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Journal of Business Ethics (2009) 85:445–462 Springer 2008

DOI 10.1007/s10551-008-9740-1

Purchasing and Marketing of Social Adam Lindgreen


Michael Antioco
and Environmental Sustainability David Harness
for High-Tech Medical Equipment Remi van der Sloot

ABSTRACT. As the functional capabilities of high-tech an organization integrates social, environmental, and
medical products converge, supplying organizations seek economic activities in the pursuit of outcomes other
new opportunities to differentiate their offerings. than profit (Amaral and La Rovere, 2003; Cowell
Embracing product sustainability-related differentiators et al., 1999). Historically, companies have focused
provides just such an opportunity. This study examines
on the economic dimension and employed
the challenge organizations face when attempting to
understand how customers perceive environmental and resources to maximize the company’s profit (e.g.,
social dimensions of sustainability by exploring and Friedman,
defining both dimensions on the basis of a review of 1970; Gauthier, 2005; Walker, 2002), but in re-
extant literature and focus group research with a leading sponse to the view that ‘‘companies do not only
supplier of magnetic resonance imaging (MRI) scanning serve shareholders, but are embedded in their eco-
equipment. The study encompasses seven hospitals and nomic, ecological and social environment, which
one private imaging center in the Netherlands and they must take into consideration when doing
identifies five social aspects that cover 11 indicators. The business’’ (Seuring et al., 2003, p. 204), they have
authors conduct 22 customer perception interviews with begun pursuing other aspects of sustainability, bal-
key decision-making stakeholders involved in purchasing ancing economic prosperity with environmental
MRI scanning equipment. Respondents find environ-
protection and social equity, to meet the principles
mental and social sustainability dimensions personally
relevant but professionally secondary to cost, perfor- of sustainable development (Isaksson and Garvare,
mance, and ability to use the equipment in their orga- 2003; Keeble et al., 2003). Customers’ perceptions
nizations’ physical infrastructure. Finally, incorporating a of a product’s social and environmental sustainability
product’s environmental and social credentials within the in turn influences their purchase choice as they seek
marketing of MRI scanning equipment enhances offerings compatible with their views of sustainable
the perception of the product offering in decision- development (Isaksson and Garvare, 2003). Al-
making stakeholders’ minds and provides a means of though this influence has been identified, its nature
differentiation. has yet to be defined, making the use of environ-
mental and social sustainability in support of product
KEY WORDS: high-tech medical equipment, pur- purchasing and marketing efforts problematic. For
chasing process, decision making stakeholders, environ- example, few offerings highlight social sustainability
mental sustainability, social sustainability
credentials (Isaksson and Garvare, 2003), though
such credentials may provide marketing opportuni-
ties if perceived as relevant by customers. Further-
Introduction more, though the economic and environmental
dimensions of sustainability are well understood, its
This article examines a given product’s (high-tech social dimensions remain novel and unexplored
medical equipment) social and environmental sus- (e.g., Amaral and La Rovere, 2003; Keeble et al.,
tainability and its potential to support a product 2003).
purchasing process. Sustainability describes how An example of the increasing importance of social
sustainability emerges in the high-tech medical
Purchasing and Marketing of Social and Environmental Sustainability 1

equipment industry. Philips Medical Systems purchasing processes associated with high-tech
introduced magnetic resonance imaging (MRI) medical equipment. Third, we consider how social
scanning equipment in 1983 and currently com- and environmental sustainability can enhance the
mands 25% of the worldwide market, which rep- marketing of such products. In order to address these
resents 24.8% of the company’s total sales. With objectives, the remainder of this article is structured
annual growth levels of greater than 6%, the Euro- as follows: First, a literature review explores the
pean market for high-tech medical equipment is environmental and social dimensions of sustainability
both attractive and strategically important for Philips to conceptualize a theoretical framework. Second,
and its competitors, such as GE Healthcare and we report the findings of an empirical study that
Siemens Medical Solutions. As the technological qualitatively explores the influence of social and
capabilities of MRI scanners converge, companies environmental sustainability during the purchase of
increasingly turn to social and environmental MRI scanning equipment. Third, we present an
responsibility standards to influence customers’ analysis and discussion of these empirical findings.
purchasing decision-making. Within the Nether- Fourth and finally, the conclusion identifies this
lands, four types of institutions purchase MRI study’s theoretical and managerial contributions,
scanning equipment: academic, teaching, and com- addresses some limitations, and suggests avenues for
munity hospitals, and private imaging centers. The further research.
purchasing decision-making process in each is gen-
erally similar and influenced by three types of
stakeholders: clinicians, operators, and business Theoretical background
managers (Heesch, 2006). The influence of each
stakeholder during the different purchasing stages for Dimensions of environmental and social sustain-
MRI scanning equipment already has been sum- ability pertain to impacts on society’s future needs
marized into a customer-purchasing framework (e.g., Cowell et al., 1999; Fiksel et al., 1998; Se-
(Figure 1). uring et al., 2003; Veleva and Ellenbecker, 2001),
This study has three additional objectives. First, which requires satisfying present needs without
we provide clearer insights about what constitutes a compromising the needs of future generations (e.g.,
product’s environmental and social sustainability. Cowell et al., 1999; Ottman, 1997). A sustainable
Second, we identify whether, and how, social and company thus is one ‘‘whose characteristics and
environmental sustainability may influence the actions are designed to lead to a ‘desirable future

