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"GREEN" ECONOMY PRINCIPLES IN THE SOCIALLY
RESPONSIBLE MARKETING OF ENTERPRISES FOR
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problems accumulated in them, the solution of which has become not just a matter of a certain individual state, but of humanity in general. There cannot be a single way to achieve these goals for all countries of the world, since they have different levels of economic development, political life, degree of social consciousness of society, etc.
Accordingly, it is important to find an ideological mechanism for ensuring the fulfillment of the set goals, which will contain basic principles and ideas with a certain freedom in implementation. Such a toolkit could be the concept of a "green" economy, as it has a common goal, namely the coexistence and harmonious development of three components: economic, ecological, and social spheres.
The concept of a "green” economy suggests that governments, businesses, and citizens move to build balanced development paths that include promoting investment in natural capital, addressing energy and clean food issues, paying attention to land use planning, optimal allocation of limited resources, and improving resource management. The "green” economy model provides a harmonious combination of the economic needs of society with the need for constant restoration and preservation of the environment.
Thus, approaches to the interpretation of the "green" economy and the definition of its basic characteristics have become the subject of research in many documents of the UN and other intergovernmental organizations, as well as in the research of scientists from various countries around the world (table 1).
Table 1.
Comparative analysis of definitions of "green" economy
Author "Green" economy definition Comments
The United Nations Environment
Programme
an economy that leads to an increase in people's well-being and a strengthening of social justice while at the same time significantly reducing the risks to the environment and the scarcity of ecological resources
Emphasis on low-carbon development, efficient use of natural resources, social inclusion
The United Nations Department of Economic and Social Affairs
an economy that improves human well-being and reduces inequality, while not exposing future generations to significant environmental risks and environmental deficits
Attention to long-term social benefits for short-term measures to mitigate environmental risks
Green Economy Coalition [1]
an economy that produces better living conditions for everyone within the ecological limits of the planet
Focusing on improving conditions rather than equality and limited resources
International
Chamber of
Commerce
an economy in which economic growth and environmental responsibility complement each other, supporting progress in social development
The importance of the interaction of various institutions for achieving social goals is emphasized Starostina A. [2] economic relations between subjects of economic
activity, which are based on the principles of protection and preservation of the environment, the introduction of the latest energy- and resource-saving technologies, and contribute to the
The accented aspect of relations is precisely between the subjects of economic activity, which
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Author "Green" economy definition Comments
improvement of the quality of life within the existing ecosystems
implement the concept in their economic activity Paton B. [3] an economy that integrates the ecology of man and
space into one systemic whole with the help of economic, in particular, effective market mechanisms, solving the relevant perspective task of sustainable development
The philosophical vision of the issue, which emphasizes the importance of the effective operation of market mechanisms in the implementation of goals Karen Chapple [4] clean energy economy, which includes: renewable
energy, green building, energy-efficient technologies, energy-efficient infrastructure and transport, as well as recycling and waste disposal
Emphasis on the energy component, the use of innovative approaches without highlighting the achievement of social goals
Thus, there are different approaches to defining the essence of the "green" economy because there is no clearly agreed list of elements that make up the essence of this concept. Representatives of the business environment (business entities) usually focus on energy efficiency and the use of clean energy, as suggested by Karen Chapple [4].
International organizations emphasize the importance of improving the well-being of the population with simultaneous economic development and environmental protection. Scientists emphasize the importance of the correct use of objects and means of work in order to achieve global goals.
According to the author, the practical implementation of the ideas of the closed-loop economy will contribute to the achievement of the goals of the "green" economy.
In this economic model, both the results and all processes of resource provision and production are planned and organized in a way to maximize the well-being of people and the efficiency of the ecosystem functioning [5]. The interaction of the participants takes place according to the cascade principle when waste from one manufacturer is used as raw material for another, thereby ensuring the most rational and efficient use of the limited resources of the planet. Therefore, the author proposes to add this aspect to the definition of the concept of a "green" economy and present it in the following formulation.
"Green" economy is a system of relations that integrates the economic growth of both individual economic entities and countries as a whole, in order to improve the welfare of the population and ensure social justice while preserving the environment through the introduction of the latest energy- and resource-saving technologies and principles of closed-loop economy.
