Lec 09- Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility- 2

Summary

This video script delves into the realm of ethical marketing, highlighting the distinction between laws and ethics, and their influence on marketing behavior. It discusses societal culture, business practices, corporate culture, and personal moral philosophies as key factors shaping ethical decisions. The script also covers concepts of social responsibility, including profit, stakeholder, and societal responsibility, illustrating their importance through examples like green marketing and cause-related marketing. It concludes by emphasizing the positive impact of ethical practices on business performance and societal well-being.

Takeaways

• 📚 Laws are systematic, universally accepted rules and regulations created by appropriate authorities like governments, enforceable through penalties, distinct from ethics, which are principles guiding right or wrong behavior in society.
• 🌐 Societal culture and norms refer to shared values and attitudes that dictate moral standards, which can vary among societies and change over time, affecting ethical marketing behavior.
• 🏢 Business culture includes the rules of the game, boundaries between competitive and unethical behavior, and codes of conduct in business dealings, all of which influence ethical conduct in exchange relationships and competitive behavior.
• 🔄 Ethical exchanges between sellers and buyers should result in mutual benefit, with recent consumer protection laws like the Consumer Protection Act 2019 emphasizing strict penalties for misleading advertisements and guidelines for e-commerce.
• 💼 Corporate culture consists of values, ideas, and attitudes shared among an organization's members, which can affect ethical behavior through expectations, informal codes of ethics, and the actions of top management and co-workers.
• 📜 A Code of Ethics is a formal statement of ethical principles and rules of conduct within an organization, addressing issues like contributions to officials, customer relations, conflict of interest, and record-keeping.
• 🤔 Personal moral philosophy, influenced by social, business, and corporate cultures, can be categorized into moral idealism, which upholds universal rights and duties, and utilitarianism, which focuses on the greatest good for the greatest number.
• 🌱 Green marketing involves efforts to produce, promote, and reclaim environmentally sensitive products, reflecting the growing interest in sustainable development and ecological responsibility.
• 🔑 Cause-related marketing ties a firm's charitable contributions to sales of specific products, differentiating the brand by associating it with a cause that consumers believe in and supporting.
• 🌿 Sustainable development is about conducting business that protects the natural environment while making economic progress, with companies implementing initiatives that focus on working conditions and ecological responsibility.
• 🏆 Companies that demonstrate social responsibility, such as through green marketing and ethical business practices, often benefit from favorable consumer perceptions and can outperform less responsible companies financially.

Q & A

What is the primary difference between laws and ethics as discussed in the script?

Laws are systematic sets of universally accepted rules and regulations created by appropriate authorities, such as governments, and can be enforced by penalties. Ethics, on the other hand, are principles that guide a person or society to decide what is right or wrong in a given situation, focusing on moral rules and guidelines.

How does societal culture influence ethical marketing behavior?

Societal culture refers to a set of values, ideas, and attitudes shared among a group, which dictates what is morally right and just. These standards can vary between societies and may change over time, creating ethical dilemmas for businesses operating in different cultural contexts.

What is the significance of UPS's Ethics program in the context of ethical marketing behavior?

UPS follows a global Ethics program, adhering to a consistent set of ethical standards across more than 200 countries worldwide. This demonstrates the company's commitment to maintaining high ethical standards irrespective of varying societal cultures.

What are the three components of business culture, and how do they influence ethical conduct?

The three components of business culture are the effective rules of the game, the boundaries between competitive and unethical behavior, and the code of conduct in business dealings. These components affect ethical conduct by providing guidelines on how businesses should operate within the market while maintaining ethical standards.

What is the Consumer Protection Act 2019, and how does it relate to ethical marketing?

The Consumer Protection Act 2019 is a legislation that replaced the 1986 Act, introducing stricter penalties for misleading advertisements and guidelines for e-commerce and electronic service providers. It is related to ethical marketing as it enforces ethical standards and consumer protection in business practices.

Can you explain the concept of economic espionage and its ethical implications?

Economic espionage involves the illegal collection of trade secrets or proprietary information about a competitor, providing offenders with cheap access to critical information and causing victims to suffer economic losses. It is both illegal and unethical, carrying serious criminal penalties for the offending individuals or businesses.

