Product Service System, Greenwashing, Green Marketing - Assignment Example

1. Product Service System (PSS) A. What could be the attitudes and response by consumers to spreading this model to the mainstream market? Applying the method to mainstream market could induce a number of problems which can be attributed to the large population that may not be served as appropriately by the Product Service System. At the same time, different attitudes and characters of customers play a role in the success of PSS. Environmental and economic interests are the primary factors that determine its failure and as such it is apparent that we all have varying degrees of concern for these issues. Regardless, it would be perceptible that more people would be accepting of it as an option for more short-term needs but not as a long-term determinant of their behavior. B. What do you think could be the constraints to the adoption of such a business model by mainstream businesses? The basic constraint lies on the novelty of the concept. It has never been tried by a number of people which makes it impossible for them to judge of the merits of the system. They become wary of the idea of ‘leasing’ which is not easily acceptable to them. Furthermore, people are inherently territorial and we want things to be our possession. The sense of ownership is very important to us which is why the business model is hard to digest. Information dissemination is also lacking as there is no strong marketing campaign launched by the companies and their guiding principles that is sure to attract some people. 2. Greenwashing A. Give some examples of Greenwashing, explaining how these examples came about; Vattenfall and British Petroleum Among the companies gravely criticized for greenwashing is the large energy-producing company of Vattenfall, which supplies parts of Northern Europe. The company claims to be environment-friendly with its alleged vision of being climate-neutral by 2050 with its investments in wind energy, pre-drying lignite and other innovations including ocean energy research. GreenPeace criticized the company for using brown coal that forces relocation among communities. There is also the controversy on the CO2 disposal of the company in Denmark (Jacobsen & Maurizio, n.d.). The currently controversial BP or British Petroleum has also been indicted for greenwashing. The $200 million dollar rebranding campaign the company enacted in 2000 advertised the green element they hoped to project. Citing the company as going “beyond petroleum” when in fact there had been several incidents of fatalities in oil spills in Alaska and refinery explosions (Esty and Winston, 2006). No other incident could prove this than the massive gulf oil spill which resulted to the United States’ biggest ecological disaster. B. Outline advice on how companies could avoid Greenwashing Esty and Winston advise that “complete dedication and attention to detail” are necessary for the realization of eco-orientation. As with the case of BP and others who were alleged with greenwashing, companies should be very careful of projecting a ‘green’ image in their advertisements if they are anything but. Sometimes it might even be better to just leave the concept alone so as not to fool people because there are a plethora of environmental advocates who are more than willing to call you on you blunders. The best way to avoid greenwashing is to ensure first that the company is truly within the bounds of being environment-friendly and has the capacity to maintain it. 3. Explain in what ways an organization could prioritize their stakeholders and in what ways this can be used to manage their relationship of each stakeholder. Use examples to support your argument. Stakeholders are imperative parts of the company. There is no possibility for an organization to dismiss their stakeholders and be successful. Maintaining Corporate Social Responsibility while concurrently satisfying the coffer makes for a good business model. A contrasting view where the corporation serves a wider purpose that extends to society and not intrinsic fosters corporate role in the world. The conjunction of owners to subsist could also lead to the creation of other values. The stakeholders should keep in mind that they too have multiple obligations that must be analyzed in congruence with the decisions of the company and vice versa. A two-way exchange is the blood life of this system. Sustainability White Reclamation Ltd. Is an example of the stakeholders being able to receive returns while the company itself is giving back to the community through its goals of recycling and making a profit out of it. The group has further increased its capital by injecting 1 million pounds in a plant where the National Industrial Symbiosis Programme (NISP) will work closely with them. Recycled UK Limited is also another which practices environment-friendly garbage solutions. The company takes part in the program if the European Commission’s End of Life Vehicles Directive which aims to decrease plastic waste from vehicles by the year 2015. The project targets 95% recovery from vehicles thrown away. Through these programs CO2 emissions are reduced as well as diverting wastes which could have further congested landfills. Including saving virgin materials and providing job opportunities (www.nisp.org.uk). 4. “The PSLC defines the totality of the stakeholders relevant to the business issues of taking, making and wasting occurring in a product’s life cycle” (Fuller, 1999). Explain how this concept can help an organization plan their marketing operations The PSLC provides a resource flow program that could be used by companies and consumers. The maximization of Resource Recovery or R2 while minimizing wastes and pollution are among the priorities PSLC recommends. This means that the organization should go beyond the production and selling of their products. They must consider that their role does not end as soon as they are able to capitalize. They must take into reflection that their part in alleviating, if not alleviating, the problems of the environment is imperative. The Circular Flow Technology and the adaptation of an efficient process lead to the success of this concept. The saying that ‘if you are not part of the solution then you are part of the problem’ reigns truth in this. Product manufacturers must at least attempt to “green the supply chain” and educate consumers on their role in the environment. The basic idea is that there is a circular chain to the production process. Environmental accounting could be enforced to measure the amount of wastes that an organization contributes through their products. The circular loop of the system could only be realized if the consumer takes part in the recycling process recommended by the producer. But above everything else, the corporation itself should devise the process of how they should re-establish the flow back to them and what they could do about minimizing wastes in a healthy business operation. 