Today I’ll be talking about businesses and whether their sustainability policies are, in fact, marketing strategies employed to create a better brand reputation.
To start off, I would first like to define the term Corporate Social Responsibility (CSR). CSR is a management concept whereby companies integrate social and environmental concerns into their business operations (UNIDO, n.d.). For the sake of clarity, this blog post will only be focused on the environmental aspect of CSR.
Many corporations are moving forward to be more environmentally sustainable in their operations. For example, Kellogg, an American food manufacturing MNC, turns discarded rice krispies and coco pops into a beer called Cast Off Pale Ale to cut down on food waste(Robles, 2019). Similarly, Starbucks adopted climate-smart agricultural practices such as sourcing for sustainably grown coffee as part of their ethical coffee buying guidelines (refer to figure below).
Corporations should move towards a circular economic model of their own by taking responsibility for their entire value chain, from procurement all the way to dealing with post-consumption waste. Yet, corporations tend to address their negative impacts in one area of the chain by compensating with positive impacts in other areas (Euromonitor International, n.d.). Such actions are oftentimes inefficient, and it only allows these corporations to portray an image of environmental awareness and avoid actually changing their operations (Clark, 2011). Therefore, in my opinion, corporations should take responsibility for the negative impacts they create and act to directly address these issues rather than to just put up an environmentally conscious front.
Just as indulgences allowed the rich to feel better about sinful behaviour without actually changing their ways, carbon offsets allow[s] [corporations] to “buy complacency, political apathy and self-satisfaction” – Writer George Monbiot (Clark, 2011)
Furthermore, top management has a tendency to view environmental sustainability as a liability to financial gain. This is corroborated by Euromonitor International, a global market research company, who found that “the lack of commitment by senior management and/or the board is (usually) seen as one of the most significant barriers to investing in sustainability”.
This is where consumers come into play. In today’s socially conscious environment, consumers are becoming more informed of what goes into the products they use. As potential customers, I urge you to act with discernment with regard to what you put your money into buying. By purchasing ethically sourced and sustainably packaged products, consumers as a collective whole can add pressure on corporations to move towards a sustainable business model. Trailblazing in consumer activism has seen activists boycotting unethical brands, demonstrating the viability of consumer-driven environmental campaigns. By exerting pressure on these companies, we can make sustainability a requirement and less of an option for corporations.
Environmental conservation starts with you and me.
If not us, who,
If not now, when?
For more information on corporate social responsibility, you can head to Euromonitor International here to download a copy of “How to Become a Sustainable Brand” and this link here for Starbucks Global Social Impact Report 2018!
References:
- (UNIDO, no date). What is CSR? Retrieved from: https://www.unido.org/our-focus/advancing-economic-competitiveness/competitive-trade-capacities-and-corporate-responsibility/corporate-social-responsibility-market-integration/what-csr
- Starbucks GHG emissions in 2017. Image retrieved from: https://www.starbucks.com/responsibility/environment/climate-change
- (Clark, 2011). A complete guide to carbon offsetting. Retrieved from: https://www.theguardian.com/environment/2011/sep/16/carbon-offset-projects-carbon-emissions
- (Euromonitor International, no date). How to Become a Sustainable Brand. Retrieved from: https://go.euromonitor.com/white-paper-sustainability-2019-how-to-be-a-sustainable-brand.html?utm_source=blog&utm_medium=blog&utm_campaign=CT_WP_19_09_09_How%20to%20Become%20a%20Sustainable%20Brand&utm_content=organic
- Starbucks. Image retrieved from: starbucks.com/responsibility/environment/water-and-energy
Hi Letitia! Interesting read about CSR and how it creates a better reputation for corporations. For corporations having environmentally-related CSR, do you think that the CSR was chosen deliberately to draw attention since environmental issues are very much of a concern now? Or are corporations genuinely doing it with the intention of protecting the environment? Thank you!
Hey Shi Ling! Thank you for reading! Something I learnt in A levels Geography was that every corporation is profit-motivated. That being said, I believe that most corporations are jumping onto the bandwagon of being environmentally conscious and adopting sustainable practices because environmental issues are viewed with greater concern nowadays (This is my opinion and I’m not quoting statistically). In order to stay ahead in the game, corporations have become more sustainable to avoid losing environmentally conscious customers (you can read this article on H&M here). Besides this, corporations also engage in CSR because they want to maintain a good reputation (as a corporation that cares for the environment and/or less fortunate groups of people). Ultimately, whether corporations’ intentions are genuine or not, their actions are still beneficial to the environment/social groups.
Hope this helps!
Cheers,
Letitia 🙂