The article in the url below indicates the challenge for firms of introducing socially responsible products into the market before there is a demonstrated consumer demand for the change.
This problem is particularly pressing for firms that use ingredients that are harmful, either to humans (such as trans fat) or to both humans and the environment (such as certain chemicals). The example in the article below concerns P&G’s launch of its reformulated Cascade dishwater detergent that is low in phosphates:
“Responding to laws that went into effect in 17 states in July, the nation's detergent makers reformulated their products to reduce what had been the crucial ingredient, phosphates, to just a trace. While phosphates help prevent dishes from spotting in the wash cycle, they have long ended up in lakes and reservoirs, stimulating algae growth that deprives other plants and fish of oxygen. Yet now, with the content reduced, many consumers are finding the new formulas as appealing as low-flow showers, underscoring the tradeoffs that people often face today in a more environmentally conscious marketplace. From hybrid cars to solar panels, environmentally friendly alternatives can cost more. They can be less convenient, like toting cloth sacks or canteens rather than plastic bags or bottled water. And they can prove less effective, like some of the new cleaning products.”
While the environmental arguments in favor of the change are compelling, “the new products can run up against longtime habits and even cultural concepts of cleanliness.” As a result, such changes are likely to face significant resistance in the market.
The consolation for P&G is that the change is enforced across all firms (i.e., there should be no loss of competitive advantage associated with the new product); the experience, however, is unlikely to encourage other firms to make voluntary changes in other product lines that are equally necessary.
Take care
David
Bill Werther & David Chandler
Strategic Corporate Social Responsibility: Stakeholders in a Global Environment (2e)
© Sage Publications, 2011
http://www.sagepub.com/strategiccsr2e/
Instructor Teaching Site: http://www.sagepub.com/strategiccsr/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/
Cleaner for the Environment, But the Dishes? Not So Shiny
By MIREYA NAVARRO
1188 words
19 September 2010
The New York Times
Late Edition - Final
1
http://www.nytimes.com/2010/09/19/science/earth/19clean.html