What is the role of corporate culture in influencing ethical practices within an organization?

Corporate culture consists of the values, ideas, and attitudes shared among the members of an organization. It influences ethical practices by setting expectations for ethical behavior, establishing an informal code of ethics, and reflecting the ethical actions of top management and co-workers.

What is a Code of Ethics, and why is it important in an organization?

A Code of Ethics is a formal statement of ethical principles and rules of conduct within an organization. It is important because it provides a unified platform for individuals from diverse backgrounds to understand and adhere to the organization's ethical standards.

What are the two prominent personal moral philosophies mentioned in the script, and how do they impact the marketplace?

The two prominent personal moral philosophies are moral idealism and utilitarianism. Moral idealism considers certain individual rights or duties as universal, while utilitarianism focuses on the greatest good for the greatest number by assessing the cost and benefits of consequences. Both philosophies impact the marketplace by guiding ethical decision-making and actions of individuals and organizations.

What is the concept of social responsibility in marketing, and what are its three main concepts?

Social responsibility in marketing refers to the idea that organizations are accountable to society for their actions. The three main concepts are profit responsibility, which focuses on maximizing profits for owners or stockholders; stakeholder responsibility, which emphasizes obligations to those who can affect the organization's objectives; and societal responsibility, which refers to obligations for the preservation of the ecological environment and the general public.

How does cause-related marketing tie a brand to a consumer, and what are some examples provided in the script?

Cause-related marketing ties a brand to a consumer by associating the brand with a relevant cause that the consumer believes in. Examples provided in the script include Procter and Gamble raising funds for the Special Olympics through product purchases, and MasterCard International linking card usage with fundraising for institutions that combat various social issues.

Outlines

00:00

📚 Introduction to Marketing Ethics and Social Responsibility

This paragraph introduces the concept of marketing ethics, distinguishing between laws and ethics, and their impact on marketing decisions. Laws are systematic rules enforced by penalties, while ethics are moral principles guiding behavior. The paragraph outlines factors influencing ethical marketing behavior, including personal moral philosophy, societal culture, business culture, industry practices, and corporate expectations. It also introduces the concept of social responsibility in marketing, which encompasses ethical and socially conscious actions by businesses.

05:00

🌐 Societal and Business Cultures in Marketing Ethics

This section delves into the role of societal and business cultures in shaping ethical marketing behavior. It explains how societal culture, with its values and attitudes, influences moral standards that can vary among different societies. The business culture is described as comprising rules of the game, boundaries between competitive and unethical behavior, and codes of conduct in business dealings. The paragraph highlights the importance of ethical behavior in exchange relationships and competitive conduct, referencing the Consumer Protection Act 2019 and unethical competitive behaviors like economic espionage and bribery.

10:01

🏢 Corporate Culture and Personal Moral Philosophy

The third paragraph focuses on corporate culture and personal moral philosophy as key influences on ethical practices. Corporate culture is defined as the shared values and attitudes within an organization, which can be reflected in its code of ethics and the behavior of its management. The paragraph also discusses the importance of top management's ethical behavior as a role model for employees. Personal moral philosophy, learned through socialization and education, is explored through two prominent philosophies: moral idealism, which upholds universal rights and duties, and utilitarianism, which assesses the ethics of actions based on their consequences.

15:02

🌱 Concepts of Social Responsibility in Marketing

This paragraph introduces the concept of social responsibility, which holds that organizations are accountable to society for their actions. It outlines three levels of social responsibility: profit responsibility, which emphasizes maximizing profits for stockholders; stakeholder responsibility, which broadens the view to include obligations to all parties that can affect a company's objectives; and societal responsibility, which includes ecological preservation and obligations to the general public. The paragraph also touches on the triple bottom line approach of people, planet, and profit, and provides examples of green marketing and eco-labels.

20:05

🔗 Cause Marketing and Sustainable Development

The fifth paragraph discusses cause-related marketing as a strategy that ties consumers to a brand through a shared cause, distinguishing it from standard charitable contributions. It highlights how this approach can enhance corporate sales and profits while addressing public concerns. Examples of cause marketing are given, such as Procter & Gamble's support for the Special Olympics and MasterCard's fundraising for various institutions. The paragraph also covers sustainable development, which aims to balance economic progress with environmental protection, and mentions companies that have responded to concerns about working conditions in offshore manufacturing facilities.

