Chapter 2 Sustainable marketing: marketing ethics and social responsibility<strong>The</strong> Green Car Congress promotes fuel-efficient driving by means that cost little to theconsumers, such as switching off car engines when the car is stationary, holding a steadyspeed and removing unused roof racks. <strong>The</strong>y also show the impact of speeding. <strong>The</strong> speed limiton UK motorways is 70 miles per hour (113 kph), although people in the fast lane often drive at85 mph or more (138 kph). That speed difference worsens the fuel consumption of a typicalfamily car, like an Opel Zafria, from 48 mpg (17 kpl) to 38 mpg (13.5 kpl), and that is without theaccelerating and braking that fast driving involves. Drivers can save themselves a lot of moneyand be less damaging to the environment by driving legally.Lighting accounts <strong>for</strong> 19 per cent of the world’s electricity use, and one of the most effectiveways of saving money and carbon emissions is changing a standard incandescent light bulb(costs €1 and uses €15 of electricity a year) <strong>for</strong> an energy-efficient light bulb (costs €5 andconsumes €3 of electricity a year). Yet, according to Philips, only 30 per cent of the bulbs sold areof the energy-efficient variety.Unless the carbon-efficient product bestows some status, such as a Toyota Prius, fewconsumers respond. As a result, companies are asking governments to act – even suggestingcarbon taxes and targets. <strong>The</strong>re is also more chance that consumers will act collectively as voterswhen everyone has to pay. It is already happening. <strong>The</strong> EU has a long-standing voluntary deal <strong>for</strong>car emissions to reduce the CO 2 to 120 g/km by 2012 but people so love big, fast cars that therequirement is likely to soon become mandatory. ‘Not fair’, shout BMW, Porsche and Mercedes,while Renault and PSA are strangely quiet as their investment in more sustainable vehicles paysoff. <strong>The</strong> EU and Australia also intend to ban incandescent light bulbs on which consumers are soattached to wasting money. 53<strong>The</strong> sustainable companyAt the foundation of marketing is the belief that a company that neglects the wants and needs ofits customers will decline. <strong>The</strong> first dimension of sustainable marketing extends this view bysuggesting the short-termism of marketing goods that harm customers, others in society orpeople in the future. Killing your customers, other people’s customers or tomorrow’s customersis not sustainable marketing.“Killing your customers, other people’s customers or tomorrow’s customers isnot sustainable marketing.“<strong>The</strong> second dimension of sustainable marketing is assuring the continuity of the business.This means looking beyond current markets to new ones as product life cycles fade. <strong>The</strong> musicindustry is doing this as recorded music sales decline by taking a greater interest in the growingdemand <strong>for</strong> live music and investing in the copyright of songs. As the sale of digital camerasmatures, Canon, the market leader, is moving into new-technology flat-screen TVs that fit withtheir digital imaging and hi-tech competences.<strong>The</strong> long-term survival of a business also depends on socially responsible behaviour that doesnot risk the reputation of the company. <strong>The</strong> loss of reputation caused by poor governance andquestionable business practices can go far beyond the direct financial loss. When author, magazineeditor, TV host and domestic arts wizard Martha Stewart was convicted of insider tradingand sentenced to prison, fined and barred from serving on a public company Board of Directors,Governance—<strong>The</strong> actionof developing andmanaging consistent andcohesive policies,processes, policies anddecision rights <strong>for</strong> areasof responsibility within abusiness.113
Part 1 Marketing nowthe shares in her company fell even faster than those of Enron. Similarly, recall the dissolution ofthe Arthur Andersen accounting firm, after its involvement with Enron, and the demise of UnionCarbide after the death of thousands of people in the Bhopal disaster.<strong>The</strong>re are voluntary or legal codes designed to assure the governance of companies. Enron,Worldcom and Robert Maxwell’s publishing empire all involved failures in governance thatallowed the senior managers to hide their business’s financial difficulties by ever more desperatemeans. Sustainable marketing, there<strong>for</strong>e, goes beyond caring <strong>for</strong> the needs and wants of today’scustomers. It means having concern <strong>for</strong> tomorrow’s customers as well as the well-being of allthose in assuring the survival of the business, the shareholders, the employees and the society inwhich they all live.Reviewing the conceptsResponsible marketers discover what consumers want and respond with the right products,priced to give good value to buyers and profit to the company. A marketing system shouldsense, serve and satisfy consumer needs and improve the quality of consumers’ lives. Inworking to meet consumer needs, marketers may take some actions that are not toeveryone’s liking or benefit. Marketing managers should be aware of the main criticisms ofmarketing.1. Identify the major social criticisms of marketingMarketing’s impact on individual consumer welfare has been criticised <strong>for</strong> its high prices,deceptive practices, high-pressure selling, shoddy or unsafe products, planned obsolescenceand poor service to disadvantaged consumers. Marketing’s impact on society has been criticised<strong>for</strong> creating false wants and too much materialism, too few social goods, cultural pollutionand too much political power. Critics have also criticised marketing’s impact on other businesses<strong>for</strong> harming competitors and reducing competition through acquisitions, practices thatcreate barriers to entry, and unfair competitive marketing practices. Some of these criticismsare justified, some are not.2. Define consumerism and environmentalism and explain how theyaffect marketing strategiesConcerns about the marketing system have led to citizen action movements. Consumerism isan organised social movement intended to strengthen the rights and power of consumersrelative to sellers. Alert marketers view it as an opportunity to serve consumers better byproviding more consumer in<strong>for</strong>mation, education and protection.Environmentalism is an organised social movement seeking to minimise the harm done tothe environment and quality of life by marketing practices. <strong>The</strong> first wave of modern environmentalismwas driven by environmental groups and concerned consumers, whereas thesecond was driven by government, which passed laws and regulations governing practicesimpacting the environment. <strong>The</strong> first two environmentalism waves are now merging into athird and stronger wave in which companies are accepting responsibility <strong>for</strong> doing no environmentalharm. Companies now are adopting policies of environmental sustainability –developing strategies that both sustain the environment and produce profits <strong>for</strong> thecompany.114