The Way Forward

It is clear that governments cannot be relied upon to provide leadership in these issues.  Their focus is too short term and they are too reactive.  It would be nice to reformulate the Senate as a house of review for the long term rather than (or perhaps as well as) for the states, but this could not happen in a useful timescale.

Governments can be forced into action by voters and there are some promising signs in regard to environmental issues in recent state general elections and by-elections.  However, most consumers are either unaware or uncaring of the consequences of their own actions and those of companies.  For example, only 10% of consumers are worried about global warming, according to surveys by the Australian Bureau of Statistics.  People do not directly observe the consequences of their actions.  They do not see the balance of payments blow out when they buy an imported car rather than one locally made; they do not notice an increase in temperature or see air pollution worsen if they drive to work rather than use public transport; they do not notice a direct relationship between their health and smoking or a sedentary lifestyle – at least in the short term.

I believe that the leadership will come from enlightened individuals and organizations and that a significant proportion of the remainder of the population will be persuaded to follow by marketing.  What I envisage is a contagion process.  The stages in that process, using personal saving as an example, could be:

  1. A relatively small number of baby boomers decide that they need to save more for retirement;
  2. Financial institutions and fund managers notice this increase in demand and more aggressively market their products to gain market share;
  3. Some enlightened investment marketers realize that they can also grow the size of the saving pool, as well as their share, by selling the benefits of saving to other baby boomers and younger generations;
  4. As more consumers become concerned about saving, political pressure builds on the government to provide more incentive to save.

The innovators in this process are the initially small group of concerned consumers, followed by visionary marketers.  The laggards are, of course, politicians.

The barrier to this otherwise virtuous contagion process is the huge marketing efforts of retailers, producers, and financiers, who want consumers to consume.  Marketers of savings products have got be better than marketers of consumption products – at least in terms of growing their category, but not necessarily in terms of growing market share.

A similar contagion process is envisaged for healthy lifestyle products and services.

The process could be similar too, for environmental problems.  This is already evident in the rush of some global companies to attempt to establish green credentials.  Recent examples include: 

Whatever the credibility of these campaigns, the companies involved believe that by attempting to establish environmental credentials they will be more appealing to the consumers who take these credentials into account when purchasing.  They are also trying to establish first mover advantage for the more environmentally friendly products that they are developing.

Australia urgently needs more companies to adopt a similar profile.

Such companies, perhaps inadvertently, raise the consumer consciousness and encourage other companies to jump on the bandwagon.

The commitment of Southcorp to Australia’s salinity problems could likewise raise community awareness about the issue and, if market share advantages are perceived, encourage other companies to adopt a similar commitment.

Recently, with petrol prices having risen so much, public transport operators have missed a golden opportunity to win back custom.  This is especially the case in Victoria, where the operation of public transport has been privatized but marketing has been abysmal.  They will have to do much better in the future if they are to participate in the virtuous contagion that I hope for.

I am not talking about wowserism or of converting the majority of the population to a cause.  Just boosting concerns to a threshold where politicians take notice.

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