Social Responsibility

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Social Responsibility Ethics

• Chapter 4

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When Hefty Bags expresses concern that its
products are having too great an impact on the
pollution of ground water!
ABCAC has rained more than 25 million for breast
cancer education!
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Social Responsibility

• S.R. refers to a companys obligation to
  _____________ its ________ impact and _________
  its __________ impact on society.
• S.R. is a vital factor in major marketing
  __________________.

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• S.R. deals with the _________ ___________ of all
  marketing decisions on society
• S.R. dimensions include ___________,
  ____________, __________, and ___________
  concerns.

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Benefits of Socially responsible business
practices.

• Positively impacting local _______
• Creating ____________ toward the organizations
• Generating _________ for the firm
• Attracting ________________

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Marketing Citizenship

• The adoption of a _________ focus for fulfilling
  the economic, legal, ethical, and philanthropic
  social responsibilities expected by
  __________________________.
• Stakeholders Any ____________ who has a claim in
  some aspect of a companys ___________,
  operations, ________, industry, or ___________.

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Social Responsibility Dimensions(Pyramid of
Social Responsibility)
_______________ Be a good Corp. citizen
______________ Be ethical
_____________ Obey the Law
_________________ Be profitable
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Economic Responsibility

• Sometimes business must find a balance between
  societys _____________ for social responsibility
  investors desires for ________________.

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Legal Responsibilities

• Law is societys ____________ of right and wrong.

_____________ the rules of the game!
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Ethical Responsibility

• Marketing ethics __________ _____________ that
  define acceptable conduct in marketing.

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Philanthropic Responsibility

• Contribute resources to the community to improve
  ___________________.

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• Cause-Related Marketing the practice of
  ______________ a firms _________ to a particular
  ________ cause.

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• ___________ Marketing

the specific development, pricing, promotion,
and distribution of products that _______________
the __________________.
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Objectives of marketing programs designed to
sustain the environment

• Eliminate the concept of _________.
• Make prices reflect the __________ of a product.
• _________ the concept of a product.
• Make environmentalism __________

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Xeroxs Asset Recycle Management program
encourages customers to return used ink
cartridges to be recycled into new ones.
In Europe (1992), companies can voluntarily apply
for a Eco-label to indicate that their product is
less harmful to the environment than competing
products.
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• Consumerism

the efforts of independent individuals, groups,
and organizations to protect the
________________________________. Ralph Nader
consumer ____________
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Pres. Kennedys Consumer Bill of Rights (4)

• 1. Right to _________ all products must be safe
  for their intended use, must include thorough and
  explicit ____________ for proper and safe use.

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• 2. Right to be ___________ means that consumers
  should have access to and the opportunity to
  review all _______ __________ about a product
  _______ buying it.

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___________ warranty information Our knives are
warranted to be free of defects in materials and
workmanship for as long as you own the
product(s).  To obtain a replacement, return your
damaged knife/knives postage paid to Quikut, 118
East Douglas (or Post Office Box 29), Walnut
Ridge, AR   72476 along with a check for 2 per
knife (U.S.) or 3 per knife (Canada). Your
warranty papers may indicate an old  Fremont, OH
or Germantown, TN address which you should not
use.  Mail is no longer forwarded from those
locations.
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• 3. Right to ________ consumers should have
  access to ___________ of products and services at
  ___________ prices.

4. Right to be _______ the idea that consumers
interests should receive full and
________________ consideration in the formulation
of government ________________.
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The Nature of Ethics

• When marketers activities deviate from ________
  standards, the exchange process can
  _____________, resulting in customer
  dissatisfaction, lack of trust, and lawsuits.
• An ethical issue is an _________ problem,
  situation, or opportunity requiring an individual
  to choose from among several ____________ that
  must be evaluated as _________________, ethical
  or unethical.

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Ethical Issues Related to the Marketing Mix

• Product Issue marketers fail to ________
  information to consumers about the _____
  associated with using a product.

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• Promotion ____________ and/or __________________
  claims.
• i.e., a cereal company advertises that its newest
  product can lower cholesterol even thought the
  company cannot prove this claim.

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(No Transcript)
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Distribution related ethical issues forcing
intermediaries to behave in a ________
________________.

• Pricing price fixing, ________ pricing
  _________ pricing.

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Factors that influence the ethical
decision-making process.
__________
____________ Factors
__________ Factors
Ethical marketing decisions
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Organizational Factors

• 1. _________ (Organizational) culture A set of
  ______, belief, goals, _____, and rituals that
  members of an organization ______. i.e., taking
  items home because everyone else is doing it.
• 2. Organizational _____________
• 3. _____________ executives

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• 4. Coworkers The ______ a person is exposed to
  unethical activity in the organization, the
  ______ likely he or she will behave unethically.
• Opportunity
• it is a favorable set of conditions that limit
  _______ or provide _________.

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Individual Factors

• Individuals most often base their decisions on
  their _______________ and principles of
  ______________________.
• Study of Students
• _________ indicated that they feel it is
  important to be a person of good character
• ____ admitted to cheating on an exam
• ____ confessed to lying to their parents

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• As a media buyer for the Bergiel Agency,
  Michelle knows that no one ever checks to see if
  her phone calls are business related or personal.
  With regard to ethical behavior, this situation
  relates most closely to

• A. individuals C. exposure
• B. opportunity D. reward

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• Which of the following would be consistent with
  Johnson Chemicals understanding of the Bad
  Apple concept of improving the ethical conduct
  of salespeople

• A. Retraining unethical salespeople
• B. Publishing ethical guidelines for
  salespeople.
• C. Using customers to review ethical
  guidelines.
• D. Firing unethical salespeople
• E. None of the above

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• It is possible to improve ethical behavior in an
  organization by
• improving the organizations
• ethical _____________
• and
• ___________ unethical persons.

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• Ethical choices in business situation are most
  often made _________ in work __________
  and__________.
• __________ of Conducts
• Formalized _______ and ____________ that describe
  what the company expects of its employees in
  terms of ________ behavior.

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Social Responsibility vs. Marketing Ethics

• Social Responsibility deals with the
  _____________ of marketing decisions on
  _________.
• Marketing Ethics relates to ___________ and
  ___________ evaluations in __________ situations.