Chapter 4

1. The Nature of Social Responsibility
a. Social responsibility - an organization's obligation to maximize its positive impact and minimize its negative impact on society
i. Performance without purpose is not a long-term sustainable formula
2. The Dimensions of Social Responsibility
a. Marketing citizenship - the adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders
b. The Pyramid
i. Philanthropic
1. Be a good corporate citizen
2. Improve community
ii. Ethical
1. Obligation to do what is right, just, and fair
iii. Legal
1. Obey the law
iv. Economic
1. Be profitable
2. The foundation upon which the others rest
c. Stakeholder orientation is when companies consider the diverse perspectives and following up on expectations
d. Economic - be profitable so that the community can benefit from jobs, goods, and services
e. Legal - obey the law and avoid fraud which destroys consumer trust
f. Marketing ethics - principles and standards that define acceptable marketing conduct as determined by various stakeholders
g. Ethics - foster trust
h. Philanthropic - promote human welfare or goodwill
i. Cause-related marketing - the practice of linking products to a particular social cause on an ongoing or short-term basis
1. Gives consumers a "feel good" feeling
ii. Strategic philanthropy - synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits
3. Social Responsibility Issues
a. Natural environment
i. Consumers insisting not only on a good quality of life but on a healthful environment so they can maintain a high standard of living during their lifetimes.
1. Conservation, water, air, & land pollution
b. Green marketing - strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment
c. Consumerism
i. Activities undertake by independent individuals, groups, and organizations to protect their rights as consumers
1. Right to: safety, information, choice, and to be heard
d. Community Relations
i. Society eager to have marketers contribute to its well-being, wishing to know what marketers do to help solve social problems
1. Equality issues, disabled citizens, safety & health, education & general welfare
4. Marketing Ethics
a. Ethical standards should be viewed from several angles
i. Company, industry, government, customers, special-interest groups, and society at large
b. Ethical issues in marketing
i. Ethical issue - an identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical
ii. Ethical issues related to the marketing mix
1. Product - when marketers fail to disclose risks associated with a product or information regarding the function, value, or use of a product
2. Promotion - false or misleading advertisements, manipulative or deceptive sales promotions, tactics, and publicity
3. Pricing - price fixing, predatory pricing, failure to disclose the full price
4. Distribution - relationships among producers & marketing middlemen
5. The Nature of Marketing Ethics
a. Individual factors - decision based on one's own sense of right and wrong
b. Organizational relationships - work groups, committees, conversations, and discussions
c. Organizational (corporate) culture) - a set of values, beliefs, goals, norms, and rituals that members of an organization share
i. Codes of conduct, memos, manuals, dress codes, and ceremonies; work habits, extracurricular activities, and anecdotes
d. Opportunity
i. Conditions that limit barriers or provide rewards
e. Improving Ethical Conduct
i. Codes of Conduct
1. Compliance programs and uniform standards that describe what the company expects of its employees
ii. Ethics Officers
1. Respect legal and ethical standards
2. Responsible for creating and distributing a code of conduct, enforcing the code and meeting with organizational members to discuss issues or provide advice
iii. Implementing Ethical & Legal Compliance Programs
1. Nurture, communicate, & coach
2. Consistency is key
6. Incorporating Social Responsibility & Ethics
a. Ethics - individual or group decisions, judgments about right or wrong in a particular decision-making situation
b. Social responsibility - deals with the total effect of marketing decisions on society
7. The Challenge of Ethical and Social Responsible Behavior
a. An organization's top management must assume some responsibility for employers' conduct by establishing and enforcing policies that address society's desires
8. Social Responsibility & Ethics Improve Performance
a. A relationship exists between a marketing orientation and social responsibility
b. A direct association exists between corporate social responsibility and customer satisfaction, profits, and market value