{"id":145,"date":"2019-07-03T14:51:31","date_gmt":"2019-07-03T14:51:31","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/suny-hccc-marketingv2\/chapter\/reading-social-responsibility-initiatives\/"},"modified":"2019-07-03T14:51:31","modified_gmt":"2019-07-03T14:51:31","slug":"reading-social-responsibility-initiatives","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-hccc-marketing\/chapter\/reading-social-responsibility-initiatives\/","title":{"raw":"Reading: Social Responsibility Initiatives","rendered":"Reading: Social Responsibility Initiatives"},"content":{"raw":"\n<h2>The Business Case for Social Responsibility<\/h2>\nRegardless of broader benefits, there is a strong business case for social responsibility. Public companies' stock prices benefit from strong social responsibility initiatives. In 2013, more than $6.57 trillion were invested based on socially responsible investment strategies.[footnote]http:\/\/www.ussif.org\/sribasics[\/footnote]\n\nFor marketers, the desire for socially responsible products and companies is driven by consumers. Nearly 30 percent of consumers plan to increase the amount of goods and\/or services they buy from socially responsible companies in the coming year. Twenty-five percent avoided buying products from an enterprise because they thought it wasn\u2019t socially responsible.[footnote]http:\/\/www.forbes.com\/sites\/annefield\/2013\/04\/05\/consumers-like-social-responsibility-but-they-arent-sure-what-a-social-enterprise-is\/[\/footnote]\n<h2>Social Responsibility Programs<\/h2>\nIn defining social responsibility programs and goals, companies are acknowledging a&nbsp;commitment&nbsp;to creating&nbsp;a better world. How do they determine where to focus these efforts and what are they trying to achieve? Generally, companies are expanding on unique market strengths that benefit society and trying to reduce&nbsp;the negative impact of their products on society. &nbsp;As with any other business strategy, an approach that is customized to the company and its market is likelier to have&nbsp;greater impact. For example, Coca-Cola's emphasis on preventing childhood obesity acknowledges and addresses a risk that the company brings to its market. If Exxon Mobile launched a childhood obesity initiative, it wouldn't have the same impact. The company's oil and gas offerings don't have a direct impact on childhood obesity, and thus it would raise&nbsp;questions about the energy company's commitment to addressing issues much closer to home\u2014i.e., the&nbsp;serious impact that Exxon Mobile&nbsp;products have on the environment.\n\nMany companies are implementing&nbsp;a host&nbsp;of social responsibility strategies through sustainable product initiatives.\n<h3>Creating Sustainable&nbsp;Products<\/h3>\nA sustainable product is constantly environmental-friendly during its entire life. That is, from the moment the raw materials are extracted to the moment the final product is disposed of, there must be no permanent damage to the environment.[footnote]Frank-Martin B. and Peattie, K. (2009). Sustainability Marketing: A Global Perspective. Wiley, United Kingdom.[\/footnote]\n\nA sustainable product focus may include:\n<ul>\n\t<li>Use of organic raw materials<\/li>\n\t<li>Sustainably harvesting of raw materials<\/li>\n\t<li>Emphasizing human rights and labor conditions in sourcing decisions<\/li>\n\t<li>Use of renewable energy in the production process<\/li>\n\t<li>Ensuring that use of the product creates a positive impact on the community<\/li>\n\t<li>Creating product recycling and reuse options<\/li>\n\t<li>Improving the impact of the product's use on human and environmental health<\/li>\n<\/ul>\nThe intent of a sustainable product strategy is that the company is identifying the impact of its products on society at every phase of the product lifecycle, and minimizing the negative impacts. Sustainable product initiatives are so broad in scope that they often encompass all of the social responsibility initiatives. This broad scope also requires companies to be focused and realistic about what they can achieve, setting appropriate objectives that demonstrate progress and identify where more work is needed.\n\nAs the world's largest retailer, Wal-Mart faces unique challenges in product sustainability. It must not only focus on its stores, but on the products provided and transported by a board network of suppliers. To address this, Wal-Mart has partnered with The Sustainability Consortium to create a sustainability index that can be used to set standards and measure progress across its value chain. The goals of the index are to:\n<ul>\n\t<li>Improve the sustainability of the products customers love<\/li>\n\t<li>Integrate sustainability into the business of buying and selling merchandise<\/li>\n\t<li>Reduce cost, improve product quality and create a more resilient supply chain<\/li>\n\t<li>Strengthen customers\u2019 trust in retailers and the brands we carry<\/li>\n<\/ul>\nThe company cites progress in its work to date.