A new report on the future of Sustainable Businesses launched today claims that companies who think laterally in terms of their sustainable 'product' development will reap the highest future rewards.
To succeed in sustainability marketing, marketers need to exploit peer to peer communications, yet understand that in a sustainable age, the customer is not always king. These are the some of the findings of Sustainable Futures, a new report from global flooring company InterfaceFLOR with contributions from University of Strathclyde Business School and Futerra.
Solitaire Townsend, Co-Founder and Managing Director of Futerra, who contributed the Report’s chapter on the Future of Communications, comments: “The decline in mass media communication and the explosion in ‘peer to peer’ communications is something that sustainability is uniquely poised to exploit because it alone has the power to ‘get personal’ Businesses which have personalities and beliefs – and can validate those beliefs - are the ones which customers will increasingly listen to. What businesses are not currently doing however, is communicating these beliefs in a personal enough way.”
However, in order to do so, Dr Ingrid Kajzer Mitchell, Lecturer in Marketing at University of Strathclyde Business School argues in her chapter on the Future of Marketing: “ The marketer must challenge the most fundamental marketing assumption of all - the sovereignty of the ‘customer’- as a natural fact of life. We need to rethink widespread business logic that marketing simply is about generating customer satisfaction (and thereby profits). Ultimately, this is a strategic challenge, which requires us to step outside the safe and accepted boundaries of conventional wisdom and embrace a wider stakeholder perspective. “
Dr Kajzer Mitchell continues: “At the same time, the marketing function is partly being blamed for the increase in consumption and therefore should also lead in the area of sustainable consumption”
Lindsey Parnell, President and CEO of the European division of InterfaceFLOR agrees with both Kajzer Mitchell and Townsend but argues that companies who rush to make sustainable claims which they cannot substantiate and will not stand the scrutiny of third party audit will damage their businesses and fail to achieve the business growth of proper sustainable investment. “In the wake of the Stern Report, businesses have two choices: be driven by legislation, or make positive changes to their business to foster growth. Businesses who decide on the latter course have to invest in making it happen but it has taken Interface 12 years to get to a point where we can see the benefit of sustainable investment in business growth and employee fulfilment. We want all businesses – and that includes our competitors – to succeed in their quest for sustainability, but greenwash won’t wash.”
Interface, which has recently been named number one in GlobeScan’s independent review of the leading companies fulfilling their responsibilities to society worldwide*, has, through its mission zero promise over the past 12 years, committed to reduce its environmental footprint, and is aiming for zero environmental impact by 2020. The company’s cost savings and marketing activities brought about by sustainable initiatives total $300 million of costs avoided since 1996.
Part of InterfaceFLOR’s sustainable investment has driven change in its own marketing, including its 21st Century sample toolkit. Senior Vice President of Marketing Karin Laljani explains: “Our objective was to establish the most appropriate methods of providing samples to our key customers to assist in their selection of our products, whilst eliminating any negative impact our company may have on the environment. We currently send out more than 100,000 samples/sample cards per year, spread across all of our European, Middle East, African and Indian markets.
The new Sampling Tool Kit, has been purchased through companies with a stated commitment to environment to minimise the ecological impact and ensure long-term sustainable production. It is made from high recycled content materials and each tool kit item has instructions on how to dispose of the material responsibly, once it is at the end of its life. InterfaceFLOR is also launching a sample ‘take-back’ programme to clean up existing samples in the market – from InterfaceFLOR as well as competitors.
Sustainable Futures includes contributions from the UK’s top thought leaders on trends across six key areas of business: Leadership (Forum for the Future); Marketing (University of Strathclyde Business School); Communications (Futerra); Business Environment (The Climate Group); Employee Engagement (The Work Foundation) and Design and Innovation (The Design Council). All contributions clearly demonstrate a correlation between investment in sustainable business practices and successful businesses
InterfaceFLOR also lists 36 actions businesses can take now to reduce their environmental footprint. However, Parnell warns that many of these will require investment in time and money to deliver. These include initiatives to win the hearts and minds of customers, revolutionise manufacturing processes, design and innovation, supplier relationships, recruitment and retention, and total business vision.
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Date issued: 23 Jan 2007
Note to Editors
A copy of Sustainable Futures, including the full list of 36 actions businesses can take and InterfaceFLOR case studies, is available on request.
Interface’s energy efficiency and renewable energy programmes have resulted in a 56% reduction in CO2 emissions since 1996. It has also made improvements to the production processes allowing an 81% reduction in water intake per m2 of production facilities, petroleum based materials have been reduced by 29% and all the European factories work on 100% renewable electricity. However, although the company has made great progress to date it recognises that it still have a considerable way to go on the journey to becoming a completely sustainable business.
*A copy of GlobeScan’s Report is available from www.globescan.com
Interface Carpet /Interface Inc.
Interface is a recognized leader in the commercial interiors market, offering floor coverings and fabrics. The company is committed to the goal of sustainability and doing business in ways that minimize the impact on the environment while enhancing shareholder value.
Interface was founded in 1973 by Chairman, Ray Anderson, considered to be a pioneer from the start - a trailblazer of the modular carpet industry in the United States. The company promotes sustainable business practices - within its global community and in the products it makes. For Interface, sustainability is a belief that is built into the business model, an underlying corporate value, ensuring that business decisions are weighed against their potential impact on economic, natural and social systems. It's a means for associates to deliver superior value to customers and shareholders.
Interface is a global company with manufacturing locations on four continents and offices in more than 100 countries.