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Economy Sample 2

This document discusses sustainable marketing and the need for marketing practices to shift from being market-driven to driving markets for sustainability. It argues that both corporate marketing strategies and government interventions are needed to promote sustainable consumption and development. The document presents a framework involving four strategies for corporate sustainable marketing and four types of government intervention to support sustainability goals.

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0% found this document useful (0 votes)
42 views16 pages

Economy Sample 2

This document discusses sustainable marketing and the need for marketing practices to shift from being market-driven to driving markets for sustainability. It argues that both corporate marketing strategies and government interventions are needed to promote sustainable consumption and development. The document presents a framework involving four strategies for corporate sustainable marketing and four types of government intervention to support sustainability goals.

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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Commentary

Journal of Macromarketing
2021, Vol. 41(1) 150-165
Sustainable Marketing: Market-Driving, ª The Author(s) 2020
Article reuse guidelines:
sagepub.com/journals-permissions
Not Market-Driven DOI: 10.1177/0276146720961836
journals.sagepub.com/home/jmk

Jagdish N. Sheth1 and Atul Parvatiyar2

Abstract
Sustainability has emerged as a critical macromarketing perspective over the last five decades. Starting with the early concerns in
the 1960s about the world’s finite resources that would limit economic growth, sustainability thinking has expanded to encompass
societal issues and ecological and environmental considerations in economic and governance activities. Governments and busi-
nesses need to act in tandem to address myriad world problems associated with climate change, pollution, environmental
degradation, depleting resources, and the socio-economic disparities that characterize persistent world hunger and poverty.
A vital aspect of this challenge is to stop or reverse unsustainable production and consumption that have hitherto been pursued as
part of market-driven business activity. Marketing, through its market-driven consumption-oriented practices, may have know-
ingly or unknowingly promoted these unsustainable production-consumption practices. Therefore, it needs to change its orienta-
tion from merely being responsive to consumer and market needs into a more responsible approach that drives markets for
sustainable products and services and builds sustainable societies. In this paper, we review how sustainable marketing considera-
tions have grown but not to the extent of becoming the driver of markets and business practices that meet sustainability goals. To
this end, we present a framework for driving sustainable consumption through corporate marketing strategy and relevant
government interventions. We highlight four strategies of corporate marketing and four types of government intervention for
sustainable marketing.

Keywords
sustainable marketing, sustainable development, sustainable consumption, responsible marketing, marketing strategy, government
intervention, ecological marketing, green marketing, sustainability goals

Introduction levels, such as the European Union and the United Nations,
member nations are pursuing an agenda on sustainable devel-
Sustainable marketing, as corporate practice and a domain of
opment for the next three decades (BIO Intelligence Service
academic inquiry, has begun to take center stage (Hult et al.
2012; United Nations 2012 and 2018).
2018; Hunt 2011; Kramer 2020; Varey 2010; Winston 2019).
Thirdly, as public concern over environmental deterioration
Several factors have contributed to the rise of this trend. First,
and social issues rise, corporate marketers are also taking
the growth of scientific evidence coupled with people’s experi-
action. Several companies from across industry sectors, includ-
ential observations that climate change, environmental degra-
ing 3M, Dow Chemicals, Kimberly-Clark, Microsoft, Novelis,
dation, and effects of substantive economic inequalities around
Procter & Gamble, Unilever, and Walmart have initiated pro-
the world are not anymore a distant future. It is happening now
grams, engaging with their key stakeholders in the value chain,
and needs to be addressed urgently; otherwise, it would lead to
including suppliers and customers, to adhere to social and envi-
further public aggravation, causing protest, anger, conflict, dis-
ronmental standards (Apte and Sheth 2016; Bhattacharya and
harmony, economic disruptions, and even a collapse of the
Polman 2017; Ottman 2009; Stevens 2019; Villena and Gioia
socio-political-economic system built by humankind over the
2020; Winston 2012 & 2019).
past few centuries (Independent Group of Scientists appointed
by the Secretary General 2019; Yunus 2017).
Secondly, governments in many parts of the world, at local,
sub-national, and national levels, have made sustainability 1
Goizueta Business School, Emory University, Atlanta, GA, USA
2
commitments by setting goals, policies, laws, and regulations Rawls College of Business, Texas Tech University, Lubbock, TX, USA
to effect behavioral changes and economic activities that
Corresponding Author:
impact the environment and society (Dernbach and Mintz Atul Parvatiyar, Rawls College of Business, Texas Tech University, Lubbock,
2011; EPA 2020; Saravanan et al. 2018; U.S. Sustainability TX 79409, USA.
Alliance 2020; Wijen et al. 2012). Even at the supranational Email: [email protected]
Sheth and Parvatiyar 151

