Sociallyresponsiblemarketing 110527114521 Phpapp01

RESPONSIBLE
MARKETING
SOCIALLY
Learning Objectives
I.
i.
What are firms often criticised of?

Understand the link between those criticisms and the subject of ethics.
II.
i.
How should firms respond to those criticism?

Through ethics? Understanding the challenges to ethical decision-making. ii.
III.
i. IV. i.
What is Green Marketing?

Is green marketing a fad? What is Corporate Social Responsibility (CSR)?. Understand the drivers of CSR. Do firms benefit from engaging in CSR activities?
ii.
2013 Berlin Asong. All rights reserved.
CRITICISMS
FIRMS
LEVIED AGAINST
Corporate Greed
STPauls Cathedral, London

Source: Northattan (2011). Retrieved from http://northattan.com/wp-content/uploads/2011/11/IMG_93111.jpg
ENRON Guilty of accounting

embellishment & fraud.
(L-R) Mr. Jeffrey K. Skilling, former President and CEO of Enron Corporation; Dr. Robert Jaedicke, Board of Directors Chairman of Audit and Compliance Committee of Enron Corporation; and Mr. Herbert S. Winokur, Jr., Board of Directors Chairman of the Finance Committee of Enron Corporation, during the Oversight and Investigation Subcommittee hearing.
Worldcom
WorldCom Accounting Scandal Revealed: 3.8 billion in mislabeled expenses had been used to inflate cash flow and hide losses in 2001 and early 2002. Shown is former Worldcom CEO Bernard Ebbers,
Did corporate greed cause the 2008-2009 Global Financial Crisis?
misuse
of investors money.
Bernard Madoffs ponzi scheme.

10
11
For compelling consumers to indulge in materialism.
Consumerism
12
13
artificial needs.
creating
14
Consequences
Consumerism
15
Thrown foods
Source: WRAP (2012). Retrieved from www.wrap.org.uk/content/pictures
16
In the UK, family household throws
680
of food a year.
Source: The Telegraph (2012). Retrieved from www.telegraph.co.uk/finance/personalfinance/consumertips/householdbills/9268980/Families-waste-680-of-food-a-year.html
Source: WRAP (2012). Retrieved from www.wrap.org.uk/content/pictures
17
Debts
18
Illnesses
19
Obesity
20
Child Obesity
21
Depression
22
of workers.
Exploitation
23
sweatshops
24
Underpaid workers
25
Providing customers with defective products or poor services.
26
nutritional labels.
E.g. falsely claiming a product is an organic or fair-trade product.
Misleading
27
expensive
packaging.
Fanciful,
28
Deceitful packaging
29
30
Using excess packaging.
31
prices beyond the buying reach of many.

High
32
Poor people pay for the same products | services as the rich.
33
Price-fixing
34
Deceptive, unethical & aggressive promotions.
35
$40 million
for misleading AD claims.
Skechers USA Inc. fined
36
Skechers Deceived Consumers with Shoe Ads
Source: BloombergBusinessweek (2012). Retrieved from www.businessweek.com/ap/2012-05/D9UPVNB00.htm
37
38
39
40
41
42
43
Is it insulting?
44
Unfriend 10 friends, get a free whopper
45
Give up your friends for a burger?
46
47
Stereotype
48
Stereotype
49
body figure & size.
Stereotype
50
Land pollution
51
Air pollution from industrial waste like carbon emissions.
52
BP oil spill in the Gulf of Mexico of 2010.
53
Depletion of natural resources.
54
Cultural imperialism
eroding sub and national cultures.
55
Americanisation of cultures
56
57
1 0
of consumers private details.
Unauthorised used
58
59
criticisms onorganisations(assumingtheywere
aimed at your firm)?
impact of these
What are the possible
60
Adverse Impact
Legal fines Consumer boycotts Reputational damage Unnecessary distractions Loss of shareholder wealth Unsustainable business Customer exodus Loss of jobs Etc.
2013 Berlin Asong. All rights reserved. 61
62
How do you respond to these criticisms?

63
Organisations must operate within acceptable
ethics
64
Ethics
65
Ethics are values an individual uses to interpret whether an action or behaviour is acceptable or appropriate.
Peter Stanwick & Sarah Stanwick (2009)Understanding Business Ethics
66
Ethic is the
study of morality.
67
right & wrong

The Study of
68
Whats right & wrong is sometimes not clear-cut.

