Transcript Social_Responsibility

SOCIAL
RESPONSIBILITY
BUAD 307
SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT
Lars Perner
1
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
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SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT
Lars Perner
2
One Approach to Evaluating
Ethics of Marketing Activities
IS THE ACT
DECEPTIVE,
MANIPULATIVE
OR
MISLEADING?
Yes
IS THERE A
SUFFICIENTLY
REDEEMING
PURPOSE?
Yes
No
No
DOES THE ACT
PREY ON
PERSONAL
INSECURITIES?
Yes
LESS LIKELY
TO BE
ETHICALLY
PROBLEMATIC
MORE LIKELY
TO BE
ETHICALLY
PROBLEMATIC
Yes
No
No
IS A
HARMFUL
OR
DANGEROUS
PRODUCT
INVOLVED?
BUAD 307
Yes
SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT
DO
BENEFITS
APPEAR TO
OUTWEIGH
COSTS TO
THE USER?
No
Lars Perner
3
“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
BUAD 307
SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT
Lars Perner
4
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)
BUAD 307
SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT
Lars Perner
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CULTURE
DEMOGRAPHICS
INFLUENCES ON
THE FIRM AND ITS
CHOICES
SOCIAL
ENVIRONMENT
ECONOMIC
RESOURCES
TECHNOLOGY
LEGAL/POLITICAL
PROFIT
PRESSURE
FIRM
SOCIAL
RESPONSIBILITY
BUAD 307
SOCIAL RESPONSIBILITY AND THE MARKETING ENVIRONMENT
OPPORTUNITIES
Lars Perner
6