Sustainability shake-out

Sustainability is a no-no. At least according to marketeers, judging on various recent publications. The economic crisis undoubtedly is a factor in that, though surely not the only one.

Some weeks ago, Marketing Online, the website of the Dutch ‘Tijdschrift voor Marketing’ (Journal of Marketing), reported that marketeers are done with CSR. Research consultancy Anderson Analytics reached a similar conclusion based on their own piece of research: sustainability can no longer count on the undivided enthusiasm of sales people. We just seem to have no other choice than to accept it: sustainability will only decrease in importance the coming period – and the recession will only accelerate that process.

I, however, think that the opposite should be, could be and will be the case. It’s crystal clear that major changes are bound to take place – including in the field of sustainability and CSR. Or, more adequately, especially in the field of sustainability and CSR. One of the most telling illustrations is the development towards sustainable procurement. For instance, the Dutch government will be using sustainability criteria in their procurement. National government will even strive for 100 percent sustainable procurement. Companies that will be able to differentiate themselves with sustainability or CSR initiatives can become governments’ preferred suppliers. Large businesses and small businesses alike. Sustainability and CSR can hence be part of a growth strategy (or, in the vocabulary of the economic crisis, a no-shrinking strategy). Sustainability champions such as Triodos Bank and ASN Bank appear to remain growing, but also an increasing share of mainstream business seems to be capitalizing on the opportunities that sustainability and CSR have to offer. It is by no means a coincidence that Royal BAM Group (a large Dutch construction company) has announced a cooperation with Nyenrode Business School aimed at developing a center of expertise in sustainable innovation and construction. Nor is it a coincidence that the annual meeting of PaperPlus (the organization of producers of specialty paper) will revolve around sustainability and CSR. In a similar vein, it’s no coincidence that Desso, a carpet manufacturer, will be introducing a number of products designed according to Cradle to cradle principles. Several large electronics companies will reap the revenues from their ‘green’ products which proposition is partly based on energy efficiency and thus cost savings. The economic crisis offers additional opportunities for sustainable businesses. But they need to be able to market their products. Why, then, are marketeers tired of sustainability and CSR?

Under pressure, things become fluid. Of all fluids that are under pressure, the part that has the lowest viscosity leaks away first. You can follow this line of thought when thinking of CSR in times of crisis. Of course, sustainability and CSR programs will become and remain under pressure within companies in an economic downturn. I won’t argue with that logic. But it’s good to remind ourselves that sustainability and CSR are not different per se when compared to other areas in that respect. Think of salaries that will be frozen, personnel that gets fired, cost-cutting based on cancelling educational programs, companies that stop hiring people, major investments that are postponed. Every part of the business is under scrutiny. In times of crisis, companies start cutting costs and implement measures to efficiently put their resources to use and sustainability and CSR are no exception to that rule.

Still, not all consequences of the current crisis will turn out to be negative. As we are supplied with numerous ominous perspectives and predictions, there is a silver line to this cloud. One of the positive outcomes of this crisis will be a serious sustainability shake-out. All sustainability claims that are in effect shallow or even hollow, all CSR initiatives that have little or nothing to do with companies’ business itself – there’s little chance that they’ll survive the crisis. Fortunately, I’ll add to that. The coming years will prove who were the real sustainable entrepreneurs and who where the free riders that all too easily rode the waves of sustainability on their boards of opportunism.

No wonder marketeers are done with CSR and sustainability. Meaningless claims to sustainable behavior, social responsibilities that are paid lip service to, and greenwashed corporate stories do not deliver any value to them any longer. There is no PR premium in de beautiful tales about how sustainable companies were before CSR became a serious part of the corporate agenda. It will only become easier to judge who’s really sustainable and who isn’t. Long live the crisis.

Peter Drucker, the management guru that died in 2005, once said that “the aim of marketing is to make selling superfluous”. If the Marketing Online article portrays the real attitude of marketeers towards CSR and sustainability, my prediction is that, indeed, not much will be sold in the future.