If a firm believes that one of its products is bad for its customers or bad for the environment, what should it do? If the product is contributing to youth obesity, to alcoholism, or to energy waste, is there a responsibility to “unsell” that product in order to get people to use it less?
A firm can make product or program decisions that will be a win-win. The Marks & Spencer “Shwopping” program gives customers a voucher for every M&S item they bring in to recycle, enhancing both sales and image. Both diet sodas and reduced fat ice creams are examples of products that don’t hurt taste, but have provided their brands with a healthy business while addressing a societal problem. McDonald’s “healthy” menu items have shown a profitable direction for the brand. But what about decisions that risk damaging the brand or business? Are such risks ever warranted?
Assume that a snack and desert food firm knows, via sophisticated research, that many of its products that win taste and usage tests also have huge amounts of sodium, sugar or saturated fat. Should it walk away from those products or “degrade” them so that they are less unhealthy? If a firm’s clothing takes a lot of energy to make, should a firm encourage customers with a full closet to buy more? …Continue reading