(Fisk 1981; 2006), and published three special issues on it


Sustainability
Focus within this decade (June 2010; Sep 2014; and Mar 2015), in
Sustainable
addition to several other articles published on macromarketing
Marketing aspects of sustainability and consumption. These have certainly
advanced our knowledge and understanding of the value of
integrating environmental/social issues and opportunities in
Invisible Hand Visible Hand commercial marketing thinking. Several academic articles and
(Free Markets) (Guided Markets)
books have expounded on sustainable marketing to explain
how marketing can play a significant role in fostering sustain-
Market-driven able societies and business practices (Holliday, Schmidheiny,
Marketing
and Watts 2002; Hunt 2011; 2012; Mittelstaedt et al. 2014;
Consumption Polonsky and Rosenberger 2001; Prothero and McDonagh
Focus 2015; Sheth and Parvatiyar 1995; Varey 2010; van Dam and
Apeldoorn 1996).
Figure 1. From market-driven to sustainable marketing - two- Kotler, Roberto, and Leisner (2006) have suggested that
dimensional shift. sometimes to tackle macromarketing challenges, a combina-
tion of micro-marketing techniques and macromarketing pol-
Although there are some concerns about “greenwashing,” icy interventions must be skillfully applied. Along the same
“blue washing,” and “sustainable development goals washing” lines, in this paper, we postulate that sustainable development
– a concern that businesses use these signposts for marketing can be achieved by proactive corporate marketing and active
their positive contribution to some of these goals while ignor- government intervention. Our postulation conforms to the
ing or not fully reporting their negative impact on others aggregate marketing system (AGMS) concept proposed by
(Gabriel 2019; Nieuwenkamp 2017; Parguel, Benoı̂t-Moreau, Wilkie and Moore (1999) in which marketers, consumers, and
and Larceneux 2011), – it still signals the recognition of the governments are primary actors to facilitate the societal tasks
need to address our environmental and social challenges. Over of marketing. As depicted in Figure 1, we suggest that mar-
200þ leading global companies, representing a combined rev- keting needs a two-dimensional shift in focus from consump-
enue of around $9 trillion and 20 million employees, that were tion to sustainability, and from a free-market approach to a
once considered amongst the most polluting companies, are guided market approach of active policy intervention. While
currently working with the US Business Council for Sustain- governments actively engage in translating policy commit-
able Development (US BCSD) and the World Business Council ments and sustainability priorities, including legally binding
for Sustainability Development (WBCSD) to accelerate the conventions, corporate marketers have to embrace transfor-
transition to a sustainable world. Their focus has gone beyond mative strategies to change business practices, particularly
eco-efficiency, into promoting circular economy (zero waste those linked to the unsustainable production, distribution, and
goals); sustainable societies (control emissions and facilitate consumption systems. It cannot remain merely market-driven
mobility); climate and energy (reduce carbon footprint and and reactive to changes in market forces. It needs to actively
use alternative energy); food and nature (water, food, and land change markets towards more sustainable behavior, making
use management); redefining value (disclosures on perfor- sustainability goals integral to business goals. Without these
mance, risk management, and governance); and people issues two concurrent interventions at the enterprise and government
(social impact and sustainable lifestyles) (wbcsd 2020). levels, sustainable development goals will be hard to achieve.
Recently, sustainability was brought at the center of invest- Although consumers are becoming more conscious about the
ment approach by the global investment management com- impact of their consumption activity on ecological systems
pany, BlackRock, in their annual letter to the CEOs of and human life, we submit it is still not sufficiently large
companies within their investment portfolio (Kramer 2020). enough to create by itself a market force to ensure sustain-
These trends suggest that more stakeholder actions towards ability. Hence, more conscious and conscientious institutional
corporate compliance of sustainability goals and consequently, interventions are needed.
due diligence and responsible business conduct are likely In the sections that follow in this paper for the special Ruby
to grow. Anniversary issue of the Journal of Macromarketing, we first
On the academic front, marketing scholars have become recount the evolved discourse on sustainable development gov-
more interested in the macro aspects of sustainability as evi- ernance and its stated goals and priorities. We then explain how
denced by several publications in mainstream marketing jour- and why these goals and priorities are of material consideration
nals and books (Belz and Peattie 2012; Chabowski, Mena, and to businesses and corporations. Thereafter, we examine the
Gonzalez-Padron 2011; Fuller 1999; Kotler 2011; Minton et al. marketing strategy implications and potential proactive
2012; Peterson 2013; Sheth, Sethia, and Srinivas 2011; Vardar- response for sustainable marketing. Finally, we provide a
ajan 2017). The Journal of Macromarketing has been a pioneer framework of institutional intervention for sustainable
in recognizing sustainability as a “megatrend” in marketing marketing.
152 Journal of Macromarketing 41(1)

Evolving Discourse on Sustainable various World Summits organized by the United Nations. As
Development Purvis, Mao, and Robinson (2019) note, there is no single point
of origin of this three-pillar conception, but instead was a gra-
For a large part, the discussion on sustainable development dual emergence due to academic critique of the economic sta-
was triggered by the report for the “Club of Rome’s Project tus quo that ignored the social and ecological problems of
on the Predicament of Mankind,” The Limits to Growth, economic growth. It recognized that poverty eradication,
(Meadows et al. 1972), that applied the industrial dynamics changing unsustainable patterns of consumption and produc-
model of Jay Forrester (1971) in a computer simulation of tion, and protecting and managing the natural resource base of
exponential economic and population growth with a finite economic and social development was essential for sustainable
supply of resources. The report had concluded that unless development. Inclusive and equitable economic growth with
more resources grew exponentially, the rate of economic more significant opportunities for all, fostering equitable social
activity would overshoot and collapse the global system by development, gender equality, women’s empowerment, human
mid-to-latter part of the 21st century. Following this report, rights, democracy, freedom, right to a standard of living, and
in the mid-1970s, many scholars began to make essential sustained management of natural resources and ecosystems that
contributions to socio-ecological perspectives of marketing support sustainable development – all became part of sustain-
(Cravens 1974; Fisk 1973, 1974; Henion 1976; Perry 1976; ability goals. Sustainable development has a much-enlarged
Shapiro 1978; Sheth and Wright 1974). Despite these early connotation than what was conceptualized in the early to
efforts, few marketing scholars channeled their intellectual mid-1990s.
pursuits in this direction for almost two decades, until the The United Nations General Assembly formally adopted the
mid-1990s. Perhaps the fundamental belief prevailed that the universal, integrated and transformative 2030 Agenda for Sus-
market process is sufficient to correct any environmental tainable Development, along with a set of 17 Sustainable Devel-
imbalances. Also, scientific uncertainty and the hesitant com- opment Goals (SDGs) and 169 associated targets. The 17 SDGs
mitment of business leaders to this issue made it difficult for and their operational directives and rationale are summarized in
marketing scholars to engage themselves in research in this Table 1. From a macromarketing perspective, amongst the 17
area wholeheartedly. Whatever the reasons for marketing SDGs, three are most relevant – “responsible consumption and
managers and academicians to fend the issue, it was no lon- production,” “climate action,” and “partnerships” (Goals 12, 13,
ger possible to ignore it in the current millennium. Environ- and 17).
mental concerns have grown, and so has the general Thus, it is apparent that the sustainable development agenda
awareness about it. While during the mid-1970s, it remained has widened considerably from the earlier emphasis mostly on
mostly an issue of conservation of resources and local area ecological factors and bio-physical damage, despite and
pollution, in the current era, both ecological and because of economic growth. It has expanded to include the
socio-economic concerns have become global and more com- societal concerns of the disappointing record of post-WWII
pelling (Vardarajan 2017; Vila and Bharadwaj 2019). ‘development’ efforts, particularly the persistence (and in some
places worsening) of poverty and desperation in a period of
substantial global increases in material wealth (Kemp, Parto,
Public Policy Initiatives and Gibson 2005). Businesses in general, and marketers in
The reach of sustainable development thinking has expanded particular, cannot anymore limit themselves to a reactive
considerably at local, national, regional, and international lev- approach of conforming to laws and regulations about material
els since the 1972 UN Conference on the Human Environment use and disposal (environmental laws) but have to actively
in Stockholm. Initially, the concerns were to save the planet, incorporate the larger sustainability goals into their overall
primarily focused on the environment and ecological consid- strategic response (Chattopadhyay 2019).
erations, including depletion of natural resources, waste and
environmental pollution, and energy costs. The subsequent call
Enterprise Role in Sustainable Development
for the integration of economic development, natural resource
management, and social inclusion and equity was introduced
– Why It Matters
by the Brundtland Report of the World Commission on Envi- Although sustainable development goals (SDGs) are common
ronment and Development (WCED). The Commission defined global priorities and aspirations of governments and civil soci-
sustainable development as development “to ensure that it ety, they also explicitly call all businesses to apply their crea-
meets the needs of the present without compromising the abil- tivity and innovation to solving sustainable development
ity of the future generations to meet their own needs” (WCED challenges. As such, they present an opportunity for
1987, p. 8). This report’s findings became central to framing business-led solutions and the development and implementa-
the discussions at the 1992 United Nations Conference on tion of technologies that help meet these goals and targets for
Environment and Development (UNCED), also known as the the development of societies. The future markets for sustain-
Earth Summit at Rio de Janeiro. ability sector products and services could be $12 trillion a year
Since then, three pillars of sustainable development – eco- by 2030 (Elkington 2018). On the one hand, marketers can
nomic, social, and environmental – were advanced through salivate on encashing the potential opportunity, but this would
Sheth and Parvatiyar 153

Table 1. Key Sustainability Development Goals*.

