Sustainability Flashcards
What is ethical consumption
Karamoutsou 2024: people consider ethics when deciding to buy something as they might prioritise doing good over just enjoying the product or usefulness
Rise of ethical consumerism has led to ethical ratings of brands/companies
What is Sustainable consumption
Zubin 2023: the use of services and related products which respond to basic needs and bring a better quality of life while minimizing the use of natural resources and toxic materials as well as emissions of waste and pollutants over the life cycle of the service or product as to not jeopardize the needs of future generations
How to achieve sustainable consumption
- Zubin 2023: two developments have to occur: increase in efficiency of consumption and reduction in consumption levels in industrialised countries
- Rich must set an example for the middle class
- Increasing efficiency of consumption is not sufficient on its own and can be termed weak sustainable consumption once this is met then second development can occur and is essential
- Changes in infrastructure and choices available to a consumer are required
How to measure Sustainable development
Karamoutsou 2024: SDGs
Sustainability and marketing
- Karamoutsou 2024: marketing has an impact on consumers, planet and society
- Consumers main critique is paying too much, being deceived and encouraged continuously to consume and replace
- Society: critique centres on the adverse impacts the marketing creates for society as a whole and for the environment
- managing marketing activities to meet customer needs and wants, while also caring for the environment and society, and ensuring the business achieves its goals like profit or growth is key.
Triple bottom line approach
Karamoutsou 2024:
TBL encourages businesses to balance financial goals with positive societal and environmental contributions, aiming for long-term value creation for all stakeholders.
Key drivers of sustainability
(Karamoutsou 2024)
* Legislation and environmental laws
* Financial drives
○ Differentiation strategy
○ Competitive advantage
* Customers
○ Ethical, eco-conscious, boycotts
* Social drivers
○ Increasing awareness of more
broader stakeholders like the
environment, society, local
communities as a whole
* Internal business process
○ The needs to achieve
greater efficiency and
effectiveness in supply chains
(cost, time etc)
Sustainable issues
(Karamoutsou 2024)
* Sustainability issues arise at global, national and local levels
- Balancing financial, societal and environmental aspects & measuring them!
- Satisfying multiple stakeholders (customers, communities, government etc.)
The opportunity of sustainability
(Karamoutsou 2024)
- Sustainability is becoming a fundamental aspect of strategic decision making
Creating value for both businesses and the society e.g. Bottom of the pyramid, value for different stakeholders
Should firms prioritise sustainability
(Karamoutsou 2024)
A 2019 poll conducted by the Harvard Business Review reveals that 65% of customers are willing to pay more for sustainability. However, only 26% of these customers are buying the green products they claim to value.
Example of sustainable measurements
(Karamoutsou 2024)
Tommy Hilfiger RESALE – REWORK – RENTAL – TRADE IN PROGRAM
Green demarketing
(Karamoutsou 2024)
- has risen as a strategic choice for organizations aiming to decrease customer demand for unsustainable services/products and stimulate more eco-friendly substitutes
- a brand encourages consumers to buy less at the category level through purchase of the company’s brand for the sake of the environment
- Patagonia example In the run-up to Christmas, the brand ran a poster and PR campaign that told customers ‘Don’t buy this jacket’. The message was intended to encourage people to consider the effect of consumerism on the environment and purchase only what they need
