| Sustainable Marketing: Social Responsibility and Ethics 581
Chapter 20 | Sustainable Marketing: Social Responsibility and Ethics 581
But on the way to the awards cere- monies, Timberland stalled. Over the next four years, earnings slipped al- most 20 percent. And the company was forced to cut product lines and close stores. This left many analysts wonder- ing: Has Timberland put too much em- phasis on justice and not enough on commerce? Is it possible for a company to serve a double bottom line of both values and profits?
In this time of company crisis, Swartz learned some valuable lessons about the commerce side of the busi- ness. Especially during tough economic times, Swartz discovered, not all Tim- berland consumers place a high value on the sustainability part of the brand. “Do good” works well in good times. But when things get tough, customers want a lot more. Swartz explains today’s more demanding
tiatives in line with four strategic pillars: “We started out as
customers:
energy (reduce greenhouse emissions), bootmakers,” says
These days, customers are saying, “I’ll have a conversation
products (design environmentally responsi- Timberland, “but
with you; [but] it will be all on my terms. Your product is
ble, recyclable products), workplaces (estab- we’re about much
going to have to be visually beautiful, technically perfect,
lish fair, safe, and nondiscriminatory more. Like you, we
and distinctive. And it has to be available where I shop at a
workplaces), and service (energize and en- care about the
price I’m willing to pay.” Now, if it is all of those things, you gage Timberland’s employees in service).
strength of our
gain the permission, in the one minute the consumer deals
Timberland is moving along on these neighborhoods,
with your brand, to devote about 10 seconds to the issue of
initiatives at a rapid pace. It has a solar- the well-being of
values. And if you miss any step along the way, you are
powered distribution center in California our environment,
talking to yourself, which is a terribly sad place to be.
and a wind-powered factory in the Do- and the quality minican Republic. It’s currently installing of life in our
Despite the challenging times, Swartz remains firmly com-
energy-efficient lighting and equipment communities.”
mitted to Timberland’s mission of making a difference. Instead of retrofits in its facilities and educating work- backing off on Timberland’s sustainable practices, he’s ramping
ers about production efficiency. And it has launched two new them up. And despite recent sales declines, profits are up over
footwear collections featuring outsoles made from recycled car the past two years. Looking beyond the world’s current eco-
tires. Timberland’s new Earthkeeper line of boots, made from re- nomic difficulties, Swartz insists that it is only a matter of time
cycled and organic materials, has given rise to its Earthkeeper’s until consumers refuse to patronize companies that do not serve
campaign, an online social-networking effort that seeks to in- their communities. “I believe that there’s a storm coming against
spire one million people to take actions to lighten their environ- the complacent who say good enough is good enough,” he says.
mental footprints.
To inspire consumers to make more sustainable decisions, Thus, despite recent setbacks, Swartz and Timberland continue Timberland puts Green Index tags on its products. Modeled after
in their quest of “caring capitalism,” doing well by doing good. the nutritional labels found on food products, the index provides
Swartz has an advantage not held by many for-profit chief execu-
a 0-to-10 rating of each product’s ecological footprint in terms of tives: Although Timberland is a public company, the Swartz family climate impact, chemicals used, and resources consumed. The
controls 69 percent of shareholder voting rights. Therefore, Swartz lower the score, the smaller the environmental footprint.
can pursue his own corporate values while being less accountable to Timberland is doing everything it can to reduce the foot-
Wall Street. Still, he has no illusion that he’s untouchable. For Tim- print of the products it makes and sells. But the company’s sus-
berland, “commerce” funds “justice.” “No one’s performance, espe- tainability efforts go far beyond environmental responsibility.
cially in this age, will get supported through time if it’s Swartz recently commis-
substandard,” Swartz says. sioned a new long-term
“Maybe I am self-indulgent, strategy for both environ-
and if I am and our perfor- mental and social corporate
Timberland is no ordinary for-profit company. Its
mance suffers, I will get fired. responsibility. The plan lays
corporate mission is about more than just making good
All I continue to say to share- out short- and long-term
products and profits. It’s about trying to make a
holders is that I believe I am goals supported by key ini-
difference in the world.
pursuing sustainable value.” 1
Objective OUTLINE
Define sustainable marketing and discuss its importance. Sustainable Marketing (582–584)
Identify the major social criticisms of marketing. Social Criticisms of Marketing (584–592)
Define consumerism and environmentalism and explain how they affect marketing strategies.
