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PROJECT REPORT ON CORPORATE SOCIAL RESPONSIBILITIES OF GREEN MARKETING SUBMITTED TO THE UNIVERSITY OF MUMBAI SUBMITTED BY Mr. MAZHAR JAMIL DALVI 1st SEMESTER F.Y.M.M.S. (2010-2011) V.S.I.M, KHED, 415709, DIST.-RATNAGIRI

DECLARATION I MAZHAR JAMIL DALVI, student of first year MASTER University of Mumbai, hereby declare that I have completed the project on CORPORATE SOCIAL RESPONSIBILITIES OF GREEN MARKETING In the academic year 2010-2011 as per the requirement of University of Mumbai, as a part of my academic curriculum. The information submitted is formulated with the aid of primary and secondary data. OF

MANAGEMENT STUDIES (1st semester) at V.S.I.M College, Khed affiliated to

MAZHAR JAMIL DALVI

INTRODUCTION In today's business world environmental issues plays an important role in marketing. Many people believe that green marketing refers solely to the promotion or advertising of products with environmental characteristics. Generally terms like Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly are some of the things consumers most often associate with green marketing. In general green marketing is a much broader concept, one that can be applied to consumer goods, industrial goods and even services. For example, around the world there are resorts that are beginning to promote themselves as "ecotourism" facilities, i.e., facilities that specialize in experiencing nature or operating in a fashion that minimizes their environmental impact .Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Consumers expectation of environmental friendly products : According to the text book customer-oriented marketing means that the company should view and organize its marketing activities from the consumers point of

view. It should work hard to sense, serve, and satisfy the needs of a defined group of customers (Kotler 492).

OBJECTIVES OF THE STUDY To Study Concept Of Green Or Environmental Marketing To study the concept of Green Product To study concept of Green Consumer To study concept Corporate Social Responsibility To study relationship between social responsibility and green marketing To study challenges and opportunities in green marketing

RESEARCH METHODOLOGY In this project, I have elaborated the concept of Green Marketing, Green Product ,Green Consumer and CSR on the basis of available secondary data. I have collected this data from books, journals, newspapers and internet. I have used this data to reach to some conclusions which can be implicit by the companies while practicising for green marketing.

KEY CONCEPTS GREEN MARKETING : In general green marketing is a much broader concept, one that can be applied to consumer goods, industrial goods and even services. For example, around the world there are resorts that are beginning to promote themselves as "ecotourism" facilities, i.e., facilities that specialize in experiencing nature or operating in a fashion that minimizes their environmental impact .Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Promotional activities aimed at taking advantage of the changing consumer attitudes toward a brand. These changes are increasingly being influenced by a firm's policies and practices that affect the quality of the environment, and reflect the level of its concern for the community. According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe.[1] Thus green marketing incorporates a broad range of activities, including product

modification, changes to the production process, packaging changes, as well as modifying advertising. Yet defining green marketing is not a simple task where several meanings intersect and contradict each other; an example of this will be the existence of varying social, environmental and retail definitions attached to this term.[1] Other similar terms used are Environmental Marketing and Ecological Marketing. Green marketing refers to the process of selling products and/or services based on their environmental benefits. Such a product or service may be environmentally friendly in itself or produced and/or packaged in an environmentally friendly way. The obvious assumption of green marketing is that potential consumers will view a product or service's "greenness" as a benefit and base their buying decision accordingly. The not-so-obvious assumption of green marketing is that consumers will be willing to pay more for green products than they would for a less-green comparable alternative product - an assumption that, in my opinion, has not been proven conclusively.

Marketing specialists are in agreement: green marketing campaigns exist and their clients should have one. The debate begins when the question turns to actually knowing what green marketing is and the best way to employ it. Although the

rampant confusion is understandable due to the current amorphous nature of green marketing, the original concept was quite simple. Green marketing emerged as marketing of products that are assumed to be environmentally safe, a simple enough definition by anyones standards. Unfortunately, the very simplicity of the initial definition provided excessive leeway for companies seeking to take advantage of green marketing, and the marketers creating their campaigns. GREEN PRODUCTS : Go Green seems to be the things to do now. i heard so much about the "green" product these days, I wonder if "green" eventually will be like the nutrition labels, or the "no trans-fat", "no cholesterol" and become just another gimmick for the merchant to sell products?

is there truely a "green" product? does industry really have ways to produce goods that has no impact or very low impact on the environment?

