Ethics%20

1
Organizational and Managerial Communication

• Chapter 14
• Ethics seasoning or ingredient?
• Corporate Social Responsibility

2
Two views of ethics

• Seasoning metaphor
• Salt to camouflage the bad taste?
• Ingredient metaphor (integrated view)
• Integral part of the meal?
• Integrating character with actions.

3
What is ethics?

• Derived from Greek ethos
• Rules or standards of right behavior towards
  others
• Includes teaching these rules or standards and
  their practical application
• Aristotle
• Who we are is as important as what we do
• Have to start with the character of the person,
  its formation and content the whole human being

4
Connection to corporate communication

• Formulating and sending messages that influence
  many people
• Relationship between stakeholders is an ethical
  one
• How one relates to others
• Ethics inextricably connected to corporate
  communication
• Ignoring this can have consequences for
  organization and ourselves

5
Responsibility and dialogue

• Indirect responsibility
• Openness to what is being marketed
• Willingness to engage in dialogue
• Those who are part of ones own organization
• Those to whom the messages are directed
• Lack of communication fails to respect the other
  partys humanity

6
Identity, Brand Building and Ethics

• Closely related
• The process involves many people
• Two levels
• Meeting between character of individuals and
  profession or organization
• Organization itself definition of what it wants
  to be its values and standards
• Act ethical as long as it is profitable?

7
Moral Preparedness

• Brand building requires serious reflection
• Identity is not invented overnight
• Ethical ideas need to be stated up front as both
  internal and external signals
• Individuals must decide what their concept of the
  good life is
• Read Plato

8
Corporate social responsibility

• A mission or purpose for existing that includes
  more than creating shareholder value and profits.
• Corporate citizenship -- policy and practice of a
  corporations social involvement over and beyond
  its legal obligations for the benefit of society.

9
PHILANTHROPIC ACTIVITY Improve the quality of
life Be a good corporate citizen Contribute to
the community
ETHICAL RESPONSIBILITY Avoid harm Do what is
right, just, fair
LEGAL RESPONSIBILITY Play by the rules of the
game Obey the law -- it is societys codification
of right and wrong
ECONOMIC RESPONSIBILITY Be profitable
Pyramid of Corporate Social Responsibility,
Carroll 1991.
10
Corporate Image Dimension

• Values and Programs
• Concern with the environment
• programs to protect or improve the environment
  and make more effective use of natural resources
• Social Responsibility --
• contributing to community programs, supporting
  artistic and social activities and generally
  trying to improve the welfare of society

11
Corporate citizenship issues

• Corporate governance
• Environment
• Human rights and the workplace
• Fair trade
• Ethical investment
• The arms trade
• Tobacco
• Animal welfare and protection
• Education

12

• If they don't say enough about their charity
  links consumers believe that companies are hiding
  something and if they say too much they believe
  that charities are being exploited by the big
  corporations. It makes the promotion of such
  schemes one of the most delicate jobs in
  marketing. Go too far one way and consumers
  believe you are using the charity, go the other
  way and they will not even know of your
  involvement (Tom O'Sullivan, 1997).
•  

13
Cause related marketing

• The process of formulating and implementing
  marketing activities that are characterized by
  contributing a specific amount to a non-profit
  organization that in turn causes customers to
  engage in revenue-providing exchanges.
• C. Caywood, 1997
• Linking a worthwhile charitable cause in a market
  to the growth of a business through the fusion of
  marketing, public relations, promotion, and
  special events.
• Mullen, 1997

14
Cause related marketing

• Using marketing money, techniques and strategies
  to support worthwhile causes while at the same
  time building the business.
• Commercial activity by which businesses and
  charities or causes form a partnership with each
  other to market an image,product or service for
  mutual benefit.
• Adkins, 2000

15
Need for CSR as part of mission

• CSR must have prominent place in firms core
  mission and vision
• Mission should be well explained, widely
  understood and shared
• Must be willing to walk the talk

16
(No Transcript)
17

• Skeptics
• distrust of firm to actually donate
• perceived triviality of donated amount
• perceived inequity of donation to firm benefit
• potential misuse of CRM campaign
• question motivations

18
Norwegian Research -- 1999

•  
• USA UK Norway
• Awareness of companies supporting causes 79
  68 7.5
• Likely to switch to brands that claim to help a
  cause 76 86 35.5
• Likely to pay more for a brand that supports a
  cause 54 45 29.2
• More likely to buy product that supports a
  cause 78 N/A 46.3

19
Research from Norway

• It is less important what companies support --
  rather it is more important that companies
  support something.
• For Norwegians, the motivation of the company is
  more important than what is supported.
• The more cynical a companys motivation, the more
  consumers are skeptical.
• This is particularly true of customers with
  higher education.

• Consumers want information that companies support
  good causes.
• CRM creates extra value for the customer.
• CRM is accepted even when consumers know it is
  being done to get them to purchase.
• Given that price and quality are equal, brands
  that support good causes are preferred.

20

• It is important that consumers know how much
  money is given and what it is being used for.
• Norwegians are split in their opinions that there
  should be a natural link between the giver and
  receiver to achieve believability.

• Important aspects for credibility
• time span -- must be long-term
• size of support must be significant

21

• Most companies in Norway support or have
  supported a non-profit organization (non sports)
• Most support is through donations
• Estimated corporate support ca. 750 million NOK
• Ca. 50 support national causes, ca. 36
  international and the rest local

• Only about 1/4 communicate their support, mostly
  through advertisements
• Firms use support to position themselves, to
  create goodwill with stakeholders, to show
  support for society and to create confidence in
  their brand, identity and image
• Showing social responsibility is the most
  important
• Almost no company evaluates the effectiveness of
  these programs

22

• The next big thing in brands is social
  responsibility. It will be clever to say there is
  nothing different about our product or price, but
  we behave well.
• Wally Olins, corporate identity and image guru,
  quote in The Economist, 08.09.2001