MAR-4343: Sustainability Marketing

Marketing Towards a Sustainability

Handout -01

Snr Prof. Rohini Samarasinghe

Department of Marketing Management
Faculty of Management studies & Commerce
University of Sri Jayewardenepura
 Learning outcomes;

• Understand why the legacies of 20th century have

created challenges for society and for a marketers in
the 21st century

• Explain the fundamental concept and key principles of

sustainable development

• Describe how contributions to sustainable

development can vary in terms of their marketing
/business focus- (e.g., 3BL)
 Discussion

1.Marketing in the 20th Century and its Challenges

for today’s marketers

2.Current Status of Global Economy (21st Century)

3.The change to sustainable business in practice

World Population & Per Capita GDP
 Question for Future Survival

To meet the Total Resource Consumption by the

growing population in 2050.

• Find more habitable/ livable earths

• Reduce Resource Consumption by a factor of X
(X= 4 to 10?)
Find Four Planets to provide resources to meet
human consumption!!!
Based on current production & consumption patterns
Two planets needed by 2050 to meet our appetite for
natural resources

1900 2012 2050 2100

 The 20th Century

A Century of;
 Unparalleled growth in population and material
living standards
 Generally improving life expectancy
 Technology form the “Space Race” to the ‘Green’
and IT revolutions
 Expanding international Markets & global culture
 Marketing & the rise of “The self”
Cont.
Key conclusion:
Late 20th century economic growth has resulted
in a substantial and largely irreversible loss in
the diversity of life on earth…

 Global experts started to assess the health of the natural

environment
e.g.,UN Millennium Ecosystem Assessment.
 Current status of Global Economy

What are the major global trends & issues at the

begin of 21st Century?
 Population Growth
 Resource sharing issues – Poverty & Inequality
 Food consumption of different nations
 Global economic violence
 Heavy resource consumption/ resource depletion
 Climate change
 Environmental pollution
 Loss of bio-diversity
 Habitat destructions
 7 billion in 2011
5 billion in 1987
The world 4 billion in 1975

population 3 billion in 1960

is 2 billion in
increasing 1930
1 billion in 1800
250 million in 1
5 million

10 000 bef. 5 000 0 10 20

 Consumption of Products and Services
• All our needs are fulfilled by industries and service organization
producing goods and services

• We now assiociate ourselves with products and services rather

than the actual function of them

• Our purchases now exceeds the real needs and is to satisfy our
ego through prestige needs

• Our purchasing decisions are influenced more by external stimuli

rather than our real needs

• Therefore our consumption has become complex and

unsustainable
 Our Consumption
• The products we buy is made out of natural
resources raw materials, energy, water and air

• They can be either used once (disposable) or

several times (durable)

• Some of the man-made materials/compounds

are harmful to humans and the environment.
End of Life of products and services
• After use the products are either disposed to
environment, reused for some purpose or
resources recovered

• Some resources are bio-degradable and some

are not.

• This leads to environmental pollution and

resource depletion
 High Resource Consumption
The Ecological Foot-print, ecological overshoot
calculations clearly indicate that present
population is consuming more than what earth
can provide.
– Leading to resource depletion
– Leading to degraded environment
– Leading to huge irregularities in quality of life
among different societies
– Threatening the survival of our future generations
 Is there a approach?
• Can we improve the quality of life for all?
• Can we make the world a better place to live?
• Can we ensure the next generation also a better
life?
• Can we reverse disasters?
 The way Out
• Intelligent and equitable use of resources
Solution:
Sustainable Sustainable Development
Sustainability Marketing
Development
(national level)

Cleaner Production
Enterprise level

3Rs
Reduce
Reuse
Recycle
 The Change
• Sustainable /green Production is a driving force to achieve
Sustainable Consumption
– Sustainable or Greening of Business/Industry
– Sustainable/Green Products
– Sustainable/Greening the Supply chain
– Green reporting/Sustainable Reporting