Figure 1. Stages and key decision-making stakeholders in the purchasing process.


state’ for all stakeholders’’ (Funk, 2003, p. 65), and Seuring et al., 2003), which in this context refers to
stakeholders are ‘‘those groups who can affect or the extraction of raw materials for and manufacture,
are affected by a firm’s objective’’ (Seuring et al., packaging, storage, distribution, recycle, and
2003, p. 205). These definitions provide a context destruction of the product (Gauthier, 2005).
from which to consider social and environmental Therefore, companies’ social and environmental
sustainability. indicators must relate to both internal and external
Environmental sustainability refers to a com- stakeholder needs throughout the stages of product
pany’s use of natural resources and its consequent production, consumption, and disposal (Amaral and
ecological impact (Isaksson and Garvare, 2003; La Rovere, 2003; Funk, 2003; Global Reporting
Veleva et al., 2000). Although environmental sus- Initiative, 2006; Seuring et al., 2003). The broad
tainability is reasonably well understood in existing nature of sustainability (Fiksel et al., 1998) in turn
literature, social sustainability research fails to make suggests that companies may risk generating too
the nature of social matters clear (Littig and Gri- many indicators, which could obscure those most
essler, 2005). Since social sustainability is intangible relevant to the product (Isaksson and Garvare,
and qualitative in nature, a consensus about its 2003).
dimensions is difficult to reach, though it clearly
relates to how a company influences individuals’ or
society’s well-being (Geibler et al., 2006). As Environmental aspects
depicted in the framework in Appendix 1, how-
ever, by adapting a concept specification model to With a firm understanding of environmental sus-
display the different aspects and their subelements tainability, Philips Medical Systems defines its envi-
(i.e., indicators) of social sustainability, some clari- ronmental credentials according to five aspects:
1
fication has been achieved (Geibler et al., 2006). reducing products’ energy consumption, packaging
This study in turn explores the nature of sustain- materials, hazardous substances, and weight, and
ability indicators, then considers how they might be increasing levels of recycling and safeguards during
summarized into sustainability aspects that can disposal of products (Philips Sustainability Report,
provide insights into a product’s social and envi- 2006). Governments, companies, and other organi-
ronmental sustainability, and finally examines how zations adopt sustainable development initiatives to
social and environmental sustainability can enhance address concerns about climate change and the
product marketing. depletion of natural resources, reinforced by con-
sumers and activists who push large companies to
develop such practices (Cowell et al., 1999; Keeble
Sustainability indicators et al., 2003). Companies failing in this effort often
become the target of activist pressures (Gauthier,
Sustainability indicators are specific, measurable 2005).
product attributes that characterize contributions to
social and environmental sustainability (Fiksel et al.,
1998). Such indicators should be relevant, under- Social aspects
standable, robust, and limited in number; they
should be easy to use, collect, and reproduce; they Social sustainability is less well understood; accord-
should complement existing legal follow-up pro- ing to the Brundtland Commission’s (WCED, 1987)
grams and be financially feasible; and finally, they view of social sustainability, this term relates to how
should be useful as a management tool and able to companies contribute to the well-being and quality
protect company data, as well as remain adaptable of life of society and individuals in current and future
to future developments (Amaral and La Rovere, generations (Steurer et al., 2005). Product-related
2003; Isaksson and Garvare, 2003). Indicators thus social aspects therefore refer to how their produc-
must take into account a product’s resource con- tion, use, and disposal satisfy such conditions. Social
sumption and value creation throughout its entire aspects conceptualized and derived predominantly
life cycle (Fiksel et al., 1998; Gauthier, 2005; from studies linked to the chemical industry appear
in the literature, and the cited aspects differ in their complete understanding of the social sustainability
level of focus. For example, some discuss ‘‘taking dimensions – aspects and indicators – that stake-
employees into consideration’’ to summarize how an holders of MRI scanning equipment view as
organization supports employees (e.g., Gauthier, important.
2005), whereas others separate this aspect into
‘‘working conditions,’’ ‘‘education and training,’’
and ‘‘equity’’ (Geibler et al., 2006; Tanzil and Bel-
Methodology
off, 2006). The differentiation in the level of focus
suggests that the nature of production, product
Qualitative methods are appropriate when studying
characteristics, and product use influence the level of
complex phenomena and when there is a need to
focus.
take into account numerous variables to study the
Various social aspect themes also emerge. For
issue(s) at hand (Eisenhardt, 1989; Matthyssens and
example, one theme relates to health and safety
Vandenbempt, 2003; Yin, 1994). In order to en-
(Gauthier, 2005; Geibler et al., 2006), also known as
able a focus on social sustainability, this exploratory
safety and well-being (Tanzil and Beloff, 2006) or
study adapts Geibler et al.’s (2006) concept speci-
accident and injury reduction (Fiksel et al., 1998).
fication model on the basis of the social sustain-
Regardless of the terminology, this theme is based
ability aspects and indicators identified in literature,
on the premise that the supplying company should
as well as customer perception interviews with key
minimize the potential for a product to harm an
decision-making stakeholders involved in purchas-
individual during its product’s lifecycle.
ing of MRI scanning equipment, interviews with
Another theme pertains to product usage within
marketing and other functional managers in Philips
the product’s operating context. The quality of the
Medical Systems, and secondary research about the
working environment, including issues of noise
company.
level and room temperature, impinges on how
In order to identify how decision-making stake-
people perform their jobs (Gauthier, 2005; Geibler
holders (both purchasers and users) perceive sus-
et al., 2006; Tanzil and Beloff, 2006). Such issues
tainability indicators, we undertake two stages. The
often get related to how they might create user
first stage involves a focus group comprising a range
‘‘peace of mind’’ (Fiksel et al., 1998). A product
of marketing and other functional managers from
further must answer stakeholders’ needs (Gauthier,
Philips Medical Systems who evaluate potential
2005; Seuring et al., 2003); for example, MRI
sustainability aspects and indicators. The second
scanning equipment must provide quality images
stage employs customer perception interviews, sup-
of the internal workings of a body. The product
ported by a short questionnaire, to build, test, and
also generates employment or wealth in different
validate a new theory (Newman and Benz, 1998;
social environments (Steurer et al., 2005). Ethical
Onwuegbuzie and Leech, 2005).
production requires treating employees and those
within the supply chain fairly (Gauthier, 2005;
Geibler et al., 2006; Seuring et al., 2003) by
ensuring that the production process protects Selection of case company
individuals and does not violate human rights or
require the use of child labor (Fiksel et al., 1998; Philips Medical Systems provides an excellent
Gauthier, 2005; Steurer et al., 2005; Tanzil and vehicle to explore the idea of sustainability, and
Beloff, 2006). Social sustainability thus represents a social sustainability in particular, because the com-
force for good that encompasses equity transfer, pany generally has a good reputation for under-
such that profit is more evenly distributed be- taking sustainability projects, such as replacing the
tween those involved in the manufacture within traditional lamp bulb (environmental sustainability)
the organization and those within the supply chain and minimizing purchasing and exploitation costs
(Seuring et al., 2003). For Philips Medical Sys- (economic sustainability). It is less clear, however,
tems, the greater use of social sustainability in the which social sustainability aspects Philips Medical
marketing of products would require a more Systems appreciates with regard to its product
offerings. In addition to its sustainability reputation, Data collection and analysis
the simplicity of the company’s competitive sce-
nario and strategic response relative to larger and In order to build the case, we collect data using
