Customer-oriented firms are environment leaders: global report

Firms need to integrate environmental issues into their strategic marketing and environmental management practices into their operations

Customer-oriented firms that value environmental management practices and adopt them as part of their strategic marketing are fast becoming known as environmental leaders, according to a global research report.

The new study from Hubert Gatignon, an emeritus professor of marketing, and the Claude Janssen chaired professor of business administration and emeritus at INSEAD, found the extent of a firm’s environmental management practices depends on how customer oriented it is.

“It’s clear from this research that customer satisfaction is an important driver of the implementation of environmental management practices. Firms need to integrate environmental issues into their strategic marketing and environmental management practices into their operations,” Gatignon said.

The report, Customer orientation and organisational innovation: The case of environmental management practices, shows customer-oriented firms gather more critical market information, recognise new customer opportunities and satisfy customers by delivering the demanded products or services.

“Customer orientation not only contributes to the firm’s environmental performance but also the development of long-term relationships and a firm’s capacity to innovate,” Gatignon said.

In a large-scale survey of 4324 French companies with 10 or more employees, Gatignon measured customer orientation by examining the company’s commitment to quality standards, such as ISO9000, whether the firms had information-gathering systems in place to capture customer data and translate it into action and the firm's’ commitment to after-sale service.

In his paper, Gatignon found the higher the firms scored on these dimensions, the higher the likelihood that they adopted environmental management practices, such as procedures to identify and measure environmental impacts by preparing environmental audits, setting environmental performance goals and obtaining ISO14001 environmental certification.

Whether firms were responsive to customers or not did not have a significant impact on their environmental management practices. According to Gatignon, a focus on only resolving current customer claims makes firms miss the needs of new customers, making them less innovative. The dimensions that mattered most were the firm’s values and its information-gathering capabilities, the report noted.

The firms surveyed spanned several sectors, such as food, consumer goods, cars and equipment and transport. Construction and intermediate goods and energy were most sensitive to the adoption of environmental management practices.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

The purpose of purpose

Everyone knows the 4 P’s of marketing: Price, product, promotion and place. There is now a fifth ‘P’ in the marketing mix.

What does it take to be an innovation leader?

To thrive in an increasingly complex and unpredictable new world, organisations will need to innovate, and leaders will require the necessary skills to do so. Here,

Evette Cordy

Co-founder, Agents of Spring

3 marketing mistakes to overcome when courting prospective customers

Marketing that urges respondents to ‘buy now’ is a little like asking someone to marry you on your first date. At any time, only 3 per cent of the market is looking for what you’re selling, so the chances of your date randomly being ‘The One’ is pretty slim.

Sabri Suby

Founder, King Kong

it is very informative and quality of the Furniture NZ i liked it and share on my wall

EveGreen

How Fantastic Furniture is making omni-channel retailing a reality

Read more

We can't overlook mobile. Each passing day people are on their phones more and more

This Is My South Bay

What the 5G revolution will do to mobile marketing

Read more

An article largely re-purposed from things other people have said 5+ years ago – what's more, they said it better.

hogwash

The purpose of purpose - Brand science - CMO Australia

Read more

talking about the 4 p's:https://www.tripleclicks.co...

kigoma divin

The purpose of purpose - Brand science - CMO Australia

Read more

Interesting blog, good information is provided regarding Design Thinking For Business Strategy. Was very useful, thanks for sharing the b...

Tanya Sharma

Is design thinking the answer for the next generation of marketing?

Read more

Latest Podcast

More podcasts

Sign in