Sustainability Goals Operational Directives and Rationale

1. No Poverty End poverty in all its forms everywhere. More than 100 million people still live in extreme poverty.
Economic growth must be inclusive of providing sustainable jobs and promoting equality.
2. Zero Hunger End hunger, achieve food security, and improved nutrition. A third of the world’s food is wasted, yet
821 million people are undernourished. Reduce food waste and support local farmers.
3. Good Health and Well-Being Ensure healthy lives and promote well-being for all at all ages. Reduce global maternal, infant, and child
mortality rates; end epidemics of AIDS, tuberculosis, and malaria; and reduce deaths due to the road
and hazardous chemical accidents.
4. Quality Education Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
617 million children and adolescents lack minimum proficiency in reading and mathematics.
5. Gender Equality Achieve gender equality and empower all women and girls. 1 in 3 women between the age of 15-49 has
experienced physical and/or sexual violence. Provide women equal access to education, healthcare,
decent work, and political & economic representation.
6. Clean Water and Sanitation Ensure availability and sustainable management of water and sanitation for all. Water scarcity affects
more than 40% of the world’s population, and more than 2 billion people are living with the risk of
reduced access to freshwater resources.
7. Affordable and Clean Energy Ensure access to affordable, reliable, sustainable modern energy for all. 3 billion people still lack access
to clean cooking solutions and are exposed to dangerous air pollution levels.
8. Decent Work and Economic Promote inclusive and sustainable economic growth, full and productive employment, and decent work
Growth for all. One-fifth of young people are not in education, employment, or training. Roughly half the
world’s population still lives on the equivalent of about US$2 a day and having a job that does not
guarantee the ability to escape from poverty in many places.
9. Industry, Innovation, and Build resilient infrastructure, promote sustainable industrialization, and foster innovation.
Infrastructure Manufacturing value added per capita currently is only US$100 in the least developed countries
compared to over US$4,500 in Europe and North America.
10. Reduced Inequalities Reduce inequality within and among countries. The poorest 40% of the population earn less than 25% of
global income. Inequality persists, and large disparities remain regarding access to health and
education services, in addition to other assets.
11. Sustainable Cities and Make cities and human settlements inclusive, safe, resilient, and sustainable. By 2030 people living within
Communities cities are projected to rise to 5 billion people. Moreover, 9 out of 10 urban residents breathe polluted
air. Common urban challenges include congestion, lack of essential services to many, shortage of
adequate housing, declining infrastructure, solid waste disposal, and pollution within cities.
12. Responsible Consumption Ensure sustainable consumption and production patterns. The material consumption of natural
and Production resources is increasing. By 2050, the equivalent of three planets could be required to sustain current
lifestyles. This goal aims at “doing more and better with less.”
13. Climate Action Take urgent action to combat climate change and its impacts. Global emissions of carbon dioxide (CO2)
have increased by almost 50% since 1990. Without action, the world’s average surface temperature is
likely to rise by 3 degrees centigrade this century.
14. Life Below Water Conserve and sustainably use the oceans, seas, and marine resources. Continuous deterioration of
coastal waters from pollution acidification is adversely affecting the livelihood of over three billion
people dependent on marine and coastal biodiversity.
15. Life on Land Protect, restore, and promote sustainable use of terrestrial ecosystems, manage forests, combat
desertification, and halt and reverse land degradation and biodiversity loss. Three million hectares of
forests are lost every year, and persistent degradation of drylands has led to the desertification of 3.6
billion hectares, affecting the lives and livelihoods of millions of people.
16. Peace, Justice and Strong Promote just, peaceful and inclusive societies for sustainable development. In 2018, the number of
Institutions people fleeing war, persecution, and conflict exceeded 70 million. The threats of international
homicide, human trafficking, sexual violence, and violence against children need to be addressed.
17. Partnerships Strengthen the means of implementation by revitalizing global partnerships between governments, the
private sector, and civil society for sustainable development. Delivering SDGs could open up US$12
trillion of market opportunities and create 300 million new jobs by 2030, unlocking private resources’
transformative power.
*Adapted from United Nations, Sustainable Development Goals 2019. https://sustainabledevelopment.un.org/sdgsummit

need innovation and demonstration of efforts that minimize water regimes, atmosphere, and forests – upon our economic
negative impacts and, on the other, maximize positive impacts prospects, we also need to be concerned about the status of
on people and the planet. human life and the social impact of both lop-sided economic
While we are forced to be concerned with the impacts of growth and environmental pressures on people. Economy, soci-
environmental stress – climate change and degradation of soils, ety, and ecology are interwoven locally, nationally, and
154 Journal of Macromarketing 41(1)