more complex manufacturers of high-tech medical several methods. First, to increase our familiarity
equipment makes Philips Medical Systems attractive with the issues at hand, we obtain from Philips
as a study subject. Finally, the company’s MRI Medical Systems a variety of written documentation,
scanning equipment likely has multiple identifiable including annual reports, research and development
social sustainability indicators that customers might reports, promotional materials, benchmark studies,
perceive. and business customer records, as well as financial
The selection of a case study as a research and other data relating to study subjects. In addition,
methodology and the associated techniques of this we undertake a widespread search for industry and
method comply with Yin’s (1994) principles. First, consulting reports and academic papers and obtain
a comprehensive understanding of Philips Medical more than 90 documents for the study. These data
Systems’ contextual setting is important, because are comprehensive, particularly in outlining the
the developed analytical criteria pertain to the company’s social sustainability values and how they
company’s industry sector, in this instance, the translate into activities, such as the ethical treatment
high-tech medical equipment sector. Second, one of suppliers and the sustainability criteria used for
of the authors works within the company, offering sourcing inputs into the business.
a unique opportunity to access otherwise unob- Focus group research provides a more complete
tainable data. understanding of Philips Medical Systems’s view of
Secondary data and multiple interviews provide sustainable aspects and indicators. We interview 24
rich insights, as well as a basis for greater transfer- representatives from marketing, sales, the medical
ability of the study’s findings to other contextual systems customer visitor center, X-ray total quality
settings (Eisenhardt, 1989). We undertake a stake- management, the corporate sustainability office,
holder assessment (e.g., Seuring et al., 2003) to and eco-facilitators from different functional areas
clarify hospitals’ and imaging scanning centers’ view within the company in these focus groups. Other
of social sustainability aspects and indicators by representatives include persons responsible for
interviewing the key decision-making stakeholders managing customers’ purchasing, which enables us
and a customer context employee from each hos- to identify the types of social sustainability indi-
pital or imaging center. The inclusion of a variety cators used in the production and marketing of
of stakeholders with different points of view en- MRI scanning equipment. Discussion points in the
hances the overall validity of our model develop- focus group research center on social sustainability
ment stage. aspects and indicators of MRI scanning equipment,
A literature review establishes some social sus- as well as how they are communicated to institu-
tainability indicators and identifies some potential tions (purchasers and users). Finally, we identify
aspects identified. By combining these results with the hospitals and imaging centers suitable for
company-specific data and information gained from interviewing during this stage.
marketing and other functional managers, we de- Customer perception interviews indicate how
velop a framework with which to assess the per- different key decision-making stakeholders value
ception of key decision-making stakeholders environmental and social sustainability indicators. We
involved in the purchase and use of MRI scanning conduct this study in the Netherlands at two aca-
equipment. This approach offers an in-depth demic hospitals, three teaching hospitals, two com-
understanding of what the social sustainability as- munity hospitals, and one imaging center. At each
pects and related indicators are, as well as a clear institution, the interviews feature key stakeholders
identification of how they can support the marketing involved with MRI scanning equipment; their
of MRI scanning equipment (see Appendix 2 for responsibilities can be summarized as clinicians,
the conceptualized social aspects and potential operators, and business managers. In total, we con-
indicators). duct 22 interviews with these stakeholders, as well as
a focus group with the institutions; the length of the Findings
interviews and focus group was between 60 and
90 minutes. The use of multiple data collection Customer perception analysis
methods adds to the robustness of this study’s find-
ings, compensates for any weaknesses of a specific data The customer perception questionnaire contains 11
collection method, improves the final interpretation social and 5 environmental sustainability indicators
quality, and helps ensure triangulation (Jick, 1979; derived from literature and interviews with Philips
Strauss and Corbin, 1998; Yin, 1994). The unit of Medical Systems’s personnel. The interviewees
analysis is the case company or each of institution and responded to the following question: ‘‘When pur-
its decision-making unit. Finally, we combine the chasing MRI scanning equipment, do you think ‘X’
information from each set of interviews and the is important, and why?’’ by indicating ‘‘1’’ if
sec- ondary sources into a final case manuscript. important and ‘‘0’’ if unimportant. Their answers,
At the formulation stage, we analyze the data where relevant, receive support from quotes from
gathered from Philips Medical Systems to confirm interviewees who elaborated on their answers
the research problem. Together with data gathered (Table I).
from the literature review, we assess these data to None of Philips Medical Systems’s five ‘‘green
identify any areas in addition to Geibler et al.’s focal areas’’ indicators are universally considered
(2006) social sustainability dimensions model. In the important as influences on the purchasing decisions
confirmatory phase, data reduction relies largely on of interviewees. A significant percentage, 63%, of
within-case analysis, supported by data from the interviewees stated that ‘‘hazardous substances’’
customer perception tool. This approach allows in- should be minimized. The business managers be-
sight into how different decision-making stake- lieved this effort represented a duty of care toward
holders view social sustainability aspects and employees and patients, whereas operators’ concerns
indicators within their job role for subsequent use in were for their personal welfare. Information mini-
the data displays. We also compare the data to the mizing the ‘‘harm’’ to individuals also appears to
adapted social sustainability model as the frame of outweigh the need for information on environ-
reference (Yin, 1994), then compare the hospital mental impact. Weight emerges as the second most
cases to analyze any similarities and differences and important indicator, such that interviewees’ con-
gain greater understanding of the phenomena. Open cerns about moving and installing heavy equipment
and axial coding procedures expand the theoretical ranks above the environmental factors associated
categories (Strauss and Corbin, 1998). Throughout with raw material consumption. Half of the inter-
the analysis, we tack back and forth between the viewees who mentioned weight attempted to
literature on sustainability and the data, which leads determine the location within a hospital that scan-
us to develop several theoretical categories and ning equipment could be sited and transported
subcategories (Spiggle, 1994). Such practices are safely:
consistent with case studies in general, as well as
with studies on corporate social responsibility (e.g., Weight places restrictions on the room an MRI
scanner can be put in. On the one hand, it concerns
Beverland and Lindgreen, 2006; Maon et al., 2008;
floor pressure per square meter; on the other hand, it’s
Wood, 1996).
whether there is a transport route through the hospital
Throughout the study, we adopted several (Operator, teaching hospital).
methods to improve the quality of the research.
Industry experts helped select the case company and Almost half (45%) of interviewees consider
institutional customers; four researchers provided environmental damage caused by inappropriate
independent interpretations of the findings; and after recycling and disposal important, though increasing
the multiple interviews, interviewees could provide government legislation and taxation likely will
feedback on initial findings. These tactics reinforce make this concern more relevant. Packaging does
reliability. Finally, all interviews are conducted by not emerge as important, because the benefits of
the same interviewer, which reduces bias (Lincoln using the scanner far outweigh the environmental
and Guba, 1985; Strauss and Corbin, 1998). concerns about the packaging used. Finally, 27% of
TABLE I
Summary of social and environmental sustainability indicators (N = 22)

