general ojective

7/31/2019 General Ojective

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7 yrs experienced, having good knowledge and well developed skills in general practice,

looking for a opportunity to work as a team member to fulfill the vision and mission of the

concerned organisation/hospital......

Corporate Social Responsibility: A Review of the Literature

Katy Wright

Introduction

This paper provides an overview of the literature about Corporate Social

Responsibility, and presents some of the key debates in this area. After

considering how CSR might be defined, the paper provides context for the debate

by outlining social, economic and political factors driving the development and

implementation of CSR. There is then a discussion of the contested nature of

CSR, in particular in terms of its instrumental or normative value. Such debates

are then related to notions of the role and nature of corporations. Finally, the role

in CSR of the manager and issues relating to stakeholders and diversity are

considered.

What is Corporate Social Responsibility?


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The precise nature of CSR is understood in different ways, with differences in

understanding or representation of theconcept relatable to different paradigms

and concerns. Although there are several contested notions of what CSR

shouldbe and how it should work, there is some agreement upon what it broadly

entails. A number of concepts and issues are subsumed under the heading of

CSR, including human rights, environmental responsibility, diversity

management, sustainability, and philanthropy (Amaeshi & Adi, 2006), meaning

that it is a complex area with an interdisciplinary focus.

It is generally agreed that CSR involves corporations voluntarily exceeding their

legal duties to take account of social, economic and environmental impacts of

their operations. For example, the European Commission defines CSR as:

"a concept whereby companies integrate social and environmental concerns in

their business operations and in their interactions with their stakeholders on a

voluntary basis" (European Multistakeholder Forum on CSR, 2004: 3)

Similarly, the Chartered Institute of Personnel and Development (CIPD) considers

CSR to involve corporations taking responsibility for their "impact economically,

socially, environmentally and in terms of human rights" (CIPD website). The UK

Corporate Responsibility Bill (2002) suggests that corporations should "take all

reasonable steps to minimise any negative environmental, social and economic


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impacts" (Article 7b). These definitions tend to emphasise the avoidance of harm,

based on the notion of a shared responsibility towards 'stakeholders' and the

achievement of sustainability, whereas for others, CSR necessarily entails

actively seeking to achieve positive change. For example, McWilliams & Siegel

(2001) define CSR as "actions that appear to further some social good, beyond

the interests of the firm and that which is required by law" (117), and similarly

Carroll's (1991) 'Pyramid of Corporate Social Responsibility' includes

philanthropic requirements.

The role of the stakeholder is key to a CSR approach, with stakeholders

understood to include:

"...any person who may be affected by any operations to which a report applies

and includes but is not limited to: (a) shareholders and investors (b) employees

(c) communities (d) individuals" (Corporate Responsibility Bill, 2002, Article 3)

Others have expanded the stakeholder definition beyond individuals and groups

to include, for example, the environment (Haigh & Griffiths, 2007). The notion of

the stakeholder translates into accountability on the part of a company, whether

to people or non-human stakeholders (Jacobs, 1997).


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Even such a brief overview of definitions of CSR begins to demonstrate the

contested nature of the concept. As will be discussed in more depth below, there

is particular debate around the idea of whether or not CSR is about instrumental

value (acting responsibly as being good for business) or intrinsic/normative value

(acting responsibly as a moral imperative). However, first of all I will look at the

wider context to provide background to these arguments.

Some Background

Consideration of the social, economic and political context demonstrates how

CSR forms part of a wider strategic direction being taken internationally with

regard to state/market relations and the pursuit of a range of objectives and

goals. The context is in part provided by concerns about the numerous examples

of irresponsible behaviour on the part of corporations, ranging from colluding

with oppressive regimes and in the overthrowing of governments (Alston, 2005)

to issues relating to working conditions and the impact of unethical marketing

practices (Richter, 2001). Such examples have demonstrated the need for the

worst excesses of business to be curbed. The globalised economy is understood

to raise important issues for businesses and governments due to changes in

patterns of production and consumption. In particular it is noted that the

manufacturing of goods is "highly mobile" (Cassell, 2001:263) and that supply

chains are often dispersed transnationally, creating difficulties in terms of


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legislation and regulation. The relative power of large corporations compared to

that of certain states is significant:

"In their negotiations with the governments of host countries their ability to pick

up and leave provides them with a great deal of leverage over states dependent

upon the jobs that they provide" (Wells & Elias in Alston, p144, 2005)

Economic globalisation therefore presents challenges to the ability of states to

protect people's rights (Cassell, 2001). The notion of corporate social

responsibility is part of the 'third way' (Gond & Matten, 2007), where the role of

the state is now to provide "steering for the promotion of social development and

social justice" (Giddens, 2001: 6). There is increased involvement of the private

sector in traditionally statutory provision through privatisation and public/private

partnerships (e.g. see Meehan, 2003). Economic policies have created a need for

markets and business to self-regulate in order to continue to pursue an

international free market economy, but also to ensure sustainability (of economic,

human and other resources, and of the environment). CSR is seen as a solution

to these problems of regulation.

The private sector is increasingly seen as a key player in the achievement of

many national and international strategic objectives for governments, which is

also enabled by CSR. For example, in the UK, CSR is understood:


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"to maximise the positive contribution that businesses can make to the UK's

objectives on international sustainable development - including HR, trade and

investment, poverty eradication, environmental protection and corruption - whilst

at the same time effectively tackling adverse impacts" (Department for Trade and

Industry, 2004: 2)

These objectives are related to a range of international agreements such as the

Millennium Development Goals and targets agreed upon at the World Summit on

Sustainable Development. The European Multistakeholder report identifies key

texts to guide CSR development by business, including some key international

texts and guidelines that were developed with and for business in particular, such

as the OECD Guidelines for Multinational Enterprises (MNEs) (1977, revised

2000), the UN Global Compact (2000) and the ILO Declaration of Principles

concerning MNEs and social policy. The report also refers to a range of

multilateral and regional agreements relating to human rights, environmental

development, consumer protection and worker's rights, which are aimed at the

state level, but which they envisage acting as an 'inspiration' to companies in

developing CSR strategies. An overview of these various agreements and

guidelines is provided below.


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Within the UK, legislation has placed a duty on nearly all corporations to report

on their treatment of issues included under the umbrella of CSR. The Corporate

Responsibility Bill (2002) outlined this duty and penalties for non-compliance,

which range from fines to the cessation of operations and imprisonment.

Requirements to report the ways in which corporations give consideration to and

deal with environmental, social and economic factors, are intended to promote

transparency so that companies are able to be held accountable for their

operating procedures by consumers and pressure groups. There are a number of

incentives for CSR related activities, for example the Dow Jones Sustainability

Index and FTSE4Good Index promote environmental reporting, and the

Association of Chartered Certified Accountants (ACCA) gives awards for social

and environmental reporting internationally (for example see the ACCA website).

