BUS5SMM: Sustainable Management and Marketing Report - FMCG Analysis
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This report delves into the realm of sustainable management and marketing, exploring leadership theories and their application in fostering sustainable practices within organizations. It examines the "Performance with Purpose" initiative of PepsiCo as a case study, analyzing its leadership strategies and objectives. The report further investigates the sustainable practices of Fast-Moving Consumer Goods (FMCG) companies, including Hindustan Unilever, Coca-Cola, and Johnson & Johnson, evaluating their social impacts and employing a greenwash strategy. It provides short-term and long-term recommendations for each company to enhance their sustainability efforts. The report concludes by emphasizing the importance of sustainable management in today's business environment, highlighting the significance of non-conventional energy adoption, and the role of sustainability in attracting consumers.
RUNNING HEAD: SUSTAINABLE MANAGEMENT AND MARKETING 0
Sustainable Management and Marketing
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Sustainable Management and Marketing
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SUSTAINABLE MANAGEMENT AND MARKETING 1
Contents
Introduction......................................................................................................................................2
Leadership theories..........................................................................................................................2
FMCG companies............................................................................................................................3
Hindustan Unilever......................................................................................................................4
Coca-Cola....................................................................................................................................4
Johnson and Johnson...................................................................................................................4
Social impacts..................................................................................................................................4
Hindustan Unilever......................................................................................................................4
Coca-Cola....................................................................................................................................5
Johnson and Johnson...................................................................................................................5
Long-term and short-term recommendations..................................................................................5
Hindustan Unilever......................................................................................................................5
Coca-Cola....................................................................................................................................6
Johnson and Johnson...................................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................8
Contents
Introduction......................................................................................................................................2
Leadership theories..........................................................................................................................2
FMCG companies............................................................................................................................3
Hindustan Unilever......................................................................................................................4
Coca-Cola....................................................................................................................................4
Johnson and Johnson...................................................................................................................4
Social impacts..................................................................................................................................4
Hindustan Unilever......................................................................................................................4
Coca-Cola....................................................................................................................................5
Johnson and Johnson...................................................................................................................5
Long-term and short-term recommendations..................................................................................5
Hindustan Unilever......................................................................................................................5
Coca-Cola....................................................................................................................................6
Johnson and Johnson...................................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................8
SUSTAINABLE MANAGEMENT AND MARKETING 2
Introduction
Companies adopted sustainable practices through the economic, social and environmental
systems by helps the sustainable management. Companies shifted the focus on the healthy and
productive products that do not reflect harmful impacts on consumer health. In the current report,
there is a discussion of sustainable management and practices. This report includes the
discussion of leadership theories to analysis the importance of sustainable decisions with the
Pepsi “Performance with Purpose”. Further, there is study of three FMCG companies with the
social impacts and short-long term management recommendations.
Leadership theories
Leadership is the core strategy for the success in the organization. The effective administration is
depending on the three basic leadership skills that are technical, human and conceptual. In the
human leadership skill refers to the, in which the management should work in the coordination
manner to achieve the management goals and objectives (Schyns, 2011). In the conceptual
leadership skills, it includes the mission and vision in which company should understand where
it stands and what it wants to achieve. Nooyi runs the business with technical and sustainable
support with the granulated expansion in the departments. Nooyi understands the technical
aspects in the management and creates emergent markets, product pivots, and innovative
initiatives. In the Pepsi organization, it uses the human capital and implements the performance
with purpose in order to ensure sustainability (Performance with Purpose , 2019). The main
objectives of the “performance with purpose” focus on the people, planet, and products. It
implements to bring the vision into reality with innovative practice of sustainability.