Customer type Customer Responsibility type Energy Weight Packaging Hazardous Recyling Proactive Health Health
use substances and safety complaints complaints Pur
Disposal regulation operators patients cha
sin
Academic Hospital AZM Business responsible 0 1 0 1 0 1 1 1 g
Academic Hospital AZM Operational responsible 0 1 0 1 1 1 1 1 an
Academic Hospital LUMC Business responsible 0 1 0 1 0 1 1 1 d
Academic Hospital LUMC Clinical responsible 0 0 0 1 0 1 1 1 Ma
Academic Hospital LUMC Operational responsible 1 1 0 1 1 1 1 1 rket
Teaching Hospital CWZ Clinical responsible 0 0 0 0 0 1 1 1 ing
Teaching Hospital CWZ Operational responsible 1 0 0 1 1 1 1 1 of
Teaching Hospital JBZ Business responsible 0 1 0 0 1 1 1 0 Soc
Teaching Hospital JBZ Clinical responsible 1 1 0 0 0 1 1 1 ial
Teaching Hospital JBZ Operational responsible 0 0 0 0 0 1 1 1 an
Teaching Hospital Kennemer Gasthuis Business responsible 0 1 0 1 0 1 1 1 d
Teaching Hospital Kennemer Gasthuis Clinical responsible 1 0 0 0 0 1 1 1 En
Teaching Hospital Kennemer Gasthuis Operational responsible 0 0 0 0 1 1 1 1 vir
Community Hospital Gelderse Vallei Business responsible 0 0 0 1 1 1 1 1 on
Community Hospital Gelderse Vallei Clinical responsible 0 1 1 1 1 1 1 1 me
Community Hospital Gelderse Vallei Operational responsible 0 0 0 1 0 1 1 1 ntal
Community Hospital St. Anna Business responsible 0 1 0 1 1 1 1 1 Sus
Community Hospital St. Anna Clinical responsible 0 0 0 0 0 1 1 1 tain
Community Hospital St. Anna Operational responsible 0 1 0 1 0 1 1 1 abil
Imaging Centre DiaSana Business responsible 1 1 0 1 1 1 1 1 ity
Imaging Centre DiaSana Clinical responsible 1 0 0 0 1 1 1 1
Imaging Centre DiaSana Operational responsible 0 0 0 1 0 1 1 1
Total 6 11 1 14 10 22 22 21
% 27.3 50 4.55 63.6 45.5 100 100 95.5

