Proceeding 7th International Seminar on Industrial Engineering and Management ISSN : 1978-774X

ETHICAL ASPECTS IN GREEN MARKETING; AN META ANALYSIS APPROACH

Erni Rusyani

Pasundan University, Economic Faculty [email protected]

ABSTRACT The environment's role in business is very important. Green marketing takes account of the wider relationship of the organization and its products to the surroundings. The prime emphasis is on, developing relationships and satisfying separate Stakeholders needs in an environmentally and socially responsible manner. The key stakeholders are customers, investors, parent company, directors, employees, the community, legislators, pressure groups, suppliers, and the media. Green marketing differs from its societal and ecological predecessors in it's intertwining of ecological and social concerns, in the breadth of the ecological agenda that it tackles, and in its potential application across all types and sectors of business. Green marketing goes beyond societal marketing in four key ways: (1) It is an open- ended rather than a long-term perspective, (2) It focuses more strongly on the natural environment., (3) It treats the environment as something which has an intrinsic value over and above its usefulness to society, (4) It focuses on global concerns rather than those of particular societies. is concerned with the issue of responsible personal conduct with respect to natural landscapes, resources, species, and non-human organisms. Conduct with respect to persons is, of course, the direct concern of moral philosophy as such. In particular, a new environmental ethic may have to challenge four basic traditions: Anthropocentrism, Reductive Analysis, The Egocentric Perspective, The Fact/Value Gap. Environmentally-responsible or "green" marketing is a business practice that takes into account consumer concerns about promoting preservation and conservation of the natural environment. Green marketing campaigns highlight the superior environmental protection characteristics of a company's products and services, whether those benefits take the form of reduced waste in packaging, increased energy efficiency in product use, or decreased release of toxic emissions and other pollutants in production. According to the key elements we found that green marketing has good values in treats the environment in the business manner. So, this paper is to describe how green marketing related to the ethical aspects, especially environmental ethics. Further we try to identified how the green marketing and ethics could impact the business as shows in some reserachs Keywords : Green Marketing, Environmental ethics

1. INTRODUCTION been companies in the front-line sectors The environment's role in business is such as oil, chemicals, power and cars that very important. It is now widely accepted have gone beyond a reactive and tactical that societies, economies, and the approach to green issues. However, by early businesses within them need to find a more 1990s a shift away from a technical- sustainable path to for future development. compliance oriented approach towards a In the business world the vocabulary of more proactive green strategy orientation management was suddenly expanded by the was noticed. Companies were increasingly discussion of ‘green consumers', ‘green pursuing competitive advantage and product markets' and ‘green products' and the differentiation by increasing investment in practice of ‘environmental' or ‘green environmental marketing, green design and marketing'. For majority of the companies improving overall corporate eco- improving environmental performance has, performance. In addition to these externally until recently, been a question of legislative motivated changes, the realization is compliance and occasional reactions to dawning within industry that external events and pressures. It has only will not be reached simply by demand-pull

Ethical Aspect in Green Marketing IM-30 (Erni Rusyani) Proceeding 7th International Seminar on Industrial Engineering and Management ISSN : 1978-774X from the market and compliance-push from organisms. Conduct with respect to persons the regulators. The changes that are needed is, of course, the direct concern of moral to safeguard the future of the environment philosophy as such. (Strictly speaking, and the economy must partly be driven from "environmental ethics" could be interpreted the business community, which means they more broadly to include questions of must proactively integrate eco-performance responsibility toward artificial environments, into the strategies, systems and cultures of but such an interpretation is not directly our the organization. Eg: Body Shop, Toyota, concern, and we will thus confine our etc. attention to matters of moral significance Green marketing takes account of the regarding natural environments). wider relationship of the organization and its "Moral responsibility" normally implies products to the surroundings. It is about a knowledge, capacity, choice, and value more aware, open, targeted and sensitive significance. That is to say, if a person is approach that integrates the strategic link morally responsible to do something, then between the company, the environment, and he (a) knows of this requirement, (b) is marketing, rather than being primarily capable of performing it, (c) can freely concerned with tactical communications choose whether or not to do it, and (d) the opportunities. The prime emphasis is on, performance thereof affects the welfare developing relationships and satisfying and/or liberty of other beings. Because one's separate Stakeholders needs in an response to these requirements reflects environmentally and socially responsible upon his value as a person, we say that this manner. The key stakeholders are response has "moral significance." This customers, investors, parent company, analysis of "moral responsibility" might help directors, employees, the community, to explain why "environmental ethics" has legislators, pressure groups, suppliers, and only recently attracted the attention and the media. Green marketing differs from its concern of moral philosophers. Quite simply, societal and ecological predecessors in it's until recently our effects upon the natural intertwining of ecological and social environment were regarded as morally concerns, in the breadth of the ecological neutral since nature, we assumed, was both agenda that it tackles, and in its potential impersonal and too vast to be injured by our application across all types and sectors of interventions, or else, at the very least, we business. Green marketing goes beyond were quite unable to foresee the harm societal marketing in four key ways: (1) It is resulting from our dealings with nature. Now, an open-ended rather than a long-term of course, we know better. We know that we perspective, (2) It focuses more strongly on can cause massive and permanent damage the natural environment., (3) It treats the to natural landscapes, resources and environment as something which has an ecosystems. Not only do we know that we intrinsic value over and above its usefulness can cause these insults, we also know how to society, (4) It focuses on global concerns we can cause them, and how we can rather than those of particular societies. prevent or remedy them. Knowing all this According to the key elements we found exacts a moral obligation to act with care, that green marketing has good values in foresight and, at times, with forbearance and treats the environment in the business constraint. In our dealings with the natural manner. So, this paper is to describe how environment, we are, in short, called upon to green marketing related to the ethical reflect, act, or perhaps to refrain from acting, aspects, especially environmental ethics. in a manner which testifies to our worth as Further we try to identified how the green persons and as a culture -- in a word, to marketing and ethics could impact the respond morally. business as shows in some reserachs. In particular, a new environmental ethic may have to challenge four basic traditions: 2. ENVIROMENTAL ETHICS a) Anthropocentrism. We are used to Environmental ethics is concerned with defining values and ethics with human the issue of responsible personal conduct beings in the center of our conceptual with respect to natural landscapes, scheme of things. Thus acts or policies resources, species, and non-human are viewed as "good" if they benefit

