Ex ante assessment of sustainable marketing investments

Abstract

AbstractThe sustainability revolution, and the positive effects of sustainable marketing on business performance, should lead companies and research to focus more on issues related to assessment of sustainable marketing investments. This conceptual paper is an attempt to provide a contribution on this interdisciplinary topic not yet considered in the literature. We focus on how companies can assess ex ante this type of investment. We propose an adaptation of the risk-return ratio as a tool for ex ante assessment of sustainable marketing investments. We also provide considerations about the risks and rewards of Starbucks’ “Greneer Stores” project. We conclude the study by discussing the implications for managers of sustainable companies.