Reporting consequently has the capacity to add value to a particular brand or to

contribute positively to corporate image. In particular, it is seen to enable

investors and consumers to make informed choices. Evidence suggests that

ethical consumerism is on the rise (Involve, 2005), with sales of ethically

marketed goods rising significantly year on year (New Economics Foundation,

2005). In this sense, the power of the ethical consumer and/or investor to

pressurise businesses into ethical behaviour through the exercise of choice

replaces regulation and legislation as a force for change.


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So from a political or governmental perspective, CSR can be seen as a duty

(having intrinsic or normative value), but there are also material incentives for

corporations to be socially responsible, relating to sustainability and apparent

consumer preferences for ethical business (CSR as having instrumental value). In

the following section, I will focus more closely upon the debate concerning these

two apparently distinct motivations for CSR.

The Instrumental/Normative Debate

A great deal of CSR literature is concerned with the perceived dichotomy of the

normative and instrumental approaches. Much of the literature promotes the

'business case' for CSR with many claiming that "ethics can be good for

business" (Swain in The Independent, 2007). CSR is understood to be a means of

distinguishing and protecting brands and creating trust, and to attract and retain

both potential employees and consumers. It is argued that CSR needs to be made

relevant to the concerns of business people by emphasising and focusing on this

'instrumental' approach:

"CSR needs to be reconstructed in an instrumental linguistic praxis to be

meaningful to managers in their day-to-day pursuits of organisational goals and

objectives" (Amaeshi & Adi, 2006: 3)


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Beesley & Evans (1978) suggest that governments should promote CSR through

taxation and regulation to ensure that it is profitable for corporations to pursue

CSR, and that it is only an achievable goal if competitive pressures are removed.

However, those who take a normative approach express the concern that an

instrumentalist approach diminishes the underpinning ethical principles of CSR:

"Many HR advocates resist any arguments to the effect that a corporate HR

agenda is 'good business' because that argument commodifies basic principles

of human dignity and thus surrenders the moral high ground. In this view,

corporations should protect human rights because it is the right thing to do,

whether it is profitable or not" (Steinhardt in Alston, 2005: 179)

In effect, the normative/instrumental debate rests upon different notions of what

the 'bottom line' of business might be. The different approaches themselves can

be understood to be "underpinned by substantively differentiating, relative logics

of emotional rationalism on the one hand, and instrumental rationalism (rational

choice) on the other" (Amaeshi & Adi, 2006: 1). Interestingly, Reinhardt (in Hay et

al, 2005) notes that the normative and instrumental arguments are often used

simultaneously. For example:


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"CR involves a change in company motivation. This may stem from the ethical

attitudes of the managers in an industrial company, or...from an awareness that

the company's own interests are best served by an enlightened policy" (Beesley

& Evans, 1978: 35)

It is clear that there is interplay between the two approaches, with normative

understandings of ethical business informing instrumental approaches, and

different ways of conceptualising CSR seem to be used to suit different contexts

or audiences in order to 'sell' the idea.

It is argued that an instrumental approach would only involve acting ethically as

long as it was profitable to do so, whereas a normative approach suggests a

more consistent ethical performance (Gond & Matten, 2007). Research

demonstrates that the driving force for corporations to adopt CSR values is often

catalysed by particular events. Cassell (2001) suggests that, for the most part, the

adoption of voluntary codes by MNEs came "only after embarrassing public

exposes of sweatshop conditions" and, further, that "the resulting voluntary

codes have been weak and their enforcement even weaker" (2001: 268)

suggesting that there has been as little commitment as possible. In such cases,

an instrumental approach would seem to have been inadequate in ensuring

genuine commitment to socially responsible business practices. In practice,

whether or not CSR is employed normatively or instrumentally by individual

corporations seems likely to be differentiated according to context. As will be


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discussed in the following section, different approaches in particular are related

in the literature to different conceptions of the role of corporations as well as to

differences in personal values.

The Role and Nature of Corporations

In part, arguments about the nature of CSR can be related to different notions of

the role and nature of corporations, and their relationship to society. These

questions form a key part of 'business ethics' as a disciplinary area. As already

suggested, CSR is rooted within a particular political discourse that assigns a

particular role to corporations in relation to society and the state. Different

frameworks for understanding this role can be seen to be related not only to

different political perspectives, but also to religious ideas about

business/commerce, as will be discussed below.

One of the most widely cited and strident opponents of the notion that

corporations should be socially responsible is Milton Friedman (1970) who stated

that:

"The businessmen believe that they are defending free enterprise when they

declaim that business is not concerned 'merely' with profit but also with


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promoting desirable 'social' ends; that business has a 'social conscience' and

takes seriously its responsibilities for providing employment, eliminating

discrimination, avoiding pollution and whatever else may be the catchwords of

the contemporary crop of reformers...Businessmen who talk this way are

unwitting puppets of the intellectual forces that have been undermining the basis

of a free society these past decades" (Friedman, 1970)

His position relies on the 'theory of the firm' where all activity is directed towards

shareholder value (Hemingway, 2005). Carroll (1991) suggests that economic

responsibility is the 'bottom line' "because without it the others become moot

considerations" (Carroll, 1991: 41). Others acknowledge that ethics and

economics might sometimes clash, and suggest that corporations must move

beyond the notion that profit "can alone stand as a reason for studying the ethics

of business" (Chryssides & Kaler, 2005: 34).

But the purpose of the corporation is related to its status in society, and in

particular, the question:

"Is the corporation the private property of the stockholders who choose to do

business in the corporate form, or is the corporation a public institution

sanctioned by the state for some social good?" (Boatright, 2000: 248)


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Cone (2003) describes this debate as being about 'inherence' versus 'concession'

- i.e. is 'incorporation' (i.e. the acquiring of corporation status) a privilege or a

right? There are important implications for the role of the corporation and its

ethical obligations. Questions are raised about the status of corporations as

moral agents:

"...one of the most important issues to have emerged is whether, to what extent,

and in what way, corporations can or should be held morally responsible. Are

they simply organisations and artefacts that should be controlled, are they moral

entities or quasi-moral entities with rights, or do they have some other status and

are they to be viewed in some other light? The answers to the questions are not

supplied by general ethical theory, which traditionally has been concerned with

the actions of human individuals." (De George 1987: 206)

De George here suggests that there needs to be further consideration of the ways

in which collective moral accountability can be understood. Similar issues are

raised in terms of legal liability, where legislation often seeks to apply

individualised conceptions of liability to corporations (Alston, 2004).

