Over the decades different businesses have exhibited a raised concern to the issue of sustainability. The Mckinsey Global survey echoes that many companies have adapted to sustainability policies, in an attempt to achieve higher goals that the mediocre goals set decades ago (Neielsen, 2015, p. 34) . According to the survey the levels of adaptation to sustainability policies have gone up, covering 90% of the business in the economy today. Over the years policy makers have attempted to align the interests of the global capital markets, with the society. Policy makers have attempted to address the issue of allocating capital to the short term; unsustainable needs while still maintain a prosperous future for the coming generations.
The Objective of this report is to provide a platform where policy makers can be able to make policies that will guide on the movement of the global market on more sustainable grounds. By evaluating the different aspects of sustainability development, the writer is expected to explore on the methods that policy makers may result adapt to in order to facilitate the global market to meet the present needs without compromising the future. Conclusively the report will evaluate the significance of sustainability in the capital markets, and describe the importance of this notion towards the Global economy.
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Discussion
As in the past, companies were mainly focused on establishing and maintaining their reputation. In the modern day most companies have resulted to identifying a long term strategic view that will facilitate sustainability opportunities that hold the highest value potential. Companies across the world aspire to attain sustainability in regards to factors of production and capital returns as well, most companies have attempted to achieve sustainability through improving the efficiency of the company and lowering production costs. Most companies have come up with new important Agendas to guide to drive the efficiency of their companies, we find different companies resulting to new goals and objectives. Companies are formulating plans and policies that promote the reduction of waste in company operations, as well as energy saving strategies that conserve energy rather than reckless energy consumption (Reed, 2008, p. 68) .
Some companies have also resulted to establishing new products in the global market. After evaluation these companies have started identifying new sustainable products, which support company’s growth and sustainability. Economists have argued that the establishment of new sustainable products in the market will not only ensure growth to the company but also create an era of products that are environmental friendly. Companies integrating sustainability have been identified to have the upper hand against competitors; such companies are able to deal with other sustainable initiatives which contribute to the growth of the economy.
Strategic planning is important in the field of business. Companies have adapted to strategic planning in the different areas that cover the company. Executive managers across the globe have identified the importance of strategic planning in all the aspects of the company. Companies have improved the method of planning for the mission and values of the company. This can be described to increase planning of the goals that these companies are trying to achieve, either in the short term or the long term. Strategic planning has gone further to allow the companies to fully understand and evaluate how to achieve the set goals and mission of the company. It is important to note that strategic planning improves the methods that a company adapts to, through proper planning the company is able to explore the methods of production, resources as well as understand the market. Strategic planning has allowed the company to understand the changing patterns of the global market, through this the company is able to sustain its resources as well as achieve the growth that the company desires.
Most companies have also improved their involvement in external communications. External communications create a link between the company and the external environment. In order to understand the global market, it is important to interact with the public as well as other companies. Due to competition most companies do not interact with competitor companies, companies have preferred to deal with internal issues internally rather than looking on the external environment for options and solutions. The external environment provides a basis of understanding the market and the current trends that make up the global market. Companies that desire to achieve sustainability have resolved to engage in external communication, in order to grow. The global market provides a large platform where different companies are able to interact, and learn from each other.
Sustainability of the global market depends on the ability of companies to manage their budgets. Across the globe many companies have integrated sustainability as a main objective in company budget, whereby the company strategies on how to use resources properly. Sustainable investment is a mode of investment that involves considering environmental, social and governance factors in allocation of resources and management. Companies in the modern day have resulted to sustainable investments; this has led to themed investment as a strategy towards global market sustainability. Themed investment focuses in the investment of social asses that are directly linked to stability. Assets may include clean energy, green technology and sustainable agriculture, it is important to understand that the company will invest in sustainable products that will provide for the future generations. As well as sustain the global market without depleting the other resources, or other factors available in the environment.
Other companies have resulted to community investment. Community investment involves solving the available social and environmental problems, in the community. Normally companies achieve this through privately owned markets; capital is allocated to individuals within the community who generate business that have a social and environment purpose. Investment has grown over the last decade; in the year 2014 investment assets exhibited a growth of over 61%. Different companies situated at different nations across the world have increased their investments, to ensure stability is achieved even for the future generations within the global market. The largest investment strategy is exclusionary screening, which has been adopted globally by many nations. Negative screening or exclusions are the funds set aside from certain factors within companies, company evaluate to identify the excess funds that are allocated within their production factors and set aside the excess funds for later investment. Companies are reducing their productions costs and focusing on establishing newer and better means of investments which are sustainable in the future.