For example
69
Sky News admits hacking emails but says it was 'in the public interest'
Source: The Independent (2012). Retrieved from www.independent.co.uk/news/uk/crime/sky-news-admitshacking-emails-but-says-it-was-in-the-public-interest-7621831.html
70
Sky News argues its action is morally right because it helped solve a crime.
Hacking into someones email is a criminal offence.
71
Is office romance a good thing or bad thing?
72
Yahoo CEO Scott Thompson stepped down after it was revealed he doesnt have a computer science degree as stated in his CV.
May 2012
Right or Wrong?
2013 Berlin Asong. All rights reserved. 73
It could be argued
He lied to get a job he can do so well.

So what?
74
It could be argued
He has the skills to do his job, but no longer have the trust or integrity of his employees & shareholders.
75
From where does society get its sense of right & wrong?
76
Laws | Policies
77
From where do lawmakers or policymakers know what is good & bad?
78
Religion
79
Traditions
80
Experience
81
Common sense
82
Ethics Reference Set

Laws Beliefs Religion
People turn to beliefs, religion, laws, experience, traditions & common sense when making ethical decisions.
Experience Common Sense
Traditions
83
Ethics Reference Set

Laws Beliefs Religion
However, beliefs, religion, laws, experience, traditions & common sense can spur behaviours which can be considered immoral.
Experience Common Sense
Traditions
84
What is right and wrong is subjective.
85
What is right and wrong is not universally binding.
86
What is right and wrong can be complex.
87
LEVELS ETHICS
OF
88
Levels of Ethics
InternationalEthics NationalEthics OrganisationEthics Occupational Ethics
PersonalEthics
89
International Ethics
90
National Ethics
91
Organisational Ethics
92
Occupational Ethics
93
Personal Ethics
94
Levels of Ethics
Sometimes, making an ethical decision would require the decision-maker to consider the implications of two or more levels of ethics.
InternationalEthics NationalEthics OrganisationEthics Occupational Ethics
PersonalEthics
95
The practices of my firm contradict my personal values and beliefs.
96
Is your personal ethics aligned with the ethics of your country?
97
98
GREEN
The practice of developing & marketing products or services with environmental & people considerations.
100
Product
Planet
Price
MARKETING MIX
Process
Marketing Mix
Place
Physical Layout People
Promotion
101
Product Process Price
MARKETING MIX
Physical Layout
Planetary Considerations
Place
People
Promotion
102
Is green marketing a fad?
103
Its likely not a fad because
104
Green practices have been around for several centuries.

Saha, M. & Darnton, G. (2005), Green Companies or Green Con-panies: Are Companies Really Green, or Are They Pretending to Be?, Journal of Business and Society Review, vol. 110, no. 2, pp. 118-157
105
humans nurtured the environment to ensure food supplies.
106
The size of the global green consumer market is growing.
107
Almost organisations published corporate responsibility reports in 2010.

Corporate Register (2011), Corporate Responsibility Reporting Awards 11, Corporate Register, pp. 4-5
5000
108
Making more beer but using less water: we've set ourselves a target to reduce our average water use per hectolitre of beer by 25% by 2015.
109
In 2008, we achieved a reduction in waste disposed to landfill.
15.5%
110
Leads to increased sales and earnings.
111
3 million
units sold worldwide since it went on sales in1997.
Toyotas Prius has been a success with over
112
Kraft Foods has cut its annual use of fuel to 680,000 litres.
113
Improved corporate image.
114
Some are sceptical about the benefits of green marketing. Why?
115
Green products and services are expensive than their non-green counterparts.
116
Few shoppers make buying decisions on green credentials.
117
that carry false

eco-friendly claims.
Products or services
118
Limited evidence supporting eco products or services sell more than noneco products or services.
119
120
Corporate Social Responsibility
121
A firm ought to achieve social goals beside its profit-making goal.
122
What are these social goals?
123
Employees
Investors Suppliers/distributors
Consumers
Organisation
Government/Regulators
Communities
124
125
Why firms tend to aim for financial profit?
126
Profit is a measure of shareholders wealth.

How well shareholders cash is used.
127
Its a measure of managerial competence.
128
The firm needs to stay solvent.

