Chapter 4 Social Responsibility and Ethics in Marketing.

Slide 1 Slide 2 Chapter 4 Social Responsibility and Ethics in Marketing Slide 3 4 | 3 Objectives Understand concept and dimensions of social responsibility Define/describe importance of marketing ethics Familiarize self with ways to improve ethical decisions in marketing Understand role of social responsibility and ethics in improving marketing performance Slide 4 4 | 4 The Nature of Social Responsibility Social responsibility – an organization’s obligation to maximize its positive impact and minimize its negative impact on society Slide 5 4 | 5Copyright © Houghton Mifflin Company. All rights reserved. 100 Best Corporate Citizens Slide 6 4 | 6 Dimensions Of Social Responsibility  Social Responsibility  Marketing/Corporate Citizenship Marketing/Corporate Citizenship  Stakeholders  Marketing Ethics  Cause-Related Marketing  Strategic Philanthropy Slide 7 4 | 7 Marketing Citizenship The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders. Slide 8 4 | 8 Pyramid Of Corporate Social Responsibility Source: From Archie B. Carroll, “The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders,” adaptation of Figure 3, p. 42. Reprinted from Business Horizons, July/Aug. 1991. Copyright © 1991 by the Foundation for the School of Business at Indiana University. Reprinted with permission. Slide 9 4 | 9 Marketing Ethics Principles and standards that define acceptable marketing conduct as determined by various stakeholders. BBB Code of Advertising Slide 10 4 | 10 Cause-Related Marketing The practice of linking products to a particular social cause on an ongoing or short-term basis. Slide 11 4 | 11 Strategic Philanthropy The synergistic use of organizational core competencies and resources to address key stakeholders’ interests and achieve both organizational and social benefits. IBM - Overview | Corporate Community Relations Slide 12 4 | 12 Social Responsibility Issues Slide 13 4 | 13 Green marketing The specific development, pricing, promotion, and distribution of products that do not harm the natural environment. Slide 14 4 | 14 Europe’s Eco-Label EUROPA - Environment - Ecolabel - Latest News Slide 15 4 | 15 Corporate Goals For The Natural Environment  Eliminate concept of waste  Reinvent concept of a product  Make prices reflect the cost  Make environmentalism profitable Slide 16 4 | 16 Marketing Ethics 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. Slide 17 4 | 17 Sample Ethical Issues Related to the Marketing Mix Slide 18 4 | 18 The Nature of Marketing Ethics Individual Factors Organizational Relationships Opportunity Slide 19 4 | 19 Factors in Ethical Decision-Making Slide 20 4 | 20 Organizational Culture A set of values, beliefs, goals, norms, and rituals that members of an organization share. Slide 21 4 | 21 Types And Incidences Of Observed Misconduct Slide 22 4 | 22 Improving Ethical Conduct In Marketing Codes of conduct Ethics Officers Implementing Ethical and Legal Compliance Programs Slide 23 4 | 23 Top Management & Ethics Talk about importance of ethics Inform employees Keep promises Model ethical behavior Slide 24 4 | 24 Reasons For Not Reporting Ethical Misconduct Source: From National Business Ethics Survey, “How Employees View Ethics in Their Organizations 1994-2005,” Ethics Resource Center 2005, p. 29. © Ethics Resource Center, Washington, DC. Reprinted with permission. Slide 25 4 | 25 Codes of Conduct Formalized rules and standards that describe what the company expects of its employees Slide 26 4 | 26 Ethics Officers Create/enforce code Meet with, discuss code, and advise organization members Toll-free hotlines Salaries Of Ethics Officers Slide 27 4 | 27 Implementing Ethical & Legal Compliance Programs Open communication & coaching Ethics training Clear channels of communication Follow-up support Enforce standards and impose penalties Part of overall marketing strategy Slide 28 4 | 28 Audit Of Control Mechanisms Slide 29 4 | 29 Challenges Of Ethical and Socially Responsible Behavior  Introduction/adaptation of new products  More user-friendly  Transparency/openness  Management responsibility  Predict long-term effects  Balancing society’s demands Slide 30 4 | 30 Social Responsibility and Ethics Improve Performance $ Consumers want to buy from company associated with cause $ Company’s citizenship