Sustainability information & purchasing decisions.
March 12, 2011 Leave a comment
Here’s an interesting conversation about brands, sustainability and consumers behaviours in this 14 min video provided by Environment Leader.
As their concerns about the environment are growing, consumers require more information about the products they purchase. Relying on buying habits is not a strategy. Companies that proactively provide information about their products, through advertising, detailed labels, sustainability goals and reporting etc. will do better in the long run that others. Transparency is the right way to go.
Brand itself is an essential piece of information. If customers don’t get the information they need to make responsible buying decisions, about, for example, the carbon footprint of products all along the supply chain, they will use the company’s reputation as a purchasing criteria. Companies that perform well in sustainability will have a competitive advantage.
Most of SMBs however can’t rely on the power of their brand or reputation, but still, they should aim to create success by ensuring long-term sustainability and communicate about it. That’s one of the reasons why I believe that SMBs should be encouraged to produce sustainability reports and learn how to strategically engage their stakeholders and particularly their customers. They need support for that.
Instead of dedicating more resources to control and validate the larger corporations sustainability reports, as established in the recent law for a sustainable economy, the Government in Spain – and the EU for that matter – should rather support financially small and medium businesses sustainability planning and sustainability reporting initiatives.