Abstract
In recent years, environmental factors have played a vital role in developing of the firm's production process. And also these factors have affected and shaped management decisions which has related with price, distribution and promotion process of firms. In this concept, green movement has gained more importance to enhance the environmental awareness. In this study we combine different academic views on stakeholder perspective for green policies of a company's that cover environmental friendly acts. In order to provide alternative point of views for the companies' green marketing concepts, various academic perspectives are examined. This literature research aims to investigate green policies; management thinking on environmental perspective and those creates significant impact on stakeholders' theories and marketing process.
TopGreen Marketing
Concern over the environment has evolved through several distinct phases. From the 1960s ecology movement focusing on pollution and energy conservation, to the recent use of environmental issues as a source of competitive advantage in business and politics, individual and societal concerns over environmental issues have become increasingly apparent to the casual observer as the twenty-first century draws near. This evolution has resulted in an expanded list of issues that fall within the domain of environmental responsibility (Straughan & Roberts, 1999, p.558).
Green marketing concept was first discussed at the American Marketing Association (AMA)’s conference on “Ecological Marketing” in 1975 which attempted to bring together academics, practitioners, and public policy makers to examine marketing’s impact on the natural environment (Polonsky, 1994, p.1). The environmental movement changed in two significant ways in the mid-1980s. First, it adopted a professional rather than an ideological philosophy. Second, as adversaries sought new ground on which to become allies, the relationships between the environmentalists and the law-makers changed from confrontational to accommodative (Menon & Menon, 1997, p. 54). Yet it was not until 1990 that green marketing “arrived in earnest” (Peattie, 1992, p.46).
Key Terms in this Chapter
Institutional Theory: This theory proposed that the institutional environment could mainly effect the development of formal structures in an organization, often more profoundly than market stresses.
Tobin’s q: This ratio measures the firm assets in relation to market value, which is calculated by dividing total market value to total assets of a firm.
Return on Asset: This financial ratio measures the efficiency that generates enough return while using the minimum amount of assets and is calculated as a company's net income divided by its average of total assets.
(Natural) Resource Based View Theory: This theory is articulating the connection with firm resources, capabilities and competitive advantages and proposes that organizations should look inside the company to find the sources of competitive advantage rather by searching for competitive environment for it.
Green Marketing: A marketing process of a company’s product and services which is based on environmental awareness and sustainability.
Return on Equity: This financial ratio measures generated profits from shareholders investment and determines the amount of return they receive from their capital investment in a company, which is calculated as net income divided by total equity.