globally. Enterprises cannot insulate themselves from these businesses with low quality, high priced environmental prod-
sustainable development problems. It needs to be concerned ucts failed in the market, and early socially responsible invest-
about the resources it uses to satisfy consumer needs and wants ing delivered low returns. However, there is enough evidence
and be concerned about its effects on human life and its that financial benefits can accrue – including significant cost
biosphere. Sustainable development requires “enterprise sus- reductions from improved environmental sustainability-related
tainability” - not only financially and competitively sustain- operational efficiencies and higher sales growth, return on
able, but also societally and ecologically sustainable assets, profit before taxation, and improved cash flows
(Peterson 2013; Villa and Bharadwaj 2019). (Whelan and Fink 2016). Also, the ESG focused funds have
Enterprise sustainability, built on the three pillars of envi- performed much better than the S&P index last year
ronment, social, and governance (ESG) thinking, needs to (Coffey 2019).
demonstrate how it plans to commit and deliver goods and Thus, sustainability is material to enterprises. It not only
services in a sustainable manner. At the minimum, it should matters from a financial standpoint and business opportunity
ensure that enterprise practices do not harm people or the pla- possibilities but also matters because stakeholders are demand-
net, and at best, they create value for stakeholders. Improving ing so. The sustainability discourse has fundamentally shaped
ESG performance in the areas in which the enterprise and or its the expectations and demands of internal and external stake-
brand have a material environmental or societal impact, such as holders, be they investors, customers, employees, business
in their operations, value chains, or customers, is increasingly partners, governments, or the public. They are all increasingly
becoming the goal. No more do traditional corporate social wanting the business and non-business enterprises with whom
responsibility (CSR) programs that support employee volun- they engage or interact to proactively address sustainability
teering in the community qualify as corporate sustainability challenges. Understanding the enterprise’s role in creating a
efforts (Whelan and Fink 2016). more socially and environmentally conscious business ecosys-
Thus, the triple bottom line (TBL) thinking of people, tem has never been more profound than today. Bansal and Roth
planet, and profits have been advocated and followed by (2000) reported that three motivations drive corporate ecologi-
several companies in their accounting and reporting of busi-
cal responsiveness: competitiveness, legitimation, and ecologi-
ness results (Apte and Sheth 2016; Elkington 1999; Peterson
cal responsibility. However, three contextual conditions
2013; Vardarajan 2019). However, as noted by Elkington, the
influence these motivations: field cohesion, issue salience, and
TBL has been captured by accountants and reporting consul-
individual concern – that vary considerably across organiza-
tants, but it has failed to bury the single-bottom line para-
tions and individuals. Thus, we see some, but not widespread,
digm. From the outset, TBL’s stated goal was system change
initiatives by corporations to constructively engage with stake-
toward the transformation of capitalism, and not just an
holders and utilize institutional entrepreneurship in developing
accounting system. It aimed to bring breakthrough change,
sustainability solutions (Gollnhofer and Schouten 2017; Menon
disruption, and asymmetric growth (with unsustainable sec-
and Menon 1997; Nair and Ndubisi 2011; Polonsky 1995;
tors actively sidelined), and the scaling of next-generation
market solutions (Elkington 2018). Thus, to achieve the rad- Shultz 2017).
ical intent, the pace and scale of sustainability marketing Perhaps the most effective enterprise interventions have
practices have to increase substantially. been made by corporations who have declared sustainability
goals on all three pillars of environmental, social, and govern-
ance and established science-based targets (SBTs) for
The Business of Sustainability Creates Value system-wide application engaging all stakeholders, including
A proactive approach to institutional and multi-stakeholder customers, suppliers, associates, shareholders, and community.
engagement can drive competitive advantage. According to For example, as a solution to climate change, Walmart’s ‘Proj-
a McKinsey report by Bonini and Görner (2011), the business ect Gigaton’ initiative of a system-wide global commitment to
of sustainability has the potential to capture value through avoid One Gigaton of greenhouse gases by 2030, has already
core business activities that support growth (the composition yielded impressive results not only of reducing its carbon foot-
of business portfolios, innovation, and reaching new custom- print and greenhouse gas emissions but also on a variety of
ers and markets); advance returns on capital (from green social and ethical parameters (Stevens 2019; Walmart ESG
sales and marketing, sustainable value chains, and sustainable Report 2019). Their initiative has also catapulted their suppli-
operations); and effective risk management (regulatory man- ers to commit to sustainability goals and initiatives as Walmart
agement, reputation management, and operational risk has made these as conditional to doing business with them.
management). Similar results have been noticed at Unilever and other orga-
Corporations have been slow to transition from traditional nizations, leveraging their buying power as a customer to get
business models and concerns centered around shareholders supply chain members to conform to sustainability goals and
into broader concerns for all stakeholders and becoming sus- targets (Bhattacharya and Polman 2017; Villena and Gioia
tainable corporations. Part of the reason is the erroneous per- 2020; Whelan and Fink 2016). The essential aspect of enter-
ception that one can have profits or sustainability, but not both. prise intervention has been to consider the entire value chain
Perhaps there is a hangover of the 1970s and 1980s when through which sustainability goals can be impacted, from
Sheth and Parvatiyar 155

sourcing to delivering final consumer value and market Sustainable Marketing for Sustainable
operations that the enterprise is engaged in. Consumption
Marketing’s societal role of informing customers of the avail-
ability of goods and services to improve their quality of life can
Sustainable Marketing for Sustainable be tenable only if its communication approach and techniques
Development help inform, educate, and channel the needs of its current and
Marketing’s role in the development process has been well potential customers towards sustainable products, services, or
activities. Implicit in this is the assumption that such marketing
recognized (Kinsey 1982; Shultz and Pecotich 1997; Sirgy
efforts are also directed to reforming inefficient and societally
et al. 2012). Much of the production-consumption activity is
damaging consumption habits, including a product’s
triggered by the marketing process that offers and stimulates
post-consumption disposal and or recycling. Changing, and
consumption opportunities to satisfy human needs and wants
sometimes even reducing, consumption patterns call for posi-
(Wilkie and Moore 1999). However, it has been pointed out
tive incentives, new product and process developments, price
that marketing’s critical role in development will be appre-
or non-price deterrents against certain customer practices, as
ciated only when, through planned sustainable marketing, it
well as macromarketing initiatives to constructively engage
meets the needs of the present without compromising future
with multiple stakeholders (Little, Lee, and Nair 2019; Peattie
generations’ ability to meet their own needs. Considering the
and Peattie 2009; Scott, Martin, and Schouten 2014; Sheth,
superordinate goal of human survival and better quality of life Sethia, and Srinivas 2011; Shultz and Holbrook 1999;
for all, Fisk (2006) envisioned that the macromarketing focus Vardarajan 2017).
for sustainable consumption, away from the maximization of It requires a new mindset, new tools, and adjustments
entrepreneurial profit or individual want satisfaction, is the throughout the organization. Sustainable marketing needs
result to be sought. Over the years, several scholars have responsible and proactive corporate strategies that drive the
called for marketing to assume a more responsible role for market toward sustainable products and services. Although it
sustainable development (Mitchell, Wooliscroft, and Higham is an immense challenge for companies to advance economi-
2010; Shultz and Holbrook 1999; van Dam and Apeldoorn cally sustainable activities while being environmentally and
1996; Varey 2012). socially responsible, it is still attainable. Many companies have
Responsibility varies from responsive. Marketing hitherto repeatedly demonstrated their abilities to manage oxymorons,
has been more focused on responsive approaches towards ser- such as with total quality management (TQM), where compet-
ving consumer and corporate needs. It has followed consumer ing objectives of increasing quality while lowering costs was
trends, identified consumer needs, and responded to consumers achieved (Curkovic et al. 2000; Schmidheiny and Business
wants to achieve the corporate profit goals (Kotler 2011). Due Council for Sustainable Development 1992). The path towards
to this principal drive towards effecting consumption, often sustainable development may appear to be arduous and
overlooking the “commons problems” associated with the lengthy, but we believe corporations can effectively build a
socio-environmental impact on societal resources, marketing strategy for sustainable marketing through four distinct efforts:
has been accused of being myopic and somewhat antithesis redesigning products and services, promoting responsible con-
to sustainability (Belz and Peattie 2012; Hillier et al. 2008; sumption, repurposing the marketing mix; and reorganizing the
Shultz 2015; Smith, Drumwright, and Gentile 2010). Respond- marketing function.
ing to market trends by provisioning goods and services ful-
filling the people’s immediate needs is much easier than taking
responsibility for shaping customer needs and expectations, Redesigning Products and Services
and then providing them with appropriate sustainable choices. Innovation is key to marketing, and innovation for sustainable
The concept of “socio-ecological product” emphasizes the development has the potential for the highest payoffs for any
environmental consequences (the product’s aggregate impact organization. Many enterprises are thriving today because they
on everyone affected by its use) and the societal impact of adopted new innovative technologies or rethought the formula-
marketing activities. It requires breaking free from the anthro- tion of products and services they sold. Good examples are
pocentric epistemology and its associated social traps that electric vehicles, LED lights, eco-friendly housing material,
reward corporations for immediate commercial gains in user and a host of new products introduced in the market that have
acceptance or short-term profits (Martin et al. 2019; Shultz and replaced traditional market leaders, such as Tesla, in the auto-
Holbrook 1999; Shultz 2015). Adopting the ecocentric episte- motive sector. Companies such as 3M, which have made
mology or the new environmental paradigm (NEP) would growth, sustainability, and innovation a trifecta, have suc-
enable the development of alternative and transformational ceeded in bringing several path-breaking sustainable products
marketing approaches that place equal importance to nature, into the market, consistently positioning them as sustainability
planet, and ecological sustainability as sources of well-being leaders (Winston 2012).
for humans and other species (Borland and Lindgreen 2013; In addition to innovations in products and services, compa-
Iyer 1999). nies have to think beyond the impact of their product in the hands
156 Journal of Macromarketing 41(1)

