New age customers support companies that uphold ethical standards: Dr Philip Kotler

Hyderabad: Dr Philip Kotler, 'Father of Modern Marketing', while addressing the graduating class of 2021 via an online interactive session, talked about the company's leadership and responsibilities in modern times and the role of marketing in business and society. This interactive session, which was moderated by ISB faculty Professor S Arunachalam was organised on Wednesday by the marketing club of the Indian School of Business (ISB).

Stressing on the importance of shifting the focus from creating shareholder value to stakeholder value and integration of social causes to the company goals, he shared some powerful insights.

Dr Kotler explained the basics of purpose-driven marketing and encouraged all future managers to truly understand that the new age consumers want to get behind the companies that uphold the ethical standards, that are responsible and care about the social impact, as much as they care about making profits. "Business growth depends on two things: innovation and marketing", he underlined.

Dr Kotler went on to explain that the purpose of an organisation should be to increase the stakeholder value and the role of marketing should not be to just generate profits but to generate more consumers for the organisation. He lauded the thought leadership of companies like Unilever, Starbucks and Nike, which are some of the leading players in their field.

He highlighted that, they are driven by innovation and a higher purpose. In doing so, these corporate moguls have further increased their value by serving the twin purpose of product excellence and consumer obsession, through social and sustainability commitments.

He talked about "The Giving Pledge", an initiative by Bill Gates, Warren Buffet and 214 other billionaires across the world, pledging to donate half their wealth to social causes. The world needs more leaders like them to join the force.

As the corporate world ushers in more coins, some of it needs to circle back to restore a healthy balance in society. He made a compelling argument about business leaders understanding and embracing corporate social responsibility as the only way forward.