\n<div>\n\nOne great example of how we are delivering impact is through the progress we\u2019ve made on our goal to eliminate 20 million metric tons (MMT) of greenhouse gas (GHG) emissions from the supply chain. Through our partnership with the Environmental Defense Fund and by leveraging the Index as a tool to gain buy-in and create accountability, we\u2019ve:\n\n<\/div>\n<ul>\n\t<li>Eliminated 7.575 MMT of GHG by the end of 2013<\/li>\n\t<li>Implemented projects that are estimated to eliminate 18MMT of GHG emissions by the end of 2015[footnote]http:\/\/corporate.walmart.com\/article\/sustainability-index[\/footnote]<\/li>\n<\/ul>\nClearly, Walmart has significant work ahead, but independent evaluations have been positive. Joel Makower of Green Biz reports that&nbsp;Walmart\u2019s sustainability initiatives are having a real impact, both on its operations and those of the companies in its supply chain. He also notes that some of that progress is offset by the company\u2019s rapid growth.[footnote]http:\/\/www.greenbiz.com\/article\/walmart-sustainability-10-assessment[\/footnote]\n<h2><strong>Check Your Understanding<\/strong><\/h2>\nAnswer the question(s) below to see how well you understand the topics covered in this outcome. This short quiz does&nbsp;<strong>not<\/strong>&nbsp;count toward your grade in the class, and you can retake it an unlimited number of times.\n\nUse this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.\n\nhttps:\/\/assessments.lumenlearning.com\/assessments\/751\n","rendered":"<h2>The Business Case for Social Responsibility<\/h2>\n<p>Regardless of broader benefits, there is a strong business case for social responsibility. Public companies&#8217; stock prices benefit from strong social responsibility initiatives. In 2013, more than $6.57 trillion were invested based on socially responsible investment strategies.<a class=\"footnote\" title=\"http:\/\/www.ussif.org\/sribasics\" id=\"return-footnote-145-1\" href=\"#footnote-145-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a><\/p>\n<p>For marketers, the desire for socially responsible products and companies is driven by consumers. Nearly 30 percent of consumers plan to increase the amount of goods and\/or services they buy from socially responsible companies in the coming year. Twenty-five percent avoided buying products from an enterprise because they thought it wasn\u2019t socially responsible.<a class=\"footnote\" title=\"http:\/\/www.forbes.com\/sites\/annefield\/2013\/04\/05\/consumers-like-social-responsibility-but-they-arent-sure-what-a-social-enterprise-is\/\" id=\"return-footnote-145-2\" href=\"#footnote-145-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a><\/p>\n<h2>Social Responsibility Programs<\/h2>\n<p>In defining social responsibility programs and goals, companies are acknowledging a&nbsp;commitment&nbsp;to creating&nbsp;a better world. How do they determine where to focus these efforts and what are they trying to achieve? Generally, companies are expanding on unique market strengths that benefit society and trying to reduce&nbsp;the negative impact of their products on society. &nbsp;As with any other business strategy, an approach that is customized to the company and its market is likelier to have&nbsp;greater impact. For example, Coca-Cola&#8217;s emphasis on preventing childhood obesity acknowledges and addresses a risk that the company brings to its market. If Exxon Mobile launched a childhood obesity initiative, it wouldn&#8217;t have the same impact. The company&#8217;s oil and gas offerings don&#8217;t have a direct impact on childhood obesity, and thus it would raise&nbsp;questions about the energy company&#8217;s commitment to addressing issues much closer to home\u2014i.e., the&nbsp;serious impact that Exxon Mobile&nbsp;products have on the environment.<\/p>\n<p>Many companies are implementing&nbsp;a host&nbsp;of social responsibility strategies through sustainable product initiatives.<\/p>\n<h3>Creating Sustainable&nbsp;Products<\/h3>\n<p>A sustainable product is constantly environmental-friendly during its entire life. That is, from the moment the raw materials are extracted to the moment the final product is disposed of, there must be no permanent damage to the environment.<a class=\"footnote\" title=\"Frank-Martin B. and Peattie, K. (2009). Sustainability Marketing: A Global Perspective. Wiley, United Kingdom.\" id=\"return-footnote-145-3\" href=\"#footnote-145-3\" aria-label=\"Footnote 3\"><sup class=\"footnote\">[3]<\/sup><\/a><\/p>\n<p>A sustainable product focus may include:<\/p>\n<ul>\n<li>Use of organic raw materials<\/li>\n<li>Sustainably harvesting of raw materials<\/li>\n<li>Emphasizing human rights and labor conditions in sourcing decisions<\/li>\n<li>Use of renewable energy in the production process<\/li>\n<li>Ensuring that use of the product creates a positive impact on the community<\/li>\n<li>Creating product recycling and reuse options<\/li>\n<li>Improving the impact of the product&#8217;s use on human and environmental health<\/li>\n<\/ul>\n<p>The intent of a sustainable product strategy is that the company is identifying the impact of its products on society at every phase of the product lifecycle, and minimizing the negative impacts. Sustainable product initiatives are so broad in scope that they often encompass all of the social responsibility initiatives. This broad scope also requires companies to be focused and realistic about what they can achieve, setting appropriate objectives that demonstrate progress and identify where more work is needed.