of the consumer and the process by which the product is made until such human disposition comes about, they must consume
and sold. They need to be concerned about every product’s more environmentally friendly products. Marketing’s task is to
“eco-balance,” the minimization of risks and impacts through- redirect their needs and wants towards consumption that is
out its life cycle, and the resources required to make and dispose socially and ecologically least harmful. Marketing’s current
of it, as well as about extending strategies of “eco-efficiency” tools can be geared towards such redirection. The framework
and “eco-sufficiency” to consumers (Heikkurinen, Young, and and paradigm provided by Sheth and Mittal (1996) on manag-
Morgan 2019). Promoting “reconsumption” – the ability to use ing customer expectations could guide sustainable consump-
and reuse goods in whole or in part, over several use-cycles or tion. Also, the role of advertising and promotion cannot be
generations – can become the industrial ideal of a sustainable understated in this regard. However, market research and
economic system. Developing products that can be reconsumed in-depth customer analysis will provide the most sustainable
over several generations and accordingly educating consumers results in this context. First, market researchers and consumer
becomes the marketers’ task. There is already evidence that analysts need to identify the current consumption options, cus-
products made of high-density plastics, ceramics, and rare tomer choice criteria, the relative importance placed on these
metals have a lesser impact on our fast-depleting natural criteria, and the sources of information shaping these criteria
resources than steel, aluminum, or other metals because they (Kotler 2011). It is only then that marketers can intervene to
possess higher strength appropriate for facilitating reconsump- appropriately change consumer decision-making criteria in
tion (Andrady 2015; McLellan et al. 2016; Vatan and Yilmaz favor of sustainable consumption (Geiger, Fischer, and
2020). We contend that companies that succeed in developing Schrader 2018; Phipps et al. 2013; Prothero et al. 2011). Con-
such products and convincing consumers regarding their bene- sumer attitude studies will help design proper communication
fits will have a competitive advantage over others, as consumers messages for sustainable marketing (Kilbourne, McDonagh,
become sustainability conscious. Thus, embedding the thinking and Prothero 1997; McDonagh 1998).
about product life-cycle usage and management in the circular Consumer sensitivity to sustainability issues does not
economy has to be consciously undertaken (Andersen 2007: always translate into purchase behavior. The green consumer
Lacy and Rutqvist 2015; Remmen 2007). is often elusive; they want sustainable products, but they tend
Life-cycle usage implies life-cycle responsibility. Market- not to buy them (White, Hardisty, and Habib 2019). It becomes
ing managers geared towards thinking that their role and the responsibility of marketers to use their communication and
responsibilities end with the transaction exchange are less promotional tools to convert this latent desire for quality of life
likely to cope with this new situation. Conceptual and opera- into actions and activities that promote such environmental
tional plans are needed to manage such responsibility, as quality of life. If marketing during the past several decades has
governments around the world are beginning to take regulatory been so successful in increasing societal consumption and
action on package and product disposal at the end of the con- meeting human needs, we believe that it will also be successful
sumption cycle. Conscious strategies that promote reconsump- in redirecting consumption behavior towards environmentally
tion could provide a competitive advantage to many products. sustainable consumption. Large scale research on consumption
We have seen that some environmentally sound products have behavior and the net effect of interventions towards changing
commanded almost a 25% premium. For instance, people typi- such consumption criteria could be effectively utilized by cor-
cally pay more for organically grown food and innovatively porate marketers to redirect customer needs and wants and
designed experiences in tourism destinations that are less pol- prevailing unsustainable consumption cultures (Dolan 2002;
luting and more sustainably packaged (Pulido-Fernández and Schaefer and Crane 2005).
López-Sánchez 2016; van Doorn and Verhoef 2011).
Sustainable marketing means more than pollution reduction
and life-cycle responsibility. Businesses have to move toward
Repurposing Marketing Mix
“zero pollution,” “zero waste,” and redirect product develop- Sustainable marketing requires the repurposing and reorientat-
ment efforts to meet sustainability needs. The goal will be to ing of the entire marketing mix, everything from product and
make the production, use, and disposal of products more com- packaging through positioning and promotion. Every marketer
patible with sustainable development. These include efforts will have to assess the sustainability impact of the manufac-
that help us produce more with less or shift entire industries turing, content, package, label, advertising, distribution, use,
away from high carbon footprint into more sustainable indus- and disposal of its products. Beyond assessment, strategic
tries, as in the case of livestock-based food products shifting opportunities can be identified for a positive response that will
towards plant-based substitutes (Beverland 2014). earn the favor and support of sustainability-conscious consu-
mers, advocacy groups, media, and retailers. There may be
strategic possibilities for new product development and
Responsible Consumption acquisition opportunities. Retailers, such as H&M, Ikea, Nord-
For the most ardent environmentalists, customers are the ulti- strom, Sephora, Target, and Walmart, and brands such as
mate paradox. Their consumption uses up the earth’s capacity Levi’s, Patagonia, and Reformation have already adopted
to produce materials and absorb waste. Undoubtedly, we agree aggressive sustainability promotional plans (Rosmarin 2020;
that they should consume less, not differently. Nevertheless, Widlitz 2020).
Sheth and Parvatiyar 157