Integration of the environmental, social and governance factors has become a strong strategy towards investment. In America it has become one of the most applied strategies towards the sustainability of the global market. Integration of the ESG factors involves the use of environmental, social and governance factors in the manager’s investment plans. Executive managers across different companies have resulted to inclusion of these factors in investment planning. The company is able to understand external factors before it makes a decision on investment. This allows the company to be able to understand the availability as well as depletion of resources in the society. The strategy focuses on using these factors in the financial way of planning in companies.
In order to understand the significance of sustainability of the global market, it is important to address the effect of sustainability towards the consumers around the world. It is hard for individuals to turn a blind eye to the developing campaign to protect the planet. Due to effects such as global warming, people around the world have raised the alarm to environmental protection and recreation. We find that people across the world are coming up to support organizations that campaign for the protection of the environment, and eradication of poor living conditions in the earth. As a result most people around the world have adapted to more sustainable ways of living, in support to social and environmental change.
The increase in the levels of awareness has created a platform where consumers have become very concerned with the products they purchase. In the modern day society, consumers are conducting adequate research before purchasing a commodity regardless of the brand. Consumers are seen to pay attention to the public opinion on different commodities in the global market; as a result companies that have a great lure of social responsibility have gained much attraction from the consumers. While companies with a little interest in pursuing socially responsible ends have experienced reduced levels in regards to consumer demand levels.
In an attempt to achieve stability many companies are using their own resources to support each other in order to be sustainable. Since social sustainability has continued to be topic analyzed by consumers, most companies are developing social responsibility as a part of the company. We get executive managers developing programs that facilitate or fund, other civic organizations that are dedicated to sustainability in the society. Other companies are introducing resources that are environmental friendly, thereby reducing social effects as well as environmental effects. It is important to acknowledge the much effect that these strategies have had on the public. Some consumers will result to purchasing a commodity under the claim of the contents being environmental friendly. On the other hand consumers may decide to purchase the commodity, in regards to the brand that is associated with an organization that is committed to giving back to the community. Similarly other consumers will look at the impact that the brand has on the environment, which is if the brand supports notions such as a low levels of carbon elements, then the consumer is more likely to purchase it.
Research on the Global market has concluded that the market for sustainable good continues to grow at a high rate. Despite the difference in demographical region, the global market dictates that each and every company has the potential to achieve growth on a global scale, depending on the company’s ability to react towards the needs of the modern consumer.
According to Grace Farraj and the association of development and sustainability they are on the view that organizations should not be profit driven. Organizations should also play a role in giving back to the society as a form of corporate social responsibility which is considered to be very vital in the community because it empowers them. In order to compete in the business industry companies are advised to focus more on consumer expectations, rather than traditional marketing structures. Companies are advised to improve their brand quality in regards to sustainability positions, in the global market.
In the Nielsen 2015 Global report, it has been identified that consumers will go for products within the global market that are healthy, affordable and environmental friendly. Focusing on this mode of argument one can identify that the aspect of Brand trust affects the purchasing patterns of consumers at the Global market. Brand trust is the reputation that a brand has built over a given period of time, in regards to product quality, durability and sustainability. A company with a good reputation is more likely to experience high demand from its consumers. Similarly consumers have been seen to purchase products on the basis of product quality and trust on the brand of the company. Brand trust is welcomed through good reputation. A company can achieve a good reputation by associating with good non-profit firms that care for the people (Hulm, 2006, p. 17) .
If a company is new to its environment, then the company should develop a sense of social responsibility. Being concerned about the welfare of the consumers and the environment, titles the company with a good reputation. In fact most companies in the modern day have adapted to this strategy in order to gain a good reputation, which is important for the company’s sustainability. It is evident that sustainability is key in maintain loyal customers and it form a great part in influencing their decisions. In 2014 65% of the total products brought to the global market have been identified to have been from brands that are committed to social values and the consumer environment. Large established brands have an opportunity to growth in the global market, but this opportunity depends on the ability of these brands to integrate sustainability into the market. Brands that ignore the aspect of sustainability are likely to experience reputational and business risks. As both brands established or newly established weigh the same weight in the global market, sustainability provides a platform where brands can compete for the new kind consumer in the global market.
Health and wellness is a factor that most consumers are going after in the modern day economy. The ability of a company to produce products that are healthy to the consumer will directly influence the consumer’s purchasing attitude towards the product. Consumers are searching for products that have positive effects on them and on the society. Products made from natural resources are likely to attract the consumer, in regards to products that have a high volume of non-natural components. In recent past companies have been seen to be continuously conducting component evaluation, and ensuring that products have high volumes of natural ingredients, which are friendly both to the individual and the society. The marketing strategy towards sustainability is very important. Some of the forms of advertisement including television broadcasts have taken root because of the spread of technology throughout the globe. Companies have developed the advertisements to feature, the company’s commitment towards social and environmental responsibility. These modes of advertisements have increased the levels of demand for different types of products in the global market.
