Global Business, Society and Ecology MIM 511/BA 548, Winter 2010 Scott Marshall School of Business Portland State University

Questions for Class Discussion What are the most interesting data presented in the Overconsumption article? Why are they important? Do you believe ‘overconsumption’ is a problem? Do you believe it is a problem for which there is a solution?

Consumer Decision Making Financial, Social and Environmental Criteria A complex process affected by different and sometimes competing motives and criteria, Self-interested motives Criteria: price, quality, individual taste, life-style. Unselfish motives Criteria: culture, self-identity, social pressure, environmental and social concerns.

Consumer Decision Making Financial, Social and Environmental Criteria Add more complexity - different consumers may have very distinct preferences and conceptions of environmentally and/or socially friendly behavior and actions. What is environmentally friendly? And, then, what is an environmentally friendly product/service? What is socially conscious? And, then, what is a socially conscious product/service?

Consumer Decision Making Financial, Social and Environmental Criteria Information Costs: How much does it cost to provide environmental and social information? Lower Costs…Communication and technology have significantly lowered costs. Higher Costs…Higher volume, Complexity, and Skepticism have raised costs.

Consumer Decision Making

Environmental and Social Brand and Product Strategies SUSTAINABILITY Issues are COMPLEX To be credible, sustainability must be comprehensive, balanced and fact based BRANDING Seeks SIMPLICITY To be effective, branding must be selective and appeal to emotions. "If you are not a brand, you are a commodity. Then the price is everything and the low-cost producer is the only winner" Philip Kotler, Kellogg School of Management

Environmental and Social Brand and Product Strategies “At Patagonia, we are dedicated to abundance. We don’t want to grow larger, but want to remain lean and quick. We want to make the best clothes and make them so they will last a long, long time. Our idea is to make the best product so you can consume less and consume better.”

Chains of Custody, Certification and Eco-Labeling Chain of Custody: Ability to identify the initial source of a raw material throughout the supply chain. Certification: Declaration of the methods of production and/or inputs into a product or service that are not discernible during purchase or when in use (i.e., ‘credence attributes’). Eco-Labeling: Direct identification of ‘credence attributes’ on product/service.

Chains of Custody, Certification and Eco-Labeling Forest Stewardship Council Chain of Custody Certification Eco-Label

In-Class Exercise Portland Roasting Company Describe the roles of chain of custody, certification and eco-labels in the coffee industry. Based on the case study, conduct a standard SWOT analysis of PRC. Derive a set of alternative courses of action for PRC. Choose one recommended course of action and clearly justify this course of action.