Explain use of sustainability in customer driven markets

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Reference no: EM131451654 , Length: word count:500

In Chapter 22, your text introduces sustainability.

SUSTAINABILITY

Sustainability

-the ability to meet humanity's needs without harming future generations-now tops many corporate agendas. Major corporations outline in great detail how they are trying to improve the long-term impact of their actions on communities and the environment. As one sustainability consultant put it, "There is a triple bottom line people, planet, and profit and the people part of the equation must come first. Sustainability means more than being eco-friendly, it also means you are in it for the long haul."

42 Sustainability ratings exist, but there is no consistent agreement about what metrics are appropriate.

43 One comprehensive study used 11 factors to evaluate and assemble a list of the Top 100 Sustainable Corporations in the World: energy, water, CO2, and waste productivity; leadership diversity; CEO-to-average-worker pay; taxes paid; sustainability leadership; sustainability pay link; innovation capacity; and transparency. The top 5 firms were GE, PG&E, TNT, H&M, and Nokia.

44 Some feel companies that score well on sustainability typically exhibit high-quality management in that "they tend to be more strategically nimble and better equipped to compete in the complex, high-velocity, global environment."

45 Consumer interest is also creating market opportunities. Clorox's line of naturally derived Green Works laundry and home cleaners aided by restrained price premiums and a Sierra Club endorsement-has experienced early success.

46 Another good example is organic products (see "Marketing Insight: The Rise of Organic"). Heightened interest in sustainability has also unfortunately resulted in greenwashing, which gives products the appearance of being environmentally friendly without living up to that promise. One study revealed that half the labels on allegedly green products focus on an eco-friendly benefit (such as recycled content) while omitting information about significant environmental drawbacks (such as manufacturing intensity or transportation costs).

47 Because of insincere firms jumping on the green bandwagon, consumers bring a healthy skepticism to environmental claims, but they are also unwilling to sacrifice product performance and quality.

48 Many firms are rising to the challenge and are using the need for sustainability to fuel

Insight the Rise of Organic

Organic products have become a strong presence in many food and beverage categories. Caster & Pollux's success with organic and natural pet foods led to its distribution in major specialty retail chains such as Petco.

All-organic Honest Tea grew 50 percent a year after its founding in 1998; the firm sold 40 percent of the business to Coca-Cola in 2008.

Organic and natural are at the core of some brands' positioning. Chipotle Mexican Grill's mission statement, "Food with Integrity," reflects its focus on good food with a socially responsible message. One of the first fast-casual restaurant chains, Chipotle uses natural and organic ingredients and serves more naturally raised meat than any other restaurant. Making each burrito by hand takes time, but the quality of the food and the message behind it are a satisfying payoff for many customers.

Many companies beyond the food industry are embracing organic offerings that avoid chemicals and pesticides to stress ecological preservation. Apparel and other nonfood items make up the second-fastest growth category of the $3.5 billion organic product industry. Organic non-food grew 9.1 percent in 2009 to $1.8 billion-now 7 percent of the $26.6 billion organic products industry. Organic cotton grown by farmers who fight boll weevils with ladybugs, weed crops by hand, and use manure for fertilizer has become a hot product at retail.

Use these three documents and provide an opinion (complete with citations) either for or against (skepticism) the successful use of sustainability in customer driven markets.

1. https://hbr.org/2015/07/who-benefits-from-the-peer-to-peer-economy

2. https://uncfsu.instructure.com/courses/14007/files/1235280/download?wrap=1

Reference no: EM131451654

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