Lecture Global marketing management (7th edition): Chapter 20 - Masaaki Kotabe, Kristiaan Helsen

GLOBAL
MARKETING
MANAGEMENT
Seventh Edition
MASAAKI KOTABKE | KRISTIAAN HELSEN

Chapter 20 PowerPoint
Sustainable Marketing in the
Global Marketplace


Chapter Overview
1.
2.
3.
4.
5.
6.

Global Corporate Citizenship
Major Areas of CSR
The Case for Sustainability
Challenges for Sustainability Strategies
Sustainable Marketing and Global Consumers
Developing and Implementing a Sustainable
Strategy
7. Global Stakeholder Engagement Programs
8. Sustainable Marketing Mix Policy for the
Global Marketplace
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9. Crisis

Management
andInc.Consumer Boycotts
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Introduction
• Companies recognize that they must consider the
impact of their decisions and policies on a wide
range of stakeholders besides their shareholders in
order to have sustainable business.
• While the idea that a company has societal
obligations has been around for decades, corporate
social responsibility (CSR) has never been more
prominent on the corporate agenda.

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1. Global Corporate Citizenship
• Corporate social responsibility (CSR) is “the company’s
status and activities with respect to its perceived societal
obligations.”

• The European Commission defines CSR as “a concept
whereby companies integrate social and environmental
concerns in their business operations and in their
interaction with their stakeholders on a voluntary basis.”
• The United Nations Global Compact (UNGC) is a
framework that the UN established in 2000 to help
companies in adopting sustainable and socially
responsible strategies. It stipulates 10 principles in the
areas of human rights, labor, the environment, and anticorruption.
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Exhibit 20-1:
The UN Global Compact’s Ten Principles

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1. Global Corporate Citizenship
• The ISO 26000 provides a template for social
responsibility in areas such as:
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Human rights
Labor practices
Environmental issues
Fair operating practices
Consumer issues
Community involvement and support

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Exhibit 20-2:
The Nestlé Creating-Shared-Value (CSV)
Pyramid

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2. Major Areas of CSR
• Corporate social responsibility includes:
– Corruption and Bribery
– Environmental Concerns
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Energy consumption
Basic brand attributes
Desire to buy green/green big-ticket items
Attention to packaging

– Supply Chain Accountability
– Commitment toward customers
– Community Support
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Exhibit 20-4: Examples of Water Saver
Initiatives

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Exhibit 20-5: Interbrand 2014 Green Brands

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Exhibit 20-6: Overall Access to Nutrition
Ranking

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3. The Case for Sustainability
• Reputation in Consumer Markets
– In a 2002 survey covering 12 countries on why
consumers pick global brands, “social responsibility”
came out as the third-most-important element.
– Sustainability means meeting today’s needs while
safeguarding resources for the future.
– Firms with a good CSR image could also get
rewarded with higher brand loyalty and the ability to
charge a price premium.

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3. The Case for Sustainability
– Reputation in labor and equity markets: being
perceived as a good corporate citizen can help a
company in recruiting the best talent and keeping its
employee turnover rate low.

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4. Challenges for Sustainability Strategies
• Cross-border differences in cultural values and
ethical conduct create moral confusion
– Cultural relativism vs. ethical imperialism
– Poor infrastructure can force companies to scale back
their aspirations
– Decisions in one country can affect a company’s
global image

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Exhibit 20-7: Conflicting CSR Images

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5. Sustainable Marketing and Global
Consumers
• With the rise of social media, consumers are rapidly
alerted when a global brand has a harmful impact at
the other end of the planet. Consumer behaviors are
also affected by:
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Lack of Awareness
Negative Perceptions
Distrust
Low Availability
Product price, particularly green products and organic
produce

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Exhibit 20-8: GFK Roper’s Global
Segmentation of Environmental Consumers

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Exhibit 20-9: The Biggest Challenges to
Buying Green Products/Services

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6. Developing and Implementing
a Sustainable Strategy
• To create a suitable CSR strategy, a company must:
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Set objectives and targets
Understand the operating environment

Specify strategic sustainability initiatives
Implement
Develop metrics for monitoring

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Exhibit 20-10: Highlights of H&M’s
Conscious Actions in 2012

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Exhibit 20-11: Colgate-Palmolive’s Key
Performance Sustainability Indicators

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Exhibit 20-12: Starbuck’s Global
Responsibility Plan – Goals and Progress
(2014)

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7. Global Stakeholder Engagement
Programs
• Monitoring stakeholder priorities and
perceptions is crucial.
– Forms of stakeholder engagement firms could adopt
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Information provision

Standard setting
Input on decision-making
Implementation
Monitoring

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8. Sustainable Marketing Mix Policy
for the Marketplace
• Meeting consumer needs and desires creates
corporate challenges for global companies in areas
of:
– Sustainable packaging
– Sustainable pricing

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Exhibit 20-13: Coca-Cola Billboard in the
Philippines Absorbs Air Pollution

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