45
1
45
2

TABLE I
continued

Customer type Customer Responsibility type Availability Accessibility Ethical Ethical Operator Patient Contribution Increase
in different different production production comfort comfort to science level of
markets patient types producer suppliers living

Academic Hospital AZM Business responsible 0 1 1 1 1 1 1 0


Academic Hospital AZM Operational responsible 0 1 1 1 1 1 1 0
Academic Hospital LUMC Business responsible 0 1 0 0 1 1 1 0
Academic Hospital LUMC Clinical responsible 0 1 1 1 1 1 1 0
Academic Hospital LUMC Operational responsible 0 1 1 1 1 1 1 0
Teaching Hospital CWZ Clinical responsible 0 1 1 1 1 1 1 0
Teaching Hospital CWZ Operational responsible 0 1 1 1 1 1 1 0 Ad
Teaching Hospital JBZ Business responsible 0 1 0 0 1 1 1 0 am
Teaching Hospital JBZ Clinical responsible 1 1 1 1 1 1 1 0 Lin
Teaching Hospital JBZ Operational responsible 0 1 0 0 1 1 1 0
dgr
een
Teaching Hospital Kennemer Gasthuis Business responsible 0 1 0 0 1 1 0 0
et
Teaching Hospital Kennemer Gasthuis Clinical responsible 0 1 1 1 1 1 1 0
al.
Teaching Hospital Kennemer Gasthuis Operational responsible 0 1 1 1 1 1 1 0
Community Hospital Gelderse Vallei Business responsible 0 1 1 1 1 1 1 0
Community Hospital Gelderse Vallei Clinical responsible 0 1 1 1 1 1 0 0
Community Hospital Gelderse Vallei Operational responsible 0 1 1 1 1 1 1 0
Community Hospital St. Anna Business responsible 0 1 0 0 1 1 1 0
Community Hospital St. Anna Clinical responsible 0 1 1 1 1 1 1 0
Community Hospital St. Anna Operational responsible 0 1 0 0 1 1 1 0
Imaging Centre DiaSana Business responsible 0 1 1 1 1 1 1 0
Imaging Centre DiaSana Clinical responsible 0 1 0 0 1 1 1 0
Imaging Centre DiaSana Operational responsible 0 1 1 1 1 1 1 0
Total 1 22 15 15 22 22 20 0
% 4.55 100 68.2 68.2 100 100 90.9 0
Purchasing and Marketing of Social and Environmental Sustainability 1

the sample considers energy important, though equipment: customer health and safety, customer
unexpectedly, this percentage includes only one comfort, ethical production, product accessibility,
business manager. That is, energy usage seems less and contribution to society (see Figure 2).
relevant than scan quality, perceived as a minor cost
compared with the purchasing and running costs Customer health and safety
and because it gets subsumed into the hospitals’ ‘‘Health and safety’’ refers to how product usage
overall electricity costs. The business manager’s might harm individuals and the producer initiatives
view was moderated by the desire to apportion to minimize such harm. All interviewees identified
actual energy cost per patient. this aspect as an important influence. Philips
Medical Systems was perceived to engage proac-
tively in enhancing safety during usage and
Social sustainability aspects equipment maintenance, based on the assumption
of duty of care rather than tangible evidence. The
Five social aspects can be derived from literature and complexity of MRI scanning equipment meant
company-based focus groups, combined with the users must rely on the company’s expertise to
production and usage attributes of MRI scanning guarantee safeness:

Figure 2. MRI scanning equipment: social aspects and indicators.