Religious as well as secular perspectives inform ideas about the nature of

corporations and the limitations of acceptable business practice. In Jewish

tradition, business ethics has historically been emphasised informed by legalistic


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codes and an aspirational model that rest upon the idea of the duality of man

(simultaneously ordered to 'subdue the earth' and also with responsibility to

'serve it and keep it') (Pava, 1998). Similarly in Islam, the twin principles of

khalifah(delegated responsibility) are concerned with stewardship (of the earth)

and social responsibility, and much of the Qu'ran deals with economic and social

conduct (Cone, 2003). The Medieval Roman Catholic Church had codes of

practice relating to business, e.g. fair wages and prices and Buddhism includes

notions about 'perfect livelihoods' (Chryssides & Kaler, 2005). Cone's (2003) case

study of Bank Muamaltat in Indonesia demonstrated the intrinsic role that religion

can play in business, as the bank studied has a Shariah department to ensure

that business is carried out according to Shariahlaw. Further, religion can be

seen to inform the ways in which companies seek to engage in philanthropic

activity, for example the Bank Muamaltat community priorities include supporting

the hadj pilgrimage to Mecca. Within the UK, there are numerous examples of

religiously motivated corporate philanthropy, such as the various projects of

Quaker George Cadbury, who aimed to "[bring] the ethical teaching of Jesus

Christ to bear upon National questions and [to promote] National righteousness"

(Finlayson, 1993:139). In the following section, I will consider some different ideas

about the role of the manager and of personal values within CSR and some of the

issues that emerge.

The Role of the Manager


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The role of the manager and other key decision makers is a central concern of

much CSR literature. Key staff members are understood to face a complex task in

implementing CSR values in concrete situations, and potentially to lack the skills

to do so. Much of the literature suggests that commitment of employees and in

particular decision-makers is essential to successful CSR. The personal values of

managers are understood to be important, relating to the status of the manager

as a 'moral actor'. Also interactions between organisational culture and personal

values of managers are seen to be significant (Hemingway, 2005).

CSR requires a high level of understanding of key issues in order to make

informed ethical or responsible decisions, although:

"...there is no necessity that...responsibilities are accompanied by heightened

understanding of environmental issues amongst business managers" (Purvis et

al in Fineman, 2000:15)

However, it is suggested that one obstacle to the implementation of CSR is "a

new set of jargon to be made concrete to their circumstances or translated into

business language" (European Multistakeholder Report, 2005: 9). It is clear that

the task of including CSR considerations in decision making potentially requires

skills and information that managers may not have, and that this could present

difficulties.


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It is further suggested that there are different types of manager, differentiated by

their orientation to morality and defined as 'immoral', 'amoral' and 'moral' (Carroll,

1991), and that their 'moral type' consequently influences the decisions that they

make. Gellerman (1986), however, suggests that immoral choices or decisions are

made by managers for different reasons - either because of a difference of

opinion on what counts as an immoral decision; because it is seen to be in

individual or corporate interests; because the decision maker believes that the

company will condone it for its instrumental value; or because immoral choices

or decisions will not be discovered. Whilst some of these might invoke the moral

orientation of the actor, there is also the implication that the subjective nature of

morality plays a part, or that morality is sometimes subsumed beneath a sense of

duty towards the corporation. Gellerman suggests that such issues can be solved

through increased surveillance and control, and the realisation of the

responsibility of senior executives to clarify the line between morality and loyalty.

However, others argue that it is more important to provide ethics training to

enable managers to make informed decisions, and to increase skills in ethical

decision making. Such training is intended "not to convert 'unethical' individuals

but rather to help the majority of essentially well-meaning people in organisations

appreciate and understand the moral significance of events around them, and to

respond appropriately" (Maclagan, 1998: 2). Hemingway (2005) suggests that


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reflexivity about personal values might also be a useful skill for managers, but as

Maclagan points out there are significant restrictions on people's ability to

employ this skill. Rather than being about the rational application of principles,

managers face conflicted, power-infused, pressured and resource limited

application of moral principles. Consequently, questions are raised about

individual moral agency and about the limitations to moral/ethical action.

Goodpaster (2007) also acknowledges these tensions and contextual limitations:

"Business ethics appears to be essential because the requirements of business

life are often so intensely goal-directed that they blind individuals and

organisations to the ethical aspects of what they do. Yet business ethics appears

to be illegitimate because the market and our legal system place significant

limitations on management discretion when it comes to decision-making criteria.

Managers who appeal to ethical values, if they are not looked upon as

questionably sincere, are often looked upon as going beyond their authority"

(Goodpaster, p11, 2007)

It is also perhaps important to consider what might be an ethical issue, and how

the definition of such issues might change over time - for example environmental

issues were not always seen as ethical in nature. This implies a need for

managers to be aware of constantly evolving societal values and priorities, and to


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be responsive to these changing concerns. So there are a number of questions

raised about business people as moral actors, about ways of developing

appropriate skills and knowledge, and of ensuring they act in accordance with

ethical norms. In the following section, I will look at the relationship between

stakeholders and corporations, and the ways in which companies might respond

to external pressures and priorities from a diversity of different stakeholders.

Managing Accountability to Diverse Stakeholders

A key aspect of CSR, as suggested, is dialogue with and responsibilities to

stakeholders. Carroll suggests that the notion of stakeholders enables a

personalisation of responsibilities and also "delineating the specific groups or

persons business should consider in its CSR orientation" (1991: 41). Some

literature, though, problematises the task of identifying and engaging with

stakeholders and of balancing different demands/claims. Further issues are

raised about how to deal with applying and implementing particular codes of

practice in different geographic and cultural contexts and the difficulties of

dealing with diversity.

Definitions of different stakeholders can often be imprecise, or invoke taken for

granted understandings. For example,


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"While there is much reporting on 'community' often the community in question

has not been clearly defined. Companies not only interact with the physical

communities around their site, but also have any number of 'communities of

interest' with whom building relationships and partnerships is important" (Bush,

2008: 25)

Further, the task of defining or delineating a particular group or stakeholder can

itself be understood as a political endeavour:

"notions of the public, the community, or citizens are social constructions,

formed out of a range of discourses that are mobilised in particular ways in

specific historical and political contexts" (Barnes, Newman & Sullivan, p273,

2004)

Here, epistemological issues are raised concerning how to define the needs and

preferences of a group whose definition is problematised, and consequently

whose commonality is thrown into question.

De George (1978) presents a rather simplistic account of the ways in which

corporations should seek to identify commonly held values:


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"the morality which is to be applied to business in our society is the morality

which is generally held by the members of our society...on those topics where

there is disagreement, there should be informed debate about the nature of the

activity in question, the circumstances and the moral principles which the

differing groups think are applicable" (in Chryssides & Kaler (eds.), 2005: 39)

Such an account represents an appeal to metanarratives of values, but does not

account for the possibility of difference or conflict. For example, multinational

enterprises face distinctive challenges such as "diverse business practices,

cultural and language differences and locating qualified sources" (Emmelhainz &

Adams, 1999: 51). Globalisation is understood to result in cultural pluralism,

rather than a global culture, and:

"whilst globalisation results in the deterritorialisation of some processes and

activities, in many cases there is still a close connection between the local

culture, including moral values, and a certain geographical region...globalisation

reveals economic, political and cultural differences and confronts people with

them" (Crane & Matten, 2007: 18)

Corporations are expected to be aware of, and to apply principles of, a range of

multilateral, national and regional policies relating to, for example, rights, public

participation in decision making, information sharing, environmental


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responsibility, sustainability and poverty eradication. These are understood to be

generalisable standards, though difficulties arise at the points of implementation

and in seeking to combine them with localised value systems. All such policies

can be seen as an attempt to codify ethical principles into objective standards of

practice, and they are often presented as value-free, though there is a great deal

of debate about this.