“Performance with purpose” implements with conceptual skills in order to achieve sustainability
in the organization. A leadership theory that observes in the performance with purpose is trait
theory, behavioral theory, and contingency theory. In the trait theory, it includes intelligence,
creativity, and sense of responsibility. The trait theory implies in the performance with
performance because Nooyi analyzes the mental, physical and social traits in the employees of
an organization and motivates to work for the sustainability. In the behavioral theory it includes
the efficient human relationship. In the performance with purpose, it shows Nooyi takes all the
Introduction
Companies adopted sustainable practices through the economic, social and environmental
systems by helps the sustainable management. Companies shifted the focus on the healthy and
productive products that do not reflect harmful impacts on consumer health. In the current report,
there is a discussion of sustainable management and practices. This report includes the
discussion of leadership theories to analysis the importance of sustainable decisions with the
Pepsi “Performance with Purpose”. Further, there is study of three FMCG companies with the
social impacts and short-long term management recommendations.
Leadership theories
Leadership is the core strategy for the success in the organization. The effective administration is
depending on the three basic leadership skills that are technical, human and conceptual. In the
human leadership skill refers to the, in which the management should work in the coordination
manner to achieve the management goals and objectives (Schyns, 2011). In the conceptual
leadership skills, it includes the mission and vision in which company should understand where
it stands and what it wants to achieve. Nooyi runs the business with technical and sustainable
support with the granulated expansion in the departments. Nooyi understands the technical
aspects in the management and creates emergent markets, product pivots, and innovative
initiatives. In the Pepsi organization, it uses the human capital and implements the performance
with purpose in order to ensure sustainability (Performance with Purpose , 2019). The main
objectives of the “performance with purpose” focus on the people, planet, and products. It
implements to bring the vision into reality with innovative practice of sustainability.
“Performance with purpose” implements with conceptual skills in order to achieve sustainability
in the organization. A leadership theory that observes in the performance with purpose is trait
theory, behavioral theory, and contingency theory. In the trait theory, it includes intelligence,
creativity, and sense of responsibility. The trait theory implies in the performance with
performance because Nooyi analyzes the mental, physical and social traits in the employees of
an organization and motivates to work for the sustainability. In the behavioral theory it includes
the efficient human relationship. In the performance with purpose, it shows Nooyi takes all the
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SUSTAINABLE MANAGEMENT AND MARKETING 3
managerial decisions with the communication from the employee. She takes the opinion of
sustainability from each of the employees in the organization. In the contingency theory
leadership style based on a certain situation so, that leadership can exercise in the management
(Akhtar, et al., 2018).
FMCG companies
In the performance with purpose includes that it works three strategies includes, firstly is focus to
implements the robust financial performance in a financial year. Secondly, deliver in the manner
that it provides sustainability on a regular ba sis, not for the short (Performance with Purpose,
2019). Thirdly it implies in the manner that it will be responsible to the society and different
communities in the organization. The other objectives of the performance with purpose as it
confirm to deliver the top-tier performance in the organization, which that serves to the
communities, and other organization (Performance with Purpose , 2019).
Figure: Performance with purpose
Source: (Performance with Purpose , 2019)
managerial decisions with the communication from the employee. She takes the opinion of
sustainability from each of the employees in the organization. In the contingency theory
leadership style based on a certain situation so, that leadership can exercise in the management
(Akhtar, et al., 2018).
FMCG companies
In the performance with purpose includes that it works three strategies includes, firstly is focus to
implements the robust financial performance in a financial year. Secondly, deliver in the manner
that it provides sustainability on a regular ba sis, not for the short (Performance with Purpose,
2019). Thirdly it implies in the manner that it will be responsible to the society and different
communities in the organization. The other objectives of the performance with purpose as it
confirm to deliver the top-tier performance in the organization, which that serves to the
communities, and other organization (Performance with Purpose , 2019).
Figure: Performance with purpose
Source: (Performance with Purpose , 2019)
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SUSTAINABLE MANAGEMENT AND MARKETING 4
Hindustan Unilever
Hindustan Unilever was claimed to use greenwash strategy by spreading environmental pollution
in the hill station of Kodaikanal. However, the company has denied the responsibility of this
issue. It is impossible to remove the products of HUL as the products are available everywhere in
various varieties (Ladage, 2015).