Ethical Aspect in Green Marketing (Erni Rusyani) IM-31 Proceeding 7th International Seminar on Industrial Engineering and Management ISSN : 1978-774X

human individuals or communities. (A conjectures about "the external world," more generous view would place non- "other minds," and so forth. It is not human but sentient creatures in the difficult to understand why, in such a suburbs of our moral concern). tradition of inquiry, there is a general Alternatively, other moral theories identify neglect of the question of man's moral as "good" those acts and policies that are responsibility of nature. The ecologist, as motivated by a respect for the "dignity of we well know, conceives of "nature" as a personhood" of human beings. "Lesser complicated system of interacting parts. beings" and nature itself does not, in this Such a concept is hopelessly out of reach view, share such "dignity." The ecological of a methodology which "begins" with moralist, on the contrary, is more inclined "immediate" subjective experience and to view humanity not at the center of the awareness. Thus the very method of moral universe but as an ingredient many philosophers -- their preferred (though presumably a necessary manner of doing their work -- has kept ingredient) in the realm of morality, them uninvolved with questions of particularly as morality pertains to environmental ethics. Moreover, by responsibility to nature. placing mankind in the center of their b) Reductive Analysis. We are accustomed, theory of knowledge, many philosophers through our scholarly traditions, to move have been drawn toward the unwarranted from secure knowledge to insecure conclusion that humanity is also in the conjecture. We do so by acquiring our center of nature. (Philosophers have all- knowledge in bite-sized pieces and too-often been thus "bewitched" by their accumulating this knowledge piece-by- preferred methodological points of view). piece until a whole emerges out of the The ecological moralist, of course, adopts parts. From such a tradition, it is easy to a different perspective by regarding man conclude that in order to understand as a member, rather than the master or something or to solve a problem, we must the justification, of the natural community. first identify the parts and then their rules d) "The Fact/Value Gap" (We return here to of combination. The approach of the question of moral cognitivism). For identifying the parts in order to centuries, many philosophers have comprehend the whole is called contended that no amount of factual "reductive analysis." The ecological point information can logically entail an of view reverses this approach. The evaluative conclusion. The maxim "no ecologist suggests: "grasp the whole -- 'ought' from 'is'" (or "no values from think like a mountain -- and then the facts") is virtually axiomatic among whole will explain the parts" (Holism). philosophers today. The most (But beware! An incautious insistence troublesome thing about this maxim is upon holism and an aversion to analysis that it is probably correct -- strictly can also limit our understanding. An speaking.(6) astute historian or philosopher of science Accordingly, however spectacular may will acknowledge a need for a dynamic be the coming advances in environmental balance between the apprehension and science and ecology, a conclusive application of parts and whole in scientific environmental ethic will not emerge directly theory and practice). therefrom. c)The Egocentric Perspective. The philosophical method of "reductive analysis" leads almost irresistibly, to "the 3. GREEN MARKETING egocentric point of view." Thus, following Environmentally-responsible or a philosophical tradition endorsed and "green" marketing is a business practice that exemplified by Hume and Descartes, takes into account consumer concerns about philosophers have insisted that promoting preservation and conservation of philosophical inquiry "start" with the the natural environment. Green marketing "hard" and "secure" data of immediate campaigns highlight the superior experience and awareness, and then environmental protection characteristics of a "move out," cautiously and deliberately, to company's products and services, whether