What qualifies a Green product? Green has already become a way to sell products, i did a project for a business class and every company's website i checked said that they were trying to "go green" , while it sounds ridiculous for some companies to say there are products such as some food items that are grown without using chemicals that harm the soil

and the air or cars that emit less chemicals into the air, but mostly people just like to say their product is "green" and raise the price and people buy it. Environmental marketing firm TerraChoice found that many retail products overstate their environmental attributes, a practice which risks causing skepticism among consumers. The company sent people to big-box retail stores to find products labeled as green. In the process, it found that almost all of them committed at least one of what it calls "sins of greenwashing." Most common was the "Sin of the Hidden Trade-Off," where manufacturers claim a product has a green feature, such as recycled paper content, but don't pay attention to potentially more important issues, such as global warming or water use. Who is mindful of environment related issues and obligations, and is supportive of environmental causes to the extent of switching allegiance from one product or supplier to another even if it entails higher cost. GREEN CONSUMER Without getting technical, a green consumer is someone who is very concerned about the environment and, therefore, only purchases products that are environmentally-friendly or eco-friendly. Products with little or no packaging, products made from natural ingredients and products that are made without causing pollution are all examples of eco-friendly products. The green consumer

would be the type to drive a hybrid vehicle, buy products made with hemp or those made from recycled materials The modern world has led consumers to become increasingly concerned about the environment. Such concerns have begun to be displayed in their purchasing patterns, with consumers increasingly preferring to buy so-called

environmentally friendly products. Marketing managers have in turn recognised the strategic importance of marketing in finding responses to the environmental needs of consumers due to the influence this may have on their consumption habits. The growing number of organizations entering the green product market also indicates the need for suitable segmentation and positioning strategies. This paper focuses on the identification of distinct market segments. Through the use of variables related to the environment, as well as demographic variables, the segments that are occupied by consumers with different sensitivities to environmental matters are identified, and the possible implications of these results for the marketing strategies of companies are also discussed. CORPORATE SOCIAL RESPONSIBILITY : Corporate social responsibility (CSR) can be defined as the "economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time" (Carroll and Buchholtz 2003, p. 36). The concept of corporate

social responsibility means that organizations have moral, ethical, and philanthropic responsibilities in addition to their responsibilities to earn a fair return for investors and comply with the law. A traditional view of the corporation suggests that its primary, if not sole, responsibility is to its owners, or stockholders. However, CSR requires organizations to adopt a broader view of its responsibilities that includes not only stockholders, but many other constituencies as well, including employees, suppliers, customers, the local community, local, state, and federal governments, environmental groups, and other special interest groups. Collectively, the various groups affected by the actions of an organization are called "stakeholders." The stakeholder concept is discussed more fully in a later section. Corporate social responsibility is related to, but not identical with, business ethics. While CSR encompasses the economic, legal, ethical, and discretionary responsibilities of organizations, business ethics usually focuses on the moral judgments and behavior of individuals and groups within organizations. Thus, the study of business ethics may be regarded as a component of the larger study of corporate social responsibility. Carroll and Buchholtz's four-part definition of CSR makes explicit the multifaceted nature of social responsibility. The economic responsibilities cited in the definition refer to society's expectation that organizations will produce good and

services that are needed and desired by customers and sell those goods and services at a reasonable price. Organizations are expected to be efficient, profitable, and to keep shareholder interests in mind. The legal responsibilities relate to the expectation that organizations will comply with the laws set down by society to govern competition in the marketplace. Organizations have thousands of legal responsibilities governing almost every aspect of their operations, including consumer and product laws, environmental laws, and employment laws. The ethical responsibilities concern societal expectations that go beyond the law, such as the expectation that organizations will conduct their affairs in a fair and just way. This means that organizations are expected to do more than just comply with the law, but also make proactive efforts to anticipate and meet the norms of society even if those norms are not formally enacted in law. Finally, the discretionary responsibilities of corporations refer to society's expectation that organizations be good citizens. This may involve such things as philanthropic support of programs benefiting a community or the nation. It may also involve donating employee expertise and time to worthy causes. A traditional view of the corporation suggests that its primary, if not sole, responsibility is to its owners, or stockholders. However, CSR requires organizations to adopt a broader view of its responsibilities that includes not only stockholders, but many other constituencies as well, including employees,

suppliers, customers, the local community, local, state, and federal governments, environmental groups, and other special interest groups. Collectively, the various groups affected by the actions of an organization are called "stakeholders." The stakeholder concept is discussed more fully in a later section. Corporate social responsibility ("CSR" for short, and also called corporate conscience, citizenship, social performance, or sustainable responsible

