Corporate Social

Responsibility & Green

Marketing
 Idea Behind CSR
Consider the interest of society
Taking responsibility of impact of their
activities on
 Customer
 Supplier
 Employee
 Share holder
 Community
 Environment
 Future generation
 Drivers of CSR
Ethical consumerism

Globalization

Social awareness

Laws and regulation

CSR Examples
• A Social Initiative that brings
Together children in need of education
& people who can devote little time to
teach them.

• Provided hearing aids to nearly deaf

children.
India’s biggest benevolent
organization
 Tata nagar in Orissa
 Health care programme
 Child education
 Women welfare
 Business Benefits of CSR

Goodwill.

Branding.

Improved Perception about Company.

 UNDERSTANDING SOCIAL
RESPONSIBILITY IN MARKETING

• Concepts of Social Responsibility

 Stakeholder Responsibility
 Societal Responsibility
• Green Marketing
• Cause Marketing
 Stakeholder Responsibility

Stakeholder
• A person, group, organisation, or
system who affects or can be affected
by an organization's actions.
• Internal stakeholders :
– Shareholders
– Employee
– Management
• External stakeholders:

Consumers
Suppliers
Creditors
Competitors
Community.
• The stakeholder responsibilities often involve
moral and citizenship duties requiring collective
action.

• In general the responsibilities of stakeholders

separate into
four general categories:

– With the firm

– Among stakeholders themselves
– Common pool resources (especially nature)
– The commonwealth
The most obvious instances of stakeholder
responsibility involves

• The global natural environment –enviornmental

protection

• The global labour standards – minimum wages,

working hours

• Basic human rights –right to live, follow religion,

choose occupation etc.
 Cause Marketing

• The term refer to marketing effort for

social and other charitable causes,
including in-house marketing efforts by
non-profit organizations.
• Launched in early 2006, Product Red is an
example of one the largest cause-related
marketing campaigns to date. Product
Red was created to support The Global
Fund to Fight AIDS, Tuberculosis &
Malaria and includes companies such as
Apple Computer, Motorola, Giorgio
Armani, and Dell as participants.
 Avon
Why do companies engage in cause marketing?
 Green Marketing

• Developing & Promoting products &

services that satisfy customer’s want &
need for Quality, Performance,
Affordable Pricing & Convenience
without having a Detrimental input on the
Environment.
 Evolution of Green Marketing

• There are three Phases :

a) “Ecological” green marketing.

b) “Environmental” green marketing.

c) “Sustainable” green marketing.
Why green marketing?
 Benefits of green marketing

Companies that develop new & improved

products & services with environment
inputs enjoys the following benefits :

1) Access to new markets.

2) Increased profit sustainability.
3) Enjoy a competitive advantage.
 Green Marketing Mix
To use 4 P’s of green marketing in an
innovative manner is a challenge before the
marketer.

Product: The objective behind is to

Reduce resource consumption & pollution
& to Increase conservation of scarce
resources.
Price: Most consumers will only pay additional
if there is a perception of extra product value.
Promotion: There are three types of green
advertising –
That show relationship between a Product/
Service & Biophysical Environment.
That promotes a Green Lifestyle.
That present a corporate image of environmental
responsibility.
Place: Where & When to make a product
available will have significant impact on the
customers. Very few customers will go out
of their way to buy green products.
 Challenges Ahead
• Green products require renewable &
recyclable material, which is Costly.
• Requires a technology which initiates Huge
investment in R&D.
• Majority of customers are Not Aware of
green products & their uses.
• Majority of the consumers are Not Willing
to pay a premium.
 Some Examples
Napkins & bags are made of recycled paper.

Pumped syrup directly from tank instead of

plastic which saved 68 million pound/year.

CFL lamp saves lots of electricity as

compared to ordinary bulb.