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

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

Hey WhatsApp chatbots need to be added to a business’ tool belt to engage with the always-on customers. Easy to build in literally 5 step...

Unnit Dedhia

How chatbot marketing brought a supernatural exhibition to digital life

Read more

We’re seeing an increase in customer loyalty after businesses began implementing Live Chat. Here’s your one-stop guide on Live Chat suppo...

Fiza Syed

Customer loyalty in the time of COVID-19

Read more

JP54,D2, D6, JetA1 EN590Dear Buyer/ Buyer mandateWe currently have Available FOB Rotterdam/Houston for JP54,D2, D6, JetA1 with good and w...

Collins Johnson

Oath to fully acquire Yahoo7 from Seven West Media

Read more

Hi This is George, Thanks for sharing this nice information about foodpanda blockchain. During this pandemic situation food delivery indu...

George David

foodpanda launches blockchain-based out-of-home advertising campaign

Read more

Did anyone proofread this document before it was published?

Beau Ushay

CMO Momentum 2020: How to embrace agile marketing

Read more

Blog Posts

Innovate or die

It’s hard to know if famed management and marketing guru, Peter Drucker, coined this phrase for dramatic effect. My belief is he was emphasising the notion that few products and markets are static and few organisations can survive without innovation.

Michael Valos

Senior Lecturer, Department of Marketing, Deakin University

Commissioning personas that get used

How to avoid the bottom drawer, and how to get value from the work you’ve paid for

Melanie Wiese

Chief strategy officer, Wunderman Thompson

Why It’s Going To Be A Bumper Holiday Season Despite the Pandemic

Behavioural science expert Dan Monheit, co-founder and strategy director of creative agency, Hardhat, writes that marketing chiefs should hold their nerve, as they have reason to be optimistic

Dan Monheit

Co-founder, Hardhat

Sign in