Slide 1Chapter 4 Social Responsibility and Ethics in MarketingObjectivesThe Nature of Social Responsibility100 Best Corporate CitizensDimensions Of Social ResponsibilityMarketing CitizenshipPyramid Of Corporate Social ResponsibilityMarketing EthicsCause-Related MarketingStrategic PhilanthropySocial Responsibility IssuesGreen marketingEurope’s Eco-LabelCorporate Goals For The Natural EnvironmentSlide 16Sample Ethical Issues Related to the Marketing MixThe Nature of Marketing EthicsFactors in Ethical Decision-MakingOrganizational CultureTypes And Incidences Of Observed MisconductImproving Ethical Conduct In MarketingTop Management & EthicsReasons For Not Reporting Ethical MisconductCodes of ConductEthics OfficersImplementing Ethical & Legal Compliance ProgramsAudit Of Control MechanismsChallenges Of Ethical and Socially Responsible BehaviorSocial Responsibility and Ethics Improve PerformanceChapter 4Social Responsibilityand Ethics in Marketing4 | 3Objectives•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 performance4 | 4The Nature of Social ResponsibilitySocial responsibility – an organization’s obligation to maximize its positive impact and minimize its negative impact on society4 | 5Copyright © Houghton Mifflin Company. All rights reserved.100 BestCorporate Citizens4 | 6Dimensions OfSocial ResponsibilitySocial ResponsibilityMarketing/Corporate CitizenshipStakeholdersMarketing EthicsCause-Related MarketingStrategic Philanthropy4 | 7Marketing CitizenshipThe adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders.4 | 8Pyramid OfCorporate Social ResponsibilitySource: 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.4 | 9Marketing EthicsPrinciples and standards that define acceptable marketing conduct as determined by various stakeholders.BBB Code of Advertising4 | 10Cause-Related MarketingThe practice of linking products to a particular social cause on an ongoing or short-term basis.4 | 11Strategic PhilanthropyThe synergistic use of organizational core competencies and resources to address key stakeholders’ interests and achieve both organizational and social benefits.IBM - Overview | Corporate Community Relations4 | 12Social Responsibility Issues4 | 13Green marketingThe specific development, pricing, promotion, and distribution of products that do not harm the natural environment.4 | 14Europe’s Eco-LabelEUROPA - Environment - Ecolabel - Latest News4 | 15Corporate Goals ForThe Natural EnvironmentEliminate concept of wasteReinvent concept of a productMake prices reflect the costMake environmentalism profitable4 | 16Marketing EthicsEthical Issue – An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical.4 | 17Sample Ethical IssuesRelated to the Marketing Mix4 | 18The Nature of Marketing Ethics•Individual Factors•Organizational Relationships•Opportunity4 | 19Factors in Ethical Decision-Making4 | 20Organizational CultureA set of values, beliefs, goals, norms, and rituals that members of an organization share.4 | 21Types And IncidencesOf Observed Misconduct4 | 22Improving EthicalConduct In Marketing•Codes of conduct•Ethics Officers•Implementing Ethical and Legal Compliance Programs4 | 23Top Management & Ethics•Talk about importance of ethics•Inform employees•Keep promises•Model ethical behavior4 | 24Reasons For NotReporting Ethical MisconductSource: 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.4 | 25Codes of ConductFormalized rules and standards that describe what the company expects of its employees4 | 26Ethics OfficersCreate/enforce codeMeet with, discusscode, and adviseorganization membersToll-free hotlinesSalaries Of Ethics Officers4 | 27Implementing 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 strategy4 | 28Audit Of Control Mechanisms4 | 29Challenges Of Ethical andSocially Responsible BehaviorIntroduction/adaptation of new productsMore user-friendlyTransparency/opennessManagement responsibilityPredict long-term effectsBalancing society’s demands4 | 30Social Responsibilityand Ethics Improve Performance$Consumers want to buy from company associated with cause$Company’s