• Value creation
• Market share
• Product quality

Question 8

Corporate social responsibility pyramid

Answer 8

TOP
Philanthropic responsibilities
Ethical responsibilities
Legal responsibilities
Economic responsibilities
BOTTOM

Question 9

Philanthropic responsibilities of Corporate social responsibility

Answer 9

• Be a good corporate citizen
• Contribute resources to the community
• Improve quality of life

Question 10

Ethical responsibilities of Corporate social responsibility

Answer 10

Be ethical
Obligation to do what is right and fair

Question 11

Legal responsibilities of Corporate social responsibility

Answer 11

• Obey the law
• Law is society’s codification of right or wrong

Question 12

Economic responsibilities of Corporate social responsibility

Answer 12

• Be profitable
• Foundation that sets up the rest to occur

Question 13

framework to help companies be more sustainable

Answer 13

Sustainable development goals

Question 14

what does sustainability marketing involve

Answer 14

Sustainability marketing involves planning, organizing, implementing and controlling market resources and programmes to satisfy consumers wants and needs while considering social and environmental criteria and meeting corporate objectives

Question 15

Timberland example of sustainability marketing

Answer 15

• ethical sourcing for its raw materials (e.g. leather)
• has partnered with more than 60 apparel and footwear brands to create an environmental index (Higg Index) and measure the environmental impact of the products and their raw materials used
• greening the communities (e.g. tree planting, cleaning-up beaches)
• sustainable living environments at their factories (e.g. education programs for factory workers’ children, clean water programs).

Question 16

Sustainable supply chain

Answer 16

The management of raw materials, information and services from the point of origin to the point of consumption.
focusing on delivering value while explicitly addressing social, ethical and environmental concerns in the supply chain process

Question 17

Sustainability implications for retailers

Answer 17

• Sourcing policy: ethical sourcing
• Reducing carbon footprint
• Waste management and recycling

Question 18

Sustainability implications for retailers: ethical sourcing

Answer 18

• Sourcing policy: ethical sourcing
  
  • Cost and competitive
    pressures
• Cheap labour
  
  • Nike
    
    • Primark

Question 19

Sustainability implications for retailers: Reducing carbon footprint

Answer 19

• Managing CO2 emissions
  
  • Tremendous energy
    requirements to keep stores
    running
  • Transport
• Are they responsible for suppliers energy usage and emissions
• Managing responsibility their supply chain by exerting power, holding suppliers accountable, utilise environmental management programmes in their supply chain

Question 20

Sustainability implications for retailers: Waste management and recycling

Answer 20

• High amounts of waste
  
  • Packaging
  • Discarded products
• Paying the cost of waste disposal or
  initiating recycling programmes
  
  • Expensive
• Burger kings re-usable fast food
  packaging
• Recycling programmes with incentives for consumers like hydro cup deposit scheme

Question 21

To combat sustainability implications, retailers create sustainable supply chain strategies such as

Answer 21

• Fleet optimisation
  ○ location
• Energy efficiency
  ○ Energy utilisation at distribution
• Innovative technology
  ○ Routing and tracking
  computer system
  ○ Inventory management
  software
  ○ GPS
• Packaging
  ○ Modifications to reduce
  transportation
  ○ Use of cardboard instead of
  plastic
• Interorganisational relationships
  ○ Enhance vehicle performance
  § Routes
  § Vehicles
  ○ Reduce total supply cycle costs
  ○ Enhance customer service

Question 22

example of strategies used in the supply chain to cmobat sustainability implications

Answer 22

• Dell’s closed-loop supply chain
• Today, Dell designs its PCs and components to be easily reused and upgraded.
• They can be easily disassembled and recycled at the end of their life.
• The company set a goal to use 50 million pounds of recycled-content plastic and other sustainable materials in its products by the end of 2020 and to recover two billion pounds of used electronics in the same period

Question 23

Reduce, Reuse, Recycle initiative : Reduce

The 3R’s can be used throughout the marketing mix to help increase sustainability in retailing

Answer 23

• Reduce inputs such as resources, energy, emissions, waste and material at the manufacturing phase
• Application of new technologies and processes
• Redesign products to reduce the packaging
• e.g. Modelez committed to eliminating 65,000 metric tons of packaging

Question 24

Reduce, Reuse, Recycle initiative :
Reuse

The 3R’s can be used throughout the marketing mix to help increase sustainability in retailing

Answer 24

• Reuse of the entire product or its components, after its first life cycle
• Remanufacture the product into new products or repair the products for extending their lives.
  -E.g. Patagonia repairing services

Question 25

Reduce, Reuse, Recycle initiative : Recycle The 3R’s can be used throughout the marketing mix to help increase sustainability in retailing

Answer 25

- Convert and transform materials that would otherwise be considered waste into new materials or products that can be used - Retailers can encourage recycling by providing a convenient place for consumers to return goods at the end of the initial life cycle and even incentivize them to do so.

