Dr Philip Kotler, ‘Father of Modern Marketing,’ highlighted the importance of innovation and higher purpose within organisations to deal with modern day challenges. He felt business leaders need to understand and embrace corporate social responsibility as the only way forward.
Addressing the graduating class of 2021 at an online interactive session, he talked about company’s leadership and responsibilities in the 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 Indian School of Business (ISB).
Stakeholder value
Stressing on the importance of shifting the focus from creating shareholder value to stakeholder value and integration of social causes to the company goals, Dr Kotler explained the basics of purpose driven marketing and encouraged all future managers to 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 said.
Dr Kotler explained 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.
Thought leadership
He lauded the thought leadership of companies like Unilever, Starbucks and Nike, all driven by innovation and a higher purpose. In doing so, these corporate moguls have increased their value by serving the twin purpose of product excellence and consumer obsession, through social and sustainability commitments.
He mentioned 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 the society.