Differences of interpretation can arise even on the definitional level, for example

Emmelhainz & Adams (1999) noted difficulties experienced in defining underage

or child labour, whereby:

"The two most common definitions of underage were below 14 years of age...and

'the law of the land'. A few firms defined either 15 or 16 years as the minimum age

and others provided no specific definition" (Emmelhainz & Adams, 1999: 54).

This demonstrates the complexity of applying universalist standards in particular

contexts. Further, there can be disagreement amongst stakeholders "not only on

the grounds of economic self-interest (losses and gains) but also on public

interest (morality and social welfare)" (Cone, 2003: 51). Consequently, there are

possibilities for conflict/disagreement and the varying of interpretation, which

both raise difficulties for companies seeking to meet the demands and needs of

stakeholders. In fact, CSR appears to give corporations the responsibility for a


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task they have never claimed any ability to do, and which governments have

often failed to achieve, that is the promotion and achievement of human rights

standards in diverse settings. There seems to be a need for development of skills

in understanding key environmental, social and economic issues as well as in

evaluating competing demands and understanding the impact of different

cultural, political, religious beliefs and of different socio/political and economic

contexts.

The potential contribution of Philosophy and Theology & Religious Studies

A range of different disciplines inform the CSR debate, with a great deal of the

literature originating in the field of business studies, or from within business

itself:

"Regrettably, a significant amount of American material which passes for

business ethics has been written by well-intentioned business people who,

unfortunately, lack the analytical skills which would enable them to be clear as to

what precisely key concepts such as fairness, justice, truth and the like might

mean" (Chryssides & Kaler, 2005: 9)

Others use ideas from psychology, for example Hemingway (2005) draws on

Kohlberg's stages of moral development, and also uses psychologistic notions of


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self identity. Similarly, Carmichael & Drummond (1989) also use developmental

understanding of values. It is likely that philosophy, as a discipline, could useful

contribute to the debate through bringing a different perspective. Chryssides &

Kaler (2005) suggest that modern philosophy has overly focused upon language

and insufficiently on achieving positive social change. This claim raises

questions about the purpose of learning or 'doing' philosophy, in particular

whether philosophy is itself purely or partly instrumental. There is evidently value

in considering the philosophical ground of concepts of rights. Further, there is

great potential for Religious Studies to contribute to an understanding within

CSR of issues relating to rights and difference, and the ways in which rights and

responsibilities are interpreted within different faiths or different cultural

contexts. Further, in developing dialogic interactions between different cultures

and different conceptions of rights.

Conclusion

The brief overview of CSR literature provided here points towards a need for

criteria to be established for judging ethical arguments, and balancing

commitments to diverse stakeholders. Further, for implementers of CSR to

acquire skills in defining and understanding ethical issues in business. It seems

clear that the task of implementing CSR is complex, and that the contested nature

of the concept raises difficult questions. Not only are businesses required to be

responsive to current concerns, but they must also balance present requirements


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with future demands and issues, as well as balancing local and global concerns.

Whereas national and international guidelines and legislation provide a potential

framework for achieving this, there are also numerous difficulties associated with

the implementation of these in specific contexts. It is likely that the disciplines of

Philosophy and Theology & Religious Studies could usefully contribute to the

debate by bringing both expertise and diverse perspectives to bear on these

issues.

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GOODPASTER, K. (2007) Conscience and Corporate Culture. London: Blackwell

HAIGH, N., & GRIFFITHS, A. (2007) "The Natural Environment as a primary

stakeholder: the case of climate change". Business Strategy and the

Environment, Accessed online August 2008, available from the World Wide Web

http://www3.interscience.wiley.com/journal/116836994

HAY, B.L., STAVINS, R., VIETOR, R.H.K. (eds.) (2005) Environmental Protection

and the Social Responsibility of Firms. Washington: Resources for the Future

HEMINGWAY, C. (2005) "The Role of Personal Values in Corporate Social

Entrepreneurship" ICCSR Paper Series 31-2005. Accessed online August 2008,

available from the World Wide Web


JACOBS, M. (1997) "The Environment as Stakeholder", Business Strategy

Review, 8(2), pp25-28

MCLAGAN, P. (1998) Management & Morality. London: Sage Publications

MCWILLIAMS, A. & SIEGEL, D. (2001) "Corporate Social Responsibility: A theory

of the firm perspective" Academy of Management Review, 26(1), pp117-127

PAVA, M.L. (1998) "Developing a Religiously Grounded Business Ethics - A

Jewish Perspective" Business Ethics Quarterly, 8(1), pp65-83


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THE INDEPENDENT/SWAIN, H. (2007) "Responsible as well as profitable" June

14th 2007

WOODIWISS, A. (2003) Making Human Rights Work Globally. London:

Glasshouse Press

Appendix

Guidelines, Legislation and Agreements

Universal Declaration of Human Rights (1948)

http://www.un.org/Overview/rights.html

Document produced by the United Nations that outlines and lists fundamental

human rights, and affirms member state's respect for, and duty to promote, such

rights. The document focuses upon equality and the absence of discrimination,

freedom, fair treatment, protection against state and other bodies, and protection

by the state. It is intended to be applicable to anyone in any place or context.

International Convention on Economic, Social and Cultural Rights (1966)

http://www.unhchr.ch/html/menu3/b/a_cescr.htm


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Treaty that commits those who ratify the treaty to certain key economic, social

and cultural rights, including employment aspects particularly relevant to CSR,

namely:

Article 6: Recognises the right to work that is freely chosen, and includes

"technical and vocational guidance and training programmes" to promote

employment.

Article 7: Deals with working conditions, fair and non-discriminatory wages, equal

opportunities, acceptable working hours.

Article 8: Asserts the right of workers to form and join trade unions and to take

industrial action where necessary/appropriate.

The Charter of Fundamental Rights of the European Union (2000)

http://www.europarl.europa.eu/charter/default_en.htm


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General rights document for the EU, which draws significantly on the Universal

Declaration of Human Rights. The document details rights under the six main

headings of dignity; freedoms; equality; solidarity; citizen's rights; and justice.

Chapter 2 (Article 15): the right to choose employment freely

Chapter 3 (Article 23): equality of pay and employment opportunities

Chapter 4 (Article 32): eliminating child labour

Chapter 4 (Article 37): sustainable development and environmental protection

Chapter 4 (Article 38): consumer protection

ILO Declaration on Fundamental Principles and Rights at Work (1998)

http://www.ilo.org/declaration/thedeclaration/lang--en/index.htm

This agreement commits members to promote and respect principles and rights

in four categories, including the right to freedom of association; the elimination

of compulsory labour, the abolition of child labour and the elimination of

discriminatory practices in employment. It is focussed upon the rights of the

worker, and the importance of governmental protection of worker's rights.


