Sustainability is at the heart of any responsible business. Not only is the practice good for society, it's also good for a business's bottom line. Decades ago, however, thinking was different. As famed economist Milton Friedman argued in his 1970 New York Times essay outlining his theory of shareholder primacy, the single point of social responsibility for any business is to "increase its profits so long as it stays within the rules of the game."
The idea that corporate managers owed a duty only to shareholders, not to any social initiatives, took root, although shareholders could pursue social issues on their own if they liked. In the years since Friedman’s essay, however, attitudes have changed, thanks in part to new research and insights from economists.
Today, the ultimate responsibility of corporations is complex. As companies are held increasingly accountable for their societal and environmental impact, business leaders must balance the creation and delivery of value to shareholders and customers while respecting the environment and society. That balance is a focus of Columbia Business School’s Sustainable Marketing course, which helps students explore how businesses can create value while simultaneously benefiting the environment and society.
Taught by Silvia Bellezza, an associate professor in the School’s Marketing Division, the class teaches students the core principles of sustainable marketing while also equipping the next generation of business leaders with a deep understanding of sustainability-minded consumers. Students tackle the subject through three main course modules: Defining Sustainable Marketing, Understanding the Sustainable Consumer, and Developing a Sustainable Marketing Plan.
As Bellezza explains, the course’s success is driven by two core features: the inclusion of accomplished guest speakers and highly engaged students.