25:05

📘 Conclusion and Review of Ethical Marketing Behavior

In the concluding paragraph, the module summarizes the framework for understanding ethical behavior in marketing, revisiting the factors discussed throughout the script, including societal cultures and norms, business culture and industry practices, corporate culture and expectations, and personal moral philosophy. It emphasizes the importance of these factors in shaping ethical marketing decisions and behaviors. The paragraph also acknowledges the sources used for the module's material and ends with a thank you note.

Keywords

💡Ethical Marketing

Ethical marketing refers to the practice of promoting products and services in a manner that adheres to moral principles and societal norms. It is a key theme of the video, emphasizing the importance of conducting business with integrity. For instance, the script discusses how UPS follows a global ethics program, maintaining consistent ethical standards across different societies, which underscores the company's commitment to ethical marketing practices.

💡Laws and Ethics

The video script distinguishes between laws and ethics, defining laws as systematic, universally accepted rules and regulations created by appropriate authorities, enforceable through penalties. Ethics, on the other hand, are principles guiding individuals or societies to discern right from wrong. The script illustrates this by explaining that while laws can change with societal norms, ethics provide a moral compass for decision-making in marketing.

💡Societal Culture and Norms

Societal culture and norms are highlighted as influential factors in ethical marketing behavior. The script describes culture as a set of shared values and attitudes that shape moral standards within a society. These standards can vary among societies and may change over time, affecting how ethical dilemmas are approached in marketing. An example given is the ethical standards UPS adheres to, which must be considered in the context of diverse societal cultures.

💡Business Culture and Industry Practices

Business culture encompasses the unwritten rules, boundaries of competitive behavior, and codes of conduct within an industry. The script explains that these elements form the foundation for understanding moral behavior in business activities. They influence how companies engage ethically with consumers and competitors, providing a framework for distinguishing between fair competition and unethical practices.

💡Corporate Culture and Expectations

Corporate culture is portrayed as a critical influence on ethical practices within an organization. The script defines it as the shared values, ideas, and attitudes among organization members, which are reflected in their behavior and work ethic. Corporate culture is exemplified by the expectations for ethical behavior and the informal code of ethics that guide actions within the company, as well as the ethical conduct of top management and co-workers.

💡Code of Ethics

A code of ethics is a formal statement outlining an organization's ethical principles and conduct rules. The script emphasizes its importance in aligning diverse employees towards a common ethical standard. It typically addresses issues like contributions to officials, customer relations, conflict of interest, and record-keeping, serving as a guide for ethical behavior within the company.

💡Ethical Dilemmas

Ethical dilemmas are situations that pose personal and professional conflicts due to conflicting moral principles or societal expectations. The script illustrates the impact of these dilemmas on individuals, suggesting that they can lead to significant consequences in both personal and professional realms. The script also mentions laws protecting whistleblowers, which are relevant in the context of resolving such dilemmas.

💡Moral Idealism

Moral idealism is a personal moral philosophy that upholds certain rights or duties as universal, irrespective of outcomes. The script uses the example of the right to know about probable defects in a product, such as an automobile's safety issues. This philosophy is related to the video's theme by emphasizing the importance of upholding ethical duties even when it may not be profitable.

💡Utilitarianism

Utilitarianism is presented as an alternative moral philosophy focusing on maximizing the greatest good for the greatest number. It assesses the ethics of behavior based on the balance of costs and benefits. The script illustrates this by stating that if the benefits of an action exceed the costs, the behavior is considered ethical, a concept directly tied to the decision-making process in marketing.

💡Social Responsibility

Social responsibility in the context of the video refers to the obligations an organization has towards society at large. It is a broad concept that includes profit responsibility, stakeholder responsibility, and societal responsibility. The script discusses these concepts to highlight the multifaceted role of businesses beyond mere profit-making, emphasizing accountability for their impact on society, stakeholders, and the environment.

