1. MGMT 452 Corporate Social Responsibility
Zeynep Gürhan-Canlı
Consumer Relations
Chapter 8
April 12, 2010

2. Consumer Stakeholders
Individuals who purchase, use, and dispose of products for themselves and their homes.
There is no true consensus around issues such as environmental responsibility, and companies face complex decisions about how to respond to them.
Consumers are primary stakeholders because their awareness, purchase, use and repurchase of products is vital to a company’s existence.

3. Consumer Economic Issues
Consumers and business are connected by an economic relationship.
Consumers exchange money for goods or services.
Consumers expect the products they purchase to perform as guaranteed by the sellers.
In the early 1900s “let the buyer beware” typified the power that business- not consumers- wielded in exchange relationships. This is still true in less developed parts of the world.

4. Consumer Economic Issues
Consumer fraud results from intentional deception to derive unfair economic advantage from an organization.
Shoplifting
Collusion
Duplicity or Guile
Buyer/seller disagreement can result in fraudulent activities.
Products not meeting expectations
Inventory shrinkage is estimated to cost U.S. businesses more than $40 billion per year

5. Motivations for Illegitimate Consumer Complaints

6. Ethical Issues Consumerism Consumer Bill of Rights
The movement to protect consumers from an imbalance of power with business and to maximize consumer welfare in the marketplace.
Consumer Bill of Rights
Right to choose
Right to safety
Right to be informed
Right to be heard
Right to seek redress
Right to privacy

7. Right to Choose
To the extent possible, consumers have the opportunity to select from a variety of products at competitive prices. This right is based on the philosophy of the competitive nature of markets, which should lead to high-quality products at reasonable prices

8. Right to Safety and Right to be Informed
This means that businesses have an obligation not to knowingly market a product that could harm consumers.
Some consumers believe this means that the manufacture and sale of firearms should be outlawed.
Any information, whether communicated in written or verbal format, should be accurate, adequate, and free of deception so that consumers can make a sound decision.

9. Right to be Heard and Right to Seek Redress
Relates to opportunities for consumers to communicate or voice their concerns in the public policy process. This implies that governments have the responsibility to listen and take consumer issues into account.
Consumers have the right to express dissatisfaction and seek restitution from a business when a good or service does not meet their expectations.

10. Right to Privacy
Relates to consumers’ awareness of how personal data are collected and used, and it places a burden on firms to protect this information.
Consumer boycotts

11. Philanthropic Issues
Consumers are increasingly concerned with organizations’ social responsibility.
Organizations are increasingly linking philanthropic efforts with consumer interests in order to strengthen ties to consumers.
Avon—breast cancer fundraising
Home Depot—Habitat for Humanity
Eastman Kodak—World Wildlife Fund

12. Strategic Implementation
Include community views in corporate planning.
Manage, nurture, and continuously assess community relations and needs.
Educate and listen to consumers; run surveys to discover strengths and weaknesses in stakeholder relations; hire consumer affairs professionals; and develop a community relations office.