Ethical Aspect in Green Marketing IM-32 (Erni Rusyani) Proceeding 7th International Seminar on Industrial Engineering and Management ISSN : 1978-774X those benefits take the form of reduced last 50 years. The issue is particularly waste in packaging, increased energy relevant in America, which accounts for fully efficiency in product use, or decreased one quarter of world consumption despite release of toxic emissions and other having only a small fraction of the world's pollutants in production. As the . This growing public awareness Encyclopedia of the Environment noted, of environmental issues has brought with it a marketers have responded to growing corresponding change in the buying consumer demand for environment-friendly decisions of a significant segment of products in several ways: "by promoting the American consumers. As the Encyclopedia environmental attributes of their products; by of the Environment observed, "many introducing new products; and by consumers, and not just the most redesigning existing products—all environmentally conscious, are seeking components of environmental marketing." ways to lessen the environmental impacts of Indeed, marketing campaigns touting the their personal buying decisions through the environmental ethics of companies and the purchase and use of products and services environmental advantages of their products perceived to be environmentally preferable." have proliferated in recent years. Businesses took heed of this growth Most observers agree that while in "green consumerism," and new marketing some businesses engage in green campaigns were devised to reflect this new marketing solely because such an emphasis strain of thought among consumers. will enable them to make a profit, other Companies with product lines that were businesses conduct their operations in an created in an environmentally-sensitive fashion because fashion (i.e., with recycled products, their owners and managers feel a comparatively low pollutant emissions, and responsibility to preserve the integrity of the so on) quickly learned to shape their natural environment even as they satisfy marketing message to highlight such efforts consumer needs and desires. Indeed, true and to reach those customers most likely to green marketing emphasizes environmental appreciate those efforts (an advertisement . Environmental Marketing highlighting a company's efforts, author Walter Coddington, for example, for instance, is more likely to appear in an defined environmental marketing as outdoor/nature magazine than a general "marketing activities that recognize interest periodical). environmental stewardship as a business Environmental or green marketing development responsibility and business differs from other forms of advertising in growth responsibility." Another analyst of some fairly fundamental ways. The green marketing, Greener Marketing editor Encyclopedia of the Environment Martin Charter, defined the practice as "a summarized the most striking differences holistic and responsible strategic effectively: "First, unlike, price, quality, and management process that identifies, other features, the environmental impacts of anticipates, satisfies and fulfills a product are not always apparent and may needs for a reasonable reward that does not not affect the purchaser directly. Thus adversely affect human or natural environmental claims are often more environmental well-being." Such abstract and offer consumers the opportunity interpretations expand on the traditional to act on their environmental concerns. understanding of business's responsibilities Second, unlike most advertised product and goals. attributes, environmental claims may apply A number of factors have caused to the full product life cycle, from raw business firms in some industries to material extraction to ultimate product incorporate an environmental ethic into their disposal, reuse, or recycling [see the operations. The principal factor, of course, is discussion of life cycle analysis below]. the growing public awareness of the Third, and most important, environmental environmental degradation that has resulted marketing provides an incentive for as a consequence of the growth in manufacturers to achieve significant population and natural resource environmental improvements, such as toxics consumption throughout the world during the use reduction and recycling, by competing

Ethical Aspect in Green Marketing (Erni Rusyani) IM-33 Proceeding 7th International Seminar on Industrial Engineering and Management ISSN : 1978-774X on the basis of minimizing environmental a more moral basis for marketing decision- impacts of their products." making.

2. Crane, A. (2000). Marketing and the 4. SOME RESEARCHS IN GREEN Natural Environment: What Role for Morality. MARKETING AND ETHICS Journal of Macromarketing, 20(2), pp. 144- Ironically, studies have shown that the 155. most environmentally aware consumers are also the ones most likely to view green A study explores the literature relating claims of companies with skepticism. As marketing to the natural environment from George M. Zinkhan and Les Carlson wrote the point of view of morality. It argues that in the Journal of Advertising, "green the issue of morality has not been developed consumers are the very segment most likely in any comprehensive or cohesive way in to distrust advertisers and are quite likely to this literature and subsequently seeks to pursue behaviors and activities that provide an analysis of the different ways in confound business people." Corporate which morality has, to date, been applied reputation, then, has emerged as a and used. Five different moral perspectives tremendously important factor in reaching are identified - namely, fair play, and keeping these consumers. A company managerialist, reformist, reconstructionist, that touts its sponsorship of an outdoor and interpretist perspectives. These are oriented event or utilizes nature scenery in categorized according to the main moral its advertising, but also engages in practices issues typically examined, the core discipline harmful to the environment, is unlikely to from which the perspective has been gain a significant portion of the green developed, the form of morality ordinarily consumer market. Of course, such tactics referred to, and the prevalent subject of are sometimes effective in reaching less moral enquiry. The various approaches are informed sectors of the marketplace. examined and their contribution assessed. Here some of the research regarding the The relationship between the perspectives is green marketing and ethical aspects: addressed, and it is suggested that from a 1. Desmond, J. & Crane, A. (2004). Morality macromarketing point of view, the and the consequences of Marketing Action. reconstructionist and the interpretist Journal of Business Research, 57, pp. 1222- perspectives might be expected to be the 1230. most fruitful avenues for future investigation.

