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Chapter 4 Social Responsibility and Ethics in Marketing

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2 Chapter 4 Social Responsibility and Ethics in Marketing

3 Objectives Understand concept and dimensions of social responsibility
Define/describe importance of marketing ethics Familiarize self with ways to improve ethical decisions in marketing Understand role of social responsibility and ethics in improving marketing performance

4 The Nature of Social Responsibility
Social responsibility – an organization’s obligation to maximize its positive impact and minimize its negative impact on society

5 100 Best Corporate Citizens

6 Dimensions Of Social Responsibility
Marketing/Corporate Citizenship Stakeholders Marketing Ethics Cause-Related Marketing Strategic Philanthropy

7 Marketing Citizenship
The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders.

8 Pyramid Of Corporate Social Responsibility
Source: From Archie B. Carroll, “The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders,” adaptation of Figure 3, p. 42. Reprinted from Business Horizons, July/Aug Copyright © 1991 by the Foundation for the School of Business at Indiana University. Reprinted with permission.

9 Marketing Ethics Principles and standards that define acceptable marketing conduct as determined by various stakeholders. BBB Code of Advertising

10 Cause-Related Marketing
The practice of linking products to a particular social cause on an ongoing or short-term basis.

11 Strategic Philanthropy
The synergistic use of organizational core competencies and resources to address key stakeholders’ interests and achieve both organizational and social benefits. IBM - Overview | Corporate Community Relations

12 Social Responsibility Issues

13 Green marketing The specific development, pricing, promotion, and distribution of products that do not harm the natural environment.

14 EUROPA - Environment - Ecolabel - Latest News
Europe’s Eco-Label EUROPA - Environment - Ecolabel - Latest News

15 Corporate Goals For The Natural Environment
Eliminate concept of waste Reinvent concept of a product Make prices reflect the cost Make environmentalism profitable Getty Images

16 Marketing Ethics Ethical Issue – An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical.

17 Sample Ethical Issues Related to the Marketing Mix

18 The Nature of Marketing Ethics
Individual Factors Organizational Relationships Opportunity

19 Factors in Ethical Decision-Making

20 Organizational Culture
A set of values, beliefs, goals, norms, and rituals that members of an organization share.

21 Types And Incidences Of Observed Misconduct

22 Improving Ethical Conduct In Marketing
Codes of conduct Ethics Officers Implementing Ethical and Legal Compliance Programs

23 Top Management & Ethics
Talk about importance of ethics Inform employees Keep promises Model ethical behavior

24 Reasons For Not Reporting Ethical Misconduct
Source: From National Business Ethics Survey, “How Employees View Ethics in Their Organizations ,” Ethics Resource Center 2005, p. 29. © Ethics Resource Center, Washington, DC. Reprinted with permission.

25 Codes of Conduct Formalized rules and standards that describe what the company expects of its employees

26 Ethics Officers Create/enforce code
Meet with, discuss code, and advise organization members Toll-free hotlines Salaries Of Ethics Officers

27 Implementing Ethical & Legal Compliance Programs
Open communication & coaching Ethics training Clear channels of communication Follow-up support Enforce standards and impose penalties Part of overall marketing strategy

28 Audit Of Control Mechanisms

29 Challenges Of Ethical and Socially Responsible Behavior
Introduction/adaptation of new products More user-friendly Transparency/openness Management responsibility Predict long-term effects Balancing society’s demands

30 Social Responsibility and Ethics Improve Performance
Consumers want to buy from company associated with cause Company’s citizenship

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