• New Trends
-’Disposability” is replaced by ‘Durability’
- “Cradle to Grave” is replaced to ‘Cradle to Cradle’
-Non-renewables are replaced by “renewables’
-Products are replaced by ‘services’ (eco-system services are collective activities
of natural system to provide for all human needs)
 Sustainable business in practice
• Reducing environmental impact
– Minimizing waste
– Minimize resource input
– Minimize use of hazardous materials
• Adding value
– Product differentiation
– Improve the environment
– Adding value to people
– Adding value to society
• Green innovation
– Innovation in process
– Innovation in products/services
– Innovation in value chain organization
– Innovation in input materials
– Innovation in recycling and reuse
Discussion

1. Define the term Sustainability & Sustainable

Development?

2. Visualizing Sustainable Development/ key sustainable

elements

3. 3BL / TBL Business Perspective

4. Corporate Sustainability 3-Legged Stool

 Sustainable Development
Definition of Sustainability

Development that meets the needs of the present without

compromising the ability of future generations to meet their
own needs (source : Published Report “our common future”, - The UN World Commission on
Environment and Development (Brundtland Commission) ,1987)

Key Principles:
− An emphasis on needs, particularly of the global poor
– Equity in distributing costs & benefits of growth
– Intergenerationality, to consider long-term future needs
– Global environmentalism, to understand the planet as a finite and
vulnerable
Equitable life support
development system
which meets the needs of the living population & future
generations in harmony with the global resource availability and nature’s
carrying capacity
 Visualizing Sustainable Development
•Quality of life,
•Employees health & well-
being

Social

le
Be u itab
• Reduction of ar Eq
ab
resource usage le Short term
sustainable profitability and long
• Reduced impact on
term viability of
environment, e.g.
Viable business
Environmental Economic
 How do businesses/Marketers go Sustainable
way
• Social and Environmental Auditing-(A management tool
comprising a systematic, documented, periodic and objective evaluation of how well
organizations, management and equipment are performing with the aim of
contributing to safeguarding the environment)

– The Triple Bottom Line (abbreviated as "TBL" or "3BL", and also known
as "people, planet, profit" or "the three pillars”) captures an expanded
spectrum of values and criteria for measuring organizational (and
societal) success: economic, ecological and social.
– ISO 14000
– Global Reporting Initiatives (www.globalreporting.org)
– SA 8000
– CERES (www.ceres.org)
Today most major companies audit and report on at least parts of the E & S
performance
 The Triple Bottom Line Business Perspective
– People—Planet—and Profits
Planet
Innovation & Opportunity
— creating a better balance
between social,
environmental and economic
factors for short- and long-
term performance

Profit
People

It is a very complicated task to try and balance all three strands, but Sustainable
solutions can only be achieved if these 3 elements are balanced.
 Corporate Sustainability 3-Legged Stool

•Environmental-Planet
•Eco-efficiencies
•Economic-Profits Eco-effectiveness
•Growth, Jobs, Taxes -reduce Pollution & Waste
•Products -Renewable Energy
Services, e.g. -Conservation
-Good Jobs -Restoration
-Fair wages •Social-Equity-People
-Security •Employees
-Infrastructure •Community / Culture World, e.g.
-Fair Trade
Working conditions, Health services,
Education services, Community &
Culture, Social justice

Quality of Life / Genuine Wealth / Genuine Progress

 Sustainable initiatives & Tools

 Alternative Development Model

1. What is Linear Economic Development

Models?

2. What is Circular Economic Model?

Different Sustainable initiatives & Tools
 The Linear Economic Models
The Linear Economic Model= The Throw Away Society
Circular Economic Model
Conventional linear model vs. CE-Model
Conventional linear model
Air pollution
Raw material

Solid waste
Circular Economy Waste water
model

Local added
New jobs & value
employment
New
products

Better environment
 What is Circular Economy
• Circular economy is a clear value creation opportunity.

• It is an appealing and viable alternative to the linear

‘take, make, dispose’ model, and businesses are starting
to implement circular principles into their operations.

