Marketing And Society: Social responsibility and Marketing Ethics

Introduction - Firm influences way society thinks, acts, responds to different issues Unicef ad. - Moulds public opinion, creates images and expectations - Greenathon. - Organisation must act with responsibility due to possible impact on society.

Why CSR? Corporate Social Responsibility CREATE SUSTAINABLE BUSINESS THROUGH BEST POSSIBLE RELATIONSHIPS WITH COMMUNITY AND STAKEHOLDERS.

Why CSR? Corporate Social Responsibility Benefits Increase productivity. Contributes to competitiveness. Improve staff recruitment. Improve staff retention. Creates a +ve corporate image. Attract investors. Creates new opportunities. Better way of doing business.

Why CSR? Corporate Social Responsibility Philosophical Marketers do their bit to contribute towards a just and fair society. Pragmatic Failure to do so may result in buyers switching brands and companies.

SOCIAL MARKETING CONCEPT

Rising wealth leads to greater social emphasis in consumers purchases. Maslows theory when basic physiological and social needs are met higher order needs become motivators thus influencing buying behaviour. Govt. expects companies to take on a social role select the cause they support charity, animal protection, school equipment. Criticisms of the societal marketing concept Philosophical firms should stick to making profits, let others do social work. Pragmatic cheap way of getting attention.

Marketing Ethics
Practice of doing and helping others do the right vis--vis the wrong with respect to marketing policies, practices and systems. Establishing and practising principles and standards that guide appropriate conduct in organisations.

Marketing ethics different facets 1. Moral stand of a marketing agency disclosure obligations of sales to client, customer product features, price and payment terms, effect, usage restrictions. 2. Organisational ethics disclosure norms govt policy. 3. Ethical behaviour of varying market structures competition, advertising, presence / absence of checks and balances. 4. Buyer seller behaviour 5. Emerging areas e-commerce, product development, etc.

Business Ethics Ethics Right or wrong. - What is right for one could be wrong for another. - Bribing. - Strong media links. - Risk of exposure to unethical business pratcices. - Awareness of customers. - Ethical investments. - Better staff training. - Staff reward systems. - Increased profitability good safety standards, employment policies.

Ethical issues for business - Product safety standards. - Advertising content. - Working environment. - Unauthorised payments. - Employees privacy. - Environmental issues. - Policy initiatives for ethical compliance. - Consumer privacy. Conflict Difference between needs of - Company Industry Society - Cigarette, tobacco Personal values with organisation false advertising
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Stakeholders of organisation Focus on stakeholders and not just short-term customer needs. 1. Customer - not always right in the goods he may buy, may not know his true need. - provide goods with long term needs. eg. Pension not just sales commission. 2. Employees - reputation. - recognising rights of trade unions.

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Stakeholders of organisation 3. Local communities - good neighbour. - support environment. 4. Government - multiple roles. - tax revenue. - pvt companies take over responsibilities from public sector - govt achieves economic and social objective.

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Stakeholders of organisation 5. Intermediaries - wholesalers, retailers, agents. 6. Suppliers - timely and provide goods in good condition. 7. Financial community - Financial Institutions - Shareholder private

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Corporate Governance Focus on business relation with employees, customers, stakeholders, creditors, suppliers and the society. Refer docs. Green Marketing REDUCE RECYCLE REUSE Why? Increased pressure on natural resources. Ecology ignored to fulfill essentials. Conflicts with goods dont use transport! Alternatives?

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