1. Social Responsibility, Ethics and the Marketing Environment
Chapter 2
Instructor Shan A. Garib, Fall 2012

2. 2.1 Corporate Social Responsibility
Corporate Social Responsibility: a business’s concern for society’s welfare

3. Corporate Social Responsibility
Four Components of Total Corporate Social Responsibility:
Economic
Legal
Ethical
Philanthropic

4. 2.2 Ethical Behaviour in Business
Ethics: Morals:

5. Ethical Behaviour in Business
Morality and Business Ethics -The values of business people have been acquired through family, education and religion -To develop a personal set of ethics: -

6. Ethical Behaviour in Business
Morality and Business Ethics -To develop a personal set of ethics: -evaluate the consequance of a particular act -stress importance of rules, laws -develop moral character through: 1. preconventional morality 2. conventional morality 2. postconventional morality

7. Ethical Behaviour in Business
Ethical Decision Making is influenced by:

8. Ethical Behaviour in Business
(Code of) Ethical Guidelines to help managers make better decisions Advantages:

9. 2.2 The External Marketing Environment
Understanding the External Environment -Managers must constantly change the marketing mix (4P’s) to reflect the ever changing environment -

10. 2.2 The External Marketing Environment
Environmental Management: sometimes the company can implement strategies that influence the environment -done through lobbying -environmental factors include:

11. 2.4 Social Factors
-Hardest to infulence and change -they influence what you buy, prices paid... -examples are: consumer attitudes, values and lifestyles

12. Social Factors
Market-oriented Values Value: a strongly held belief, determines what is important and not important Four values influencing our lifestyles and attitudes:

13. Social Factors
Values influence our buying habits. -consumers insist on high quality products -ranking characteristics of product quality:

14. Social Factors
The growth of component lifestyles -choosing products and services that meet diverse needs and interests Eg. Banker/biker

15. Social Factors
The changing role of families and working women Duel incomes means greater purchasing power!

16. 2.5 Demographic Factors
Demography: study of people’s vital statisitcs -strongly related to consumer behaviour -each age group has own tastes and biases Tweens: Generation Y: Gen X:

17. Demographic Factors
Demography: Boomers: 50% of population now in larger cities

18. 2.6 Growing Ethnic Markets
Ethnic and Cultural Diversity Multiculturalism:

19. 2.7 Economic Factors
Three areas of concern for marketers:

20. Economic Factors
Three areas of concern for marketers: 1.

21. Economic Factors
Three areas of concern for marketers: 1a. 1b.

22. Economic Factors
Three areas of concern for marketers: 2. inflation:

23. Economic Factors
Three areas of concern for marketers: 3. Recession: -different marketing approach:

24. 2.8 Technological Factors
External technology important to marketing managers: 1. 2.

25. Technological Factors
Staying technologically relevant means managers need to do research and adopt new technologies Research: Applied research:

26. 2.9 Political and Legal Factors
Federal Legislation affecting how business is conducted is administered through the competition bureau -enforces laws covering:

27. Political and Legal Factors
Self-regulation: indusrty groups that police themselves eg. CMA developing guidelines and ethical practices Consumer Privacy -Every firm should be able to justify the type and use of information it has -

28. 2.10 Competitve Factors
The competitive environment is made up of: 1. 2.

29. Competitve Factors
Competition for Market Share and Profits -As population grows, costs rise, resources limited firms have to work harder to maintain profits and market share!!!!!