Repurposing the marketing mix means that marketers  Much like Kaizen, create small action teams that lead to
should consider repackaging, relabeling, reformulating, and significant differences leveraging corporate sustainabil-
repositioning. We are already familiar with growing concerns ity to drive business and societal value (Bhattacharya
regarding ecologically harmful product packaging and 2020).
over-packaging. Several marketers have either started using
biodegradable packages or are using recycled packaging. Prod- Proper incentive schemes within the organizational system
uct relabeling that includes more sustainability-related infor- that encourage employees to adopt sustainable development
mation has begun to appear on retailer shelves. Many philosophy should complement the reorganization. Providing
companies have initiated efforts to reformulate products to meaning for employees beyond salaries is critical. Employee
either remove the harmful ingredients, like phosphates in deter- motivation can be further enhanced by providing technical and
gents or make them more energy efficient. Repositioning prod- management training for sustainably sound operations. An
ucts as environmentally friendly offers an opportunity to gain organization that does not improve its environment cannot
market recognition and support of conscious consumers, and it market environmentally sound products or services (Iyer
also provides higher visibility in the already cluttered advertis- 1999). Focused education sets the orientations and attitudes
ing media. of professionals and managers. Perhaps even a partnership with
Selling approaches and sales incentive programs also the government to provide education and training will help
require repurposing. Credible sustainability themes based on develop this capacity.
appropriate customer education can make a difference. Espe- Sustainable marketing efforts often require cross-functional
cially in business-to-business settings, firms and salespeople teams. Marketing people by themselves will not be able to
providing vital sustainability information to their clients on the develop a sustainability marketing orientation for the firm.
use of supplies are of significant advantage. As more busi- Cross-functional teams and partnerships help build the firm’s
nesses make responsible sourcing a vital sustainability goal and dynamic capabilities to undertake sustainability centric initia-
make sustainability-related demands on their suppliers, pres- tives (Borland et al. 2016). Like total quality management,
sure on companies selling to them will further accentuate. sustainable marketing requires employees from all functional
Retailers are already favoring those suppliers that carry prod- areas, including marketing, production, procurement, account-
ucts that help uplift their image as sustainability promoting ing, and information systems, to manage trade-offs and inter-
organizations. The opportunities associated with proactive dependencies (Miller 2003; Szalavetz 2018).
leadership and responsible selling far outweigh the risks. Retai-
lers, such as Walmart, demand all their category captains pro-
The Visible Hand of Government in
vide a plan on the initiatives they would undertake to help
Walmart fulfill its 2030 Project Gigaton commitments.
Sustainable Marketing
We submit that a sustainability policy is inevitably intervention-
ist. Without intervention by the government, our planet and soci-
Reorganizing Marketing Function eties cannot be adequately protected (Cairncross 1992). The
Commitment to a vision of sustainable marketing has to trans- government is a critical stakeholder in solving the prosocial
late into strategies and action plans. It may often involve reor- commons problem (Shultz and Holbrook 1999), and just leaving
ganization, restructure, and redesign of many processes and the challenge of sustainability only to market forces and corpo-
systems within a corporation that enhances the dynamic cap- rations would not yield the results. It needs government inter-
abilities of the organization for sustainability practices (Teece vention and market-driving initiatives by corporations and
2007; Wu et al. 2012). For example, some of these changes macromarketing tools to encourage multi-stakeholder engage-
could include: ment. Many enlightened economists have argued that unbridled
self-interest and unregulated freedom are failures of governance
 Companies in the “sunset” industries develop sustain- systems resulting in economic degradation, climate change, pov-
able substitutes. erty, and inequality of outcomes. They want business managers
 Alter the traditional roles of boards of directors and top to recognize their “agency” responsibilities to the legislative and
management towards integrating external and internal regulatory rule-making that supports the “system” in which their
dimensions of a business to provide new vehicles for firms are embedded (Simons 2015).
stakeholder engagement. Although the forces of unfettered competition can destroy
 Appoint a sustainability leader to steward the company’s the environment or cause societal challenges, this does not
sustainability program and design and communicate sus- mean that we replace markets with the government. Such sys-
tainable production and consumption values to all sta- tems of absolute control by the government have not worked.
keholders (Stoughton and Ludema 2012). That became apparent by the scope of environmental cata-
 Develop a learning organization that involves middle strophe in the state-run countries of Eastern Europe. Bad gov-
management continually rethink and relearn the funda- ernmental policies can further ruin the environment or social
mentals of every aspect of business (Hurley and Hult fabric of nations, even more so than unfettered competition, as
1998). has been recently witnessed in Brazil concerning the Amazon
158 Journal of Macromarketing 41(1)

forest fires. It is, therefore, essential to identify mechanisms linkages between production and consumption practices in
that the government can use to induce change. In this section, most nations. Consumption reforms, as well as production
we identify those mechanisms of governmental intervention reforms, need to co-occur. The commitment of the govern-
that may be useful for sustainable development. When the free ment towards such reforms is critical. A clear path in this
market process does not sufficiently promote sustainable devel- direction would be raising the level of knowledge about sus-
opment, the government mandate is one way to achieve it. tainable consumption and production processes (Stevens
However, a governmental intervention that too suddenly dis- 2010). Governments may have to invest in educational pro-
rupts our industry and business practices could be catastrophic. grams that educate consumers on how to effectively reduce
Indeed, the government can use public policy tools to either their use of energy and other resources, reconsume products,
correct market failures by enforcing regulations, taxes, and and reduce wastage (McGregor 2005).
subsidies; or correct system failures by mandating labels, com- There is also a need to reform institutional practices that are
munications, education, and public procurement measures widely accepted but dysfunctional for sustainability purposes.
(Stevens 2010). Nobody is likely to argue that governmental For example, most pricing and accounting practices do not
measures must not be strong enough to encourage everyone to place the cost of using irreplaceable natural resources or emis-
follow sustainable development and discourage those practices sion of wastes and pollutants into their books of account. The
that cause environmental and societal degradation. However, firm’s inability to internalize all costs in decision-making
these measures should be based on prudence (without delaying yields a distorted view of costs and is institutional failure.
implementation) to nudge businesses to internalize environ- Reforming production processes, marketing practices, and
mental and social costs or limit the damage to them. The gov- rewards for employee performance may all require government
ernment also has to play the role of a champion in leading the mandates, at least in the short run, to shed our dysfunctional
world towards sustainable development. Its role has to extend practices and adopt the path of sustainable development.
beyond that of a watchdog and regulator to one of a promoter of Reform of political institutions and orientations may also
better human life for current and future generations. Therefore, be necessary for a reordered world. The international security
we suggest four intervention roles for the government: regula- system, which features more concern for social, economic,
tory policies, reform measures, promotional programs, and par- and environmental questions and relatively less for military
ticipative partnerships. concerns, will soon have to be adopted. It may require reor-
ganization or expansion of some of the formal institutions of
government or international bodies that are vested with
Regulatory Policies responsibilities relating to security, social equity, environ-
Through the process of regulations and policies relating to ment, or economy. It includes redefining the roles and author-
production and consumption systems, including resource use ity of these formal institutions to function effectively for the
and product and technology performance standards, govern- new task at hand.
ments can command and control the industry to prevent it from
damaging our environment beyond sustainable limits. Also,
policies and laws relating to worker compensation, work-life Promotional Programs
balance, health and social services, and community facilities, These market interventions include pollution taxes and
governments can play a very prominent role in fostering sus- charges, tractable pollution permits, deposit-refund systems,
tainable societies. For such command and control to be suc- performance bonds, resource-saving credits, differential prices,
cessful, it needs to be based on efficiency standards; flexible special depreciation provisions, and the removal of distorting
and transparent compliance of regulatory policies and policy subsidies or barriers to market entry. Governments can poten-
stability equally applies to all other parties; and policy effec- tially encourage the industry to change to cleaner technologies.
tiveness in achieving sustainability goals (Meng 2015). We To the extent that they may encourage industry to develop new
suggest that the government make long term explicit policies technologies to overcome these costs, such economic measures
in this regard and consonance with the binding agreements they are useful. However, if these economic costs get recovered
undertake through supranational organizations, such as the through high market prices, then we are neither improving our
United Nations. Supranational coordination makes integrated environment nor the system leading to improved efficiency.
effort to solve sustainability problems possible, given global Therefore, governments also have to undertake positive mea-
interdependence and the need for multi-sectoral and sures that lead to the continuous and speedy development of
multi-nation expertise. Sustainability challenges transcend alternative technology for sustainable development. The gov-
national boundaries (Shultz 2015). ernment’s promotional role should, therefore, extend beyond
the use of these economic instruments.
The right promotional role of the government comes with
Reform Measures support facilities and institutions that it helps establish. As in
For sustainable development, major restructuring and reform the case of export promotion, whereby governmental organi-
of cultural, social, and political mores are needed. The sys- zations help business firms with information, training, and
temic nature of these issues means that we recognize the other support services, they need to develop similar services
Sheth and Parvatiyar 159

