Sustainable Management and Marketing

Running head: SUSTAINABLE MANAGEMENT AND MARKETING
SUSTAINABLE MANAGEMENT AND MARKETING
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1SUSTAINABLE MANAGEMENT AND MARKETING
Table of Contents
1.0 Introduction...............................................................................................2
2.0 Importance of sustainable decisions as ‘Performance with Purpose’........2
3.0 Critique of the management decisions of Fast-Moving Consumer Goods
(FMCG) companies...........................................................................................3
4.0 Examples of social impacts created in the FMCG companies....................4
5.0 Short-term and long-term management recommendations......................5
5.1 Colgate-Palmolive Company...................................................................5
5.2 Coca-Cola...............................................................................................5
5.3 Hindustan Unilever Limited (HUL)..........................................................5
Conclusion.......................................................................................................6
References.......................................................................................................7

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1.0 Introduction
As stated by Wu et al. (2015), the major focus of the contemporary
business corporations is on the increase of their profitability so as to enhance
their growth rate. Gartenberg, Prat and Serafeim (2019) are of the viewpoint
that the major problem associated with is this that these corporations often
use the kind of business activities which are not only unethical but also
detrimental from the perspective of their key stakeholders as well. More
importantly, it is widely recognized that the objective of the business
corporations should be to create social value and thus they need to take the
help of sustainable business practices (Baltzley 2016). It is precisely here
that the “Performance with Purpose” policy followed by PepsiCo and its CEO
Indra Nooyi become important. This report undertakes a critical analysis of
the concept of “Performance with Purpose” and recommends the manner in
which the corporations can use this approach for accelerating their growth
rate.
2.0 Importance of sustainable decisions as ‘Performance with
Purpose’
Hallin et al. (2016) are of the viewpoint that as per the narrow view of
corporate social responsibility (CSR), the most important aim of the business
corporations should be to make profit and the leaders related to the
corporations are required to help the corporation to attain this particular
objective of theirs. Adding to this, Roome and Louche (2016) have noted that
the “triple bottom line approach to sustainability” states that the business
corporations for the purpose of attaining sustainability are required to create
economic value, social value and also environmental value. This idea in turn
had necessitated a change within the leadership theories or for that matter
the leadership practices that had been followed by the different business
corporations over the years (Dunne et al. 2016). More importantly, the

3SUSTAINABLE MANAGEMENT AND MARKETING
leaders are required to take the help of authentic leadership theory or the
ethical leadership theory which will help them to influence the corporations
to use ethical business practices which in turn would influence the
corporations to use sustainable business practices (Fox and Gozin'a 2017).
Furthermore, the leaders are also required to make the corporations
understand the fact that it is not enough to attain financial or other forms of
growth rather the growth which is being attained by them should be for a
purpose and also intended to benefit the stakeholders as well rather than
merely the shareholders (Hansen et al. 2016). In this connection, mention
needs to be made of Indra Nooyi who removed the beverages which were
harmful for the health of the customers from the product portfolio of PepsiCo
and replaced the same with healthy beverages (Gregory 2018). This in turn
not only helped PepsiCo to improve its brand image among its customers but
at the same time helped it to attain a substantial amount of growth as well.
3.0 Critique of the management decisions of Fast-Moving Consumer
Goods (FMCG) companies
DiSegni, Huly and Akron (2015) are of the viewpoint that the Fast-
Moving Consumer Goods are the commodities or the services that are
generally being offered by the corporations at comparatively lower prices
and thereby get purchased quickly by the customers. Adding to this,
Wiengarten, Lo and Lam (2017) have noted that since the corporations
offering these FMCGs focus on the aspect of cost thus it is often seen that
these goods do not always score very high on the aspect of quality. Colgate-
Palmolive Company, an American business corporation which specializes in
the manufacture as well as the sale of household, healthcare and personal
care products, in the recent times had emerged as one of the most
important FMCG companies of the world (Colgatepalmolive.com 2019).
Furthermore, it had been seen that the concerned corporation over the years
had been able to gain a significant amount of success because of the
sustainable practices and also the different CSR measures that it uses.