How sustainable's regulation have an impact on marketing's function ?

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How sustainable's regulation have an impact on marketing's function ?

Post by camille_girard on Sun Mar 21, 2010 9:17 pm

Nowadays, in certain regions, regulations force companies to be more responsible. Thus, the entire organization have to change and improve its process to be more responsible. How do you think it has an impact on marketing's function (for example the product's management) ?
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camille_girard

注冊日期 : 2010-03-02

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Re: How sustainable's regulation have an impact on marketing's function ?

Post by MH_Huang on Mon Mar 22, 2010 12:31 pm

This is an interesting question. Can a firm be forced to be socially responsible? Will public regulations effective? Or will such government regulations interfere with free market operation?

MH_Huang

注冊日期 : 2010-02-20

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Re: How sustainable's regulation have an impact on marketing's function ?

Post by camille_girard on Mon Mar 22, 2010 2:47 pm

Some public regulation are effective :it is the case in Europe. For example the directive REACH (Registration, Evaluation, Authorisation and Restrictio in of Chemical substances) prevent company to not use toxic substances anymore. I made an internship in a painting company. Because of this new regulation, the company had to change a lot of substances and features in their product. Thus, all of the company was worked to the process and also the marketing service which was supposed to drive the project. Marketing is the interface between each department (purchasing depart, R&D, finance, usw). They had to think on how they could manage to sell a "greener" product (considering the substance, packaging, supplier,communication, usw).
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camille_girard

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Re: How sustainable's regulation have an impact on marketing's function ?

Post by ChienWei_Lee on Mon Mar 22, 2010 9:01 pm

I come up a interesting ecomonic viewpoint to this question.

Maybe we can solve this question by following way:
Similarize "sustainable's regulation" to the "minimun wage act",
"product price" to the "min wage".
And we know that when the min wage is higher than the intersection point of the demand and supply lines, it will cause unemployment rate rising.

So it infers that if the government regulates that everyone should wear "green shoes", then the "un-shoe-ed rate" will rise.

I think it is fun to explain this question in this way while if it really happen, then many people will live in miserable lives.

So we should do something to prevent that day to come....
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ChienWei_Lee

注冊日期 : 2010-02-25
年齡 : 29
來自 : Taiwan

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Re: How sustainable's regulation have an impact on marketing's function ?

Post by Ian Chen on Mon Mar 22, 2010 9:27 pm

MH_Huang wrote:This is an interesting question....

Reply to the first question that professor Huang mentioned...

Will public regulations effective?

I think that it won't alway be effective. For some globel monopolist, they certainly have some ability against public regulation even though they were being accused for some reason. Instead of public regulation, public awareness can play more important role as forcing some companies to be more social responsible...

Reply to the second question...
....will such government regulations interfere with free market operation?..

Yep, I think sometimes it change the game rule of Free market. Firms could be more costly in order to fit the rule, and sometimes they have to adjust their business models which are feasible within Free market...
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Ian Chen

注冊日期 : 2010-03-07

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Re: How sustainable's regulation have an impact on marketing's function ?

Post by Sean_Huang on Mon Mar 22, 2010 10:55 pm

It just reminds me of the recent makeover of Philip Morris, the largest tobacco company of the world. They claim to be the "responsible corporate citizen", and that "there is no such thing as safe cigarette", but what they really do is to get the image of "safer cigarette", and make the regulative laws to meet their higher standards, just to disadvantage competitors and solidify Philip Morris's dominance in domestic and global cigaretter markets.

Sean_Huang

注冊日期 : 2010-03-03

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