💡Green Marketing

Green marketing is defined as marketing efforts aimed at producing, promoting, and reclaiming environmentally sensitive products. The script provides examples such as Xerox's design for the environment program, which focuses on recyclability and remanufacturability of its products. This concept is integral to the video's narrative on sustainable development and reflects a company's commitment to ethical and responsible marketing practices.

Highlights

Introduction to the concept of laws as systematic and universally accepted rules and regulations enforced by penalties, contrasting with ethics as moral principles guiding right and wrong.

Ethics in marketing are influenced by personal moral philosophy, societal cultures and norms, business culture and industry practices, and corporate culture and expectations.

Societal culture's impact on ethical marketing behavior, with moral standards being relative and changing with societal evolution.

UPS's global Ethics program as an example of consistent ethical standards across different societies.

Business culture's role in defining the boundaries between competitive and unethical behavior, and the importance of ethical conduct in seller-buyer relationships.

The introduction of the Consumer Protection Act 2019 and its focus on stricter penalties for misleading advertisements and guidelines for e-commerce providers.

Economic Espionage and bribery as common unethical competitive behaviors in business, with serious criminal penalties.

Corporate culture's influence on ethical practices within an organization, including the importance of a formal Code of Ethics.

The role of top management and co-workers in shaping ethical behavior through their actions and responses to unethical conduct.

Moral philosophies such as moral idealism and utilitarianism and their impact on marketplace ethics and decision-making.

The concept of social responsibility in marketing, encompassing profit responsibility, stakeholder responsibility, and societal responsibility.

Green marketing as an initiative towards sustainable development, focusing on environmentally sensitive products and practices.

Caus-related marketing as a strategy to tie consumers to a brand through a relevant cause, differentiating the company in the market.

Sustainable development's emphasis on conducting business that protects the natural environment while making economic progress.

Evidence that socially responsible companies benefit from favorable word-of-mouth and typically outperform less responsible companies financially.

The importance of working conditions in offshore manufacturing facilities and how companies like Reebok and Nike are imposing codes of conduct to ensure fair labor practices.

A conclusion summarizing the framework for understanding ethical behavior and the various concepts of social responsibility in marketing.

Transcripts

thank you

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welcome to introduction to marketing