This paper explores issues of morality in 3. Crane, A. (2000). Facing the Backlash: relation to the consequences of marketing Green Marketing and Strategic Reorientation action. It addresses the reasons why, in the 1990s. Journal of Strategic Marketing, despite adverse social consequences, as 8(3), pp. 277-296. well as the exhortations of marketing ethicists, a societal-based morality continues This paper discusses green marketing to languish at the margins of marketing strategies in the context faced by practice. We note that ethicists mistakenly businesses in the middle to late 1990s. The characterize organizations as being "amoral" literature suggests that this context has been and their decisions as being "purely characterized by a consumer backlash economic." This ignores the reality that against green marketing, which has been marketing theory and practice are suffused created by perceived problems in the areas with the morality of economic self-interest. of green product performance and green This has important implications for whether claims in the late 1980s and early 1990s. one can understand the consequences of Evidence is reported from a qualitative study marketing action as intended or unintended. which investigated corporate perceptions of We suggest it is due to the power of egoism this context and revealed the strategic that attempts to import ethical maxims from orientations which have subsequently been moral philosophy have been sidelined. employed by green marketers. The findings Finally, we discuss the difficulties of securing suggest that managers do indeed perceive the backlash to have occurred and to have

Ethical Aspect in Green Marketing IM-34 (Erni Rusyani) Proceeding 7th International Seminar on Industrial Engineering and Management ISSN : 1978-774X been caused by the factors posited. It is the concept, from the perspectives of firm argued that these understandings have performance and business environment. assumed the role of myths in shaping The managerial implications of adopting organizational perceptions of the green environmentally-based marketing programs marketing context. Four subsequent and concerns relevant to future research in strategic routes are identified in the paper, this area are also addressed. namely passive greening, muted greening, niche greening and collaborative greening. 6. Pujari, D., Peattie, K. & Wright, G. (2004). These are described in some detail and Organizational Antecedents of managers’ justifications for them are Environmental Responsiveness in Industrial presented. It is shown that each of these New Product Development. Industrial strategies might be appropriate for particular Marketing Management, 33 (5), July, pp situations in the context of the backlash and 381-391. some of the limitations of the green marketing literature in this respect are The greening of new product development highlighted. Finally, some discussion is process has been under scrutiny by provided regarding the appropriateness of researchers, but the attention has been these strategies in the future and potential limited to consumer products. Based on a avenues for further research are identified. survey, this paper investigates the environmental responsiveness in industrial 4. Stone, G.W. & Wakefield, K.L. (2000). new product development in 82 industrial Eco-Orientation: An Extension of Market firms. In comparison to traditional NPD Orientation in an Environmental Context. process in the extant literature, the findings Journal of Marketing Theory and Practice, revealed additional activities in the greening 8(3), Summer, pp.21-32. of industrial NPD. These activities fall under the broader scope of life cycle assessment This article presents a study on the effect of (LCA) for environmental impact including a market orientation toward environmental supplier evaluation and design for issues and threats on business environment issues. The paper also performance. The importance of corporate investigates the relative impact of environmental responsibility is considered. A organizational antecedents on greening of series of hypotheses are presented. The industrial NPD activities. Organizational authors then go on to outline the antecedents include functional interface of methodology used before presenting their environmental specialists with design and results and discussion. product managers, environmental product policy, and top management support. 5. Menon, A., Menon, A., Chowdhury, J., & Jankovich, J. (1999). Evolving Paradigm for 7. Pujari, D., Wright, G. & Peattie, K. (2003). Environmental Sensitivity in Marketing Green and Competitive: Influences on Programs: A Synthesis of Theory and Environmental New Product Development Practice. Journal of Marketing Theory and Performance. Journal of Business Practice, 7(2), Spring, pp. 1-15. Research, 56(8), August, pp. 657-671.