• The circular economy aims to enable effective flows of

materials, energy, labor and information so that natural
and social capital can be rebuilt.

• This new economic model seeks ultimately to decouple

global economic development from finite resource
consumption.
 Basic Principles of Circular Economy
• Life Cycle management
• Resource Efficiency
• Sustainable/Eco Design
• Industrial Symbiosis/ interdependences
• Reproduce Nature
• Close the Loop
• Renewable Energy
Open the
Loop Extraction &
Processing of Raw
Material

End of Life Disposal Manufacturing

Stages of a
Typical Life
Cycle

Use Distribution
Close the Loop Extraction and
Processing
of
Raw Material

Recycling / Disposal
at Manufacturing
End of Life
Stages of
a
Typical
Use, Reuse & Life Cycle
Maintenance
of Packaging
Product

Marketing
and
Transport
Close the Loop Extraction and
Processing
of
Raw Material

Recycling / Disposal
at Manufacturing
End of Life
Stages of
a
Typical
Use, Reuse & Life Cycle
Maintenance
of Packaging
Product

Marketing
and
Transport
 ISO 14000
• After 1996 International Organization of Standardization has published standards on
environmental management systems
- Series of ISO 14000 standards

The ISO 14000 family includes most notably the ISO 14001 standard which represents core
set of standards used by organizations for designing and implementing effective
Environmental Management System (EMS)

ISO 14001 is an internationally agreed standard that sets out the requirements for an
Environmental Management System.
• 1996- ISO 14001 : 1996 (First issue)
• 2004 - ISO 14001 : 2004 (Second issue)
• 2015 - ISO 14001 : 2015 (Third issue)

3rd edition of ISO 14001 has been published on 2015-09-15

 Sustainability Tools
• Recycling/ Upcycling
• Zero Waste
• Cradle to Cradle (all waste are
Recovered & returned to productive uses)
• Closed Loop Supply Chain
• reuse; & maintenance; and waste management and
Design for Environment
• Biomimicry (re-design of industrial processes)
• Energy Management
• Resource Management
• Eco- Efficiency/Effectiveness (produce
product & services reducing the use of material &
energy)
• Dematerialization (the process that allows
fewer resources to create the same or equivalent
benefits)
• Natural Step ™ (A science based set of
guidelines for increasing sustainability)
• Eco-Labels
• LOHAS (lifestyles of health & sustainability)
• ISO, GRI, CSR
• Life Cycle Assessment (evaluation of a product’s
impact across its entire life, including raw material
acquisition; materials manufacture; production; use,
disposal.
• Carbon Footprint (a measure of excess kgs of
CO2 emitted by burning of fuels --contribution to
global warming).
• Ecological Footprint (the amount of earth’s
resources required to support a particular lifestyle)
• Socially Responsible Investing (SRI)
• LEED (leadership in energy and environmental design)
• Carbon Cap and Trade (a policy that sets legal
limits on emissions)
• Architecture 2030
 Environmental Footprint
Metrics of Over Consumption of Resources

• Ecological Footprint - measure of the total resource consumption

and its impact on the environment (or this depends on:1) size of population
and 2) its level of consumption).

• Carbon Footprint – a measure of excess kgs of CO2 emitted by

burning of fuels (contribution to global warming).

• Water Footprint – a measure of the total water used in making a

product.

• Social Footprint – a measure of impact on the society (Anthropology

capital).
How to calculate ecological
footprint????

http.//www.myfootprint.org/
Sustainable Development

Q & A:
1. Distinguish between Natural Capital and Human
Capital.
2. What is meant by 3BL or TBL?
3. What is ISO 14000?
4. Distinguish between Cradle to Grave” and ‘Cradle to
Cradle.
5. Explain difference between The Linear Economic Model
and Circular Economic Model.
 King Parakramabahu,
The Great

“Let us not allow a

single drop of water
runoff to the sea
without obtaining
the maximum use of
it for the benefit of
the Mankind”