Essentials in this module

we will try to identify the factors that

influence

ethical and unethical marketing

decisions

we will also discuss each of these

factors separately and then we will

describe the different concept of social

responsibility in marketing

to start with

laws may be understood as the systematic

set of universally accepted rules and

regulations

created by an appropriate authorities

such as a government

so

they are a systematic set of universally

accepted rules and regulations

all laws are systematic set of

universally accepted rules and

regulations

which are created

by whom by an appropriate Authority

such as the government of that

country or state or or the district

laws can be enforced

by imposing penalties

while as ethics are the principles that

guide a person or Society created to

decide what is right or wrong in a given

situation so you see that there is a

difference between laws and ethics

ethics are the principles that guide a

person or Society

created to decide what is right or wrong

in any given situation

so it regulates the person Behavior or

conduct by applying the moral rules and

guidelines in this there are some Modern

rules and guidelines that we are talking

of

the following slides will discuss

ethical behavior and social

responsibility in marketing now let us

look at the ethical marketing Behavior

ethics are the moral principles and

values

that govern the actions and decisions of

an individual or a group

they serve as guidelines on how to act

rightly and justly

when faced with moral dilemmas

researchers have identified numerous

factors that influence ethical marketing

Behavior

so as it will be shown in the figure in

the next slide so this is the figure

this is the framework for understanding

ethical Behavior

this box

is on personal molar philosophy and

ethical Behavior

while here we have this

societal cultures and norms

then we have business culture and

Industry practices

and then we have corporate culture and

expectations

so what is societal culture and norms

so as we have seen in module 5 culture

refers to a set of values

ideas and attitudes that are learned and

shared among the members of a group

culture also serves as a socializing

force that dictates what is more morally

right and just this means that moral

standards are relative to particular

societies so these moral standards are

always have always to be looked upon

on the basis of a particular society so

as the society changes the moral

standards may also change so that is why

different societies have different moral

standards these standards often reflect

the laws and regulations that affect

social and economic behavior

and that is why this can create ethical

dilemma

for example UPS

the world's largest package delivery

company operating in more than 200

countries worldwide

follow the Ethics program which is

global in nature they follow a

consistent set of ethical standards

across the globe irrespective of the

changing Society societal culture

so this UPS has

a consistent set of ethical standards

that they use across the globe not just

in one country now let us look at the

business culture and the industry

practice

societal cultures provide a foundation

for understanding moral behavior in

business activities

and the business culture comprises of

one the effective rule of the game

the second is the boundaries between

competitive and unethical Behavior

and the third is the code of conduct in

business dealings so this these are the

three things that a business culture is

made up of what are the effective rules

of the game the boundaries between

competitive and unethical Behavior

because and the code of conducting

business dealings now you see that there

are no clear-cut demarcations in these

and the boundaries are fuzzy so that is

why there is a need to have

some ethical behavior that governs these

boundaries so business culture affects

ethical conduct in the exchange

relationships

between Sellers and the buyers

and ethical conduct

in the competitive Behavior among

sellers now let us look at the ethics of

exchange ethical exchanges between

sellers and buyers should result in both

parties being better off after that

transaction

so the exchange process is Central

to the marketing concept this exchange

process is Central to the marketing

process and obviously this exchange

process should also be ethical at the

same time consumer protection act 2019

has recently replaced the three decade

old consumer protection act

1986. introduction of a central

Regulators strict penalty for misleading

advertisement and and guidelines for

e-commerce and electronic service

providers are some of the key highlights

of this new Act

then what are the ethics of competition

there are two kinds of unethical

competitive behavior that are most

common the first is economic Espionage

and the second is bribery

first and second

so we are talking of ethics of

competition

what is economic Espionage economic

Espionage is the gland steel collection

of Trade Secrets or proprietary

information about a company's competitor

offenders get cheap access to critical

information

leading victims to suffer steep economic

losses

this practice is illegal and unethical

and Carries serious criminal penalties

for the offending individual or

businesses

this SP NH activities they include

illegal trespassing

thefts fraud and misrepresentations

wiretapping the search of a competitors

trash and violations of written and

implicit employee agreements with

non-competing clauses

what is bribery

the practice is more common in business

to business and government marketing

than in consumer marketing

in general bribery is most evident in

Industries

experiencing intense competition

too many competitors

trying to sell the same kind of products

to

a small set of consumers so in general

bribery is most evident in Industries

experiencing intense competition

and in countries in the earlier stages

of Economic Development

according to a United Nations study

40 percent of all companies in Asian

countries have to pay briberies to win

or retain businesses now you see that

this is a huge amount of companies

giving briberies in order to get or to

retain the existing businesses

now what is corporate culture and

expectations

a third influence on ethical practices

is Corporate culture so what is

corporate culture so we have seen ah

