Co - partner for sustainable business? Sustainable and responsible consumption Ing. Andrea Ubrežiová Department of Marketing FEM, SPU

Business perspective From 20 th 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 Sustainable and responsible consumption2

Let us think about it… Sustainable and responsible consumption3

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Try to recall “market definition” Market intersection – D&S meeting Sustainable and responsible consumption5

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 Sustainable and responsible consumption6

Population growth by 2050 Source: UN report, 2009 Sustainable and responsible consumption7

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? Sustainable and responsible consumption8

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? Sustainable and responsible consumption9

Customer perspective on the topic… Sustainable and responsible consumption10

Business focus on: Issues to focus on: Economic development 34% Environment 21% Human rights 12% Poverty and hunger 11% Education 9% Health diseases 8% Water issues 5% Sustainable and responsible consumption11

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 Sustainable and responsible consumption13

Companies should tell how it is: Sustainable and responsible consumption14

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…. Sustainable and responsible consumption15

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 Sustainable and responsible consumption16

The role of business and government 2/3 Business action steps Can you come up with the most efficient way to influence customer behavior? Source: OECD, 2008 Sustainable and responsible consumption17

The role of business and government 3/3 MARKET COMPANIES + OTHER STAKEHOLDERS COMPANIES + OTHER STAKEHOLDERS CUSTOMERS NGOs, government, international agencies, etc. Choice influencing actions Choice editing actions Innovations Sources Production& Packing Distribution - Logistic Trade Use 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 Sustainable and responsible consumption18

Let’s sum it up… Do you consider yourself to be a responsible consumer? Sustainable and responsible consumption19

Thank you for your attention Sustainable and responsible consumption20