Coca-Cola
An American company produces the consumer company and implies the greenwash strategy
such as Eco imagination applies the green action in the production process. The company uses
the “Strongest” green brands in performance and perception. The company uses environmental
products to implements the greenwash strategy. One of the examples of the greenwash strategy is
Green Sheen, Green PR and green marketing. Rebranding is one of the greenwash strategies of
the company (Coca-Cola, 2019).
Johnson and Johnson
Johnson and Johnson had been accused of using greenwash strategy by misleading their
customers through the use of formaldehyde which is the harmful chemical present in the baby
shampoo and the company was claimed to demonstrate misleading test results. The harmful
chemical can cause cancer. Moreover, the state’s drug regulatory body claimed that the company
had categorized their products samples as “not standard quality” as the products were proclaimed
to use harmful ingredients (Thacker, 2019).
Social impacts
Hindustan Unilever
Social impact of this misleading practice was on the workers of factories wherein the employees
were observed to be working with mercury exposure with naked hands and feet without any
protection. Moreover, it had compelled the employees to go on strike and standing against the
extreme violation being done by the company (Ladage, 2015)
Hindustan Unilever
Hindustan Unilever was claimed to use greenwash strategy by spreading environmental pollution
in the hill station of Kodaikanal. However, the company has denied the responsibility of this
issue. It is impossible to remove the products of HUL as the products are available everywhere in
various varieties (Ladage, 2015).
Coca-Cola
An American company produces the consumer company and implies the greenwash strategy
such as Eco imagination applies the green action in the production process. The company uses
the “Strongest” green brands in performance and perception. The company uses environmental
products to implements the greenwash strategy. One of the examples of the greenwash strategy is
Green Sheen, Green PR and green marketing. Rebranding is one of the greenwash strategies of
the company (Coca-Cola, 2019).
Johnson and Johnson
Johnson and Johnson had been accused of using greenwash strategy by misleading their
customers through the use of formaldehyde which is the harmful chemical present in the baby
shampoo and the company was claimed to demonstrate misleading test results. The harmful
chemical can cause cancer. Moreover, the state’s drug regulatory body claimed that the company
had categorized their products samples as “not standard quality” as the products were proclaimed
to use harmful ingredients (Thacker, 2019).
Social impacts
Hindustan Unilever
Social impact of this misleading practice was on the workers of factories wherein the employees
were observed to be working with mercury exposure with naked hands and feet without any
protection. Moreover, it had compelled the employees to go on strike and standing against the
extreme violation being done by the company (Ladage, 2015)
SUSTAINABLE MANAGEMENT AND MARKETING 5
Coca-Cola
The examples of the social impacts in the company are “Live Positively”, beverage benefits,
sustainable packaging, and healthy living community. The main example of social impacts in the
Coca-Cola after the sustainable practices it becomes the member of CEO water mandate and gets
the partnership with the WWF (World Wildlife Find). The company concentrates on water
measures and control measures in the manufacturing process of consumer goods. The sustainable
implementations imitate the willpower that improves the corporate social responsibility and
positive results on the company’s goodwill and economic benefits (Coca-Cola, 2019)
Johnson and Johnson
Greenwash strategy being used by the company has social impact upon the customers of their
baby products. As the ingredients of their products are harmful, it can affect the health and
wellbeing of the customers. Also, this can impact the overall reputation of the company through
the use of greenwash strategy which is unethical (Thacker, 2019).
Long-term and short-term recommendations
Hindustan Unilever
The company should adopt sustainable practices can achieve short and long-term sustainability.
The company should make future-plans of the sustainable steps with effective planning and
controlling. (Alston, 2011) For the short-term effective sustainability, they should adopt the
sustainable statement that explains the principals and policy framework. It must be committed to
environmental sustainability and should work in the team to achieve a sustainable goal. Another
short-term recommendation for company is they should create a sustainable position in the
global market, which includes the recycling efforts and should promote sustainability. The long-
term recommendation for the company is that the company should overlook the interest of the
employees by dealing with them in an ethical way (Bright, et al., 2014).
