Co - partner for sustainable business?Sustainable and responsible consumption

Ing. Andrea Ubrežiová

Department of Marketing

FEM, SPU

Business perspective• From 20th century we can observe rapid development of global

society and growth of global issues

• Call for development and application of more systematic and sustainable approach in business activities

• Evolution of CSR concept

• Understanding of value – shared principle

• Long – term (sustainable) approach lies in:

strategic CSR approach competitive advantage

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Let us think about it…

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Try to recall “market definition”

Market intersection – D&S meeting

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Why to focus on consumers?

• One of key dimensions of market• Strength to shape market/business decisions• Changing position in production process• Significant changes in lifestyle • Migration and urbanization• Growth of population• Need and requirements of customers• Consumers attitudes and behavior

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Population growth by 2050

Source: UN report, 2009

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Key aspects to be considered:

• What means socially responsible consumption (SRC)?

• How SRC can be achieved?• What is the role of customer?• What is the role of business in SRC?• Is there similarity between business and SRC

issues?• How to achieve mutual cooperation?

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Socially responsible consumer

• “...a consumer who takes into account the public consequences of his/her private consumption or who attempts to use his/her purchasing power to bring about social changes.” (Journal of Business Research, 2007)

• “…one who purchases products and services perceived to have a positive (or a less negative) influence on the environment or who patronizes businesses that attempt to effect related positive social changes. (Roberts, 1993)

What are criteria to measure and evaluate responsible consumption?

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Customer perspective on the topic…

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Business focus on:

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Geographic scale to act

• Companies should go beyond minimum law standards, operate responsibly and address social and environmental issues (81% of global customers)

30% - globally

33% - nationally

36% - locally

From discussion to action:

• 31% - change the way companies operate • 19% - apply unique business assets• 16% - develop new product and services

( focus on sustainable PLC – HP, Nestlé Nespresso)• 11% - develop partnerships• 11% - raise awareness and educate• 7% - make donations• 5% - donate employee time/expertise

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Companies should tell how it is:

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However….barriers still exist

• Lack of understanding/leadership• Comfortable lifestyle• Budget constraints• History/ Present culture of free stuff• Short term thinking• Not obvious rewards• Social inequality, etc….

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The role of business and government 1/3

• To create consumer choices fostering socially responsible consumption

• How to proceed?1. Increase awareness

2. Raise knowledge

3. Change of attitudes

4. Create intentions to act

5. Achievement of change in behavior

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The role of business and government 2/3Business action steps

Can you come up with the most efficient way to influence customer behavior?

Source: OECD, 2008

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The role of business and government 3/3

MARKETMARKETCOMPANIES

+ OTHER STAKEHOLDERS

COMPANIES+

OTHER STAKEHOLDERSCUSTOMERSCUSTOMERS

NGOs, government, international agencies, etc.

NGOs, government, international agencies, etc.

Choice influencing actions

Choice editing actionsInnovations

SourcesSources Production& Packing

Production& Packing

Distribution - Logistic

Distribution - Logistic TradeTrade UseUse

Disposal& Waste

management

Disposal& Waste

management

• Ensure sustainable approach along the whole supply chain• Identify core issues, improvements, challenges, impacts

• Establish partnership, inclusion of all market actors

• Ensure sustainable approach along the whole supply chain• Identify core issues, improvements, challenges, impacts

• Establish partnership, inclusion of all market actors

Public campaigns,Education

Endorsements, critiques, ratings

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Let’s sum it up…

Do you consider yourself to be a responsible consumer?

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Thank you for your attention

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