Companies are also advised to explore other modes of advertisement that are available in the society. Apart from just advertising companies should develop advertisements that capture their campaign towards global sustainability, this would involve employee volunteerism or involving community work in the company’s website of advertisements. It is important to understand that sustainability requires that the company result to sustainable means of production, marketing and product supply. Since the company is within the community it is important to give back to the community. Through advertisements companies can be among the top campaigners of social responsibility. Moreover, consumers are more likely to purchase products, from a brand that facilitates social and environmental responsibility.
It is estimated that only 60% of the consumers are in a position to pay for sustainable commodities in the Global market. Regardless of the regions or the wealth background, consumers from different regions and different levels of income are willing to pay more if it satisfies their social and personal expectations. Commodity sustainability is an issue that has been of great concern to many more so in countries that have a higher rate of population growth, in such reasons there is much stress on the environment. In regards to sustainability the patterns of demand and price values may differ between developed and un-developed markets (Neielsen, 2015, p. 48) . Over developed regions sustainability is more of cost reduction, rather than cost increment. Statistics have shown that in most of the developing countries consumers are willing to pay less for commodities, than in developing markets where consumers are willing to purchase commodities regardless of the increase in the price levels.
Developed markets view sustainability as the imperative motive of fewer costs of production and also environment friendly. Thereby consumers from these regions will focus on the quality and reputation of the producing brand. On the other hand developing markets provide new products at any given period of time in the market, since the market is not as flooded as the developed market. Consumers are willing to purchase quality products that promise sustainability regardless of the brand. Consumers will judge commodities based on the social responsibility that the company has adopted towards the society. Companies in developing economies should thereby adapt to influence the society positively. This can be achieved through good social responsiveness as well as concern for the society and the future generations as well (Belz F-M, 2009, p. 31) .
Age is an important factor in the Global Market. Research states that age has special influence on consumer expenditure patterns in the capital market. Millennia’s: over 34 years, tend to have high rates of both financial freedom and stability. Thereby a large population of consumers around the globe, purchase products due to certain needs and concerns. Consumers at an old age are less willing to purchase goods with increased prices. One can argue that most of these consumers have already established trusted brands, from whom they purchase their products regards of the levels of product quality or the integration of the company towards sustainability. On the other hand generation z consumers are up to date with the modern times. These consumers are open to any company or brand that facilitates more product quality, and adhere towards sustainability. Generation z consumers are willing to increase pay towards commodities, if the commodities hold a positive impact towards both the society and the individual. One can argue that companies have a potential market to reach out to, since consumers are open for commodities provided, companies have the platform to increase the quality of products and integrate the factors of sustainability. Companies that integrate aspects of sustainability in their factors of production are more likely to receive consumers in the current and future global market. On the other hand is a company does not adhere to the requirements of sustaining the global market, the company is prone to lose consumers.
In the modern day demonstrating the interest towards sustainability, has grown to become a course of entry by any mode of brand (Clay, 2005, p. 46) . Companies have developed different traditions to incorporate sustainability as a portion of their promotion approach. Some companies have adapted to using the product’s label or packaging to express their interest towards sustainability. Other companies are using their marketing channels to explore on the importance of social and environmental impacts that their products have. Companies have also used their marketing channels to expound on their campaign towards environmental and community care. These companies may use these channels to advertise other non-profit organizations that the company may be involved with. As far as sustainability is concerned, such companies are more likely to get high levels of consumers in the modern day (T, 2005, p. 38) . It is important to note that marketing strategies have proved to work better that making claims on labels. Marketing will allow good message delivery as well as provide adequate proof to convince the consumers about the product’s contribution towards sustainability in the global market.
Marketing strategies are the best strategies to propel any company attempting to introduce a brand into the Global market. With the development in sustainability, different companies have adapted to marketing as the only tactic of reaching its consumers. Does is it really work? Apparently marketing tends to create a platform where the developed and developing brands are at an equal platform. Companies that have not established a rigid line of products will be well suited by using marketing channels rather than employing product claims. It is important to note that higher brands in developed markets benefit from the tactic of product claim as well as marketing strategies. But developing brands may as well adapt to product claim methods if, they have established products that are well receipted in the Global market.
Conclusion
Sustainability in the global market is not only an important towards the global community but also towards the future generations. Since its establishment in 1960, marketing myopia is seen to focus on one aspect: adhere to market and social needs. American economist Theodore Levitt argues that marketers should focus on complying with the needs of the market as the first priority. A company needs to be customer oriented; a company should focus on evaluating and understanding the customer’s interests as well as how to adapt to the changing Global market at the global level.
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