129
what led to this idea of CSR?
Why ask firms to adopt social goals?
130
Negative consequences of globalisation.
131
Global activism aimed at corporate establishment fuelled by
STPauls Cathedral, London

132
executive pay.
Excessive
133
Global Financial Crisis.
Events like the 2008-2009
134
ENRON Guilty of accounting

embellishment & fraud.
Corporate crimes
(L-R) Mr. Jeffrey K. Skilling, former President and CEO of Enron Corporation; Dr. Robert Jaedicke, Board of Directors Chairman of Audit and Compliance Committee of Enron Corporation; and Mr. Herbert S. Winokur, Jr., Board of Directors Chairman of the Finance Committee of Enron Corporation, during the Oversight and Investigation Subcommittee hearing.
135
Worldcom
WorldCom Accounting Scandal Revealed: 3.8 billion in mislabeled expenses had been used to inflate cash flow and hide losses in 2001 and early 2002. Shown is former Worldcom CEO Bernard Ebbers,
136
137
138
Americanisation of cultures
139
Carbon emissions
140
BP oil spill in the Gulf of Mexico of 2010.
141
Widening gap between the poor and rich.

142
Depletion of natural resources.
143
Laws have failed to provide satisfactory guide to moral behaviour.

144
So, the firm benefits from incorporating social goals?
145
CSR
CASE for
146
Sustainability Argument
Meeting the needs of present generation without compromising the ability of future generations to meet their own needs.
Norwegian Prime Minister Gro Harlem Brundtland, 1980s
147
Does your firm act in ways that undermine the capacity of people to survive in the future?
148
Does the firm act in ways that hinder its capacity to survive in the future?
149
How do we ensure the firm survives in the future?
150
Kraft Foods supporting Cocoa farmers in Ghana.
151
Reputational Argument
To attract talented people for work
152
To buy customer loyalty
Source: Bonini, McKillop, & Mendonca 2007
153
154
A reason why firms have embraced CSR is because of the positive impact on corporate image.
Almost organisations published corporate responsibility reports in 2010.

Corporate Register (2011), Corporate Responsibility Reporting Awards 11, Corporate Register, pp. 4-5
5000
155
However, the veracity of the claims in CSR reports has been questioned.
156
License-to-operate Argument
Through CRS, the firm obtains & renews its permission to operate.
157
Moral Argument
Its simply the right thing to do.
158
New-market opportunity Argument
CSR can present opportunities for new ideas

(new products, services, or businesses).
159
CSR can be a source of opportunity, innovation, and competitive advantage.

Porter & Kramer (2006) Strategy & Society, HBR
160
3 million
units sold worldwide since it went on sales in1997.
Toyotas Prius has been a success with over
161
CASE against
CSR
162
CSR derails the firm from its goal to make money for its owners.
A firm is a profit-making unit;
163
... goes
against
164
this.
managers are
economic
agents.
165
Social goals is the province of governments, not firms.
166
By achieving economic goals, the firm indirectly helps society achieve social goals.
Through taxation revenue; staff employment; & products or services that impact consumer lives.
167
CSR is expensive; poor use of shareholders money.
168
Do firms that engage in CSR activities outperform those that dont?
169
170

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RESPONSIBLE

What are firms often criticised of?

How should firms respond to those criticism?

What is Green Marketing?

2013 Berlin Asong. All rights reserved.

STPauls Cathedral, London

Source: Northattan (2011). Retrieved from http://northattan.com/wp-content/uploads/2011/11/IMG_93111.jpg

2013 Berlin Asong. All rights reserved.

ENRON Guilty of accounting

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

Did corporate greed cause the 2008-2009 Global Financial Crisis?

2013 Berlin Asong. All rights reserved.

Bernard Madoffs ponzi scheme.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

For compelling consumers to indulge in materialism.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

In the UK, family household throws

Source: The Telegraph (2012). Retrieved from www.telegraph.co.uk/finance/personalfinance/consumertips/householdbills/9268980/Families-waste-680-of-food-a-year.html

Source: WRAP (2012). Retrieved from www.wrap.org.uk/content/pictures

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

Providing customers with defective products or poor services.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

Using excess packaging.

2013 Berlin Asong. All rights reserved.

prices beyond the buying reach of many.

Deceptive, unethical & aggressive promotions.

2013 Berlin Asong. All rights reserved.

Skechers USA Inc. fined

2013 Berlin Asong. All rights reserved.

Skechers Deceived Consumers with Shoe Ads

Source: BloombergBusinessweek (2012). Retrieved from www.businessweek.com/ap/2012-05/D9UPVNB00.htm

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

Unfriend 10 friends, get a free whopper

2013 Berlin Asong. All rights reserved.

Give up your friends for a burger?

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

body figure & size.

2013 Berlin Asong. All rights reserved.

2013 Berlin Asong. All rights reserved.

Air pollution from industrial waste like carbon emissions.