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Overcoming the Sustainability Marketing Conundrum
One of the
most difficult decisions a company can make is how to market its
products on sustainability values. Overemphasis on ethical & ecological
credentials can lead to detailed corporate scrutiny and accusations of greenwashing. At the same time, not responding to consumer demand for
sustainable products can lead to product withdrawal and business
failure. |
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Where should
companies draw the line between legitimate marketing and
greenwashing? Speakers at Organic Monitor's
sustainability summits
aim to share
some insights into this new marketing conundrum.
Darrin C. Duber-Smith, a leading green
marketing guru, believes companies need to take a holistic approach
to sustainability. He believes the days of choosing options from a
‘green buffet’ are over as consumers becoming increasingly
knowledgeable about social and ecological issues. Furthermore,
growing pressure from supply chain partners and competitors as well
as legislative changes have raised the sustainability bar.
Transparency and clear communications hold
they key for a successful green marketing strategy. Being honest and
diligent not only fosters customer loyalty, these qualities also
breed a ‘feel good’ culture within organisations. Whereas,
exaggerated product claims, misleading communications and
half-hearted attempts at social responsibility & ecological
stewardship turn off consumers and increase business exposure.
The subject of sustainability marketing is highly pertinent in the
North American natural personal care industry. Accusations of
misleading product labelling and false marketing have resulted in a
number of high-profile lawsuits involving the USDA, certification
agencies, consumer groups and brand owners. Research by Organic
Monitor finds a major reason is the low adoption rate of private
standards for natural & organic personal care products. Less than 5
percent of these products in North America are certified,
compared to over 70 percent in
some Western European countries.
The absence of seals & logos on natural personal care products makes
American consumers more dependent on product claims and marketing
communications when selecting products. The problem is such claims
and marketing messages are not always accurate, thus the series of
lawsuits.
Many industry observers believe natural
personal care companies should be more forthcoming with information
on their product labels. By specifying the precise organic
ingredients and percentage of total ingredients on product
packaging, consumer trust can be strengthened.
Duber-Smith also encourages food and cosmetic
companies to adopt sustainability audits. A sustainability
audit should not just look at raw materials, but other aspects such
as energy & water usage, waste disposal, biodiversity impact, social
partnerships and distribution. Setting targets and continuous
improvements are believed to be the way forward.
Sustainability marketing
best-practices will be featured at the
Sustainable Foods Summit (Amsterdam,
June 2010) and Sustainable Cosmetics Summit (Paris, Oct 2010).
Case studies will be given of companies that are successfully
meeting the ecological and social challenges.
Related Events
Sustainable Foods Summit (Amsterdam, 10-11 June 2010)
Sustainable Cosmetics Summit
(Paris, 18-20 October 2010)
Posted: March 1st 2010
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