what is culture so now now we will talk

about what is corporate culture it is

the set of values ideas and attitudes

that is learned and shared among the

members of an organization so now we are

talking about the values ideas and

attitudes that are learned and shared

among the members of the organization

not the members of a society now we are

talking of members of an organization

the culture of a company demonstrates

itself

where in the dress that people wear

sayings how do they talk and the manner

of work of employees so how do they

dress how do they talk and the manner in

which they work

so that reflects the culture of a

company culture is also apparent in the

expectations for

ethical Behavior present

informal code of ethics and the ethical

action of top management and co-workers

what is Code of Ethics a code of ethics

is a formal statement of ethical

principles and Rule of conduct now you

see that

in an organization people from across

different parts of the country or the

different parts of the world they may be

working

they may be coming from different

education backgrounds and different

countries across the world they may be

male or female their age may be

different so now how to bring all of

them on on a single platform

so for that a code of ethics is required

this code of ethics is a formal

statement of ethical principles and

rules of conduct

code of ethics typically address

contribution to government officials and

political parties customers and Supply

relations

conflict of interest and accurate record

keeping

what is the ethical behavior of top

management and co-workers

one reason for violating code of ethics

rest in the perceived behavior of top

management and the co-workers

observing peers and top management and

gauging responses to unethical Behavior

play an important role in individual

actions ethical dilemmas can bring

personal and professional conflict

so you see how dangerous this ethical

dilemma is that it can bring in both the

personal and professional conflict and

for this reason

numerous states have laws protecting

whistleblowers

employees who report unethical or

illegal action of their employers

now let us try to understand what is

moral what is personal moral philosophy

and ethical Behavior

moral philosophy is learned through the

process of socialization with friends

and family and by a formal education it

is also influenced by the societal

business and corporate culture in which

a person finds himself or herself

two prominent personal moral

philosophies have direct bearing on the

marketplace

one is moral idealism and the second is

utilitarianism what is moral idealism

that is the first one what is moral

idealism moral idealism is a person's

moral philosophy that considers certain

individual rights

or duties as universal regardless of the

outcome for example the right to know

applies to probable defects in an

automobile that relate to safety

this philosophy also applies to ethical

duties

an example of a fundamental ethical duty

is to do no harm

for example adherence to the fundamental

ethical Duty

prompted 3M executive to face out

production of a chemical 3M had

manufactured for nearly 40 years so this

3M is the company it used to manufacture

a chemical for nearly 40 years but the

ethical duty of its Executives

forced the company to phase out the

production of this harmful chemical

believing that the substance could be

possibly harmful in large doses

3M voluntarily stopped its production

resulting in a dollar two hundred

million loss in annual sales

what is utilitarianism

an alternative perspective of moral

philosophy is utilitarianism

it is the personal moral philosophy

now you see that this is a personal

modern philosophy not the organization

moral philosophy that focuses on the

greatest good for the greatest number by

assessing the cost and benefit of

consequences of ethical Behavior

if the benefits exceeds the cost then

the behavior is ethical if the benefits

are less than the cost then the behavior

is unethical another important concept

or issue current Trend in marketing is

that of social responsibility

this social responsibility refers to the

idea that

organizations are part of a large

society and are accountable to that

Society for their actions

so this company is accountable to not

only to the customers and suppliers but

but also Society

so there are three concepts of social

responsibility one is the profit

responsibility

the second is stakeholder responsibility

and the third is

societal responsibility

what is profit responsibility so profit

responsibility holds that companies have

a simple Duty

to maximize profits for their owners or

stockholders so this view was expressed

by Nobel Laureate Milton Friedman who

said there is one and only one social

responsibility of business

to use its resources and engage in

activities

designed to increase its profit

so long as it stays within the rules of

the game

which is to say engage in open and free

competition without deception and fraud

what is stakeholder responsibility

stakeholder responsibility is the

criticism of the profit view so the

profit view was that

to maximize profit for the owners and

the stockholders then came another view

that is the stakeholders responsibility

so what is the stakeholder

responsibility that is the criticism of

the profit View

that has led to a broader concept of

social responsibility that is the

stakeholder responsibility so this

stakeholder responsibility

focuses on the obligation

and organization has

to those who can affect achievement of

its objective

social responsibility focuses on

obligations

obligations for whom who can affect

achievement of its objectives

so these

constituencies

these groups include

one is are the consumers

second are the employees

third are the suppliers and fourth are

the Distributors so these are the four

constituency constituencies that can

affect achievement of the

objectives of this company what is

societal responsibility

and even broader concept of social

responsibility has emerged in recent

years and that is called as societal

responsibility

what is societal responsibility it

refers to

obligations that organizations have

for what first is to is the preservation

of the ecological environment and the

second is

to the General Public

so this social responsibility emphasizes

