Sustainability Through Marketing - Essay Example

Sustainnability Through Markrting The worlds economic and social systems are becoming increasingly inter-linked and the exploitation of the natural resources, exponentially accelerated. There is continuously a greater threat to the global ecology, and hence to the survival of our future generations. The concept of ‘Sustainable Development’, or ‘development which meets the needs of the present without compromising the ability of future generations to meet their own needs’ (Bruntland, G., 1987) came into focus with the World summit on Sustainable Development, held in Johannesburg in 2002. While dictating a broad range of guidelines (both legal and quasi-legal) to the governments and the corporate sector towards exercising discretion and good-sense in their utilization of the natural resources for development, the idea of sustainability also carried an immense potential for marketing and image projection for organizations. Organization that have taken steps to assimilate the sustainability issues in their governance and policies are able to reap the benefits of efficiency in their processes, as well as garner an image of good corporate citizenship that’s priceless in terms of their brand equity. Organizations that continue to take a traditionalist view of their stakeholders’ aims as one of wealth or profit maximization are oblivious to the veritable goldmine of benefits that a sustainability-focused marketing strategy can bring. StoraEnso, an integrated paper, packaging and forest products company, is leading the way to success through its sustainability initiatives, and serves as an apt example under the present discussion. The paper giant is placed in an industry that is increasingly looked down upon for the adverse impact that its operations have on the environment. With environmentalists and local communities bitterly fighting against the felling of trees and the threat of ecological imbalance, and governments vacillating between the profitability and community pressures, the paper industry has more on its plate than just the need to streamline its operations. StoraEnso has however changed this threat into an opportunity – by promptly incorporating the social and environmental sustainability commitments into its vision and mission, it is able to make foray into newer markets in addition to consolidating its position as a market leader in the existing markets. Instead of observing the local communities as enemies and environmentalists as blackmailers, StoraEnso believes in acknowledging their concerns, and working with them as important partners and stakeholders. With sustainability being identified as a key success factor, StoraEnso was able to look at its stakeholders in a novel light. The organization recognizes the local community as an important stakeholder along with the employees that are working in its diverse units. It also values its suppliers and believes in their development to attain its own sustainability goals. The local governments, and the publics (with their customs and cultures) of countries where StoraEnso operates too are identified as critical stakeholders. The organization also places its commitment of quality and service to its customers at the core of all its actions and business. This outlook of the organization enables it to practice a production and marketing strategy that is aligned with its sustainability initiatives, and that in turn yield maximum benefits for its investors – another key stakeholders of StoraEnso. The stakeholders’ concerns are addressed through the organizations policies of sustainability governance and its efforts towards effecting economic, environmental, and social responsibility – which the organization identifies as the three pillars of sustainability. At StoraEnso, sustainability translates into responsibility and accountability towards all the stakeholders and manifests in the form of policies on Corporate Social Responsibilities (CSR), Environmental and Social Responsibility, Environmental Principles, and Occupational Health and Safety of its Workers. As one of the three pillars of sustainability, economic responsibility at StoraEnso goes beyond ethical financial reporting and monetary appraisals. It includes accounting for economic impacts for the corporate level and unit level. Economic impacts are measured in terms of the direct monetary flows (wages and dividends paid) and the donations given, as well as gauged in terms of the indirect effects like creation of knowledge capital and stakeholder risks. Also, StoraEnso realizes the chain of impacts that its actions are capable of producing – like changes in pay effect the purchasing power of the worker, that in turn impacts on the economic vitality of the local community or region where the worker lives and shops. Exhibiting tremendous environmental responsibility, StoraEnso subscribes to the strictest norms of waste and pollution minimization, and using efficient processes. It strives to use renewable raw materials and supply products that are recyclable and safe to use – thus minimizing any adverse impact on the ecology. StoraEnso is able to follow through this by putting a set of environmental principles (for GMO, Environmental Management Systems and Transposrt Environment ), principles for wood-and- fibre procurement and land management, and principles for the development of forest certification. It also requires all its units and mills to prepare a sustainability report on a regular basis. StoraEnso recognizes itself as a responsible social entity in the countries where it carries out its operations – paying intense attention to the local traditions and customs, and always being sensitive to the local wisdom. The organization’s attitude towards its economic, environmental and social responsibilities is reflected in its products, processes, and communications towards its stakeholders, and has a positive impact on its image and hence marketing potential. To project the image of economic, environment and social sustainability, StoraEnso relies on its sustainability governance that is carried out through an accountable Sustainability Committees, chaired by the Head of Corporate Support and supported by 4 teams. These teams maintain checks and balances on sustainability issues and their implementation throughout the value-chain. The Environment Co-ordination Team and the Climate Change Steering Group are constantly vigilant about sustainability issues in the environmental scenario, while the Forest Environment Team and the Forest Environment Plantations Team monitor forest and land management issues. There is a Customer Support Team and a Corporate Social Responsibility Team that help the implementation of the sustainability policies of StoraEnso through the customer and community relations. The concerted efforts of these teams result in the organizations continued benevolent intervention in the local settings – be it through welfare activities, education and health systems development, through bringing economic prosperity to the locals, or helping in reclaiming natural habitats for endangered species. These acts, in turn are translated into corporate image and sales, as no advertising could possibly hope to get. Stora Ensos Corporate Social Responsibility principles are grounded in internationally accepted statements, such as the United Nations Universal Declaration of Human Rights, the ILO conventions, and the United Nations Global Compact. As such, the employee well-being and occupational health and safety (OHS) are seen as top priorities at StoraEnso. This treatment of its employees projects the organization as a sought after recruiter, and builds better motivation and performance – a major factor in the success of any organization. Stora Enso’s progressive stance on sustainability is maintained by ensuring that its efforts towards sustainability are not at cross-purposes with its being competitive. The organization is backed by some of the best minds that steer it towards financial and marketing success, with sustainability finely meshed-in with this goal. StoraEnso maintains an intelligent and comprehensive reporting system with sustainability performance is annually reported in the Sustainability Report using the Global Reporting Initiative (GRI) guidelines. This is an exhaustive document that includes environmental statistics, employee demographics and their health and safety, and the economic impact of StoraEnso’s operations. The presentation of the report conforms with StoraEnso’s commitment towards transparency and accountability and thus provides a fillip to the investors’ confidence. StoraEnso has been able to actually make globalization work for all its stakeholders, while at the same time capitalize on its sustainability endeavor – a presence in four continents (Europe, North and South America, and Asia) and Sales at EUR 3 636.1 million (13.0% higher than the previous quarters) are credible statistics to go by. Bibliography 1. www.storaenso.com 2. Bruntland, G., 1987, Our common future: The World Commission on Environment and Development, available online at http://alcor.concordia.ca/~raojw/crd/reference/reference001377.html, accessed on 25th March 2006. . Read More