Concerns related to the environment are This article reports the findings of a large- evident in the rapid growth of the scale research project on environmental new environmentally conscious marketplace and product development (ENPD) within British its increasing impact on corporate manufacturers. A major contribution of this strategists. Drawing from the academic article is the attempt to integrate new literature and case studies of actual product development (NPD) and corporate experiences, a study discusses environmental management philosophies in the concept of environmentally-based order to develop and empirically test a marketing programs within the context of theoretical framework for ENPD and each element of the marketing mix. performance. As such, it is one of the first Additionally, it discusses issues that are of studies to go beyond the anecdotal evidence critical importance in the implementation of in the extant literature, to empirically

Ethical Aspect in Green Marketing (Erni Rusyani) IM-35 Proceeding 7th International Seminar on Industrial Engineering and Management ISSN : 1978-774X research ENPD activities and their impacts. structured according to six areas of concern: This contributes to the debate about the management, customer relationships, potential for firms to be "green and supplier relationships, developmental competitive" by examining the relationship process, competence and motivation. By between ENPD activities and market and relating the factors to a number of product eco-performance for environmental new development elements that are generally products. Contrary to the popular claimed to be important for product perception, the results suggest that there is development success, it is indicated that the more synergy than conflict between the integration of ecodesign to a great extent are conventional and environmental product related to the same elements. A few factors development paradigms. seem to be specific for the integration of eco-design. These factors are related to 8. Masui, K., Sakao, T., Kobajashi, M. & competence and motivation. As many of the Inaba, A. (2003). Applying Quality Function ecodesign success factors relate to those Deployment to Environmentally Conscious elements that are acknowledged to affect Design. The International Journal of Quality product development success, this implies and Reliability Management, 20(1), pp. 90- that a company that manages product 117. development well increases the likelihood of being successful when integrating eco- A methodology for applying Quality Function design into product development. Deployment (QFD) is presented for environmentally conscious design in the 10. Simon, M. et al. (2000). Environmental early stage of product development. This Priorities in Strategic Product Development. methodology has been developed by Business Strategy and the Environment, incorporating environmental aspects into 9(6), pp. 367-377. QFD to handle the environmental and traditional product quality requirements This paper reports some results from a simultaneously. The QFD for environment major research project on the integration of (QFDE) proposed consists of four phases. environmental issues into design in the Designers can find out which parts are the electrical and electronic industry. Product most important in enhancing environmental development practice and ecodesign consciousness of their products by methods were examined along with executing QFDE phase I and phase II. qualitative data from 19 manufacturers, Further, a methodology is developed to using interviews and an action research evaluate the effects of design improvement methodology. A four-stage framework for on environmental quality requirements as ecodesign practice resulted: first, to make an phases III and IV. The results obtained from environmental assessment from a life cycle the case study of IC package show that viewpoint; then to communicate the analysis QFDE could be applicable in the early stage and collect feedback; thirdly to prioritize the of assembled product design, because the environmental issues and finally to complete most important component from the the design using relevant tools and methods. viewpoint of the environment is clearly This ARPI framework (analyse, report, identified and multiple options for design prioritize, improve) applies to both strategic improvement are effectively evaluated. and operational levels. Initial testing of the framework in collaborating companies 9. Johansson, G. (2002). Success Factors highlighted difficulties with communication for the Integration of Eco-Design in Product with design teams; the role of ecodesign Development: A Review of State of the Art. champions is explained. Other challenges Environmental Management and Health, are the development of customized tools 13(1), pp. 98-108. and the training of designers. The study concludes that the prioritization step is On the basis of a literature review, 20 factors critical, as it simplifies and clarifies the tasks essential for successful integration of eco- in design that take place after formulation of design in product development are the specification. presented. The success factors are

Ethical Aspect in Green Marketing IM-36 (Erni Rusyani) Proceeding 7th International Seminar on Industrial Engineering and Management ISSN : 1978-774X