I assume the producer pays attention to that so that it belief that its lack would result in diminished work
will be OK, I hardly can know if a system is safe or performance:
not; we don’t have that level of knowledge (Clinician,
academic hospital). Of course, this aspect is important. Not as important as
operator comfort because these patients are only in the
In a similar vein, the indicators related to ‘‘health scanner for half an hour to 45 minutes (Clinician,
complaints operators’’ and ‘‘health complaints pa- academic hospital).
tients’’ influence purchase in three ways. First, in
terms of safety of use: It is very important because if operators don’t work
very hard or well then the quality of the scans will
You cannot allow it to do something medical which decrease (Clinician, teaching hospital).
gets the patient hurt…. I cannot imagine that a client
would get a health complaint and not get a lawyer The influence of operator comfort on the deci-
(Operator, imaging center). sion-making process remains secondary to quality
and safety though. Factors that created operator
Second, continued exposure to the scanning discomfort also had a bearing on the patent, such as
equipment should not cause health problems; the noise, the ergonomics of the scanning equipment,
interviewees mention their worries that the long- and the operating environment. Pragmatically,
term impact on operators from continual use of patient comfort was considered in relation to the
scanning equipment remains unknown: scan quality:
Field strength health complaints, we still assume that it I find this important, but it still has to be practical.
has no short-term consequences, but the real long- Patients don’t come for a beauty session. Issues like
term consequences are still a little unknown (Clinician, less noise and a more comfortable table are very
teaching hospital). important, but we have to remain realistic (Operator,
community hospital).
Third, scanning equipment must be maintained
by hospital employees, which means any injury These different views indicate the range of
could result in a loss of working days that would information required to address the concerns of
affect the institution’s ability to treat patients and stakeholders, including information about mainte-
potentially result in claims for compensation for nance tasks, the level of noise created during the
industrial injury: operation, and the impact on the operator after
multiple hours of usage. This diversity suggests that
I find this very important; several repair positions are
comfort indicators should be included in the man-
not nice. The coils are not good from an ergonomic
ufacturer’s promotional material to create a differ-
point of view, and are often too big and heavy to
easily move – more attention should be paid to this ential advantage.
(Oper- ator, academic hospital).
Ethical production
‘‘Ethical production’’ is relevant because an MRI
Customer comfort scanner’s production consumes raw materials
‘‘Customer comfort’’ involves the physical interac- sourced from global markets and requires the
tion among the scanning equipment, patients, and application of human capital. The interviewees
operators during usage and its ability to create peace consider both ‘‘ethical production’’ and ‘‘ethical
of mind. Both ‘‘operator comfort’’ and ‘‘patient production at the producer’s suppliers’’ synony-
comfort’’ universally are perceived as important, but mous, but even though unethical production has
their influence differs because of the involvement high media impact, only 68% of interviewees
timescale. That is, operators spend their entire consider this indicator professionally important,
working day scanning, whereas patients spend just though the majority consider it personally so.
a fraction of that time but must be comfortable Interviewees believe Philips Medical Systems is an
to ensure scan quality. Business managers’ and ethical producer and uses ethical suppliers, elimi-
clini- cians’ view of operator comfort was tempered nating the need for them to seek out information.
by the
If the company were to produce unethically, it differentiation between its products and those of
would become an issue: competitors.
The notion of distance also may explain why all
We never really think about this aspect and assume interviewees identify ‘‘accessibility for different types
that it is ok. But I think that if I found out and it’s in of patients’’ as important; that is, it directly affects
the media, for example, child labor or forced labor,
their ability to treat patients. Stakeholders wanted to
then I would not want to work with the scanner of
that supplier (Operator, imaging center).
identify the scanners’ dimensions and ability to cope
with different types of patients, such as those who
The finding that 32% of interviewees do not are claustrophobic or extremely overweight, during
perceive ethical production as important may be the prepurchase stage:
explained best by the difference between personal
The people scanned here all have a certain physical
and professional views. Professionally, the first pri-
problem; otherwise they would not be here … if these
ority was that the scanner had superior performance:
people that have a disability, walk with difficulty or are
As a person of course I would totally disagree, even in overweight, so that they cannot be scanned, then that’s
my function this matters to me. But it is difficult, even a problem. The gantry for each scanner differs. This
if I knew, I don’t know if it changes my perception of can make a difference too if a patient can be scanned
the scanner, because I know how good the system is or not, even if it is only about a few centimeters
(Operator, imaging center). (Business manager, teaching hospital).

Currently, the ethical standing of Philips Medical


Systems and similar suppliers negates the need for Contribution to society
such information. However, its inclusion during the ‘‘Contribution to society’’ describes the scanners’
purchase process could provide a base for compari- benefit to society through improved diagnosis
sons among competitors. techniques, illness reduction, knowledge develop-
ment, and enhanced employment. In turn, 90% of
the interviewees believe the ‘‘contribute to science’’
Product accessibility
indicator is important, because they perceive it to
‘‘Product accessibility’’ requires answering the needs
mean that the scanner advances the science of
of different stakeholders and providing availability in
diagnosis. However, hospital type influences how
different markets. Only one interviewee thought this
interviewees interpret this dimension, such that
indicator professionally important. The majority
academic and teaching hospitals want information to
found the issue too distant to influence them; their
help them understand the potential for research,
concerns lie closer to home:
whereas community hospitals and the imaging cen-
This is far beyond the scope of our organization, so ter desire reassurance that innovation and a contri-
from a functional perspective this is unimportant. bution to science represent inherent qualities of the
Personally, I find this not important because in these scanner. Finally, the ‘‘increase level of living’’ indi-
markets other things, for example immunization pro- cator seems irrelevant to the respondents.
grams and health education, are more important and
have a much higher priority (Clinician, teaching
hospital). Discussion