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UN Guidelines on Consumer Protection (as expanded in 1999)

www.un.org/esa/sustdev/publications/consumption_en.pdf

The guidelines encourage governments to set consumer protection policies,

focusing on:

Health and safety of consumers

Protection of consumer's economic interests

Provision of information to enable 'informed choices'

Education on impact of consumer choice

Promotion of sustainable consumption

Promoting self-organisation and consumer involvement in decision making

Means of redress by consumers

The guidelines also encourage linking such policies to, for example, poverty

eradication goals.


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Rio Declaration on Environment and Development (1992)

http://www.un.org/documents/ga/conf151/aconf15126-1annex1.htm

Forms part of wider aims to develop global strategies for protecting the

environment and promoting sustainable development. Again, this document

draws reference to aims of poverty eradication and sustainable consumption

patterns.

The declaration encourages the involvement of citizens and explains the

importance of access to information and the raising of public awareness of

relevant issues. It is addressed to the state level.

Aarhus Convention: Convention on Access to Information, Public Participation in

Decision-making and Access to Justice in Environmental Matters (1998)

http://www.unece.org/env/pp/treatytext.htm


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This agreement seeks to link environmental and human rights, and to promote

the involvement of all stakeholders to ensure sustainable development. It focuses

upon the need for transparency and accountability in environmental matters, and

means of ensuring the informed and meaningful involvement of

citizens/stakeholders in decision making and monitoring in this area. It is

addressed to governments/state level.

The document seeks to establish good practice in terms of disseminating

information and the importance of environmental reporting on the part of

companies. It also sets out appropriate ways of ensuring public participation,

through raising awareness, early publicising of involvement initiatives and

identification of appropriate participants.

OECD Guidelines for Multinational Enterprises (2000)

http://www.oecd.org/document/28/0,3343,en_2649_34889_2397532_1_1_1_1,00.ht

m

These guidelines are "voluntary principles and standards for responsible

business conduct addressed to multinational enterprises themselves" (my

emphasis, OECD Guidelines foreword, 2000: 2)


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The guidelines cover the role of investment in economic, social and

environmental issues; issues of sustainable development and the

protection/promotion of human rights; the importance of providing employment

opportunities and training; the promotion of good practice and good governance;

the need for self-regulation and the building of trust; the importance of avoiding

discrimination; and the need to avoid corruption or 'improper involvement' in

local politics.

Useful Websites and Organisations

UN Global Compact

www.unglobalcompact.org/

The UN Global Compact brings together a number of concerns relating to CSR,

and describes itself as "the world's largest voluntary corporate responsibility

initiative". The compact involves a number of corporate and stakeholder partners

and members, and aims to contribute to the development of integrated global

strategies and policies towards ten principles of business operations.


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CSR Europe

http://www.csreurope.org/

Brings together businesses to create new ideas for integrating CSR, for

supporting the integration of CSR into business practice, and for sharing and

disseminating best practice. The organisation includes both corporate members

and partner organisations. The site includes a number of resources and also up-

to-date news on the development and promotion of CSR within Europe.

International Centre for Corporate Social Responsibility (ICCSR) at the University

of Nottingham

http://www.nottingham.ac.uk/business/ICCSR/

An academic centre based at the University of Nottingham Business School,

involved in teaching and research on CSR. The site includes a number of

resources, including news, academic papers and research, and links to other

sites of interest.


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University of Warwick Corporate Citizenship Unit

http://www2.warwick.ac.uk/fac/soc/wbs/research/ccu

Multidisciplinary academic research and teaching centre, focusing upon

corporate citizenship and aiming to bring together a range of different actors to

develop and promote corporate citizenship ideas.

Institute of Business Ethics

http://www.ibe.org.uk/

This charitable organisation aims to build awareness of ethical issues in

business, and offers training in these issues. It also carries out research and

disseminates information relating to ethics in business.

The Smith Institute

http://www.smith-institute.org.uk/


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A think-tank with charitable status, which carries out independent research and

training relating to the relationship between values and economic activity. A

number of publications and resources are available on the site, covering a range

of issues relating to CSR.

New Economics Foundation

http://www.neweconomics.org

A radical think tank that aims to promote social and environmental reporting and

to develop new ways for business to take account of ethical issues.

Article 13

http://www.article13.com/

This site includes case studies from different companies regarding CSR and also

provides services for development of CSR strategies and also reporting. The

organisation also offers training in CSR competencies.


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Confederation of British Industry (CBI)

http://www.cbi.org.uk/ndbs/staticpages.nsf/StaticPages/home.html/?OpenDocum

ent

Organisation that lobbies on behalf of business in the UK, and works with

governments and other agencies to support business opportunities. Also

provides events, training and resources. Their site has a number of resources

about CSR, and suggestions for incorporating CSR standards and objectives.

Ethical Consumer

http://www.ethicalconsumer.org/

An "alternative consumer organisation" that carries out research and

disseminates information about ethical activities of companies and

organisations. Aimed at the consumer.

Ethical Performance

http://www.ethicalperformance.com/


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This is a web-based newsletter providing a range of links, news, events and

resources relating to CSR in a range of international contexts.

Journal of Business Ethics

http://www.springer.com/philosophy/ethics/journal/10551

An academic journal, available online or in print format, which publishes papers

from a range of disciplines relating to business ethics.

Journal of Corporate Citizenship

http://www.greenleaf-publishing.com/default.asp?ContentID=16

An academic journal, available online or in print format that is aimed at a wide

audience, including NGOs, businesses and academics. Deals with a range of

issues relevant to CSR.


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Harvard Business Review

http://harvardbusinessonline.hbsp.harvard.edu/b02/en/hbr/hbr_current_issue.jht

ml

A journal more generally focussed upon business, but with articles and

information relevant to CSR concerns.

--------------------------------------------------------------------------------

Created on: February 24th 2009

Updated on: February 24th 2009


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Subject Centre for Philosophical and Religious Studies - Department of Theology

and Religious Studies - University of Leeds - LS2 9JT

Telephone: (+44)113 3434184 | email: [email protected] | fax:

(+44)113 3433654

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Marketing Mix


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Figure 3: The Concept of Marketing Mix

Product

The main product of the Global System is the Global Smart Card. Global initially

offered consumers a 10 percent savings and a 100 percent satisfaction guarantee to

increase adoption in the transportation sector and to remove uncertainty about the new

technology. Metro and rail transportation operators provide discounts to Global cards

over single ticket cards; the discounts vary according to the distance traveled. Smart

card adoption for metro riders is 90 percent and for rail commuters over 80 percent

These incentives, along with the simplicity, speed, and convenience of the system's

technology, resulted in over three million cards being issued during the first three

months and established a critical mass of smart card users who were familiar with RFID

technology as metro and rail transportation operators offer multiple ride tickets on the

Global card and single ride tickets on magnetic stripe cards. This is highly relevant since

over 70 percent of Hong Kong residents use some form of public transportation each

day and are more likely to use the multiple ride tickets offered by Global as likewise

indicated by reports that constraining multiple ride tickets to Global cards elicited little

consumer dissatisfaction. Global card adoption on these transportation lines is

somewhat lower compared with the metro and rail lines. In this regard, merchants also

enjoy a number of benefits reducing cash handling and in-store queues, thus increasing

customer loyalty through the merchants who offer ad hoc discounts to customers using

the card.


