chapter 2 - mktg n society

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Marketing And Society: Social responsibility and Marketing Ethics

Introduction -

- Firm influences way society thinks, acts, responds todifferent issues Unicef ad.

- Moulds public opinion, creates images and expectations

- Greenathon.- Organisation must act with responsibility due to possibleimpact on society.

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Why CSR? Corporate Social Responsibility

CREATE SUSTAINABLE BUSINESS THROUGH BEST

POSSIBLE RELATIONSHIPS WITH COMMUNITY AND

STAKEHOLDERS.

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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.

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Philosophical Marketers do their bit to

contribute towards a just and fair

society.

Pragmatic

Failure to do so may result in

buyers switching brands andcompanies.

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SOCIAL MARKETING CONCEPT

Rising wealth leads to greater social emphasis in consumerspurchases.

Maslows theory when basic physiological and social needsare met higher order needs become motivators thusinfluencing buying behaviour.

Govt. expects companies to take on a social role select thecause they support charity, animal protection, schoolequipment.

Criticisms of the societal marketing concept

Philosophical firms should stick to making profits, let othersdo social work.

Pragmatic cheap way of getting attention.

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Marketing Ethics

Practice of doing and helpingothers do the right vis--vis thewrong with respect to marketingpolicies, practices and systems.

Establishing and practisingprinciples and standards thatguide appropriate conduct in

organisations.

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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 ofchecks and balances.

4. Buyer seller behaviour5. Emerging areas e-commerce, product development,

etc.


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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.


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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, tobaccoPersonal values with organisation false advertising


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Focus on stakeholders and not just short-term customerneeds.

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


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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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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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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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Corporate Governance

chapter 2 - mktg n society

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