5. “Marketing is often viewed as a ‘bad guy’ in environmental terms because it is seen as revolving around consumption expansion, or guilty of excessive use of materials in terms of junk mail, over-elaborate packaging or freebie promotional merchandise that people don’t really want or need” (Peattie, interviewed by Catulli in 2007). Please discuss Green Marketing The truth of the matter is that no matter how wasteful marketing is, it is essential for a business to get their message across. Because of the massive number of products and services that is available to the public, marketing associates need to be aggressive and creative in the ways that they can stimulate interest in their products. Such is the cause for the excessive materials that they need in order to boost product information. These wastes usually come in forms of paper and plastic which they could have just as easily excluded. Moreover, effective marketing usually leads to further product consumption by individuals. The silver lining lies in that there are ways to enforce marketing strategies without compromising the environment. It can be designed through attuning it with the environment. A number of ways to do this includes the use of recycled materials in their packaging, the reduction of environmental impact in promotion, limiting the materials being used and the inclusion of new business model approaches. The concept is quite simple enough as it is in essence minimalistic marketing. Since marketing itself is a creative endeavor, then they should be resourceful enough to conduct their work without excessive use of materials. Even the web can be used for this purpose as it eliminates the need for paper and being that people are already regularly using the internet then there is not much added power consumption involved. 6. “It is imperative that businesses adopt environmentally responsible practices” as “the numbers of ‘green consumers will grow and our continued success will depend on serving those consumers” (Straughan and Roberts, 1999). Please comment on the statement, supporting your argument with examples Environmental Awareness More and more people are becoming environmentally aware. With the onset of the clamor over climate change, it cannot be helped that people are wary of the effects that it could bring. Much more, they have one way or another experienced the effects of it through floods, heat waves and extreme weather. As reports further points the finger to human practices, the immediate reaction is to put a stop to the causes of pollution that primarily lead to it. People are becoming more aware of their role in the problem and they are willing entities to the possible solutions. A preference for ‘green companies’ by ‘green consumers’ increases more and more each day. Global Mandate The Kyoto Protocol plays a major role in this renewed sense of environment responsibility. The reduction of greenhouse gasses as stipulated in the procedure signed in Japan places in the spotlight the need for being ‘green’ especially when the rules of procedures which should be devised in agreement with the countries that took part in the meeting on climate issues in Copenhagen, Denmark. The matter has evolved into being a government issue. More nations are now giving incentives to companies who administer ‘green’ processes in their operation (Jacobson and Catulli, n.d.). In a consumer standpoint, it is obvious that having to choose between two companies with the same products but where one is known for its environment programs and the other is not, the choice is obvious. 7. What is Corporate Social Responsibility (CSR)? Is CSR adopted “on a voluntary basis”? CSR and Corporate Accountability Corporate Social Responsibility speaks of the accountability of a company in their actions and how it may affect communities, people and the environment. It includes the maintenance of the company’s equilibrium between the profits of the company against the price of how benefits are achieved. It is the result of the stakeholders’ participation as it affects their lives. Davies calls it the ‘Iron Law of Responsibility.’ It revolves around three responsibilities; economic, legal and social. On a modern perspective, CSP is not done on a ‘voluntary basis.’ Companies are compelled to act responsibly and help out in the community because of laws mandated by the government and incentives provided by the state. Antitrust and consumer protection laws were mandated by the turn of the 20th century when corporations are being deemed as too powerful. Philanthropy has also taken trends that are more geared toward cultural and educational support. There are also companies such a Ford and Cadbury which focused on the welfare of their own employees by providing them with substantial benefits. CSR as a Necessity The initiative to provide a holistic regard for humanity and the environment makes for the indispensability of CSR. Reinforced by the laws that are put into effect by the government, it cannot be questioned that it creates a whole new image for corporations. Too much of something is often seen as evil. But when this abundance is diverted towards the fulfillment of something good, something that transcends ephemeral then it becomes for the benefit of the majority and this makes it noble. 8. What are “environmental labels” or “eco labels”? Offer examples Encouraging Green Consumers Eco labels stem from ‘green’ or ethical consumers who wish to retrieve environmental information from the products that they buy. Ethical consumers who have doubled in number require certain details in their consumption and this is where environmental labels play a massive part. Third party eco labels are sought by a number of companies to be placed as a marketing strategy for their ‘green products. An example of these are paper towels which are ‘green labeled.’ These are products where the inner tube is made of recycled paper and the towels itself are chlorine-bleached, unrecycled paper such as those marketed by P&G and Wall Mart. Going Green These are placed by manufacturers on the packages of their products to encourage consumers who value environment-friendly products to purchase them. Educating consumers on the benefits of a ‘green product persuades them to make the right choice that advocates a healthier planet. This instigates that anyone can help out by purchasing eco labelled products. To foster confidence and eliminate bias, third party organizations work with companies to determine the verity of what they advertise and in return give permission to the use of their logos which is what environmental labels are. 9. Why should businesses behave (environmentally, socially) responsibly? CSR Corporate Social Responsibility is founded on two principles, the Charity Principle and the Stewardship Principle. Charity Principle maintains that voluntary aid should be given to those in need and being that corporations have the capacity to help then it is only logical for them to do so. It should be voluntary and promote social welfare. It usually comes it form of foundations, initiatives to help out in social problems and partnerships with other groups, usually nongovernmental institutions. Stewardship Principle upholds a perspective that businesses act as public trustees and must consider the interest of all that will be affected by the decisions of the company through its operations and policies. Businesses and society goes hand in hand and are interdependent. It should analyze all the groups within the society and their diversity. Moreover, legal implications must be kept in mind. Stakeholders play a vital role in strategic planning of company functions. Encompassing Responsibilities The economic, legal and ethical responsibilities of a corporation must be adhered to ensure that it functions within the bounds of what is moral and what is lawful. Deviations from these aspects can lead to dire consequences and they must be mindful that there are watchful eyes that are ready to call them on their malevolence. Modern business perspectives shed light to a new image that any company should aspire to achieve. Money must not be the root of all evil because money, when spent wisely and unselfishly could lead to a greater good for more people who may just need a jolt from a helping hand. This creates a favorable relationship that keeps a harmonious community that may perhaps extend to a global perspective. Read More