The goal of the "green" economy, thus, is the formation of an effective environment for economic and social progress, based on minimizing the negative impact on the environment and effective use of natural resources while maintaining a decent standard of living for society. Therefore, the implementation of this concept provides benefits for both the state (reduction of the economy's dependence on an external supply of raw materials and price fluctuations; introduction of energy- and resource-saving
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technologies; access to new markets due to clean technologies; attraction of direct foreign investments; improvement of the ecological situation and preservation of natural resources; formation of a positive "green" image), as well as for business entities (reduction of specific costs for resource consumption; modernization of production; obtaining additional income based on the use of available resources due to waste disposal; improving the quality and competitiveness of products; the opportunity to use state benefits diversification of the asset structure and reduction of strategic risks associated with traditional production).
That is, the application of the principles of the "green" economy is important not only at the macro level for the national economy and the state's performance of its social functions but also at the micro level when forming the strategy of an individual enterprise. Thus, here it will be appropriate to refer to the concept of socially responsible marketing as a certain updated ethical system of building relationships with consumers and stakeholders.
The fundamental rules of socially responsible marketing are the following statements:
• what is good in the long run for society is also good for business.
• emphasis on the connection between business and its environment in the form of feedback mechanisms, consultations, and negotiations with competitors, consumers, and state authorities.
That is, the goal of socially responsible marketing is to satisfy the needs of target markets, provided that human, material, energy, and other resources are preserved, and the environment is protected. Business entities must produce goods and provide services that meet existing needs, taking into account the requirements of society. The implementation of these tasks is based on the basic principles formulated by Patrick Byers:
• strategic responsibility;
• responsibility for information;
• social responsibility;
• responsibility for implementation;
• responsibility for personnel selection and recruiting;
• responsibility to the environment;
• responsibility for the return on investments [6].
The international standard ISO 26000:2010 "Guidance on social responsibility" is also devoted to issues of social responsibility of business, which provides a unified understanding of social responsibility and detailed instructions for all organizations.
Since this standard takes into account all the principles mentioned in the UN Global Compact, they are closely related to the concept of socially responsible marketing. This document also provides a list of principles of social responsibility, which include:
• accountability;
• transparency;
• ethical behavior;
• respect for the interests of stakeholders;
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• compliance with the rule of law;
• respect for international norms of conduct;
• respect for human rights [7].
Thus, the above concepts and approaches pursue a common goal, namely the achievement of the harmonious development of the economy, ecology, and social sphere. Therefore, the principles of the "green" economy, the ISO 26000 standard, and socially responsible marketing reflect the same key vectors of development. The author proposes to conditionally divide them into economic, ecological, and social and depict structural and logical connections (Fig. 1).
Figure.1. "Green" economy, ISO 26000 standard, and socially responsible marketing interaction
Thus, sustainable development sets the vector of movement, the "green" economy provides the tools, the international standard regulates the issue in the legal field, and socially responsible marketing helps business entities to adjust their business so that it is profitable both in the short and long term.
References:
1. Green economy coalition: The world’s largest alliance for green and fair economies. Official website https://www.greeneconomycoalition.org/
2. Starostina A. Sutnistʹ ta praktychne zastosuvannya metodyky konstruyuvannya katehorialʹnoho aparatu ekonomichnoyi nauky (na prykladi ponyatʹ «hlobalizatsiya» ta
«pidpryyemnytsʹkyy ryzyk») / The essence and practical application of the method of construction of the categorical apparatus of economic science (on the example of the concepts "globalization" and "entrepreneurial risk"). A. Starostina // Bulletin of the Kyiv National University named after T. G. Shevchenko. – 2011. – No. 128. – P. 5 – 10 [in Ukrainian]
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3. Paton B. YE. Natsionalʹna paradyhma staloho rozvytku Ukrayiny / National paradigm of sustainable development of Ukraine // Paton B.E. - Kyiv: State institution
"Institute of Economies of Environmental Use and Sustainable Development of the National Academy of Sciences of Ukraine. - 2012. - 72 p. [in Ukrainian]
4. Karen Chapple. Defining the Green Economy: A Primer on Green Economic Development, 2008.
5. Murray A. The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context / A. Murray, K. Skene, K. Haynes //
Journal of Business Ethics. – 2015. DOI: doi:10.1007/s10551-015-2693-2
6. Patrick Byers. The Responsible Marketing Blog. Available at:
http://responsiblemarketing.com/blog/about-patrick-byers/
7. ISO 26000:2010 "Guidance on social responsibility". Available at
https://iso26000.info/wp-content/uploads/2017/06/ISO-26000_2010_E_OBPpages.pdf
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