Parts
» | Marketing: Creating and Capturing Customer Value 3
» | Marketing: Creating and Capturing Customer Value 11
» | Marketing: Creating and Capturing Customer Value 13
» | Marketing: Creating and Capturing Customer Value 25
» | Marketing: Creating and Capturing Customer Value 29
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 37
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 41
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 43
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 51
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 55
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 57
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 63
» | Analyzing the Marketing Environment 65
» | Analyzing the Marketing Environment 71
» | Analyzing the Marketing Environment 73
» | Analyzing the Marketing Environment 77
» | Analyzing the Marketing Environment 79
» | Analyzing the Marketing Environment 81
» | Analyzing the Marketing Environment 85
» | Analyzing the Marketing Environment 87
» | Analyzing the Marketing Environment 89
» | Managing Marketing Information to Gain Customer Insights 97
» | Managing Marketing Information to Gain Customer Insights 99
» | Managing Marketing Information to Gain Customer Insights 103
» | Managing Marketing Information to Gain Customer Insights 109
» | Managing Marketing Information to Gain Customer Insights 111
» | Managing Marketing Information to Gain Customer Insights 113
» | Managing Marketing Information to Gain Customer Insights 115
» | Managing Marketing Information to Gain Customer Insights 127
» | Managing Marketing Information to Gain Customer Insights 131
» | Consumer Markets and Consumer Buyer Behavior 133
» | Consumer Markets and Consumer Buyer Behavior 137
» | Consumer Markets and Consumer Buyer Behavior 141
» | Consumer Markets and Consumer Buyer Behavior 143
» | Consumer Markets and Consumer Buyer Behavior 159
» | Consumer Markets and Consumer Buyer Behavior 163
» | Business Markets and Business Buyer Behavior 165
» | Business Markets and Business Buyer Behavior 175
» | Business Markets and Business Buyer Behavior 179
» What is Eaton’s value proposition?
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 189
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 193
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 197
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 203
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 205
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 207
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 209
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 211
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 213
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 219
» | Products, Services, and Brands: Building Customer Value 223
» | Products, Services, and Brands: Building Customer Value 225
» | Products, Services, and Brands: Building Customer Value 229
» | Products, Services, and Brands: Building Customer Value 237
» | Products, Services, and Brands: Building Customer Value 245
» | Products, Services, and Brands: Building Customer Value 247
» | Products, Services, and Brands: Building Customer Value 249
» | Products, Services, and Brands: Building Customer Value 251
» | Products, Services, and Brands: Building Customer Value 257
» | New Product Development and Product Life-Cycle Strategies 259
» | New Product Development and Product Life-Cycle Strategies 271
» | New Product Development and Product Life-Cycle Strategies 273
» | New Product Development and Product Life-Cycle Strategies 279
» | New Product Development and Product Life-Cycle Strategies 281
» | Pricing: Understanding and Capturing Customer Value 289
» | Pricing: Understanding and Capturing Customer Value 291
» | Pricing: Understanding and Capturing Customer Value 295
» | Pricing: Understanding and Capturing Customer Value 299
» | Pricing: Understanding and Capturing Customer Value 305
» | Pricing: Understanding and Capturing Customer Value 307
» | Marketing Channels: Delivering Customer Value 339
» | Marketing Channels: Delivering Customer Value 347
» | Marketing Channels: Delivering Customer Value 351
» | Marketing Channels: Delivering Customer Value 367
» | Retailing and Wholesaling 373
» | Retailing and Wholesaling 377
» | Retailing and Wholesaling 379
» | Retailing and Wholesaling 393
» | Retailing and Wholesaling 395
» | Retailing and Wholesaling 397
» | Retailing and Wholesaling 401
» | Retailing and Wholesaling 405
» | Communicating Customer Value: Integrated Marketing Communications Strategy 407
» | Communicating Customer Value: Integrated Marketing Communications Strategy 411
» | Communicating Customer Value: Integrated Marketing Communications Strategy 413
» | Communicating Customer Value: Integrated Marketing Communications Strategy 415
» | Communicating Customer Value: Integrated Marketing Communications Strategy 429
» | Communicating Customer Value: Integrated Marketing Communications Strategy 433
» | Advertising and Public Relations 435
» | Advertising and Public Relations 439
» | Advertising and Public Relations 441
» | Advertising and Public Relations 443
» | Advertising and Public Relations 445
» | Advertising and Public Relations 447
» | Advertising and Public Relations 449
» | Advertising and Public Relations 453
» | Personal Selling and Sales Promotion 463
» | Personal Selling and Sales Promotion 469
» | Personal Selling and Sales Promotion 471
» | Personal Selling and Sales Promotion 481
» How is the sales force at Nestlé Waters structured? outsells its top competitors.
» | Direct and Online Marketing: Building Direct Customer Relationships 495
» | Direct and Online Marketing: Building Direct Customer Relationships 499
» | Direct and Online Marketing: Building Direct Customer Relationships 507
» | Direct and Online Marketing: Building Direct Customer Relationships 509
» | Direct and Online Marketing: Building Direct Customer Relationships 515
» | Direct and Online Marketing: Building Direct Customer Relationships 525
» | Creating Competitive Advantage 527
» | Creating Competitive Advantage 529
» | Creating Competitive Advantage 537
» | Creating Competitive Advantage 549
» | The Global Marketplace 551
» | The Global Marketplace 553
» | The Global Marketplace 561
» | The Global Marketplace 573
» | Sustainable Marketing: Social Responsibility and Ethics 581
» | Sustainable Marketing: Social Responsibility and Ethics 583
» | Sustainable Marketing: Social Responsibility and Ethics 587
» | Sustainable Marketing: Social Responsibility and Ethics 595
» | Sustainable Marketing: Social Responsibility and Ethics 603
» | Sustainable Marketing: Social Responsibility and Ethics 605
» | Marketing by the Numbers A21
» | Marketing by the Numbers A27
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