Sustainability - Changing landscape

Sustainability in business activities is being transformed into an essential component, that allows organizations to succeed and thrive. For a consumer goods company, it’s increasingly important to offer sustainable products. Did you know more than 50% of consumers are willing to pay at least 5% more for products delivered sustainably, and 76% could wait for one extra day for sustainably delivery of their purchase? You would see chocolate providers, for example, including fair-trade products and sustainable options in their assortments. Global Shoe & Sneakers making company are using recycled materials in their shoes and packaging and there are many other industry examples also.
It proves the fact that the educated consumers of today expect products to be made responsibly and that's the reason company's have started to look out for the long term vision instead of short term profit. Consumer purchasing power is the world’s greatest force for change.

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Will Consumers pay for Sustainability ?

Customer are getting more informed and smart now, maybe because detailed information is easily available to access and analyze. The fact that customers don’t ask for it doesn’t mean that they don’t want it. There is also a myth that sustainability will exceed the price of the product and nobody would buy it, is not always true, research shows consumers are now prepared to pay a premium. 

Millennials and Generation Z are ready to pay more for the company service which are following ethical practice in their business. That’s the reason company’s have started to look out for the long term vision instead of short term profit.

FMCG Industry and CSR -

The Corporate Social Responsibility (CSR) framework given by the World Economic Forum Global Corporate Citizenship points out below criteria:

1. Provide leadership

2. Define what it means for your company

3. Make it happen

4. Be transparent about it

So now the question arise that why companies are paying attention to the CSR activities  and the reason could be Corporate sector impact, Ethics, Sustainable development, Reputation management, Retain staff, Improved relations with Community & Regulators.

Especially for FMCG companies the challenge of keeping the quality, selling genuine products, working ethically and reducing waste and giving back to community is highly important to retain & capture the ever demanding customers. We’ll not be talking about the biggest money making FMCG company in India, but pointing out those company’s who have scored better in the CSR ranking. CSR ranking of the company shows its approach, commitment and transparency towards society in general.