2. Most businesses operate responsibly and within the limits of the law,
but organizations often walk a fine line between acting ethically and
engaging in questionable behavior.
Research show that ethical companies often have better stock
performance, but too often companies are distracted by the short-
term costs of implementing ethics programs and the fleeting benefits
of cutting ethical corners.
3. THE NATURE OF SOCIAL
RESPONSIBILITY
In marketing, social responsibility refers to an organization’s
obligation to maximize its positive impact and minimize its negative
impact on society.
It deals with the total effect of all marketing decisions on society.
Social marketing includes the managerial processes needed to
monitor, satisfy, and even exceed stakeholder expectations and
needs.
4. SOCIAL RESPONSIBILITY
Socially responsible efforts
have a positive impact on local
communities; at the same time,
they indirectly help the
sponsoring organization by
attracting goodwill, publicity,
and potential customers and
employees.
5. THE DIMENSIONS OF SOCIAL
RESPONSIBILITY
Socially responsible organizations strive for marketing citizenship,
the adoption of a strategic focus for fulfilling the economic, legal,
ethical, and philanthropic social responsibilities expected by
stakeholders.
8. SOCIAL RESPONSIBILITY
At the most basic level, all companies have an
economic responsibility to be profitable so
that they can provide a return on investment
to their owners and investors, create jobs for
the community, and contribute goods and
services to the economy.
Marketers also have an economic
responsibility to engage in fair competition
and build ethical customer relationships.
Economic and legal responsibilities are the
most basic levels of social responsibility for a
good reason: failure to consider them may
mean that a marketer is not around long
enough to engage in ethical or philanthropic
activities.
9. SOCIAL RESPONSIBILITY
Marketing Ethics are principles and
standards that define acceptable conduct
in marketing as determined by various
stakeholders, including the public,
government regulators, private interest
groups, consumers, industry, and the
organization itself.
At the top of the pyramid of corporate
responsibility are philanthropic
responsibilities. These responsibilities,
which go beyond marketing ethics are not
required of a company, but they promote
human welfare or goodwill, as do the
economic, legal, and ethical dimensions of
10. SOCIAL RESPONSIBILITY
More companies than ever are
adopting a strategic approach to
corporate philanthropy.
Cause-related marketing is the
practice of linking products to a
particular social cause or an
ongoing or short-term basis.
11. SOCIAL RESPONSIBILITY
ISSUES
Although social responsibility may seem to be an abstract ideal,
managers make decisions related to social responsibility every day.
Three major categories:
1. Sustainability
2. Consumerism
3. Community Relations
12. SUSTAINABILITY
Sustainability is the potential for the long-
term well-being of the natural
environments, including all biological
entities, as well as the interaction among
nature and individuals, organizations, and
business strategies.
Sustainability includes the assessment and
improvement of business strategies,
economic sectors, work practices,
technologies and lifestyles – all while
maintaining the natural environment.
Many products have been certified as
“green” by environmental organizations
such as Green Seal or EU’s Ecolabel to
indicate that their products are less
13. CONSUMERISM
Consumerism is the effort of
independent individuals, groups,
and organizations to protect the
rights of consumers.
A number of interest groups and
individuals have taken action
against companies they consider
irresponsible by lobbying
government officials and agencies,
engaging in letter-writing
campaigns and boycotts, and
making public-service
announcements.
14. CONSUMERISM
Also of great importance to the consumer movement are the four
basic rights.
Right to safety – marketers are obligated not to market a product that
they know could harm consumers. All products must be safe for their
intended use, include thorough and explicit instructions for proper
and safe use, and have been tested to ensure reliability and quality.
Right to be informed – consumers should have access to and the
opportunity to review all relevant information about a product before
buying it.
15. CONSUMERISM
Right to choose – means consumers should have access to a variety
of products and services at competitive prices.
Right to be heard – ensures the consumers’ interest will receive full
and sympathetic consideration in the formulation of government
policy. The right to be heard also promises consumers fair treatment
when they complain to marketers about products. This right benefits
marketers too, because when consumers complain about a product,
the manufacturer can use this information to modify the product and
make it more satisfying.
16. COMMUNITY RELATIONS
Being a good community citizen also means avoiding harmful actions
that could damage the community.
Ex. Pollution, urban sprawl, exploitation of the workforce
18. ETHICAL ISSUES IN
MARKETING
An ethical issue is an identifiable problem, situation, or opportunity
that requires an individual organization to choose from among
several actions that must be evaluated as right or wrong, ethical or
unethical.
19. ETHICAL ISSUES IN
MARKETING
Product Recalls – when companies ask customers to return products
found to be defective, companies that issue product recalls are
criticized for not having adequate quality controls to catch the
defective product before it was released.
Greenwashing – when products are promoted as being more
environmentally friendly than they really are.
Bribery – when an incentive is offered in exchange for an illicit
advantage.
Price gouging – pricing products at exorbitant levels, and taking
advantage of customers who must purchase the medicine to survive
or to maintain their quality of life.
20. ETHICAL ISSUES IN
MARKETING
Bait and Switch – pricing schemes attempt to gain customer interest
with a low-priced product, but then switch the buyer to a more
expensive product or add on service.
Channel stuffing – shipping surplus inventory to wholesalers and
retailers at an excessive rate, typically before the end of a quarter.
Counterfeiting – fakes, counterfeits could seriously jeopardize public
safety.
23. INDIVIDUAL FACTORS
When people need to resolve ethical conflicts in their daily lives, the
often base their decisions on their own values and principles of right
or wrong.
People learn values and principles through socialization by family
members, social groups, religion, and formal education.
24. ORGANIZATIONAL
RELATIONSHIPS
Although people can and do make ethical choices pertaining to
marketing decisions, no one operates in a vacuum.
Ethical choices in marketing are most often made jointly, in work
groups and committees, or in conversations and discussions with
coworkers.
Marketing employees resolve ethical issues based not only on what
they learned from their own backgrounds but also on what they learn
from others in the organization.
Organizational, or corporate culture is a set of values, beliefs, goals,
norms, and rituals that members of an organization share.
25. OPPORTUNITY
Another factor that may shape ethical decisions in marketing is
opportunity – conditions that limit barriers or provide rewards.
A marketing employee who takes advantage of an opportunity to act
unethically and is rewarded or suffers no penalty may repeat such
acts as other opportunities arise.
26. IMPROVING MARKETING
ETHICS
It is possible to improve ethical conduct in an organization by hiring
ethical employees and eliminating unethical ones, and by improving a
company’s ethical standards.
One approach is the “bad apple – bad barrel” analogy
To improve ethics, many organizations have developed Codes of
Conduct (or Code of Ethics) that consists of formalized rules and
standards that describe what the company expects of its employees.