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Pricing

One of the advantages of the Global Smart Card is when it comes to its pricing

tactic. In order to be known into the market place and as a new entrant, the company

will provide its target market with an affordable cost while providing them a high quality

products and services. The company will be given the customer and client a price that

is lesser than its competitors so that the consumer will be enhanced to buy and

patronize the Global Smart Card. Each card is loaded with HK$500 and will be topped

up with $350 after the balance goes below zero.

Placement/Distribution

To be known in the market place, the product will be distributed directly to

its clients and consumers. And to be known internationally, one of the strategies

that the product will utilize is going on a joint venture with distinguished distributor

of the card, providing them with great offers, so as to market the product of the


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Global System. The company will also find a Smart Card Alliance in the US,

Europe and Asia to be known globally.

One of the prospects of the company to merge with in order to be known

in the local and international market is to have a joint venture with SAP, one of

the most distinguished software industries in HK. In this way, the Global System

will be able to distribute its products as a subsidiary of SCA, HK. With the trust

that the client of SCA is giving, the company will be able to use this as an

instrument to be also known by different distributors of SCA, in which in return

will help the company to be distinguished as well.

Promotion/Communication

To promote the company and its product, the company will use video

advertisements, print advertisements and the concept of e-marketing. These

promotion and communication strategy will tend to meet the consumers form

different places everywhere, especially those target markets or the consumers in

the working place.

Moreover, since the trend in the market place today is the usage of e-

marketing, the company will provide a website that any client can access. The

use of the Internet is changing high-tech marketing overnight while different

industries have been trying to use it as part of their marketing strategy. It does

not only reconfigured the way different firms do business and the way the


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consumers buy goods and services but it also become instrumental in

transforming the value chain from manufacturers to retailers to consumers,

creating a new retail distribution channel (Donthu and Garcia, 1999). E-

marketing is a powerful tool used by different business organizations around the

world. It is defined as the process of achieving marketing objectives through the

use of electronic communications technology. Smith and Chaffey (2001) have

provided a 5Ss' mnemonic for how the internet can be applied by all business

firms for different e-marketing tactics. These 5S's are selling, serve, speak, save

and sizzle.

E-marketing is also known to be the online marketing strategy utilized by

different company whose objective is to be the best company in their field. Thus,

the Company will create its own website. The main objective of utilising e-

marketing strategy is to keep in touch to different internet users to be able to

attract more clients and consumers. All in all, through the website, whether the

user is a customer, employee, stockholders, vendors, retailers or end customers,

the true strength of e-marketing is acceleration of the business portfolio.


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Figure 4: Marketing Communication Process

Market Segmentation

Here, the Company will provide its target consumers for its product.

Primarily, the context of the market segmentation for this company will be the

Psychographics. Psychographics includes social class, lifestyle, and personality

variables (Chiagouris and Kahle, 2000). The end result of using these variables

is a psychological profile of each market segment. Issues also examined the

customers' loyalties, habits and self-concept. Social class describes how

individuals want their office automation will meet their comfort and satisfaction,

what they consider important about their immediate surroundings, their opinions

on various issues, and their interests.

As an example, Michman (1991) cited that psychographics and lifestyle

can be related to newspaper readership and the selling of space to potential

advertisers. Since many newspapers are confronted with competition not only

from television, many are concentrating on lifestyle research in order to


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comprehend how their readers allocate leisure time and how to gain a larger

share of that time. Lifestyle research is most useful when it also measures

demographics and the use of products or services. Lifestyle research by

advertisers can help potential advertisers to envision their market better than

when demographic variables are used alone.

As these lifestyle studies concentrates on what the consumer requires,

using these study results as marketing strategies eventually became a marketing

concept. Robert Keith (1960) is one of those highly credited for popularizing this

specific marketing concept. The marketing concept is a basic philosophy that

maintains that an organization should Endeavour to satisfy the needs and wants

of customers through a coordinated set of activities that also allows the

organization to achieve its goals at a profit. Some firms fail in this task since they

are more concerned with making a product and selling the product than satisfying

potential customer wants and needs. The company must be able to consider its

consumer, especially the demands of the consumer so as to let the business

have an opportunity of having an expansion of its business portfolio as required

by the consumers and the clients' need.


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Figure 5: Buyer Decision Process

Marketing Strategies

Marketing is the practice of preparation and implementing the pricing, advertising, and

supply of goods, ideas, and services to generate trades that satisfy individual and

organizational goals. Marketing has two key concepts, customer/clients acquisitions and

maintenance of customers/clients. In the context of marketing, learning is a result of

information received through advertising or other publicity or through some reference

group or other. In order to have an effect on motives or attitudes, marketing effort

should associate the product with positive drives and reinforcing messages.

A fundamental aim of marketers is to bring about satisfaction for their customers,

and this is cardinal to the concept of marketing. Having looked at some of the issues

that make up consumer behavior, Global Cars should look at the consumer's central

goal. Because they are continually occupied in the quest for satisfaction, competitive

offerings will always have potential appeal. Firms must seek continuous improvement to

the products or services and the levels of support they provide. This is a matter of

balancing costs and potential profit with customer demands, as 'total satisfaction',

except in a minority of cases, is an unrealistically expensive goal. There are four models

of consumer behaviors:


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An individual needs a particular product. Information will be sought from a variety of

sources including family and friends (called 'word of mouth') from advertising, from

catalogues, from visits to retail establishments, and from many other sources. The more

complex the product, the greater will tend to be this information search. The task of

marketing is to ensure that the company's products receive high exposure during this

'information search' period and that the best points of the product are emphasized

during the 'evaluation of alternatives' phase. This will put the company's product in the

best light prior to the 'purchase decision', because even then the consumer is still

susceptible to further influences in relating to making the correct choice. Marketers must

also be aware of 'post-purchase behavior' because this can affect repeat business and

forward looking companies attach as much importance to after-sales service as they do

to making the initial sale. This reduces the degree of dissatisfaction (or dissonance) in

the case of genuine complaints. One method that is now practiced for sales of major

items like new motor cars is where companies follow up a sale by some form of

communication by letter or telephone with their customers. This builds confidence in the

mind of the customer in having made the 'correct' purchasing decision. The terminology

that has been attached to this kind of after-sales follow-up is 'customer care'.

Global Card should have knowledge of how the buyer/decision process works is

critical to the success of marketing strategy. For simple products, the task of marketing

is to direct the purchasing routine in favor of the company's products, perhaps through

an effective mass advertising campaign. The buyer/decision model was not specifically

designed for new products and its substance was concerned with search and problem

solving. It begins with awareness. Marketers must first create awareness and then


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assist customers through subsequent stages of the process. Consumers cannot begin

to consider a new product or service as a solution to need-related problems without this

awareness. Successful innovative products should attempt to be problem-solving as

successful innovative products should attempt to be problem-solving as far as the

customer is concerned. Awareness, Interest/Information, Evaluation, Trial, Adoption.

