Transcript Increasing Social Responsibility

Increasing Social Responsibility
Consumer Protection
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Social Responsibility: concern about the
consequences of actions on others
Most businesses realize they cannot
succeed in the long run if they are not
socially responsible
Social Responsibility
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The Growth of Consumerism
Government Regulation
Improving Business Practices
The Growth of Consumerism
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Consumerism: the organized actions of
groups of consumers seeking to increase
their influence on business practices
Consumers as individuals have only a
small influence over businesses, but
consumers as an organized group have a
great deal of influence
The Growth of Consumerism
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Product Testing
Consumer Education
Lobbying
Consumer Information
Boycott: an organized effort to influence
a company by refusing to purchase its
products
Government Regulation
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Laws and guidelines put into place by the
US Government designed to protect the
consumer
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Drinking/smoking age and advertisements
Nutritional Guidelines on packages of food
Consumer Protection Laws
Consumer Protection Laws
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Sherman Antitrust Act 1890: prevents
monopolies and increases competition
Food & Drug Act 1906: content and labeling of
food and formed the FDA
Federal Trade Commission Act 1914: Formed
the FTC to protect consumer rights
Robinson-Patman Act 1936: unfair pricing
against small businesses
Consumer Protection Laws
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Fair Package and Labeling Act 1966:
Required packages to be accurately
labeled and fairly represents the contents
Consumer Credit Protection Act 1968:
require disclosure of credit requirements
and rates to loan applicants
Consumer Product Safety Act 1972: set
safety standards and formed the CPSC
Consumer Protection Laws
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Americans with Disabilities Act 1990: prohibit
discrimination and provide equal opportunity for
persons with disabilities
Telemarketing and Consumer Fraud and Abuse
Prevention Act 1994: prohibit deceptive
telemarketing practices and limits and regulates
calls made to consumers’ homes
Millennium Digital Commerce Act 1999:
regulates use of electronic contracts and
signatures
Improving Practices
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Code of Ethics
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Self-Regulations
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A statement of responsibilities for honest and proper
conduct
Business taking personal responsibility for their actions
Social Actions
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Donating time and money to social or charity causes
and needs
Responsibilities of the
Marketer
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Product Development and Management
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Disclose all substantial risks associated with a
product or service
Identify substitutions that change the product
or impact buying decisions
Identify extra cost-added features
Responsibilities of the
Marketer
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In Promotions
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Avoiding false and misleading advertising
Rejecting high-pressure or misleading sales
tactics and promotions
Responsibilities of the
Marketer
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In Distribution
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Not exploiting customers by manipulating the
availability of a product
Not using coercion
Not exerting undue influence over the
reseller’s choice to handle a product
Responsibilities of the
Marketer
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In Pricing
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Not engaging in price fixing
Not practicing predatory pricing
Disclosing the full price associated with any
purchase
Responsibilities of the
Marketer
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In Market Research
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Prohibiting selling or fundraising disguised as
conducting research
Avoiding misrepresentation and omission of
pertinent research data
Treating clients and suppliers fairly