SOCIAL RESPONSIBILITY

1. SOCIAL RESPONSIBILITY

2. Some Ethical Issues • Misleading advertisements and marketing in general • Taking advantage of consumer ignorance • Marketing of harmful products • Physically dangerous • Over-consumption; marketing to people living above their means • Marketing of products banned or not marketed in the U.S. to other countries

3. One Approach to Evaluating Ethics of Marketing Activities IS THE ACT DECEPTIVE, MANIPULATIVE OR MISLEADING? IS THERE A SUFFICIENTLY REDEEMING PURPOSE? Yes Yes No No MORE LIKELY TO BE ETHICALLY PROBLEMATIC LESS LIKELY TO BE ETHICALLY PROBLEMATIC DOES THE ACT PREY ON PERSONAL INSECURITIES? Yes Yes No No IS A HARMFUL OR DANGEROUS PRODUCT INVOLVED? DO BENEFITS APPEAR TO OUTWEIGH COSTS TO THE USER? Yes No

4. “Win-Win” Deals and Social Responsibility • By pooling resources, different organizations may each get more than what they put in • Firms may be able to contribute not only cash but also relevant expertise • Favorable publicity may be worth more than the same amount spent on advertising • Charitable groups may provide access to potential customers

5. Promotional Events • A large retail chain might sponsor a concert series by paying all expenses in return for considerable publicity • Triple “win-win-win” deal: • The charity receives the proceeds without having to pay costs • The sponsor receives publicity. Tickets are bought in the store or on its web site. • An aging artist—whose fans are now in their prime earning years—gets an opportunity to revive a career or promote a new venture (e.g., movie role)

6. INFLUENCES ON THE FIRM AND ITS CHOICES CULTURE DEMOGRAPHICS ENVIRONMENT SOCIAL RESOURCES ECONOMIC TECHNOLOGY LEGAL/POLITICAL PROFIT PRESSURE FIRM OPPORTUNITIES SOCIAL RESPONSIBILITY