MARK 3000 Principles of Marketing Chapter 4 Conscious Marketing CSR and Ethics August 27 2024 1 Today we will Define and differentiate conscious marketing and corporate social responsibility CSR Discuss how ethics play a role in a firm s conscious marketing strategy Review the four steps in ethical decision making 2 Conscious Marketing Entails a higher sense of purpose for the firm beyond making a profit from its products and services Four principles of conscious marketing Recognition of marketing s greater purpose Consideration of stakeholders and their interdependence The presence of conscious leadership creating a corporate culture The understanding that decisions are ethically based 3 What firms or brands do you think of as conscious marketers Why 4 Submit your conscious companies 5 What firms or brands do you think have a negative impact Why 6 Submit your un conscious companies 7 Marketing s greater purpose Consumers have increasingly high expectations for firms to contribute to society As a result firms and brands recognize the role they need to play through actions that are environmentally or socially responsible 8 Consideration of many stakeholders The broad set of people who might be affected by a firm s actions including not just corporate shareholders and customers Employees Employee Family Members Supply Chain Partners Government Agencies Trade Groups Environment Community 9 Consideration of many stakeholders When a firm as large as Walmart issues new standards for farms it impacts supply chain partners but also Competitors Consumers Animal welfare groups 10 Leadership matters for firm culture Leadership sets the example and the tone for behavior throughout the firm When conscious marketing is at the heart of the firm s mission it is felt throughout the organization and often leads to a strong workplace culture of shared values 11 Firm decisions are ethically based Business ethics refers broadly to the difference between right and wrong in the context of commerce like fraud Marketing ethics examines issues specific to marketing Impact on the environment Use of child labor False advertising 12 Corporate Social Responsibility CSR CSR is as an element of conscious marketing CSR refers to voluntary actions taken by a company to address the ethical social and environmental impacts of its business These actions are not mandated by any law or regulatory body 13 Corporate Social Responsibility One definition describes CSR as context specific actions and policies taking stakeholders expectations into account to achieve what is referred to as the triple bottom line Ethical Performance Social Performance Environmental Performance 14 Corporate Social Responsibility Almost all large and well known companies engage in some form of CSR Activities range from Establishing charitable foundations Partnering with existing nonprofit groups Taking public stances supporting the rights of minority groups Adopting responsible marketing sales and production practices 15 Disney Conservation Fund Celebrating the Magic of Nature Since 1995 the Disney Conservation Fund has directed more than 125 million to conservation organizations working with communities to protect wildlife inspire action and promote environmental resilience Table divided into two columns summarizes the sampling of major companies CSR programs The headers are marked from left to right as Company and illustration of CSR program 16 The Disney Conservation Fund supports nonprofits dedicated to saving wildlife Disney Conservation Fund Disney Conservation cast members help monitor study and protect sea turtles on the beaches outside Disney s resort in Vero Beach Florida Over the past 20 years they have recorded more than 20 000 sea turtle nests resulting in an estimated 1 5 million sea turtle hatchlings Table divided into two columns summarizes the sampling of major companies CSR programs The headers are marked from left to right as Company and illustration of CSR program 17 The Disney Conservation Fund supports nonprofits dedicated to saving wildlife Nike Grind Changing the Game from the Ground Up Nike Grind collects and recycles manufacturing scraps unused materials and used shoes to create tracks turf fields indoor and outdoor basketball courts and playgrounds 18 FedEx Delivering for Good FedEx Delivering for Good program partners with aid organizations to deliver much needed supplies to areas impacted by natural disasters 19 Walmart Walmart has been widely criticized as one of the worst paying companies of its size in the United States 20 Walmart But it also engages in extensive CSR programs is committed to reducing its carbon footprint and donates more than 1 billion in cash and in kind items to charitable causes annually 21 CSR vs Conscious Marketing CSR is just one element of conscious marketing Table divided into two columns compares corporate social responsibility and conscious marketing The column headers Companies might engage in CSR to mitigate the are marked from left to right as corporate social responsibility damage that their products cause and conscious marketing For example oil companies planting trees to balance out their carbon footprint 22 CSR vs Conscious Marketing Table divided into two columns compares corporate social CSR Conscious Marketing responsibility and conscious marketing The column headers Incorporates a higher purpose and a Independent of corporate purpose or are marked from left to right as corporate social responsibility caring culture culture and conscious marketing Reflects a mechanistic view of business Takes a holistic ecosystem view of business as a complex adaptive system Often grafted onto traditional business model usually as a separate department or part of PR Sees limited overlap between the business and society Puts social responsibility at the core of the business and views the community and the environment as stakeholders Recognizes that business is a subset of society 23 Consideration of many stakeholders The broad set of people who might be affected by a firm s actions including not just corporate shareholders and customers Employees Employee Family Members Supply Chain Partners Government Agencies Trade Groups Environment Community 24 Consideration of many stakeholders 25 Employees Basic responsibility of a firm is to ensure a safe working environment free of threats to employee health and safety In some cases this basic level of safety seems insufficient to ensure