and programs to help business firms transition towards Governments’ participative partnerships in the past have
sustainable business practices. Several suggestions can be brought impressive results through space programs. It is per-
made in this regard: sharing information through a more useful haps time that governments individually or collaboratively set
database on environmental products, consumers, and support up NASA-like institutions for research on sustainable develop-
service availability; providing training; raising additional funds ment. Funds allocated for such purposes will have a snowbal-
for environmental work (including low-cost loans); providing ling effect on the quantity and quality of research at academic
assistance in assessing the impact of current practices on the institutions in this area. It will signal the commitment of gov-
environment and suggesting alternative processes; facilitating ernments towards achieving sustainable development and sus-
technology transfer; and identifying market opportunities for tainable marketing.
alternative products or technologies. The most effective and Table 2 below summarises the recommended market driving
economical solutions will be those who work creatively with actions by both corporations and governments for sustainable
powerful market forces rather than substitute them. Therefore, marketing.
cooperation between industry and government is essential
(Stevens 2010).
Discussion and Future Directions
Since its emergence over the past century, marketing discipline
has made tremendous progress in advancing our knowledge of
Participative Partnerships micro-marketing techniques that can best meet consumer needs
Building partnerships between government, industry, and civil and wants and macromarketing efforts that address broader
society is essential to achieving sustainability goals. Partner- system-wide issues, including societal and development mat-
ships and interdependence are the building blocks to sustain- ters involving public policy and multi-stakeholder engage-
able development, and multi-stakeholder partnership networks ments. However, much of this marketing knowledge and
have the potential to bridge transnational norms and local practice propagated a responsive approach driven by market
action by drawing upon a diverse number of actors from civil forces, which were primarily assumed to be uncontrollable and
society, government, and business (Bäckstrand 2006; Presas not within the marketer’s control toolbox. Thus, emergent mar-
2001). Through participative partnerships, governments can keting strategies, programs, systems, and policies were mostly
help the industry and the public move towards sustainable based on studying and responding to market forces, trends,
development. The participative role of the government spans behaviors, and outcomes. Hence, empirical positivism of what
over at least three areas: procurement, research and scientific is, prevailed over normative thinking of what ought to be,
development, and international agreements. In most countries despite the many social and environmental concerns expressed
of the world, the government is the largest single customer. by macromarketing scholars over the past five decades. The
Through its purchase and procurement policies favorable to prevalent consumption focused marketing concept (under-
sustainable products and services, governments can substan- standing customer needs and fulfilling them) on the one hand,
tially impact what goods are produced and by what production and the philanthropic approach of corporate social responsibil-
processes (Bocken and Allwood 2012). The resolve not to buy ity activities and non-profit sector initiatives based on enligh-
unsustainable products or from companies that have environ- tened self-interest concept (Tocqueville 2000) on the other,
mentally defaulted would be appropriate have remained insufficient in driving sustainable economic and
Through cooperative measures such as participating in mul- societal development. The global sustainability issues are
tilateral trade negotiations, promoting technology cooperation increasing alarmingly and mostly caused by our current unsus-
across companies and industry, and providing financial assis- tainable production and consumption patterns. Even though
tance for cooperative research, governments can foster sustain- marketing is recognized for being closely related to social wel-
able development. Multilateral trade agreements are crucial for fare, it’s consumption focus, and sometimes irresponsible prac-
developing countries to afford investments in environmental tices have raised questions regarding the vulnerability
and social improvement. As the United Nations General consumers face from exploitative marketing practices (Shultz
Assembly has repeatedly observed, global ecology and econ- and Holbrook 2009). It, therefore, calls for responsible market-
omy are so interrelated that if we do not meet the needs of ing that is more of a market-driver than market-driven.
developing countries, we will be endangering our ecology Future studies by macromarketing scholars should examine
(UN General Assembly 2012; 2018). Similarly, technology what strategies and processes lead markets towards specific
cooperation is vital for enhancing our ability to solve environ- desirable directions, particularly for creating significant scale
mental problems. Very few industries are capable of develop- demand for the socio-ecological products and services. Studies
ing the necessary technology on their own. Sharing their have to go beyond testing the willingness to buy or pay for
resources across industry and with research institutions helps socio-ecological products and services into examining how
share investment risks. Included in technology partnerships is aggregate market demand can be rapidly built for desirable
the issue of technology transfer, especially to developing coun- products and services, and how harmful products and services
tries. The government’s role is vital in facilitating such tech- can be effectively de-marketed. Marketing’s most significant
nology transfer reducing poverty and global hunger. challenge lies in changing consumption cultures that have
160 Journal of Macromarketing 41(1)

Table 2. Actions for Sustainable Marketing.

