Trade in Terms of Ecological Economics

Abstract

Purpose

This chapter highlights the importance of eco-quality and eco-standards as a determinant of socially responsible trading management and marketing. Starting from the premise that ecology internationalizes and becomes determinant of socially responsible marketing and management, we analyse trade competitiveness based on quality, marketing strategy for quality in trade, and correlation of trade and ecology.

Design/methodology/approach

Based on literature about quality and quality management, this chapter starts with an analysis of the importance of quality for trade and marketing strategy for quality in trade. Analysis shows that the issue of quality has always been present in trade, but mostly as a commercial requirement in the forming and functioning of buying and selling relations. However, the quality of products and services that are subject of buying and selling relations between producers, trade, and consumers cannot be viewed outside of space and time. It has its own evolution, which is closely related to the needs and demands of consumers. Historically observing, it can be concluded that the quality of the trade in market-developed countries has evolved from elementary characteristics of assortment quality (durability, utility), over the quality of service, to the eco-quality. Direction of quality evolution was determined by development of ecological awareness regarding vulnerability of the nature and environment. This is why the economies of certain countries are at different levels in terms of ecological economics and eco-quality.

Findings

It’s discovered that the consumer creates direction of evolution of eco-marketing and eco-management. He is becoming an active participant in the creation of “eco-package offer” of trading enterprises. Obliviousness of the eco-quality aspect, from trade toward the customer, represents an antimarketing act. Ecologically irresponsible management has double “punishment.” On the one hand, “punishment” comes from the consumer who does not buy the product, and on the other hand, socioeconomic environment is punishing it by using “polluter pays” principle. In order to act as an incentive for the creation of an eco-responsible marketing management, European Union (EU), World Bank, and European Bank for Reconstruction and Development have established a Fund for protection of the environment. Countries with recent label “in transition” (Poland, Czech Republic, and Slovakia) are allocating 2% of GDP for protection of the environment, while our country allocates less than 1% of GDP.

Originality/value

The chapter provides a starting point for further research in the field of ecological aspects of trade and correlation of trade and ecology.

Citation

Cuzovic, S. and Mladenovic, S.S. (2013), "Trade in Terms of Ecological Economics", Challenges for the Trade of Central and Southeast Europe (International Business and Management, Vol. 29), Emerald Group Publishing Limited, Leeds, pp. 37-53. https://doi.org/10.1108/S1876-066X(2013)0000029007