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SOCIAL RESPONSIBILITY
Introduction
Milton Friedman,
Archie Caroll, and
Andrew Carnegie.
MEANING AND SCOPE OF
SOCIAL RESPONSIBILITY
Friedman is of the view that the social
responsibility of business is to increase profit
within the requirements of the law.
If a business person acts responsibly by
cutting the price of the firms produce to
prevent inflation, by making expenditures to
reduce pollution, or by hiring the hard-core
unemployed, that person is spending the
shareholders money for a general interest.
MEANING AND SCOPE OF
SOCIAL RESPONSIBILITY
Archie Carroll is of the view that managers of
business organisation have four
responsibilities:
economic,
legal,
ethical, and
discretionary.
MEANING AND SCOPE OF
SOCIAL RESPONSIBILITY
Economic responsibilities are to produce
goods and services of value to society so that
the firm can repay its creditors and
stockholders.
6. The corporation may decide to set a ceiling for their contribution from sales (e.g.
Lysol contributing five cents for each product coupon redeemed, up to Gh 225,000).
7. The offer may be for a specific, designated product or for several or all products
CAUSE-RELATED
MARKETING
When should a cause-related marketing (CRM)
initiative be considered?
Those with products that enjoy a large market or mass
market appeal.
Have well-established and wide distribution channels.
Product differentiation that offers consumers an
opportunity to contribute to a favorite charity
When increased product sales, visibility, or co-branding
with a popular cause would support corporate marketing
objectives and goals for a product or products.
CAUSE-RELATED
MARKETING
It may also be most successful in situations where a
company has an existing, ideally long-term association
with a cause or charity and then adds this initiative to the
lineup, in an integrated fashion.
CAUSE-RELATED
MARKETING
Steps in Cause-Related Planning Process
Situational Assessment:
1.identifying the company's marketing needs
2. identifying a social issue to support: What are the major
social concerns of target markets? Of these, which one is most
closely aligned with the company's core values and has the
strongest potential for connections with products that would
support marketing objectives.
3. potential partners are explored. How large is their
membership or donor base and what is their reputation in the
community.
CAUSE-RELATED
MARKETING
Setting Objectives
quantifiable goals, e.g. Increase in sales, desired
fundraising levels.
Selecting Target Audiences
1. Identify their characteristics,
2. needs, and
3. media consumption habits
Determine the Marketing Mix (4Ps or 7Ps)
Developing Budget
Implementation and Evaluation Plans
CORPORATE
PHILANTHROPY
Meaning and Forms of Corporate Philanthropy
Corporate philanthropy may be defined as a direct contribution by
a corporation to a charity or cause, most often in the form of cash
grants, donations and/or in-kind services (Kotler and Lee, 2005).
Typical Philanthropic Programs
Providing cash donations
Offering grants
Awarding Scholarships
Donating products
Donating services
Providing technical expertise
Offering the use of equipment
CORPORATE
PHILANTHROPY
Benefits of Corporate Philanthropy:
Potential Concerns
Specific Nature of Concerns
This can get expensive.
With so many employees, efforts may get spread
over so many issues that we don't really make a
social impact.
Similarly, when efforts among employees are
dispersed throughout the market, even the globe,
how do we realize business benefits for company
as well
Being able to track efforts and outcomes for this
initiative can be the most difficult of all.
Key Success Factors (KSFs)
The following factors are useful to serve as a
ofguide:
Community Volunteering
When selecting a social issue:
Projects
Choose issues and organizations that are relevant
to the lives of the companys employees
Conduct due diligence, learn from history but
always innovate. It is critical to learn from past
efforts by companies and foundations.
Support causes and projects that improve the
social and economic environment in the locations
where the company has its physical facilities.
KSFs of Community
Volunteering Projects
Ensure that the projects, issues and
organizations supported reflect the values of
the company and have the support of senior
leadership involvement, including the CEO
and chairman of the board.
KSFs of Community
Volunteering Projects
When developing the programme plan
Engage employees throughout the company in the
effort- employees at the top, middle, and bottom.