Corporate Actions Government Actions

1. Redesign Products & Services for sustainable use, reuse, and 1. Regulatory Policies relating to production, consumption, pollution and
post-consumption use resource use
2. Promote Responsible Consumption by redirecting needs and 2. Reform Measures relating to cultural, social, economic and political
managing customer expectations institutions and practices
3. Repurpose Marketing-Mix for repackaging, relabeling, 3. Promotional Programs to encourage the use of alternative energy, sustainable
repositioning, educating, and reselling products, and social participation
4. Reorganize Marketing Function for sustainability stewardships 4. Participative Partnerships with businesses and institutions for R&D and
and multi-level action teams process innovations

evolved over decades or even centuries and requires redirection Both marketers and governments (as well as civil society) have
towards reduced or mindful consumption. More studies on cre- vested interests in redirecting customer needs toward sustain-
ating mindful consumption cultures as well as techniques of able products, responsible consumption, eco-efficiency,
altering post-consumption behavior in terms of disposal and eco-balance, and eco-sufficiency. They may be initiating
reuse at both individual and community levels are needed. actions in this regard, but what is unknown is the relative effect
Studies that examine the elasticity of each of the programs of individualized actions versus joint or coordinated actions
we have recommended in this paper would be very valuable that produce the best results. It is even unknown whether indus-
as we would assume that not each of the corporate initiatives or try or inter-industry initiatives are superior to individual pur-
government interventions would have the same elasticity of suits in this sphere. As in the case of international business and
sustainability effect. trade studies, researchers have plenty of opportunities to exam-
Strategies and processes of educating consumers and other ine and suggest how these macromarketing programs could be
marketing actors towards higher consciousness and understand- made more effective.
ing the socio-ecological implications of their consumption An examination of government policies and programs are
behavior have received limited attention in our marketing liter- in order. Governments, at national, subnational, local, and
ature. Much of this activity has been left purely for educational even supranational levels, are expected to balance eco-
institutions to cover in formal education programs or to individ- nomic, environmental, and social goals through regulatory
ual companies adopting micro strategies for their audience. It is policies, socio-economic reforms, responsible procurement,
crucial to direct our scholarly interests in examining and pro- public-private partnerships, and reform activities for social
posing macro-level strategies for consumers, producers, and equity and justice for all. They have the visible hand to
other value chain partners. Studying the effectiveness of sus- guide and drive markets toward sustainable production and
tainability education programs and processes of private-public consumption practices. Governments expend a large part of
partnerships in creating consumer values and market demand the tax dollars for these purposes. So, their role cannot be
directions is a rich area of learning. minimized. Thus, it is imperative that as macromarketing
Some of our research efforts need to be directed towards scholars, we study the effectiveness of government pro-
studying the market driving capabilities of organizations. Not grams and policies meant to enable marketing innovations
all would have the same capability to drive markets for sustain- that achieve sustainability goals.
able production and consumption. However, a network effect In the end, we reiterate our opinion that the world will
can be orchestrated by leveraging the unique capabilities of never reach sustainable development goals without active
various marketing actors. As argued in the service-dominant intervention by both governments and businesses. While
(S-D) logic, value can be created by multiple actors integrating businesses make positive contributions – such as finding
operant resources by themselves and through institutional innovative sustainability solutions, creating jobs, contributing
arrangements, particularly in the context of sustainability to human capital development, redirecting consumption, and
(Vargo and Lusch 2004; 2008; 2016). As such, our knowledge communicating societal value – they potentially also make
about cooperation and collaboration among multi-level stake- negative impacts such as damaging the environment, exploit-
holders needs to be expanded to examine how organizations ing labor in supply chains, engaging in corrupt practices, not
with differing and often competing viewpoints and capabilities paying fair wages, or even over exploiting consumers and our
can work together for a common cause to achieve market planetary resources. Not only should businesses and market-
transformation. ers become more responsible for their activities, but they also
We contend that proactive corporate marketing strategies need to be guided and directed through government policies
and active government interventions are needed to achieve and programs.
sustainable development goals. Thus, it implies that academic This suggests that macromarketing issues are more compel-
research that examines individual and joint effects of corporate ling today than they were ever in the history of the evolution of
and government actions for sustainability would be precious. the marketing discipline. For so long, micro-marketing has held
Sheth and Parvatiyar 161

the center stage with its concerns of individual firms and their Bhattacharya, CB (2020), Small Actions, Big Difference: Leveraging
marketplace successes. Much of marketing theory has devel- Corporate Sustainability to Drive Business and Societal Value.
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Declaration of Conflicting Interests
Governments, the Opportunities for Business. Boston, MA:
The author(s) declared no potential conflicts of interest with respect to
Harvard Business School Press.
the research, authorship, and/or publication of this article.
Chabowski, Brian R., Jeannette A. Mena, and Tracy L. Gonzalez-
Funding Padron (2011), “The Structure of Sustainability Research in Mar-
keting, 1958-2008: A Basis for Future Research Opportunities,”
The author(s) received no financial support for the research, author-
ship, and/or publication of this article. Journal of the Academy of Marketing Science, 39 (1), 71-85.
Chattopadhyay, Amitava (2019), “Building Sustainable and Socially
ORCID iD Impactful Businesses at the Base of the Pyramid,” in Handbook of
Atul Parvatiyar https://orcid.org/0000-0003-2975-3201 Advances in Marketing in an Era of Disruptions – Essays in
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Author Biographies
Wilkie, William L. and Elizabeth S. Moore (1999), “Marketing’s
Contributions to Society,” Journal of Marketing, 63 (4), 198-218. Jagdish N. Sheth is Charles H. Kellstadt Professor of Business at the
Wilkie, William L. and Elizabeth S. Moore (2007), “What does the Goizueta Business School, Emory University. Over the past 50 years,
Definition of Marketing Tell Us About Ourselves,” Journal of Sheth has been on the faculty of Columbia University, MIT, University
Public Policy and Marketing, 26 (2), 269-76. of Illinois, and University of Southern California. He is an expert on
Winston, Andrew (2012), “Sustainability: 3M’s Sustainability consumer behavior, relationship marketing, the impact of technology on
Innovation Machine,” Harvard Business Review, May 15. HBR. society, and the globalization of competition. Sheth has been advisor to
ORG numerous corporations all over the world. His latest book is Genes,
Winston, Andrew (2019), “The Top Sustainability Stories of 2019,” Climate and Consumption Culture: Connecting the Dots (2017).
Harvard Business Review, December 30. HBR.ORG
Atul Parvatiyar is a Professor of Practice in Marketing and Director
World Commission on Environment and Development (WCED)
of the Center for Sales and Customer Relationship Excellence at the
(1987), Our Common Future. New York: Oxford University Press.
Rawls College of Business, Texas Tech University. He is a recognized
Wu, Qiang, Qile He, Yanqing Duan, and Nicholas O’Regan (2012),
thought leader and a practicing academic with global consulting and
“Implementing Dynamic Capabilities for Corporate Strategic
entrepreneurship experience. His areas of expertise include relation-
Change Toward Sustainability,” Strategic Change, 21 (5-6),
ship marketing, CRM, international sales, marketing theory, retailer-
231-47.
vendor relationships, and sustainable business practices.

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