2.6 Learn from Mistakes: When Companies Ignore the Environment

In the 1980s, US-based chemical giant DuPont planned to build a titanium dioxide plant near Lukang (also spelled “Lugang”) in Taiwan. The site seemed ideal from a logistical standpoint—until the company discovered it had chosen land close to ancestral burial grounds, a deeply sacred space for the local community.

DuPont and its consultants moved forward quickly, even paying local officials to help speed up permits. But they failed to fully assess the social and cultural environment. Local residents organized protests, and the movement quickly gained national attention. The Lukang Anti-DuPont Movement became one of Taiwan’s first major environmental and cultural protection campaigns. Under intense public pressure, DuPont abandoned the project.

A Japanese competitor later built a titanium dioxide plant in a culturally appropriate location and captured the market DuPont had hoped to enter.

No matter how good the business case looks, ignoring the cultural, social, or political environment can derail even the best-laid plans. Marketers and business leaders need to consider the full marketing environment before expanding into new regions or launching major initiatives.