Philanthropiccontribute resou rces to the com munityEthicalob ligation to do what is right, just, and fairLegalplay by the rules of the gam eEconom icbe profitableMKT 230 CH 4 Social Responsibility and Ethics in MarketingThe Nature of Social Responsibility-In Marketing, social responsibility refers to an organization’s obligation to maximize its positive impact and minimize its negative impact on society-social responsibility thus deals with the total effect of all marketing decisions on society-it also indirectly helps the sponsoring organization by attracting goodwill, publicity, and potential customers and employeesThe dimensions of social responsibility-Socially responsible organizations strive for marketing citizenship by adopting a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities that their stakeholders expect of them-Stakeholder orientation are companies that consider the diverse perspectives of stakeholders in their daily operations and strategic planning-all companies have an economic responsibility to be profitable so they can provide a return on investment to their owners and investors-The “world’s most ethical companies” have a track record of avoiding questionable conduct that damage their reputation-Economic and Legal responsibilities are the most basic levels of social responsibility for a good reason: failure to consider them may mean that a marketer is not around long enough to engage in ethical or philanthropic activities-beyond these dimensions is marketing ethics, principles and standards that define acceptable conduct in marketing as determined by various stakeholders, including the public, government regulators, private-interest groups, consumers, industry, and the organization itself-Cause-related marketing is the practice of linking products to a particular social cause on an ongoing or short-term basis-General Mills implemented its Box tops for education program to raise money for schools-Strategic Philanthropy approach is the synergistic use of organizational core competencies and resources to address key stakeholders’ interests and achieve both organizational and social benefitsMKT 230 CH 4 Social Responsibility and Ethics in MarketingSocial Responsibility IssuesSustainability-Sustainability is the potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies.-Walmart has taken steps to reduce waste and decrease greenhouse gas emissions in its supply chain-Sustainable companies implement the following goals:1. Eliminate the concept of waste2. Reinvent the concept of a product3. Make prices reflect the cost4. Make environmentalism profitableConsumerism-Consumerism is the efforts of independent individuals, groups, and organizations to protect the rights of consumers-how a firm handles customer complaints affects consumer evaluations and in turn customer satisfaction and loyalty-the consumer “Bill of Rights” include the right to safety, right to be informed, right to choose, and right to be heardCommunity Relations-Being a good community citizen also means avoiding harmful actions that could damage the community-a firm that participates in the economic viability of the community improves community relationsMarketing Ethics-this involves principles and standards that define acceptable conduct in marketingEthical issues in Marketing-an Ethical Issue is an identifiable problem, situation, or opportunity that requires an individual or organization to choose from among several actions that must be evaluated as right or wrong, ethical or unethical.-product related ethical issues generally arise when marketers fail to disclose risks associated with a product or information regarding the function, value, or use of a product-Product recalls occur when companies ask customers to return products found to be defective-Greenwashing occurs when products are promoted as being more environmentally friendly then they really are-Price gouging is pricing products at exorbitant levels, and taking advantage of customers who must purchase the medicine to survive or to maintain their quality of life-Bait and switch pricing schemes attempt to gain consumer interest with a low-priced product, then switch the buyer to a more expensive product or add-on service-Channel stuffing involves shipping surplus inventory to wholesalers and retailers at an excessive rateEthical Dimensions of Managing Supply Chain RelationshipsMKT 230 CH 4 Social Responsibility and Ethics in MarketingThe Nature of Marketing EthicsIndividual Factors-When people need to resolve ethical conflicts in their daily lives, they often base their decisions on theirown values and principles of right or wrong-shared ethical values and compliance standards are required to prevent deviation from desired ethical conductOrganization Relationships-Organization (corporate) culture is a set of values, beliefs, goals, norms, and rituals that members of an organization share-These values help shape employees’ satisfaction with their employer, which may affect the quality of the service they provide to customersOpportunity-another factor that may shape ethical decisions in marketing is opportunity- that is, conditions that limitbarriers or provide rewardsCodes of Conduct-it is hard for employees to determine what conduct is acceptable within the company without compliance programs and uniform standards-Codes of conduct are formalized rules and standards that describe what the company expects of its employeesImproving Marketing Ethics-One way to improve an organization’s ethical standards is to use a “bad apple-bad barrel” analogyIncorporating Social Responsibility and Ethics into Strategic Planning-Ethics relates to individual and group decisions whereas social responsibility deals with the total effect of marketing decisions on society-The two concepts are interrelated because a company that supports socially responsible decisions and adheres to a code of conduct is likely to have a positive effect on