11. Polonsky, M.J., Rosenberger III, P.J. & Ottman, J. (1998). Developing Green Increasingly, arguments are being made Products: Learning from Stakeholders. concerning the benefits of a marriage Asian Pacific Journal of Marketing and between ecology and economy in life cycle Logistics, 10(1), pp. 22-44. management. This article provides insights into the business conditions under which Research is discussed which focused on US market opportunities and eco-efficiency and Australian markets' perceptions of improvements in the product chain can stakeholders' potential to influence the green indeed go hand in hand. The study focuses new product development (NPD) process on the differences in responsiveness of six and what strategies can be used to involve different sub-business units within the stakeholders in this process. The findings chemical company of Akzo Nobel to eco- suggest that marketers believe some efficiency improvements in the product chain stakeholders with "high" influencing abilities and how these differences can be explained. should be involved in the green NPD The comparative analysis shows the process, although it appears that in practice, importance of the following three criteria: (i) firms use very basic methods to include the level of environmental pressure; (ii) the these stakeholders. It also appears that room for manoeuvre and (iii) the degree to there is limited formal interaction between which the environment can be used to obtain the firm and its stakeholders and that a competitive advantage. These criteria respondents are not engaging and learning may also be valid for other companies. from others with green product expertise. However, research needs to investigate whether additional factors (e.g. the culture of 12. Heiskanen, E. (2000). Managers’ the company, its technological capabilities Interpretations of LCA: Enlightenment and and market strength) also influence Responsibility or Confusion and Denial? corporate environmental response. Business Strategy and the Environment, 9(4), pp. 239-254. 14. Crane, A. (2001). Unpacking the Ethical Product. Journal of , 30(4), Environmental life cycle assessment (LCA) pp. 361-373. and life cycle thinking are popular approaches to evaluate and manage the This paper explores the notion of an ethical environmental aspects of products. While product. It is argued that ethical issues have LCA has been propagated as a decision- long been involved in consumers' product making tool, the interest here is in LCA as a evaluations, but that there has been little mental model, which managers may academic investigation of ethics in terms of interpret and enact differently. If LCA and product concepts and theories. Ethics are life cycle thinking manage to infuse thus examined in the context of the organizations with an extended sense of augmented product concept, and 2 responsibility, this could counteract some of dimensions of ethical augmentation are the organized irresponsibility of modern identified: direction and content. These markets. However, LCA use may also lead dimensions are set out and discussed at to confusion, doubt and denial. This article some length, and then they are used to explores potential managerial interpretations construct an ethical product matrix. It is of LCA with a small illustration from the shown how this could be used to provide wholesale trade, and through a structure and coherence to examinations of conceptualization of the illustration in terms the perceived ethics of any given product of Hatch's (1993) dynamic model of offering. The implications of the analysis organizational culture. offered in the paper are discussed, and a number of limitations of the ethical product 13. Cramer, J. (2000). Responsiveness of notion are identified. Finally, some Industry to Eco-Efficiency Improvements in conclusions and directions for future the Product Chain: The Case of Akzo Nobel. research are suggested. Business Strategy and the Environment, 9(1), pp. 36-48.

Ethical Aspect in Green Marketing (Erni Rusyani) IM-37 Proceeding 7th International Seminar on Industrial Engineering and Management ISSN : 1978-774X

15. Shaw, D. & Shiu, E. (2003). Ethics in 17. Follows, S.B. & Jobber, D. 2000. Consumer Choice: A Multivariate Modelling Environmentally Responsible Purchase Approach. European Journal of Marketing, Behaviour: A Test of a Consumer Model. 37(10), pp. 1485-1501. European Journal of Marketing, 34(5/6), pp. 723-746. Research has consistently revealed an increasing demand for "ethical" choices in A consumer model of environmentally the global marketplace. However, very little responsible purchase behaviour was tested has been published about the decision- using covariance structural analysis. The making processes of these "ethical" model successfully predicted the purchase consumers and the implications for of environmentally responsible and non- marketing. Given the shortfall in research responsible product alternatives. A that addresses ethical consumer choice, this hierarchical relationship from values to paper outlines results from a large scale product specific attitudes to purchase national UK survey of known "ethical" intention to purchase behaviour was consumers. To examine this important and confirmed. Individual consequences, which neglected area, reliability analysis and take the personal implications of structural equation modelling techniques consumption into account, were found to be were used to explore the relationships just as important in predicting intention as between important factors influencing ethical the environmental consequences of a consumer choice. Using two data sets, a product. The study empirically tested a model of decision-making was developed values typology as a basis to explain attitude and cross-validated. Results of the study formation. reveal the improved ability of this new model of ethical consumer decision-making in the 18. Walley, K., Custance, P. & Parsons, S. explanation of intention to purchase fair (2000). UK Consumer Attitudes Concerning trade grocery products. Implications of Environmental Issues Impacting the Agrifood these findings for marketing practitioners are Industry. Business Strategy and the discussed. Environment, 9(6), pp. 355-366.

16. Carrigan, M. & Attalla, A. 2001. The Consumer concern for the environment has Myth of the Ethical Consumer – Do Ethics been on the increase in recent years. This Matter in Purchasing Behaviour? Journal of concern has created many opportunities, as Consumer Marketing, 18(7), pp. 560-577. well as threats, for all businesses but particularly for those involved in the agrifood Marketing ethics and are industry. These concerns can and do inherently controversial, and years of change considerably in a short space of time research continue to present conflicts and so it is essential that consumer surveys are challenges for marketers on the value of a conducted on a frequent basis to monitor socially responsible approach to marketing these changes. This paper presents the activities. This paper examines whether or findings of one such survey based on the not consumers care about ethical behaviour, findings of a consumer attitude study and investigates the effect of good and bad concerning environmental issues relating to ethical conduct on consumer purchase the agrifood industry. The data is subjected behaviour. Through focus group to a cluster analysis in order to segment the discussions it becomes clear that although respondents and make the findings more we are more sophisticated as consumers meaningful. The paper concludes that there today, this does not necessarily translate are four groups of consumers (the angries ; into behaviour which favours ethical the not-quite-so-angries , the anxious-but- companies and punishes unethical firms. amiables and the Panglossians ) and that The paper concludes by some thoughts on while a number of subjects constitute issues how marketers might encourage consumers for consumers the one that unites most to engage in positive purchase behaviour in consumers, and which will probably have the favour of ethical marketing. greatest impact on the environment, is genetic modification. Consumer resistance