business[1]) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, CSRfocused businesses would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. CSR is the deliberate inclusion of public interest into corporate decision-making, and the honouring of a triple bottom line: people, planet, profit. The term "corporate social responsibility" came in to common use in the early 1970s, after many multinational corporations formed. The term stakeholder,

meaning those on whom an organization's activities have an impact, was used to describe corporate owners beyond shareholders as a result of an influential book by R. Edward Freeman, Strategic management: a stakeholder approach in 1984. [2] Proponents argue that corporations make more long term profits by operating with a perspective, while critics argue that CSR distracts from the economic role of businesses. Others argue CSR is merely window-dressing, or an attempt to preempt the role of governments as a watchdog over powerful multinational corporations. CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers. Development business ethics is one of the forms of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. ISO 26000 is the recognized international standard for CSR (currently a Draft International Standard). Public sector organizations (the United Nations for example) adhere to the triple bottom line (TBL). It is widely accepted that CSR adheres to similar principles but with no formal act of legislation. The UN has developed the Principles for Responsible Investment as guidelines for investing entities.

RELATIONSHIP BETWEEN SOCIAL RESPONCIBITITY & GREEN MARKETING : Green or Environmental Marketing consists of all activities designed to generate and facilitated any exchange intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment. Kotler and Levy, in their book, Corporate Social Responsibility define corporate social responsibility as "a commitment to improve community well-being through discretionary business practices and contributions of corporate resources". Some of the benefits of being socially responsible include (a) enhanced company and brand image (b) easier to attract and retain employees (c) increased market share (d) lower operating costs and (e) easier to attract investors. A socially responsible firm will care about customers, employees, suppliers, the local community, society, and the environment. CSR can be described as an approach by which a company (a) recognizes that its activities have a wide impact on the society and that development in society in turn supports the company to pursue its business successfully and (b) actively manages the economic, social, environmental and human rights. This approach is derived from the principles of

sustainable development and good corporate governance. Marketing managers within different firms will see some social issues as more relevant than others. The relevance of a given social issue is determined by the company's products, promotional efforts, and pricing and distribution policies but also by its philosophy of social responsibility.

Focus entirely in profits (and profitable firms typically serve society well) Explicitly incorporate social responsibility into its day-today marketing decisions to minimize negative effects on society and enhance positive effects

Go even further and engage in social projects that are unrelated to the corporate mission and even detrimental to profits ( which could net out to be socially undesirable)

Management must decide which of these three levels of social responsibility to adopt and which social issues are relevant to its business.

Ethical Conflict faced by the Marketers Marketers must be aware of ethical standards and acceptable behavior. This awareness means that marketers must recognize the viewpoints of three key players: the company, the industry, and society. Since these three groups almost always have different needs and wants, ethical conflicts are likely to arise. Ethical

conflicts in marketing arise in two contexts : First, when there is a difference between the needs of the three aforementioned groups ( the company, the industry, and society) a conflict may arise. Second and ethical conflict may arise when one's personal values conflict with the organization. In either case, a conflict of interest is a possible outcome. Ethical dilemmas facing marketing professionals today fall into one of three categories: tobacco and alcohol promoting, consumer privacy, and green marketing. Standards for ethical marketing guide business in efforts to do the right thing. Such standards have four functions: to help identify acceptable practices, foster internal control, avoid confusion, and facilitate a basis for discussion. Marketing in order to protect the environment and to improve the quality of life and are concerned with issues that include conservation of natural resources, reducing environmental pollution, protecting endangered species, and control of land use. The three Rs of environmentalism are Reduce, Reuse, and Recycle. Many companies are finding that consumers are willing to pay more for a green product. Toyota has become quite successful with their hybrid cars. Green marketing refers to the development and distribution of ecologically-safe products. It refers to products and packages that have one or more of the

following characteristics: (1) are less toxic, (2) are more durable, (3) contain reusable materials, or (4) are made of recyclable material. In short, these are products considered "environmentally responsible". Social responsibility towards environment and towards consumers These new governmental bodies established that national public policy now officially recognized the environment, employees, and consumers to be significant and legitimate stakeholders of business. From that time on, corporate executives have had to wrestle with how they balance their commitments to the corporation's owners with their obligations to an ever-broadening group of Some cases of Green Marketing When Miura, a world-leader in industrial steam boilers, began looking for a new marketing message to build their North American market share, they were starting from the low single digits. Plus, they faced strong completion from the entrenched market leaders in an industry where old relationships die hard. They needed to move to the next level with a message that caught the attention of both distributors and end-users, recognizing that each had different buying variables.

