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Addressing socio-ecological issues in marketing: environmental, social and governance (ESG)

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  • O. C. Ferrell

    (Harbert College of Business, Auburn University)

Abstract

This commentary addresses the Social and Ecological Thought (SET) framework based on virtue ethics (Dyck & Manchanda, in AMS Review, 2021). The basis of this framework is to replace utilitarian values that focus on profit maximization. The Financial Bottom Line (FBL) is believed to be a mainstream utilitarian philosophy. In addition, the Triple Bottom Line (TBL) is considered inadequate to address socio-ecological issues because there is a major focus on financial performance. After addressing some of the limitations in the SET framework, the Environmental, Social and Governance (ESG) framework is presented as a more relevant alternative. ESG provides a lens for creating priorities for socio-ecological comparative performance based on industry, investors’ and peer index scores. There is a strong correlation between ESG performance and profits. Compelling evidence is provided that suggests there is no conflict between socio-ecological responsibility and financial success.

Suggested Citation

  • O. C. Ferrell, 2021. "Addressing socio-ecological issues in marketing: environmental, social and governance (ESG)," AMS Review, Springer;Academy of Marketing Science, vol. 11(1), pages 140-144, June.
    • Handle: RePEc:spr:amsrev:v:11:y:2021:i:1:d:10.1007_s13162-021-00201-3
    DOI: 10.1007/s13162-021-00201-3
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    References listed on IDEAS

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    1. Heather Dixon-Fowler & Daniel Slater & Jonathan Johnson & Alan Ellstrand & Andrea Romi, 2013. "Beyond “Does it Pay to be Green?” A Meta-Analysis of Moderators of the CEP–CFP Relationship," Journal of Business Ethics, Springer, vol. 112(2), pages 353-366, January.
    2. Laczniak, Gene R. & Murphy, Patrick E., 2019. "The role of normative marketing ethics," Journal of Business Research, Elsevier, vol. 95(C), pages 401-407.
    3. Bruno Dyck & Rajesh V. Manchanda, 2021. "Sustainable marketing based on virtue ethics: addressing socio-ecological challenges facing humankind," AMS Review, Springer;Academy of Marketing Science, vol. 11(1), pages 115-132, June.
    4. Shelby D. Hunt, 2017. "Strategic marketing, sustainability, the triple bottom line, and resource-advantage (R-A) theory: Securing the foundations of strategic marketing theory and research," AMS Review, Springer;Academy of Marketing Science, vol. 7(1), pages 52-66, June.
    5. Camelia-Daniela Hategan & Nicoleta Sirghi & Ruxandra-Ioana Curea-Pitorac & Vasile-Petru Hategan, 2018. "Doing Well or Doing Good: The Relationship between Corporate Social Responsibility and Profit in Romanian Companies," Sustainability, MDPI, vol. 10(4), pages 1-23, April.
    6. Bruno Dyck & Rajesh V. Manchanda, 2021. "Correction to: Sustainable marketing based on virtue ethics: addressing socio-ecological challenges facing humankind," AMS Review, Springer;Academy of Marketing Science, vol. 11(1), pages 133-133, June.
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