Ethical Aspect in Green Marketing IM-38 (Erni Rusyani) Proceeding 7th International Seminar on Industrial Engineering and Management ISSN : 1978-774X to genetic modification is found to be high practices of marketers. Some of the and it is suggested that as a result farmers external and internal antecedents and will continue to employ traditional farming consequences analyzed include competitive practices in the future. and business intensity, consumer sensitivity toward , and the 19. Dentchev, N.A. (2004). Corporate Social environmental consciousness of marketers. Performance as a Business Strategy. Results indicated limitations associated with Journal of Business Ethics, 55(4), pp. 397- marketers' influence on green product 412. development processes.

Having the ambition to contribute to the 21. Garriga, E. & Melé, D. (2004). Corporate practical value of the theory on corporate Social Responsibility Theories: Mapping the social performance (CSP), this paper Territory. Journal of Business Ethics, approaches the question whether CSP can 53(1/2), pp. 51-71. contribute to the competitive advantage of firms. We adopted an explorative case- The Corporate Social Responsibility (CSR) study methodology to explore the variety of field presents not only a landscape of positive and negative effects of CSP on the theories but also a proliferation of competitiveness of organizations. As this approaches, which are controversial, study aimed at identifying as great variety of complex and unclear. This article tries to these effects as possible, we selected a clarify the situation, mapping the territory by diversified group of respondents. Data was classifying the main CSR theories and thus collected through embedded units of related approaches in four groups: (1) analysis in a petrochemical company, and instrumental theories, in which the triangulated with the opinions of experts on corporation is seen as only an instrument for CSP. Overall, we found various positive and wealth creation, and its social activities are negative effects of CSP on the only a means to achieve economic results; competitiveness of organizations. CSP is (2) political theories, which concern therefore not an innocent adventure for themselves with the power of corporations in executives, but rather a strategy for society and a responsible use of this power achieving corporate objectives. If not in the political arena; (3) integrative theories, carefully implemented, the CSP strategy in which the corporation is focused on the may harm the competitive advantage of the satisfaction of social demands; and (4) firm, as our results have suggested. ethical theories, based on ethical responsibilities of corporations to society. In 20. Langerak, F. (1998). Exploratory Results practice, each CSR theory presents four on the Antecedents and Consequences of dimensions related to profits, political Green Marketing. Journal of the Market performance, social demands and ethical Research Society, 40(4), Oct, p. 323. values. The findings suggest the necessity to develop a new theory on the business and Although the green market is growing the society relationship, which should integrate marketing literature has been relatively silent these four dimensions. about the integration of environmental issues in marketing strategy and decision- 22. Van Marrewijk, M. & Were, M. (2003). making. Against this backdrop there is a Multiple Levels of Corporate Social need for more research on and discussion Responsibility. Journal of Business Ethics, about the role of the natural environment in 44(2/3), pp. 109-117. marketing strategy and business performance. Therefore the purpose of the According to Dr. Clare Graves, mankind has article is to develop and test a model that developed eight core value systems as incorporates the antecedents and responses to prevailing circumstances. consequences of integrating environmental Given different contexts and value systems, issues in marketing strategy and decision- a one-solution-fits-all concept of corporate making. In particular, the goal is to address sustainability is not reasonable. Therefore, the environmental consciousness and this paper presents various definitions and