Although it did not have a direct influence on the This study identifies that sufficient numbers of
purchase decisions, all interviewees, due to their stakeholders view social and environmental sustain-
sense of conscience and job orientation, saw this ability aspects as influences on their perceptions of
issue as personally important. Indirect communica- MRI scanning equipment. In addition, it reveals
tion of how Philips Medical Systems improves considerable similarity between the customer insti-
developing countries’ health care therefore may tution and the three stakeholder groups in terms of
enhance the company’s reputation with health care the information sought and product requirements.
professionals, which would provide a subliminal That is, companies that supply high-tech medical
equipment should incorporate social and environ- The findings highlight that not all indicators can
mental sustainability into their marketing efforts. measure performance. First, because interviewees
Although this finding derives from a study con- cannot differentiate between the ethical production
ducted within a clearly defined and narrow context, of the company and that of its suppliers, measuring
the principle offers insights and possibilities for other beyond the ‘‘headline’’ title may not provide
businesses and product types. meaningful results, though ethical production re-
In response to the lack of a robust definition of mains important for the customers’ overall percep-
social sustainability within existing literature, this tion of the company and can influence brand
study builds on work by Geibler et al. (2006) and attitude at a holistic level. Second, the ‘‘packaging,’’
confirms that the majority of social sustainability ‘‘accessibility in different markets,’’ and ‘‘increase in
indicators actually are known and understood and living’’ indicators do not appear important in the
can influence purchasing decisions. Thus, it be- context of purchasing MRI scanning equipment,
comes possible to suggest a tentative definition of which challenges both these indicators’ inclusion
social sustainability: A product or system that meets within the model and their value as inputs for
the performance requirements and expectations of cus- measuring performance. The framework suggested
tomer stakeholders without causing harm to the well- by Geibler et al. (2006) thus provides a useful means
being of society and its members across different time to conceptualize both sustainability aspects and
periods. In addition, the identified indicators add to linked indicators and has applicability beyond its
our understanding of what social sustainability is current focus.
not only through a link to actual product func- The hierarchy of the influence of the social
tions (e.g., the scanner’s ability to produce quality aspects and indicators cannot rank actual indicators
images) but also by noting that customers’ views but can classify them into three levels. The cost
of social and environmental dimensions and indi- and performance of the scanning equipment con-
cators are personal but still inform how they think stitute the first level and provide the business
professionally about social sustainability. We also context, on which all other levels depend. This
demonstrate that society involves impacts on both finding is not surprising; the actual cost of scanning
individuals and groups connected to the produc- equipment is likely to represent a major element of
tion, use, and disposal of MRI scanners. Finally, the capital expenditure for a hospital or imaging
and directly related to a technology that contains center. Performance pertains to the scanner’s ability
hazardous substances and emits radiation, stake- to fulfill its core function; the higher the quality of
holders are concerned about the long-term po- the scan, the greater its use as a diagnosis tool. The
tential for harm, which suggests applicability second level consists of indicators that appear
beyond the production of high-tech medical professionally relevant because they have a direct
equipment. or potentially direct impact on users of the scan-
By using the concept specification model to ning equipment, such as hazardous substances,
conceptualize the social sustainability aspects and health complaints of operators, and patient com-
their linked indicators, we validate the five social fort. Finally, the third level comprises factors that
sustainability aspects, which now can be considered matter personally but have little direct influence on
relevant to high-tech medical equipment. We also the purchasing decision, including packaging,
validate most of the social sustainability indicators, accessibility to different markets, and increase in
providing a basis for measuring both the extent to level of living. By identifying these different levels
which customers see these aspects as important and of the perceived importance of social and envi-
their awareness of the product’s relationship with ronmental sustainability dimensions, companies can
these aspects. The aspects and indicators also comply focus their efforts on dimensions valued more by
with the success criteria suggested in literature their customers. This suggestion also mirrors the
(Amaral and La Rovere, 2003; Fiksel et al., 1998; view that too many indicators become hard to
Isaksson and Garvare, 2003), in that they are rele- measure, and organizations need to be selective
vant, understandable to users, limited in number, when choosing social and environmental dimen-
and adaptable to future developments. sions (Isaksson and Garvare, 2003).
TABLE II
Summary of social and environmental sustainability-related marketing opportunities

To whom When How Pur


Business Clinical Operational Periodically During the Customer Purchase Brochures White Sales cha
responsibles responsibles responsibles in time purchase magazines meetings papers conversations
sin
g
process
an
d
Energy use
Weight
Ma
rket
Packaging
ing
Hazardous substances
of
Recycling and disposal
Soc
Environmental aspects ial
Proactive safety regulation an
Health complaints operators d
Health complaints patients En
Availability in different markets vir
Accessibility different patient types on
Ethical performance producer me
Ethical performance suppliers ntal
Operator comfort Sus
Patient comfort tain
Contribution to science abil
Increase level of living ity
Social aspects
Sustainability aspects