Coca-Cola
Coca-Cola serves its products on the global level and maintains the sustainability by reducing the
plastic in the production process. The short-term recommendations to the company are that it
Coca-Cola
The examples of the social impacts in the company are “Live Positively”, beverage benefits,
sustainable packaging, and healthy living community. The main example of social impacts in the
Coca-Cola after the sustainable practices it becomes the member of CEO water mandate and gets
the partnership with the WWF (World Wildlife Find). The company concentrates on water
measures and control measures in the manufacturing process of consumer goods. The sustainable
implementations imitate the willpower that improves the corporate social responsibility and
positive results on the company’s goodwill and economic benefits (Coca-Cola, 2019)
Johnson and Johnson
Greenwash strategy being used by the company has social impact upon the customers of their
baby products. As the ingredients of their products are harmful, it can affect the health and
wellbeing of the customers. Also, this can impact the overall reputation of the company through
the use of greenwash strategy which is unethical (Thacker, 2019).
Long-term and short-term recommendations
Hindustan Unilever
The company should adopt sustainable practices can achieve short and long-term sustainability.
The company should make future-plans of the sustainable steps with effective planning and
controlling. (Alston, 2011) For the short-term effective sustainability, they should adopt the
sustainable statement that explains the principals and policy framework. It must be committed to
environmental sustainability and should work in the team to achieve a sustainable goal. Another
short-term recommendation for company is they should create a sustainable position in the
global market, which includes the recycling efforts and should promote sustainability. The long-
term recommendation for the company is that the company should overlook the interest of the
employees by dealing with them in an ethical way (Bright, et al., 2014).
Coca-Cola
Coca-Cola serves its products on the global level and maintains the sustainability by reducing the
plastic in the production process. The short-term recommendations to the company are that it
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should maintain the communication efforts in the internal management of the organization
(Creazza, et al., 2017). There should be a advancement in technology according the current
trends and practices. Effective understanding of the community and society is short-term step for
the company. The long-term recommendation for the company includes making a civic
obligation to environmental sustainability. The company should develop the plans and should
take action that helps to reduce greenhouse gas emissions (Painter, , et al., 2019).
Johnson and Johnson
Johnson and Johnson adopted the various sustainable programs in the management to become
sustainable organization on the global level. The short-term recommendation is that it should
promote the infusion of the sustainability practices (Wang, et al., 2018). Rather it should have
transparency into the products and make a fair declaration of the quality standards. The long-
term recommendations for the company are it should meet the quality standards of the concerned
government and should be focused upon using the sustainable products that protects the needs of
the customers along with using Modern technology for a sustainable approach (Palmer, et al.,
2018).
Conclusion
Sustainability management plays a crucial role in today’s changing environment. Companies
nowadays adopted new techniques and harming the environment by the large population.
Companies should manage sustainable practice in an effective manner. Companies in sustainable
management should adopt the non-conventional energy for positive results. The performance
with purpose aims to sustainable practice, which includes the reduction of sugar and saturated fat
in the products (Schyns, 2011). Performance with purpose was successful for sustainable
management. The Fast-moving consuming goods companies adopted many sustainable practices
but it should in proper planning and controlling. Many companies adopted the practice of
sustainable management that reduces the negative impacts on the organization. Companies
reduce the use of natural resources in the production process that helps to make them a
sustainable organization. Sustainability becomes a trend to attract potential consumers in the
organization (Sell & Minot, 2018).
should maintain the communication efforts in the internal management of the organization
(Creazza, et al., 2017). There should be a advancement in technology according the current
trends and practices. Effective understanding of the community and society is short-term step for
the company. The long-term recommendation for the company includes making a civic
obligation to environmental sustainability. The company should develop the plans and should
take action that helps to reduce greenhouse gas emissions (Painter, , et al., 2019).
Johnson and Johnson
Johnson and Johnson adopted the various sustainable programs in the management to become
sustainable organization on the global level. The short-term recommendation is that it should
promote the infusion of the sustainability practices (Wang, et al., 2018). Rather it should have
transparency into the products and make a fair declaration of the quality standards. The long-
term recommendations for the company are it should meet the quality standards of the concerned
government and should be focused upon using the sustainable products that protects the needs of
the customers along with using Modern technology for a sustainable approach (Palmer, et al.,
2018).
Conclusion
Sustainability management plays a crucial role in today’s changing environment. Companies
nowadays adopted new techniques and harming the environment by the large population.
Companies should manage sustainable practice in an effective manner. Companies in sustainable
management should adopt the non-conventional energy for positive results. The performance
with purpose aims to sustainable practice, which includes the reduction of sugar and saturated fat
in the products (Schyns, 2011). Performance with purpose was successful for sustainable
management. The Fast-moving consuming goods companies adopted many sustainable practices
but it should in proper planning and controlling. Many companies adopted the practice of
sustainable management that reduces the negative impacts on the organization. Companies
reduce the use of natural resources in the production process that helps to make them a
sustainable organization. Sustainability becomes a trend to attract potential consumers in the
organization (Sell & Minot, 2018).
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SUSTAINABLE MANAGEMENT AND MARKETING 7
References
Akhtar, P., Khan, . Z. & Rao, N., 2018. Essential Micro-foundations for Contemporary Business
Operations: Top Management Tangible Competencies, Relationship-based Business Networks
and Environmental Sustainability.(Report). British Journal of Management, 29(1), pp. 43-20.
Available at: http://sci-hub.tw/10.1111/1467-8551.12233
Alston, M., 2011. Gender and climate change in Australia. Journal of Sociology, 47(1), pp. 53-
70.Available at: http://sci-hub.tw/10.1177/1440783310376848
Bright, R., Antón, F., astrup, R. & Kvalevåg, M., 2014. Climate change implications of shifting
forest management strategy in a boreal forest ecosystem of Norway. Global Change Biology,
20(2), pp. 607-621. http://sci-hub.tw/10.1177/1440783310376848
Coca-Cola, 2019. Sustainbility. [Online]
Available at: https://www.coca-colacompany.com/sustainability
Creazza, A., Colicchia, C. & Dallari, F., 2017. Lean and green supply chain management
through intermodal transport: insights from the fast moving consumer goods industry.
Production Planning & Control, 28(4), pp. 321-334.
http://sci-hub.tw/10.1080/09537287.2017.1282642
Ladage, R., 2015. Stop using Hindustan Unilever products are what the poor Kodaikanal
workers are now demanding. Will you agree?. [Online]
Available at: https://www.india.com/buzz/stop-using-hindustan-unilever-products-are-what-the-
poor-kodaikanal-workers-are-now-demanding-will-you-agree-558870/
Painter, , M., Hibbert, S. & Cooper, , T., 2019. The Development of Responsible and Sustainable
Business Practice: Value, Mind-Sets, Business-Models. Journal of Business Ethics, 157(4), pp.
885-891. http://sci-hub.tw/10.1007/s10551-018-3958-3
Palmer, . A., Mortimer, P., Greening, P. & Piecyk, M., 2018. A cost and CO2 comparison of
using trains and higher capacity trucks when UK FMCG companies collaborate. Transportation
Research , 58(1), pp. 94-107. http://sci-hub.tw/10.1016/j.trd.2017.11.009
References
Akhtar, P., Khan, . Z. & Rao, N., 2018. Essential Micro-foundations for Contemporary Business
Operations: Top Management Tangible Competencies, Relationship-based Business Networks
and Environmental Sustainability.(Report). British Journal of Management, 29(1), pp. 43-20.
Available at: http://sci-hub.tw/10.1111/1467-8551.12233
Alston, M., 2011. Gender and climate change in Australia. Journal of Sociology, 47(1), pp. 53-
70.Available at: http://sci-hub.tw/10.1177/1440783310376848
Bright, R., Antón, F., astrup, R. & Kvalevåg, M., 2014. Climate change implications of shifting
forest management strategy in a boreal forest ecosystem of Norway. Global Change Biology,
20(2), pp. 607-621. http://sci-hub.tw/10.1177/1440783310376848
Coca-Cola, 2019. Sustainbility. [Online]
Available at: https://www.coca-colacompany.com/sustainability
Creazza, A., Colicchia, C. & Dallari, F., 2017. Lean and green supply chain management
through intermodal transport: insights from the fast moving consumer goods industry.
