Chapter 2 Sustainable marketing: marketing ethics and social responsibility●Ricoh is aiming at zero waste in their plant and has cut waste to landfill by over92 per cent since introducing a waste management system in 2001. Wastemanagement costs fell by over 62 per cent, despite increases in landfill taxand waste carriage charges.●●Nike produces PVC-free shoes, recycles old sneakers and educates young people aboutconservation, reuse and recycling.VW is investing in low-emission diesels. Already their new Polo BlueMotion diesel modelemits less carbon dioxide per kilometre than Toyota’s top-selling Prius hybrid and costs alot less to make. 30At the next level, companies can practise product stewardship – minimising not just pollutionfrom production but all environmental impacts throughout the full product life cycle, and all thewhile reducing costs. Many companies are adopting design <strong>for</strong> environment (DFE) practices,which involve thinking ahead in the design stage to create products that are easier to recover,reuse or recycle. DFE not only helps to sustain the environment; it can be highly profitable <strong>for</strong>the company:●Xerox Corporation’s Equipment Remanufacture and Parts Reuse Programme convertsend-of-life office equipment into new products and parts. Equipment returned to Xeroxcan be remanufactured reusing 70 to 90 per cent by weight of old machine components,while still meeting per<strong>for</strong>mance standards <strong>for</strong> equipment made with all new parts. <strong>The</strong>programme creates benefits <strong>for</strong> both the environment and the company. It preventswaste from entering landfills and reduces the amount of raw material and energyneeded to produce new parts. Energy savings from parts reuse total an estimated320,000 megawatt hours annually – enough energy to light more than 250,000 homes<strong>for</strong> a year.●Among many other actions, the Tesco supermarket chain aims to give consumers clearin<strong>for</strong>mation about the carbon cost of each product it sells – looking at its complete life cyclefrom production through distribution to consumption. 31At the third level of environmental sustainability, companies look to the future and plan <strong>for</strong>new environmental technologies. Many organisations that have made good headway in pollutionprevention and product stewardship are still limited by existing technologies. To develop fullysustainable strategies, they will need to develop new technologies. For example, detergent manufacturershave developed laundry products <strong>for</strong> low-temperature washing. Some have embarkedon a ‘wash right’ campaign which promotes the virtues of low-temperature washing by emphasisingthe benefits to the clothes as well as energy savings.91
Part 1 Marketing nowWal-Mart is doing this too. It recently opened two experimental superstores designed to testdozens of environmentally friendly and energy-efficient technologies: 32A 143-foot-tall wind turbine stands outside one Wal-Mart Supercenter. Incongruous as itmight seem, it is clearly a sign that something about the store is different. On the outside,the store’s façade features row upon row of windows to allow in as much natural light aspossible. <strong>The</strong> landscaping uses native, drought-tolerant plants cutting down on watering,mowing, and the amount of fertiliser and other chemicals needed. Inside the store, an efficienthigh-output linear fluorescent lighting system saves enough electricity annually from this storealone to supply the needs of 52 single-family homes. <strong>The</strong> store’s heating system burns recoveredcooking oil from the deli’s fryers that is mixed with waste engine oil from the store’s Tire andLube Express. All organic waste, including produce, meats and paper, is placed in an organicwaste compactor, which is then hauled off to a company that turns it into garden mulch. Wal-Mart’s environmental goals are to use 100 per cent renewable energy, to create zero waste, andto sell products that sustain its resources and environment. Moreover, Wal-Mart is eagerlyspreading the word by encouraging visitors – even from competing companies: ‘This is notsomething we’re keeping to ourselves. We want everyone to know about it.’Finally, companies can develop a sustainability vision, which serves as a guide to the future. Itshows how the company’s products and services, processes and policies must evolve and whatnew technologies must be developed to get there. This vision of sustainability provides a framework<strong>for</strong> pollution control, product stewardship and environmental technology.●Tesco aims to be leader in helping to create a low-carbon economy. Sir Terry Leahy,Tesco’s CEO, champions a sustainable vision: ‘I listen when the scientists say that, if wefail to mitigate climate change, the environmental, social and economic consequenceswill be stark and severe. This has profound implications <strong>for</strong> all of us, <strong>for</strong> our children,and <strong>for</strong> our children’s children.’●BSkyB decided to become carbon neutral in January 2007 and succeeded within six monthsthrough an ef<strong>for</strong>t across the whole organisation. But like Tesco, their aim is to educate as wellas act: ‘We saw the policy as part of a push to educate customers to reduce their impact onthe environment.’ Once sceptical Rupert Murdoch, chairman and chief executive of NewsCorporation which owns BSkyB, says that the rest of his media empire will now followBSkyB’s lead.However, most companies today still focus on the lower-left quadrant of the grid in Figure 2.1,investing most heavily in pollution prevention. Some <strong>for</strong>ward-looking companies practise productstewardship and are developing new environmental technologies. Few companies have welldefinedsustainability visions. Emphasising only one or a few cells in the environmental sustainabilitygrid in Figure 2.1 can be shortsighted. For example, investing only in the bottom half of thegrid puts a company in a good position today but leaves it vulnerable in the future. In contrast, aheavy emphasis on the top half suggests that a company has good environmental vision but lacksthe skills needed to implement it. Thus, companies should work at developing all four dimensionsof environmental sustainability.92