45
7
Purchasing and Marketing of Social and Environmental Sustainability 1

Managerial implications and careful media selection. The selection of


appropriate media should be based on the prox-
Marketing guidelines for each of the 11 social and 5 imity to the purchasing decision and target specific
environmental sustainability indicators can be de- ‘‘concerned’’ stakeholders. For Philips Medical
rived from answers to three key questions: (1) Systems, this selection represents a function of its
Which stakeholder should be targeted? (2) When brand positioning, which it could use to reinforce
during the purchasing process should marketing at a holistic level that the company is concerned
communication occur? and (3) How should it be with sustainability. Opportunities to reinforce the
communicated? In answering these questions, we company’s general adoption of sustainability efforts
note the importance attached to each aspect by the into its business practices also could be communi-
interviewees, as well as the communication tools cated through trade literature used by the stake-
used by Philips Medical Systems (Table II). holders to keep abreast of developments in the field
The similarity in the purchasing processes de- or during meetings with customer stakeholders
scribed by the institutions and their stakeholder related to the ongoing development and use of
groups provides some common ground for mar- scanning equipment. The specific social and envi-
keting effort. The stakeholders should have a ronmental sustainability indicators also should be
general awareness of the products’ social and communicated to support the sales process. Product
environmental sustainability credentials for all brochures could address the key concerns related to
indicators, with the exception of packaging, the product’s potential to harm and how the
availability in different markets, and increase level company minimizes this risk; such information also
of living, which are not considered important or should be incorporated into briefing sessions from
professionally relevant to interviewees and there- the company.
fore do not influence the purchasing process. In Although the concept of companies ‘‘doing the
order to ensure that stakeholders gain an appro- right thing’’ underpins corporate social responsi-
priate and complete understanding of the MRI bility, in which context the environmental
scanning equipment’s sustainability credentials, dimension is integral, its use to support marketing
marketing should focus on a more generic view of activities also has two commercial advantages. First,
environmentalism. it increases the sustainability of the company by
The interviewees’ own ethical standpoints supporting the sales of its products. Second, it
regarding social and environmental sustainability embeds the policies into the company, which helps
tend to be greater than their employers’ view, create a virtuous circle of improvement that further
though for the indicators related to the potential to strengthens the company’s reputation and generates
do harm (socially or environmentally), their views a positive halo for its product offerings. Overall,
about its importance are approximately equal. this study provides an embryonic overview of
Therefore, the marketing of social and environ- how social and environmental indicators of sus-
mental indicators should focus on how the supplier tainability can be used to strengthen the marketing
minimizes the potential for harm and provide reas- of high-tech medical products and establish
surance that scanning equipment is already safe, so differentiation within the minds of key customer
adequate precautions are in place. However, the stakeholders.
price of the scanning equipment and image quality
remains more influential in the purchasing decision
than either social or environmental sustainability Limitations and further research directions
indicators. Thus, stakeholders might use the com-
pany’s reputation in these two areas to differentiate As in most research, this study contains certain
between products and suppliers. limitations that affect our interpretation of the results
Ensuring that stakeholders know the social and while also suggesting directions for further research.
environmental sustainability credentials of the MRI First, we employ a single-case approach. Although
scanning equipment requires a range of approaches the sample of customer institutions can be considered
representative of Dutch hospitals that purchase MRI Note
scanning equipment, a study that considers other
1
European or North American customers, whose The term ‘‘aspect’’ might be changed to ‘‘focal area’’
regulations and institutional operating environments to reflect its use as a summary label of indicators (Geibler
differ, would provide additional insights. Second, we et al., 2006), in line with Philips Medical Systems’s incor-
focus on the purchasing stage, though the findings poration of environmental sustainability in its marketing
of high-tech medical equipment, which the company
indicate that stakeholders form personal opinions
refers to as ‘‘green focal areas’’ (Philips Sustainability
about social and environmental sustainability factors Report, 2006). In this article, however, we continue to
prior to their purchase. This process therefore re- use the term aspect.
quires better clarification to enable firms to influence
their development and thus support the purchase
process stage. Third, patients as customer stake-
holders do not appear in the study, which limits Appendix
understanding of how their views about indicators
such as safety and comfort might influence the APPENDIX 1
opinions of the decision makers and thus prevents a Concept specification model to highlight social sustain-
recommendation about the desirability and practi- ability aspects and indicators (cf Geibler et al., 2006).
cability of targeting marketing effort to them.
Fourth, the medical systems context may limit the
transferability of our findings. Further studies in
other business contexts would broaden our under-
standing of the role played by social and environ-
mental sustainability in influencing corporate
purchasing decisions. Fifth, this study relies on
historical information and interviewees’ recall; real-
time data collection could identify transitory influ-
ences on stakeholder’s views, and longitudinal
research might distinguish how these influences have
affected company policy.
These limitations thus must be kept in mind when
considering our results. However, despite the limi-
tations, we believe that this research represents a
substantial step toward understanding the social and
environmental responsibilities that purchasers of
high-tech medical equipment identify as important,
as well as developing guidelines that can aid manu-
facturers in marketing such equipment.
APPENDIX 2
Conceptualized social aspects with potential social indicators

Social aspects Examples Potential social indicators

Customer health Health complaints of operators because of use Health and safetya,g
and safety of equipment Healthb
Health complaints of patients because of use of Quality, health, and safetyc
equipment Peace of mindd
Proactive anticipation of safety regulations Illness and disease reductiond
Accident and injury reductiond,h
Health and well-beingd
External social improvementse
Products and service labelingg,h
Customer comfort Operator comfort Quality of working conditionsa
Patient comfort Satisfaction of needsb
Peace of mindd
External social improvementse
Noise and pollutionh
Ethical production Ethical performance of the company Quality of working conditionsa,f
Ethical performance of the suppliers Education and traininga,b
Healthb
Equityb
Individual contentmentb
Taking employees into considerationc
Quality, health, and safety at workc
Quality of lifed
Illness and disease reductiond
Equity within organizatione
Internal social improvementse
Ethical productionh
Accidents or incidentsh
Supplier fairnessi
Product accessibility Product accessibility for patients with physical Equityb
or mental disadvantages Quality of lifed
Product availability at emerging markets and International equitye
base of pyramid External social Improvementse
Accessibility to key servicesh
More equitable accessibilityi
Contribution to Contribution to science (e.g., new health Employmenta,i
society solutions) Innovation potentiala
Increase level of living Product acceptance and societal benefitsa
International equitye
Social impact of operationsf
Quality of life in communityf
Community developmenth
Regeneration and rebuilding
of communitiesh
Intellectual assetsi
a
Geibler et al. (2006).
b
Seuring et al. (2003).
c
Gauthier (2005).
d
Fiksel et al. (1998).
e
Steurer et al. (2005).
f
Tanzil and Beloff (2006).
g
Global Reporting Initiative (2006).
h
Sigma (2007).
i
Sherwin (2004).
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