on the triple bottom line approach

recognition of the need for

organizations

to improve the state of people

the planet and the profit simultaneously

is necessary if they are to achieve

sustainable long-term growth so these

are the three bottom lines people planet

and profit

and it is necessary

for the sustainable and long-term growth

growing interest in green marketing

course marketing social Audits and

sustainable development reflects this

recognition

what is green marketing green marketing

refers to the marketing efforts to

produce

promote and reclaim environmental

sensitive products

example Xerox design for the

environmental program focuses on ways to

make its equipment recyclable and

remanufacturable

today 100 percent of Xerox design

products are remanufacturable so there

is nothing left every product that they

make they can be re-manufactured again

so there are no waste

that will end up in a landfill and then

it may affect the environment and the

groundwater this efforts have kept more

than 2.3 billion points of equipment

from being discarded in U.S landfills

another example is that of Wipro

infotech Wipro infotech is the first ID

company to launch its Econo eco-friendly

Wipro greenware desktops

manufactured with material completely

free of deadly chemicals like polyville

chloride that is that is commonly known

as PVC and brominated flame retardants

that are called as bfrs in India

the third example is that of Eco labels

equal labels identify the environmental

friendly products and services

Eco level criteria guarantee that a

given product or service is fit for use

and will have reduced environmental

impact throughout its life these are the

various Eco labels that you can find on

various product and they ensure they are

given only to those those

products that have reduced environmental

implant impact throughout the product

life cycle

what is cost marketing

in today's time there is a plethora of

advertisements and multiple mediums of

reaching out to the Target consumers

the companies they keep on looking for

different ways to break through the

Clutter and differentiate themselves in

the eyes of the consumers

this cost related marketing has become a

successful and relevant strategy

as it ties the consumers to the brand

with more than just the product but a

relevant cause

but a relevant cause that the consumer

believe in so now this

caus related marketing is being used to

tie the brand with the consumer which

cause the cost that is relevant to our

consumers cost marketing refers to tying

the charitable contribution of a firm

directly to sales produced through the

promotion of one of its products

this definition distinguishes

cause marketing from a firm's standard

charitable contribution which are

outright donations so money spent on

this cost marketing is not counted as

charitable donations

or charitable contributions cause

marketing programs incorporate all the

three concepts of social responsibility

by addressing public concerns and

satisfy consumer needs

they can also enhance corporate sales

and profits

because the consumer may think that they

are doing very good

They are promoting a cause they are

spending money in that so that that that

will affect the consumers and they may

come back or they may buy more from this

company Procter and Gamble for example

raises funds from the Special Olympics

when consumers purchase selected Company

products

MasterCard International links usage of

its card with fundraising for

institutions that combat cancer heart

disease

child abuse drug abuse and muscular

diastrophy

another example is PNG shiksha

this shiksha attempts to address the

cause of the right to education by

building and supporting schools in India

when consumers

buy any of the PNG product

the company contributes to the shiksha

initiative

the advertising strategy

urges consumers to make a conscious

choice of choosing PNG product for a

better India next is

sustainable development

so sustainable development involves

conducting business

in a way that protects the natural

environment

while making economic progress so it is

about achieving both these objectives at

the same times

preserving the national environment and

also the economic progress it is not

that the natural environment will be

protected

while sacrificing the economic progress

and it is also not that the economic

progress will be made by sacrificing the

national environment so sustainable

development focuses on achieving both of

them at the same time

completes that evidence social

responsibility

has been rewarded for their efforts

the research has shown that these

companies

first benefit from favorable Word of

Mouth among consumers and second

typically outperform less responsible

companies

in terms of financial performance

ecologically responsible initiatives

such as green marketing represents one

initiative towards sustainable

development so that green marketing is

one initiative of sustainable

development

recent initiatives related to working

conditions

at Offshore Manufacturing

sites that produce goods for U.S

companies focus on quality of life

issues

public opinion surveys show that 90

percent of U.S citizens are concerned

about working condition under which

products are made in Asia and Latin

America companies such as Reebok Nike

less Cal bone Levi's Strauss and metal

have responded by imposing code of

conducts

has responded by imposing course of

conduct to reduce harsh or abusive

working conditions at Offshore

Manufacturing facilities

Reebok for example now monitors

production of its exporting apparels and

equipments to ensure that no child labor

is used in making its products

to conclude this module

and also the first part

we started this module by introducing a

framework to understand ethical Behavior

each factor influencing the ethical

Behavior was discussed separately

which included the following the social

cultures and Norm

one second is the business culture and

Industry perspective the third is

Corporate culture and expectations and

the fourth one is personal moral

philosophy and ethical Behavior

at last different concept related to

social responsibility in marketing were

discussed

and these are the three books from which

the material for this module was used

thank you

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good

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