Awareness can come about as a result of the marketing effort of the company or

simply by 'word of mouth' communication. If the product has potential interest and

appeal, then potential purchasers will seek further information. Consumers then

evaluate the new product against existing products, and then make an initial adoption

by obtaining a trial sample, which might be a free sample or a 'trial' purchase. The

adoption stage is when a decision is made whether to Use the product (in the case of a

fast moving consumer good on a repeat purchase basis). Post adoption confirmation is

when the product has been adopted and the consumer is seeking reassurance about

the wisdom of the purchase. After a major purchase, dissonance (termed cognitive

dissonance) is present in the sign of unease that what was thought to be value for

money at the time of purchase may not, after all, turn out to be true value. Such

dissonance should be countered by the provision of some kind of follow-up - either...

The consumption of goods purchases fall quite readily into three classes when

considered on the basis of his buying habits. These are so called, convenience goods,

shopping goods and specialty goods. Convenience goods are those which the

consumer purchases in the most convenient manner possible. Convenience may be

synonymous to one's home or one's place of work or, indeed, within the proximity,


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accessibility by motorcar. The category generally comprises things of low unit value

purchased at frequent intervals. Such items as bread and other staple groceries and

tooth paste also fall into convenience-good class. Shopping goods include those which

the typical consumer desires to compare in price and quality in a number of

establishments before purchasing. They usually are relatively expensive items,

purchased infrequently. Style goods, such as women's clothes and furniture, are

examples of such merchandise. Specialty goods, finally, are those which are sufficiently

different from other goods in the same class to possess reputation enough to cause the

consumer to go to a considerable inconvenience--Usually to a particular firm--to

purchase them. Specialty institutions are not, as is sometimes thought, necessarily

the higher priced establishments. For example, Penney's is a specialty institution for

some consumers who, when needing shoes or sheets or some item of children's

clothing, perhaps, go directly to this store to make the purchase, although they possibly

become specialty buyers through experience gathered as a result of the shopping

process.

Shopping has to do with a comparison not only of prices among various institutions,

but of merchandise qualities also. Indeed, at times price does not even enter into the

calculation, although this may be rare. The point is, however, that one is typically

attempting to compare values (prices and quality) in order to obtain the best item for the

money. He is, in short, attempting to make the most advantage purchase. Consumer

buying habits have a very important bearing on the lines of merchandise handled by

various types of retail institutions. Among the several factors influencing the merchant's

selection of lines to carry (including the availability of adequate space for display and


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storage, financial requirements involved, servicing required of merchandise after sale,

the markup one may expect in relation to costs of doing business, the suitability of the

store's location for the sale of such merchandise, etc.) the first probably is that of

consumer expectations. The question is: "Do, or will, consumers expect to buy the

merchandise in question at, for instance, a department store, a variety chain store, or

some type of neighborhood store? The strategic marketing plan however, does not

indicate how performance will be achieved. Thus, there is also a need to develop a

marketing mix strategy composed of the 4Ps and resource allocation or marketing

budget which will complete the details of the strategic marketing plan.

Read more:http://ivythesis.typepad.com/term_paper_topics/2008/05/marketing-mix-s.html#ixzz1vi7Z1vf6

Making Markets work for CSR

byV S Rama Raoon September 1, 2007

CSR in full form is Corporate Social Responsibility. There are compelling market drivers whichwould give a positive reinforcement to corporate companies to focus on Triple bottom lineperformance. These powerful drivers energize innovation by companies, so that CSR becomes anintegral part of the marketing mix and competitive differentiator.

The most potent force that can trigger a complete rethink of corporate strategy and bring abouttransformation change lies in the power of consumers franchise. The term consumer

is used here in a broader sense to encompass other market participants including Government

both as a buyer and regulator, Investors, Employees, Job Seekers and other segments of CivilSociety.

An enlightened consumer by exercising a choice in favor of socially responsible

enterprise can unleash a powerful force of incentives. A positivevote for sociallyresponsible companies, exercised through preference for a companys products and services,

would change the context and dimension of meaningful CSR, create strong economic
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multiplexes and enhance shareholders value. The implication of such consumer franchise forbusiness will be wide ranging.

1. Consumer preference will spur a massive movement in corporate innovation to integratebusiness goals with the building of societal capital.

2. CSR can also emerge as a distinctive market differentiator and help position progressivecompanies more strongly in the marketplace.

3. Companies will vie for consumer spend by positioning CSR a compelling value proposition.

4. Gains would accrue to the company and its shareholders with increasing revenues andgoodwill.

5. Where consumers go, Investors will follow. Investors will increasingly find such sociallyresponsible companies attractive, given the larger market gains.

6. Potential employees would also seek opportunities in such successful companies and theenterprises themselves would be better positioned in the war for talent.

7. Competition amongst CSR exemplars would lead to a perceptible augmentation of natural andsocial capital and this would create a more sustainable future.

Thus, powerful market drivers will emerge to encourage CSR as an integral part of businessstrategy. In the course of time, stakeholders will build a more enduring relationship wit suchcompanies, continuously creating value for the organization, for its shareholders and the nation.

more athttp://www.citeman.com/2000-making-markets-work-for-csr.html#ixzz1vi8f5tAf

Marketing Mix Paper

Marketing Mix Paper

Introduction

What could possibly be important about the four Ps, and what do they have to do with this thing called the Marketing

Mix? The Marketing Mix is a set of policies for the four Ps that is developed to meet the needs of a company or firm's

target market. The marketing mix should be reasoned, and internally consistent. The four Ps are; Product, Place,

Price and Promotion. By using variations of these four components you have the ability to reach multiple consumers
http://www.citeman.com/2000-making-markets-work-for-csr.html#ixzz1vi8f5tAfhttp://www.citeman.com/2000-making-markets-work-for-csr.html#ixzz1vi8f5tAfhttp://www.citeman.com/2000-making-markets-work-for-csr.html#ixzz1vi8f5tAfhttp://www.citeman.com/2000-making-markets-work-for-csr.html#ixzz1vi8f5tAf


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within your target market. It often takes experimenting and solid market research to creating a successful marketing

mix that will increase desired results. The key is to not always depend on "one" mix, the combining and coordination

of these elements will be more effective than depending on one. (Kotler, 2001)

A good strategy combines the marketing mix and the target market. The marketing mix is considered the core of a

marketing strategy, and can initially be stated in general terms

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that become more specific as the mix is implemented. All elements of the mix must be compatible with each other and

they must be appropriate for the target market. (About, 2006)

As an element of the marketing mix, price doesn't mean a specific price but rather a price policy describing the plan

for how specific prices will be set. Price is a powerful tool, and should be set with certain objectives in mind. In the

early stages of the product life cycle, high prices may be used in an effort to recover development costs early. Prices

may then be lowered or the firm may move on to other markets in the early stages of development. In the early stages

of the product life cycle, low prices may be used to rapidly expand the buyer base for the firm's brand, making it more

difficult for other companies and products to gain market share. Pricing can be used to indicate quality levels from

luxury or economy. Pricing can also be used to clear out-dated or out-of-style inventory; converting it to cash...