Develop partnership between Community Affairs and
brand the managers
Collaborate with community organizations that are
behind the most innovative responses to the social
issue.
Make sure there is a connection between the effort
and the core of the company. In our case we
endeavored to connect our employees to programmes
they were already broadly aware of, had significant
interest in, and were able to partner with.
KSFs of Community
Volunteering Projects
When implementing the programme
Stay committed to the issue for an extended period
of time instead of jumping around between
different causes. Positive change takes time,
requiring a long-term investment. Be patient, many
of the benefits of supporting worthy causes are not
immediately evident.
Make sure you don't compromise the content of
what you do. Keep your eye on the most valued
customer, which must be the community in which
you are engaged. Provide your employees with the
tools and resources they need to be successful,
Include promotional strategies. To reach employees
and the community you are serving, you must
publicize your programs both internally and
externally and capitalize on efforts to recognize and
share employee contributions and effective practices
whenever possible. However, let the organization or
community receiving support from the company tell
the story of the companys involvement.
Develop and implement measurement systems.
Independent process and outcome evaluations must
be in place to determine what is working and what is
not, and the type of resource investments that will
help you to be successful.
When is Community
Volunteering Ideal?
When current social initiatives would benefit from a
volunteer component.
When a group of employees express an interest in a
specific cause that has strong connections with business
and corporate citizenship goals
When a community need emerges, especially an
unexpected one that is a good match for the resources and
skills of a workforce.
When technological advances make it easier to match
employees to
volunteer, opportunities.
When a strong community organization approaches a
business for support, represents an issue of interest to
employees, and has a natural connection to strategic
corporate citizenship and business goals.
When a volunteer effort might open new markets or
provide opportunities for new product development and
research.
Community Volunteering
Programme Development
Develop guidelines for employee involvement.
Process
Determine types and levels of employee support.
Develop an internal communications plan.
Develop a recognition plan.
Develop an external communications plan.
Develop a plan for tracking and assessment.
THE PHILOSOPHY OF CORPORATE
ETHICS
What is Ethics?
Brady (1986) refers to ethics as those standards or
morals a person sets for himself or herself regarding
what is good and bad or right and wrong.
Ethics is defined as .... an individuals personal beliefs
regarding what is right and wrong or good or bad.
Distinguish ethics from involuntary actions- carefully
reasoned out actions.
The need for ethical behaviour has resulted in code of
ethics for various occupations e.g teachers, doctors
etc.
The Origins of Ethics
Religious Doctrines
Law
Science
Study of Society
Power of Authority
Arguments underpinning ethics
Deontological Ethics
According to deontologists (those who argue
from this stand), certain actions are right or
wrong in themselves- these we are aware of
without being told; thus making legitimate the
claim that there is an underlying innate code of
ethics that must be obeyed or upheld.
The problems with this positions are concerned
with how we know which acts are wrong and how
we distinguish between a wrong act and an
omission.
Arguments underpinning ethics
Teleological Ethics
Teleologists, however argue that what
determines a good act, is the outcome of that
act. Therefore if the outcome is good then the
act is deemed as good. It distinguishes
between the right and the good, with the
right encompassing those actions which
maximize the good. It is like the expression,
The end justifies the means.
Arguments underpinning
ethtics
Utilitarianism
Utilitarianism, similar to teleologists, posits
that outcomes are all that matter in
determining what is good and that the way in
which a society achieves its ultimate good is
through each person pursuing his/her own self
interest. The philosophy states that the
aggregation of all these self interests will
automatically lead to the maximum good for
society at large.
Ethical relativism and
objectivism
Relativism is the denial that there are certain universal
truths or moral principles. Two forms exist:
Conventionalism, which argues that a given set of
ethics or moral principles which define what is moral
behaviour and ethical standards are set, not absolutely,
but according to the dictates of a given society at a
given time and are only valid within a given culture at a
particular time
Subjectivism, that sees individual choice as the key
determinant of the validity of moral principles.
conventionalism
Difficulty with conventionalism are: