Ba 560 - L02 Slides - Motivating Consumers V2 4a2r30

Walk the Moon – Tightrope Walk the Moon – Anna Sun

BA 560 Ethics & Sustainability Lecture 2: Motivating Consumers

David J. Hardisty Marketing & Behavioural Science Division Sauder School of Business University of British Columbia

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Some Stuff • • • •

Quiz 2 3 Things Early Quizzes and worksheet graded by Monday

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Today’s Agenda • Assignments: Overview and Questions • Finish intro to Ethical Frameworks • Lecture: Motivating Consumers

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Ethics Discussion Post and Replies • Posts due by Monday (1 hr before class) • Responses due by Wednesday (1 hr before class) • Good example on Connect (later today) • Details in syllabus (minimum requirements)

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Organizational Ethics Plan • Due Monday March 19th, 1 hr before class, on Connect • Good example on Connect (later today) • Don’t plagiarize • Details in syllabus (minimum requirements)

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Stakeholder Sustainability Audit • Groups posted on Connect • Class presentations during final exam time (TBA) • Written report deadline is 1 hr before class presentations • Good example on Connect (later today)

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Ethical Frameworks • Consequentialist (outcomes) – “Make good things happen” – Calculation based

• Duty (action) – “Do good things” – Rule based – Universal principals

• Virtue (actor) – “Be good” – Feeling or intuition based – Role based

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The Trolley Problem

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The Surgeon’s Problem

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Exercise: Ethical Frameworks • Analyze your business ethics example using the three frameworks • Where are they in conflict with each other?

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What is good? Can we say what’s right and wrong?

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Ethics: First Principles • Absolutism vs relativism • Moral landscape: multiple rights, multiple wrongs

Harris, S. (2011). The moral landscape: How science can determine human values. Simon and Schuster.

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Ethics: First Principles • We should promote the long-term flourishing of humans (and other life) – But what is flourishing? – Ex: individualism vs collectivism

• The advancement of knowledge and facts informs morality – Ex: Comparison with food and physical health – Ex: Slavery, slave owners; blood-letting, doctors

• Make a judgment of what’s right and wrong based on the best information you currently have and take action • Be ready to change when you learn a better way

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Values • • • • •

What is good? What to do when ethical frameworks collide? When in doubt, consult values What are UBC Sauder Values? People will respect values-based decisions

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Exercise • Use your values or your companies’ values to determine the best solution • Explain your values-based decision

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Motivating Consumers (jump in with questions or comments!)

Disposal and Waste • For every product you throw out, 70 times as much waste was produced upstream in the production and distribution process.1 • Extraction, production, transportation, storage, sale, disposal. • 6 months after a product is sold, what percent of the materials (including production, etc) are still in use? • 1% 1The

Next Efficiency Revolution: Creating a Sustainable Materials Economy by John Young and Aaron Sachs, Worldwatch 18 Institute (1994), p. 13

When and why do consumers replace products? • Planned obsolescence - consumer satisfaction • Perceived obsolescence • Other examples?

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How to deal with consumer waste

Reduce Reuse Recycle

• Most recycling is actually “downcycling”, and is not very efficient 20

http://goo.gl/knUClt

Certified Benefit Corporation (B-Corp) Certified corporate form including three primary components: Purpose - to create a material positive impact on society and the environment. ability - redefine fiduciary duty to require consideration of the interests of workers, community and the environment. Transparency - publicly report annually on its overall social and environmental performance using a comprehensive, credible, independent, and transparent third party standard.

Canadian B Corps Currently 210 Canadian B Corps: http://goo.gl/c0QYSn • Ex: Ethical Bean

Win-win Yvon Chouinard: “We want to make the best clothes and make them so they will last a long, long time. Our idea is to make the best product so you can consume less and consume better.” • Since 1985, Patagonia has given at least 1% of its sales to environmental charities • co-founded One Percent for the Planet, an alliance of mostly small companies that pledge to do the same • Worked with Walmart to develop a sustainable clothing standard. “We're switching all our nylon to something called Nylon 6, which can be recycled infinitely.”

Win-win • Since 2008, Patagonia has tripled its profits, with about $600 million in revenues in 2013 • Why have they been so successful with this strategy? • Also: saving money and environmentalism often go hand in hand https://www.youtube.com/watch?v=VSNFE6e UjfY