<\/p>\n<p>As the world&#8217;s largest retailer, Wal-Mart faces unique challenges in product sustainability. It must not only focus on its stores, but on the products provided and transported by a board network of suppliers. To address this, Wal-Mart has partnered with The Sustainability Consortium to create a sustainability index that can be used to set standards and measure progress across its value chain. The goals of the index are to:<\/p>\n<ul>\n<li>Improve the sustainability of the products customers love<\/li>\n<li>Integrate sustainability into the business of buying and selling merchandise<\/li>\n<li>Reduce cost, improve product quality and create a more resilient supply chain<\/li>\n<li>Strengthen customers\u2019 trust in retailers and the brands we carry<\/li>\n<\/ul>\n<p>The company cites progress in its work to date.<\/p>\n<div>\n<p>One great example of how we are delivering impact is through the progress we\u2019ve made on our goal to eliminate 20 million metric tons (MMT) of greenhouse gas (GHG) emissions from the supply chain. Through our partnership with the Environmental Defense Fund and by leveraging the Index as a tool to gain buy-in and create accountability, we\u2019ve:<\/p>\n<\/div>\n<ul>\n<li>Eliminated 7.575 MMT of GHG by the end of 2013<\/li>\n<li>Implemented projects that are estimated to eliminate 18MMT of GHG emissions by the end of 2015<a class=\"footnote\" title=\"http:\/\/corporate.walmart.com\/article\/sustainability-index\" id=\"return-footnote-145-4\" href=\"#footnote-145-4\" aria-label=\"Footnote 4\"><sup class=\"footnote\">[4]<\/sup><\/a><\/li>\n<\/ul>\n<p>Clearly, Walmart has significant work ahead, but independent evaluations have been positive. Joel Makower of Green Biz reports that&nbsp;Walmart\u2019s sustainability initiatives are having a real impact, both on its operations and those of the companies in its supply chain. He also notes that some of that progress is offset by the company\u2019s rapid growth.<a class=\"footnote\" title=\"http:\/\/www.greenbiz.com\/article\/walmart-sustainability-10-assessment\" id=\"return-footnote-145-5\" href=\"#footnote-145-5\" aria-label=\"Footnote 5\"><sup class=\"footnote\">[5]<\/sup><\/a><\/p>\n<h2><strong>Check Your Understanding<\/strong><\/h2>\n<p>Answer the question(s) below to see how well you understand the topics covered in this outcome. This short quiz does&nbsp;<strong>not<\/strong>&nbsp;count toward your grade in the class, and you can retake it an unlimited number of times.<\/p>\n<p>Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.<\/p>\n<p>\t<iframe id=\"lumen_assessment_751\" class=\"resizable\" src=\"https:\/\/assessments.lumenlearning.com\/assessments\/load?assessment_id=751&#38;embed=1&#38;external_user_id=&#38;external_context_id=&#38;iframe_resize_id=lumen_assessment_751\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:400px;\"><br \/>\n\t<\/iframe><\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-145\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Social Responsibility Initiatives. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section><hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-145-1\">http:\/\/www.ussif.org\/sribasics <a href=\"#return-footnote-145-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-145-2\">http:\/\/www.forbes.com\/sites\/annefield\/2013\/04\/05\/consumers-like-social-responsibility-but-they-arent-sure-what-a-social-enterprise-is\/ <a href=\"#return-footnote-145-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><li id=\"footnote-145-3\">Frank-Martin B. and Peattie, K. (2009). Sustainability Marketing: A Global Perspective. Wiley, United Kingdom. <a href=\"#return-footnote-145-3\" class=\"return-footnote\" aria-label=\"Return to footnote 3\">&crarr;<\/a><\/li><li id=\"footnote-145-4\">http:\/\/corporate.walmart.com\/article\/sustainability-index <a href=\"#return-footnote-145-4\" class=\"return-footnote\" aria-label=\"Return to footnote 4\">&crarr;<\/a><\/li><li id=\"footnote-145-5\">http:\/\/www.greenbiz.com\/article\/walmart-sustainability-10-assessment <a href=\"#return-footnote-145-5\" class=\"return-footnote\" aria-label=\"Return to footnote 5\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":141992,"menu_order":21,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Social Responsibility Initiatives\",\"author\":\"\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"0c28c9fa-5958-4d8c-9a50-23e8ac6648ff","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-145","chapter","type-chapter","status-publish","hentry"],"part":124,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-marketing\/wp-json\/pressbooks\/v2\/chapters\/145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-marketing\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-marketing\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-marketing\/wp-json\/wp\/v2\/users\/141992"}],"version-history":[{"count":0,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-marketing\/wp-json\/pressbooks\/v2\/chapters\/145\/revisions"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-marketing\/wp-json\/pressbooks\/v2\/parts\/124"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-marketing\/wp-json\/pressbooks\/v2\/chapters\/145\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-marketing\/wp-json\/wp\/v2\/media?parent=145"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-marketing\/wp-json\/pressbooks\/v2\/chapter-type?post=145"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-marketing\/wp-json\/wp\/v2\/contributor?post=145"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-hccc-marketing\/wp-json\/wp\/v2\/license?post=145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}