Green marketing was that next level, and based on Miuras marketing at the time, which stressed highest in-service efficiencies and innovative money-saving

technology, they could certainly make the claim of being greener than the competition. Green Products We use the terms "green" and "sustainable" to refer to products, services, and practices whose manufacturing, purchase and use allows for economic development while still conserving, for future generations: (1) The earth's biological diversity and supporting ecological processes (such as nutrient, fire, and flood cycles), and (2) The components of our economy and quality of life that require natural resources and depend on "nature's services", such as:

fertile soils and healthy populations of pollinators for agriculture;

the diversity of tree species needed to provide lumber and paper, and the diversity of plants needed to provide critical medicines

Importance of Green Marketing A new trend for businesses is green marketing. Green marketing is simply when a business finds ways to integrate products into the company that are environmentally friendly. The products that are marketed by a company are

considered to be environmentally safe and will help reduce the use of excess energy and other costs. There are several meanings to green marketing because it identified different aspects of production process. While some companies consider green marketing to be changed to the production process, others define green marketing as modifications to advertising.

Currently, over 70% of consumers link marketers' social responsibility to their environment behavior. Due to the inclining interest people have in the environment, environmental concerns are rapidly expanding into all aspects of marketing. The product development phase is the area that is under "green" construction. Several companies have reviewed their existing products and have found ways to cut costs on the production on these products or have found a way to design them to provide some type of benefit to society.

Light bulbs are a great example of green marketing. The standard light bulb uses two times the amount of energy and the new environmentally friendly, energysaving light bulbs. Light bulb manufacturers found ways to redesign their product after a manner that would appeal to the public and would reduce overall energy costs. Studies have found that consumers are generally interested in the environment and want to find ways to help the environment. Harnessing this consumer "power" behind green marketing is not quite as easy because the green

consumer movements have been small and have not been able to reach the critical mass. Green as distinct from "natural," has come a considerable distance since it first achieved recognition in Western Europe in the late 1960s, and in the United States in the 1980s. In what was then West Germany, the expression assume political significance and even became the name of a recognized, and at least briefly powerful, political party. Four years ago, during the negotiations to finalize the European Community, "Green" activists exerted enough influence on ecological concerns to bring changes to the EC's Cosmetic Directives. Green forces under whatever label are credited with what amounts to a forthcoming ban on animal testing that last year became part of the EC's Fourth Cosmetic Directive. That ban may be regarded with favor by at least one element of the cosmetic industry (those who market "natural" cosmetics, whose fate seems somehow inexorably linked with lack of animal testing), but it hasn't drawn raves from suppliers who feel compelled to test their ingredients for teratogenicity, mutagenicity, and carcinogenicity -- none of which can be detected by using alternative in vitro cosmetic test methods. Why Green Marketing?

As resources are limited and human wants are unlimited,it is important for the marketers to utilize the resources efficiently without waste as well as to achieve the organizations objective.so green Marketing is inevitable. There is growing interest among the consumers all over the world regarding protection of environment. Worldwide evidence indicates people are concerned about the environment and are changing their behavior.As a result of this,green marketing has emerged which speaks for growing market for sustainable and socially responsible products and services. Benefits of Green Marketing Companies that develop new and improved products service with environment inputs in mind give themselves access to new markets, increase their profit sustainability, and enjoy a competitive advantage over the companies which are not concerned for the environment. Adoption of Green Marketing There are basically five reasons for marketer should go for the adoption of green marketing They are: Opportunities or competitive advantages. Corporate social responsibilities (CSR)

GREEN MARKETING OPPORTUNITIES : Todays consumers are increasingly socially conscious, with a growing concern to know if companies honestly treat employees fairly while doing their part to protect and save the environment. Brand values like social responsibility, benefit to the community, and being green are at the top of more shopping lists than ever. Not unsurprisingly, enthusiasts of technology are leading the way. The recently published Forrester study titled Making The Case For Environmentally And Socially Responsible Consumer Products, a survey of over 5,400 U.S. adults were asked about their purchasing habits between April and May of 2008. Amazingly, 65% of those polled consumers confirmed they were concerned about the environment or global warming. This trend is up nearly 23% from a November 2007 study, which found that 53% percent of consumers were concerned about sustainability. In short order, business has been quick to leverage this social trending with products and marketing offers some more successfully than others. Todays green marketing offers a unique set of challenges; the least of which is a prevalent lack of standards for identifying what it actually means to be a green product or company. In combination with the