Production Planning & Control, 28(4), pp. 321-334.
http://sci-hub.tw/10.1080/09537287.2017.1282642
Ladage, R., 2015. Stop using Hindustan Unilever products are what the poor Kodaikanal
workers are now demanding. Will you agree?. [Online]
Available at: https://www.india.com/buzz/stop-using-hindustan-unilever-products-are-what-the-
poor-kodaikanal-workers-are-now-demanding-will-you-agree-558870/
Painter, , M., Hibbert, S. & Cooper, , T., 2019. The Development of Responsible and Sustainable
Business Practice: Value, Mind-Sets, Business-Models. Journal of Business Ethics, 157(4), pp.
885-891. http://sci-hub.tw/10.1007/s10551-018-3958-3
Palmer, . A., Mortimer, P., Greening, P. & Piecyk, M., 2018. A cost and CO2 comparison of
using trains and higher capacity trucks when UK FMCG companies collaborate. Transportation
Research , 58(1), pp. 94-107. http://sci-hub.tw/10.1016/j.trd.2017.11.009
SUSTAINABLE MANAGEMENT AND MARKETING 8
Performance with Purpose , 2019. Performance with Purpose. [Online]
Available at: https://www.pepsico.com/docs/album/sustainability-report/2017-csr/
pepsico_2017_csr.pdf
Performance with Purpose, 2019. Performance with Purpose. [Online]
Available at: https://www.pepsico.com/sustainability/performance-with-purpose
Schyns, B., 2011. Implicit Leadership Theories: Think Leader, Think Effective?. Journal of
Management Inquiry, 20(2), pp. 141-150. http://sci-hub.tw/10.1177/1056492610375989
Sell, M. & Minot, . N., 2018. What factors explain women's empowerment? Decision-making
among small-scale farmers in Uganda. Women's Studies International Forum, 71(1), pp. 46-55.
http://sci-hub.tw/10.1016/j.wsif.2018.09.005
Thacker, T., 2019. Johnson and Johnson baby shampoo fails watchdog’s quality tests. [Online]
Available at: https://www.livemint.com/companies/news/johnson-and-johnson-baby-shampoo-
fails-watchdog-s-quality-tests-1554051753137.html
Wang, B., Waters, . C. & Yu, Q., 2018. Quantifying sources of uncertainty in projected wheat
yield changes under climate change in eastern Australia. Climatic Change, 151(2), pp. 259-273. :
http://sci-hub.tw/10.1007/s10584-018-2306-z
Performance with Purpose , 2019. Performance with Purpose. [Online]
Available at: https://www.pepsico.com/docs/album/sustainability-report/2017-csr/
pepsico_2017_csr.pdf
Performance with Purpose, 2019. Performance with Purpose. [Online]
Available at: https://www.pepsico.com/sustainability/performance-with-purpose
Schyns, B., 2011. Implicit Leadership Theories: Think Leader, Think Effective?. Journal of
Management Inquiry, 20(2), pp. 141-150. http://sci-hub.tw/10.1177/1056492610375989
Sell, M. & Minot, . N., 2018. What factors explain women's empowerment? Decision-making
among small-scale farmers in Uganda. Women's Studies International Forum, 71(1), pp. 46-55.
http://sci-hub.tw/10.1016/j.wsif.2018.09.005
Thacker, T., 2019. Johnson and Johnson baby shampoo fails watchdog’s quality tests. [Online]
Available at: https://www.livemint.com/companies/news/johnson-and-johnson-baby-shampoo-
fails-watchdog-s-quality-tests-1554051753137.html
Wang, B., Waters, . C. & Yu, Q., 2018. Quantifying sources of uncertainty in projected wheat
yield changes under climate change in eastern Australia. Climatic Change, 151(2), pp. 259-273. :
http://sci-hub.tw/10.1007/s10584-018-2306-z
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