Ethical Aspect in Green Marketing (Erni Rusyani) IM-39 Proceeding 7th International Seminar on Industrial Engineering and Management ISSN : 1978-774X forms of sustainability, each linked to Morality. Journal of Macromarketing, specific (societal) circumstances and related 20(2), pp. 144-155. value systems. A sustainability matrix– an (c) Crane, A. (2000). Facing the Backlash: essential element of the overall European Green Marketing and Strategic Corporate Sustainability Framework – is Reorientation in the 1990s. Journal of described showing six types of organizations Strategic Marketing, 8(3), pp. 277-296. at different developmental stages, with (d) Stone, G.W. & Wakefield, K.L. (2000). different forms of corporate sustainability, Eco-Orientation: An Extension of each supported by specific institutional Market Orientation in an Environmental arrangements. Context. Journal of Marketing Theory and Practice, 8(3), Summer, pp.21-32. 23. Kaler, J. (2003). Differentiating (e) Menon, A., Menon, A., Chowdhury, J., Stakeholder Theories. Journal of Business & Jankovich, J. (1999). Evolving Ethics, 46(1), pp. 71-83. Paradigm for Environmental Sensitivity in Marketing Programs: A Synthesis of Following on from work on and Practice. Journal of identification, this paper constructs a Marketing Theory and Practice, 7(2), typology of stakeholder theories based on Spring, pp. 1-15. the extent to which serving the interests of (f) Pujari, D., Peattie, K. & Wright, G. non-shareholders relative to those of (2004). Organizational Antecedents of shareholders is accepted as a responsibility Environmental Responsiveness in of companies. A typology based on the Industrial New Product Development. division of stakeholder theories into Industrial Marketing Management, 33 normative, descriptive, and instrumental is (5), July, pp 381-391. rejected on the grounds that the latter two (g) Pujari, D., Wright, G. & Peattie, K. designations refer to second order theories (2003). Green and Competitive: rather than divisions within stakeholder Influences on Environmental New theory and the first is a designation which, Product Development Performance. for the purposes of business ethics, applies Journal of Business Research, 56(8), to all stakeholder theories. The crucial August, pp. 657-671. distinction between stockholder and (h) Masui, K., Sakao, T., Kobajashi, M. & stakeholder theory is argued to be their Inaba, A. (2003). Applying Quality respective rejection and acceptance of role- Function Deployment to specific responsibilities toward non- Environmentally Conscious Design. shareholders that are `ultimate objective The International Journal of Quality fulfilling''. From this starting point, a typology and Reliability Management, 20(1), pp. is constructed using a division of stakeholder 90-117. theories into those which do and do not give (i) Johansson, G. (2002). Success priority to the interests of shareholders over Factors for the Integration of Eco- those of non-shareholders, do and do not Design in Product Development: A posit perfect duties towards non- Review of State of the Art. shareholders as well as shareholders, do Environmental Management and and do not accept to non- Health, 13(1), pp. 98-108. shareholders as well as shareholders. (j) Simon, M. et al. (2000). Environmental Priorities in Strategic Product Development. Business Strategy and 5. REFERENCES the Environment, 9(6), pp. 367-377. (k) Polonsky, M.J., Rosenberger III, P.J. & (a) Desmond, J. & Crane, A. (2004). Ottman, J. (1998). Developing Green Morality and the consequences of Products: Learning from Stakeholders. Marketing Action. Journal of Business Asian Pacific Journal of Marketing and Research, 57, pp. 1222-1230. Logistics, 10(1), pp. 22-44. (b) Crane, A. (2000). Marketing and the (l) Heiskanen, E. (2000). Managers’ Natural Environment: What Role for Interpretations of LCA: Enlightenment and Responsibility or Confusion and

Ethical Aspect in Green Marketing IM-40 (Erni Rusyani) Proceeding 7th International Seminar on Industrial Engineering and Management ISSN : 1978-774X

Denial? Business Strategy and the University of California, Riverside Environment, 9(4), pp. 239-254. www.igc.org/gadfly. (1997) (m) Cramer, J. (2000). Responsiveness of (y) http://www.answers.com/topic/green- Industry to Eco-Efficiency marketing#ixzz2mSqMqpCB Improvements in the Product Chain: (z) http://www.answers.com/topic/green- The Case of Akzo Nobel. Business marketing#ixzz2mSqaG6XZ Strategy and the Environment, 9(1), pp. 36-48. (n) Crane, A. (2001). Unpacking the Ethical Product. Journal of Business Ethics, 30(4), pp. 361-373. (o) Shaw, D. & Shiu, E. (2003). Ethics in Consumer Choice: A Multivariate Modelling Approach. European Journal of Marketing, 37(10), pp. 1485- 1501. (p) Carrigan, M. & Attalla, A. 2001. The Myth of the Ethical Consumer – Do Ethics Matter in Purchasing Behaviour? Journal of Consumer Marketing, 18(7), pp. 560-577. (q) Follows, S.B. & Jobber, D. 2000. Environmentally Responsible Purchase Behaviour: A Test of a Consumer Model. European Journal of Marketing, 34(5/6), pp. 723-746. (r) Walley, K., Custance, P. & Parsons, S. (2000). UK Consumer Attitudes Concerning Environmental Issues Impacting the Agrifood Industry. Business Strategy and the Environment, 9(6), pp. 355-366. (s) Dentchev, N.A. (2004). Corporate Social Performance as a Business Strategy. Journal of Business Ethics, 55(4), pp. 397-412. (t) Langerak, F. (1998). Exploratory Results on the Antecedents and Consequences of Green Marketing. Journal of the Market Research Society, 40(4), Oct, p. 323. (u) Garriga, E. & Melé, D. (2004). Corporate Social Responsibility Theories: Mapping the Territory. Journal of Business Ethics, 53(1/2), pp. 51-71. (v) Van Marrewijk, M. & Were, M. (2003). Multiple Levels of Corporate Social Responsibility. Journal of Business Ethics, 44(2/3), pp. 109-117. (w) Kaler, J. (2003). Differentiating Stakeholder Theories. Journal of Business Ethics, 46(1), pp. 71-83. (x) Environmental Ethics: An Introduction. By Ernest Partridge

Ethical Aspect in Green Marketing (Erni Rusyani) IM-41