Marketing theory

Marketing mix (Price, Place, Promotion, Product)

When marketing their products firms need to create a successful mix of:

the right product

sold at the right price

in the right place

using the most suitable promotion.

To create the right marketing mix, businesses have to meet the following conditions:

The product has to have the right features - for example, it must look good and work well.
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The price must be right. Consumer will need to buy in large numbers to produce a healthy profit.

The goods must be in the right place at the right time. Making sure that the goods arrive when

and where they are wanted is an important operation.

The target group needs to be made aware of the existence and availability of the product

through promotion. Successful promotion helps a firm to spread costs over a larger output.

For example, a company like Kellogg's is constantly developing new breakfast cereals - the product

element is the new product itself, getting the price right involves examining customer perceptions and

rival products as well as costs of manufacture, promotion involves engaging in a range of promotional

activities e.g. competitions, product tasting etc, and place involves using the best possible channels of

distribution such as leading supermarket chains.The product is the central point on which marketing

energy must focus. Finding out how to make the product, setting up the production line, providing the

finance and manufacturing the product are not the responsibility of the marketing function. However, it

is concerned with what the product means to the customer. Marketing therefore plays a key role in

determining such aspects as:

the appearance of the product - in line with the requirements of the market

the function of the product - products must address the needs of customers as identified

through market research.

The product range and how it is used is a function of the marketing mix. The range may be broadened or

a brand may be extended for tactical reasons, such as matching competition or catering for seasonal

fluctuations. Alternatively, a product may be repositioned to make it more acceptable for a new group

of consumers as part of a long-term plan.

The price

Of all the aspects of the marketing mix, price is the one, which creates sales revenue - all theothers are costs. The price of an item is clearly an important determinant of the value of salesmade. In theory, price is really determined by the discovery of what customers perceive is thevalue of the item on sale. Researching consumers' opinions about pricing is important as itindicates how they value what they are looking for as well as what they want to pay. Anorganisation's pricing policy will vary according to time and circumstances. Crudely speaking,the value of water in the Lake District will be considerably different from the value of water inthe desert.

The place

Although figures vary widely from product to product, roughly a fifth of the cost of a productgoes on getting it to the customer. 'Place' is concerned with various methods of transporting andstoring goods, and then making them available for the customer. Getting the right product to theright place at the right time involves the distribution system. The choice of distribution methodwill depend on a variety of circumstances. It will be more convenient for some manufacturers to


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sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers orcustomers.

The promotion

Promotion is the business of communicating with customers. It will provide information that willassist them in making a decision to purchase a product or service. The razzmatazz, pace andcreativity of some promotional activities are almost alien to normal business activities.The cost associated with promotion or advertising goods and services often represents a sizeableproportion of the overall cost of producing an item. However, successful promotion increasessales so that advertising and other costs are spread over a larger output. Though increasedpromotional activity is often a sign of a response to a problem such as competitive activity, itenables an organisation to develop and build up a succession of messages and can be extremelycost-effective.

The marketing mix of Manchester United

What are the main elements of the marketing mix of Manchester United? First of all the productincludes providing an excellent football team that plays and wins in an exciting way. However,there are other ingredients of the product including merchandising such as the sale of shirts, anda range of memorabilia. The product also relates to television rights, and Manchester United'sown television channel. In one respect the place is Old Trafford where home games are played,but Manchester United also plays at a range of other venues. And, of course its products are soldacross the globe, through the club's website and a range of other sales media.Manchester United markets itself as a global brand. The club also engages in a range of jointpromotional activities, for example with the mobile phone company Vodafone. ManchesterUnited books, shirts, programmes, keyrings and many other items are sold and promoted through

its website. The club has positioned itself at the upmarket premier end of the market and, as aresult, it tends to charge premium prices as evidenced by the high cost of a season ticket to watchhome league games.Positioning or repositioning a product - refers to locating that product within a market forexample presenting it is an upmarket or downmarket product. Positioning it as a product foryounger consumers or older consumers etc.

Find marketing case studies

Creating a winning marketing mix

Edition 16
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This case study describes how JD (part of the JD Sports Fashion PLC Group ofcompanies), a large and well-known retailer, manages the balance of its marketing mixaround its consumers' needs in order to achieve business growth.

Using sports marketing to engage with consumers

Edition 16

This case study illustrates how Kia, a South Korean motor company, has used sportsmarketing to develop its brand identity in the European motor market.

Using the marketing mix to drive change

Edition 16

This case study explores how Parcelforce Worldwide responded to increased competitionby using the marketing mix or 4Ps.

The marketing mix in the food industry

Edition 15

This case study shows how McCain combines all four parts of the marketing mix todevelop its marketing strategy.

Live, breathe and wear passion

Edition 15

This case study looks at how Diesel promotes its products and the brand.
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Protecting the marketing mix through intellectual property rights

Edition 14

This case study looks at how one technology company, Forensic Pathways, has usedthese legal safeguards for a new development.

The use of the marketing mix in product launch

Edition 13

This case study shows how a carefully balanced marketing mix provides the platform forlaunching and re-launching a brand onto the market.

Using the marketing mix in the fashion industry

Edition 13

This case study examines how Ben Sherman uses the marketing mix to help the businessremain competitive and extend its market share and influence.

Entering a new market with a new product

Edition 12

This case study helps students understand the range of choices available to companies formarket and product development.
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Sponsorship and the marketing mix

Edition 11

This case study helps students understand how effective sponsorship involves all 4Ps of

the marketing mix.

Creating the right marketing mix

Edition 11

This case study helps students understand the marketing mix including product, price,

place and promotion.

Re-focussing a company's culture and marketing mix

Edition 9

As a result of carefully reading the Case Study, students should be able to: understand the

cultural change brought about at Argos to boost sales, be able to identify the 7 Ps of theextended marketing mix, understand the changes made to the marketing mix at Argos,

Meeting customers' needs in growth markets - online gaming

Edition 9

As a result of carefully reading the Case Study, students should be able to: explain howbroadband meets customers need for speed, identify key segments in the gaming market,explain how BT has developed a marketing mix for broadband gaming.
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Using new product development to grow a brand

Edition 9

As a result of carefully reading the Case Study, students should be able to: appreciate the

need to make decisions that help to manage, maintain and develop the value of brands,appreciate the importance of market research processes and the questions that marketresearchers seek to answer, link processes of market research with a range of productsthat closely meet consumers needs.

Meeting customers' needs

Edition 9

As a result of carefully reading the Case Study, students should be able to: identify howthe business maintains sustained financial growth through acquisition and development ofthe existing business, understand how a customer service programme can help to improveperformance and ensure long term financial stability, explain the key components of themarketing mix and how implementation of the mix will enhance customer satisfaction.

Glossary

Related Theory

The marketing mix

The extended marketing mix (7Ps)

Creating strategies that meet customer needs (the marketing mix)

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