increase in consumer awareness, marketers are seeing a growing demand for eco-labeling, green advertising and the overall importance of reporting on sustainability and renewable energy oriented products and projects. This obviously has created a glut of misguided opportunities to nearly everything to be positioned as being green, from a minor packaging change to actual services and products that truly reduce energy and waste. As so many new and old companies jump on the do good bandwagon, factions of green marketing have arisen cause marketing, cause-related marketing, cause branding, conscious marketing, social good marketing and many other new ways of positioning brands within this growing market sector. What binds this growing set of terms is simple: establishing your marketing efforts in a way thats truly responsible. Often this can be misunderstood to mean aligning tactics with a cause, but it is certainly not limited to that description. It may also mean the responsible use of funds, reducing unnecessary print marketing materials, or not deploying a controversial ad that might benefit the company financially. Taking this effort a bit further might be easiest to simply call it Ethical Marketing. This trending presents a unique challenge to green marketers like ourselves as products and messages become much more common, often

resulting in great confusion in the marketplace. Consumers do not really understand a lot about these issues, and theres a lot of confusion out there, says Jacquelyn Ottman (founder of J. Ottman Consulting and author of Green Marketing: Opportunity for Innovation.) Advantageous marketers can take advantage of this confusion by intentionally making false or exaggerated claims to being green what we now know as green washing. GREEN MARKETING CHALLENGES

es;

Conclusion of Green Marketing In general, green marketing still has a long road to travel in both research and practice. The social desirability of effective persuasion techniques fostering widespread environmentally responsible behavior is unquestionable. Green

purchasing is central to this societal transformation. Probably on of the most critical issues in green marketing is the reduced individual benefit perceived by most consumers. Thus, the challenge for green marketers has so far been to increase the perception of individual benefits by adding emotional value to green brands, and will be even more so in the future. Future green marketing research should extend its analysis to the motivational basis of environmental behavior. In the face of these difficulties, it is perhaps unsurprising that much of what has happened under the banner of green marketing has had relatively little to do with either marketing or the environment. Green marketing should therefore not be written off as a prophecy unfulfilled, but recognised as one whose time has not yet come. Perhaps the answer to making more substantive progress towards sustainability does not lie with marketers at all, since the markets current flaws make it incapable of delivering sustainability alone. The market needs to operate within a society in which sustainability is more than adopted as a public policy goal, but is actively pursued through policy implementation in terms of taxation, education, industrial policy, and public spending and investments. Whilst the early predictions for growth in the green market may now look a little overstated, the predictions for growing environmental problems have not. The longer we take to address the issue, and to make progress towards more sustainable marketing,

the greater the disruption and effort will be. The sooner substantive progress is made, the more likely the story will be to have a happy ending. Finding of information of Green Marketing Going green with eco friendly products is important to most people who care about the condition of the planet. But despite their best efforts, green marketing can be confusing, overwhelming, and even downright misleading to shoppers who want to be environmentally friendly. How can consumers learn to Greenwash is a term coined by environmentalists to describe the way many socalled "green businesses" deliberately confuse consumers with vague, misleading, or untrue statements about their environmental practices. According to organizations like Greenpeace and TerraChoice, there are many forms of greenwashing at large in the advertising world. Some companies may focus on their eco friendly accomplishments without acknowledging that their supposed achievements barely meet the legal standard; others advertise the virtues of one line of green products, while avoiding any mention of the gas-guzzling, polluting designs that make up most of their sales. Greenwash is misdirection at best and outright lies at worst, and it can be found in every supermarket today, according to research conducted by the Canadian

environmental certification firm TerraChoice. Over 99% of products examined by TerraChoice in 2007 were guilty of at least one form of greenwash, from misdirection to vagueness to outright lies. As a result, consumers don't know who to trust. They can either take the green marketing claims at face value, or dismiss them all as lies. It can be very challenging for even the most environmentally conscious person to know which brands to avoid and which green products to buy. Learning to see through the greenwash takes a little bit of care and attention in examining labels. Essentially, there are two things to look for in assessing a green product's claims: Green Certification: The first indication of a green business' legitimacy is whether or no there is third-party certification on product labels. This kind of approval is the only way to be sure that someone is checking up on the claims made by green marketing. In North America, the two major certification bodies are Ecologo and Green Seal.