Question 26

What are the key drivers of sustainability

Answer 26

* Legislation and environmental laws * Environmental motivations, sustainability commitment, top management commitment * Financial drivers ○ Differentiation strategy ○ Competitive advantage * Customers ○ Ethical ○ Eco-conscious consumers ○ Boycotts * Social ○ Increasing awareness of more, broader stakeholders like the environment * Internal business process ○ The needs to achieve greater efficiency and effectiveness in the supply chains - Cost - Time

Question 27

Sustainability as a competitive advantage

Answer 27

* Demand for sustainable products is growing due to eco conscious consumers * Sustainability is no longer an optional add on * Differentiation strategy with a proactive approach increases market reputation and thus financial performance

Question 28

Sustainability challenges

Answer 28

* High investments required as costs a lot to fully embed in operations and/or supply chains * Achieving meaningful sustainability goals requires large scale and scope eg industry-wide collaboration or multi stakeholder collaborations * The hunt for competitive advantage is not enough as being ethical is a choice and requires strong organisational culture, sustainability commitment and top management commitment ○ Thus a truly sustainable company requires Sustainable strategies ,Strong organizational culture and Transparency with stakeholders and suppliers

Question 29

Types of consumers

Answer 29

* 6% are greenback greens * 9% are true blue greens * 30% are sprouts * 19% are grousers * 33% are basic browns

Question 30

What are basic browns consumers

Answer 30

○ No concern for environment ○ Low income and education ○ Have other problems to worry about before environment

Question 31

What are sprouts consumers

Answer 31

○ Environmental fence sitters ○ Will buy green products when economy is doing well or when they are appealed to properly ○ Often have a main environmental issue such as animal rights and disregard most other issues

Question 32

What are grousers consumers

Answer 32

○ Feel guilty about the environment but pass blame onto the government and large corporations ○ Uneducated on environment and feel they cant affect change

Question 33

What are true blue greens consumers

Answer 33

○ These consumers act and speak out on their environmental beliefs ○ Typically financially stable and well educated ○ 4 times more likely to avoid products with no environmental claims

Question 34

What are greenback greens consumers

Answer 34

○ Not politically active in environmental or activist causes ○ Will buy green products ○ Will consider the benefits of items that have no environmental claims

Question 35

consumers and sustainability

Answer 35

* Consumers claim that they desire goods that are sustainable however people on lower incomes may not be able to spend more on more expensive sustainable goods * People are also sceptical on these goods or often only care about themselves and not the impacts on society and the planet * younger generation choose sustainable foods and drinks more than older generations

Question 36

To solve consumers skepticism on the benefits of sustainable consumption companies can

Answer 36

* Educate consumers of the long term benefits * Marketing campaigns that highlight individual benefits instead of ethical benefit to society * Strong branding and transparency * Community building initiatives * Avoid general words and greenwashing

Question 37

What is Greenwashing

Answer 37

* Consumer scepticism about sustainability is growing * Deceptive sustainability messages and claims in advertisements, labels and information is increasing * Some brands implement disingenuous practises such as claiming that they have incorporates sustainability in their marketing strategy without implementing throughout the business - Fast fashion companies with recycling schemes without addressing the fast fashion aspect

Question 38

what are the seven sins of greenwashing

Answer 38

1. Hidden trade-offs (98%): claiming that a product is “green” based on a narrow set of attributes, while paying little attention to other environmental attributes 2. No proof (44%): Claims that cannot be verified easily or via a third-party certification 3. Vagueness (62%): claims that are poorly or loosely defined 4. Irrelevance (3%): True claims but of little importance or relevance 5. Fibbing (0%): False environmental claims 6. Lesser of two evils (3%): Claims that are true in a product category, but distract the consumer from the greater impact e.g. heated tobacco products or vaping 7. “Sin of Worshiping False Labels” (24%): fake labelling, without any third party certification, endorsement etc

Question 39

why is there criticism of sustainability in business

Answer 39

* Sustainability is “anti-business” – Goes against the primary purpose of business (profit) * Sustainability is “pro-business” – favours the interests of business over the legitimate concerns, demands, and expectations of wider society. Regulation is a better way to monitor corporations * Sustainability is too narrow & should encompass more dimensions/ elements e.g. CEO wage