Sustainability is at the heart of any responsible business. Not only is the practice good for society, it’s good for the business’s bottom line as well. Decades ago, however, thinking was different. As famed economist Milton Friedman argued in his 1970 New York Times essay, the single point of social responsibility for any business was 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, CBS’s Sustainable Marketing 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 the course’s highly engaged students.
“The students are very inspired, and they really want to do great things,” Bellezza says. “They want to change the world by being sustainable entrepreneurs and sustainable managers.”
In the first part of the course, students receive an overview of sustainability at the corporate level, learning the different models for embracing sustainability and the role it plays within capitalism. The second part of the course takes students through the psychology of sustainability — what drives sustainable consumers and how businesses can target and segment them. The latter module introduces students to one of the most challenging aspects of sustainable marketing: the fact that many consumers want to support sustainability, but few want to put their money where their mouth is.
Raising awareness of this intention-behavior gap is critical, according to Bellezza. Equally important is equipping students with the tools needed to close the gap, encouraging consumers who wish to be sustainable to actually act sustainably. Studying the theory of sustainable marketing is only a fraction of the course’s curriculum, however. Reviewing actual case studies, as well as hearing from industry practitioners, helps students learn firsthand what it means to be a sustainable manager or sustainable entrepreneur.
In the third and final part of the course, which addresses go-to-market strategy, students learn best practices for positioning sustainable products in the market, pricing and distribution, and communication. It is in this section that the importance of practitioner insight comes into play, says Bellezza, who notes that many students who take the course are in the latter end of their studies at CBS and therefore closer to graduation.
“It becomes very important for them to have firsthand knowledge of what it means to be a sustainable manager or sustainable entrepreneur,” Bellezza says.
In April 2024, students heard from guest speaker Federico Marchetti ‘99, founder of YOOX and former CEO of YOOX Net-a-Porter Group. In 2000, soon after graduating with an MBA from CBS, Marchetti led the way on selling luxury brands online by launching YOOX, an online fashion retailer based in Milan. Years later, he oversaw the merger of YOOX with Net-a-Porter, a tremendous undertaking between one of the foremost fashion retailers in Italy and its counterpart in the United Kingdom.
Marchetti had initially begun his business career in the investment banking industry, though he told students that he did so “not because I loved finance” but because “I wanted to learn as much as possible and as fast as possible.” It was through that training and his time at CBS that Marchetti built the skills to be a successful entrepreneur.
“Before finding the right idea, I had to learn,” Marchetti says.
In a 2022 interview, Marchetti cited the combination of his CBS coursework and New York City’s vibrant culture as the fuel for his YOOX venture. “This great alchemy between the education and the environment helped me formalize the business idea of YOOX,” he said.
While leading YOOX in 2008, he built YOOXYGEN, which sold sustainable clothing and embraced environmentally friendly retail practices. He then aligned the entire YOOX Net-a-Porter Group operations with his green mission, including a sustainably designed tech hub in London and distribution center in Milan.
Marchetti stepped down from serving as YOOX Net-a-Porter Group CEO in 2021 to embark on a new role with King Charles III, then the Prince of Wales, who tasked Marchetti with leading the Sustainable Markets Initiative’s Fashion Task Force, which includes brands like Chloe, Armani, Burberry, Cucinelli, Stella McCartney, and Prada. Among other initiatives, the task force was responsible for launching the industry’s Digital Passport, which conveys the history of every item sold by companies in the coalition. By scanning a QR code, consumers can easily learn the material used, where the piece was made, the ethical and social conditions under which it was made, and how to repair, resell, or recycle the item.
Marchetti explained the goal behind the Sustainable Markets Initiative is to encourage unity among more than a dozen industries — agriculture, fashion, and banking, to name a few — in the push for sustainability. The fashion industry, according to Marchetti, is responsible for as much as 8 percent of global emissions, an issue intrinsically linked with shipping and manufacturing processes. However, Marchetti has argued against the stereotype that sustainability and fashion are not compatible — if the right circumstances come into play.
Marchetti also stressed the importance of marketing leaders finding a balance between consumer perception, sustainability, and profit. “It is all about culture and finding the right balance at the right time,” Marchetti said. “You cannot be too radical because it takes time [for consumers] to digest and be informed.” He noted that appealing to younger generations who are more climate-focused is especially important.
During his conversation with students, Marchetti praised the School’s coursework when he was a student, noting how a class on retailing leadership, taught by Professor Alan Kane, was especially valuable thanks in part to its many guest speakers. Kane himself led a successful career in the retail industry and founded the School’s retailing program in 1997. During a Q&A with students, he encouraged current and aspiring entrepreneurs to take calculated risks, especially when in a professional rut.
Marchetti noted, “You're not taking any risk if you are happy.”
The class's guest speakers culminate and synthesize what's taught throughout the semester. Bellezza says her students learn to become sustainable marketers through exposure to their perspectives: "There's no substitute for the knowledge of the people who actually did [sustainable marketing] in the field or the people who work on this on a daily basis."