completed

DISCUSSION QUESTIONS (DQ's).

4. According to Starbucks Chairman Howard Schultz, "Consumers now commonly engage in

a cultural audit of [product and service] providers. People want to know your value and ethics
demonstrated by how you treat employees, the community in which you operate." Discuss the
concept of social responsibility as a new marketing reality and how it impacts both
companies and consumers

Answer:

The concept of social responsibility as a new marketing reality is related to the growing
relevance of company principles, ethics, and corporate citizenship. It stresses that businesses
have a responsibility to positively affect society and address environmental, social, and
ethical problems in addition to maximizing profits. This shift in attitude acknowledges that
customers are increasingly interested in supporting firms that share their values and adopt
ethical business practices.

The impact of social responsibility may be observed from the standpoint of both the company
and the consumer:
Impact on Companies:

a. Improved Reputation and Brand Image: Adopting social responsibility may improve a
company's reputation and brand image. Companies that exhibit ethical behavior,
environmental stewardship, and community involvement are more likely to gain
favorable attention and establish consumer trust.
b. Competitive Advantage: By distinguishing themselves from rivals, socially
responsible businesses can obtain a competitive advantage. Consumers, particularly
Generation Z as well as Millennials, are increasingly looking toward companies that
share their values. Companies may attract and maintain clients that value ethical and
sustainable activities by including social responsibility into their marketing strategy.
c. Employee Engagement and Retention: Socially responsible businesses frequently
have greater rates of employee engagement and retention. Employees are more
motivated and pleased to work for companies that place a premium on social and
environmental impact. This can result in greater productivity, loyalty, and a good
work environment.
d. Long-Term Sustainability: Companies contribute to the long-term sustainability of
their business and society as a whole by tackling social and environmental challenges.
Taking proactive steps to reduce environmental effect, promote fair wages and
conditions, and assist local communities can help to build a more secure working
environment and generate long-term success.
e. Risk management: Practicing social responsibility helps businesses avoid risks
connected with bad public impression, legal concerns, and regulatory compliance. It
can help to avoid reputational harm and possibly financial losses.

Impact on Consumers:
 a. Ethical Consumption: Consumers are becoming more aware of the influence their
purchases have on society and the environment. They actively seek items and services
that are consistent with their ideals, such as fair trade, sustainability, and social
reasons. Companies that are socially responsible are more likely to attract and keep
these morally conscious customers.
b. Emotional Connection: Consumers frequently form emotional attachments to socially
responsible companies. They feel good about supporting businesses that address
social and environmental concerns, which may result in greater brand loyalty and
advocacy.
c. Transparency and Trust: Transparency and open communication are required for
social responsibility activities. Companies that freely discuss their principles,
activities, and influence foster consumer trust. Companies may develop trust and
enhance client relationships by offering clear information about their processes.
d. Impact on Industry Practices: Consumers' preference for socially responsible
businesses has the potential to promote industry-wide change. When customer
demand swings toward firms that value social responsibility, other companies are
compelled to follow suit. This has the potential to enhance overall industry procedures
and standards.

In conclusion, social responsibility as a new marketing reality demonstrates the rising

relevance of ethical and responsible corporate activities. It has an influence on businesses
through improving their reputation, offering a competitive edge, and promoting
sustainability. It impacts customer purchase decisions, fosters emotional connections with
businesses, and encourages transparency and trust. Finally, social responsibility is a win-win
situation that benefits both businesses and customers while also contributing to a more
socially conscious and sustainable corporate landscape.

Reference:

Curras-Perez, R., Alvarado-Herrera, A., & Vera-Martínez, J. (2023, May 22). Comparing the
effects of consumers’ perceptions of companies’ corporate social responsibility initiatives in
emerging and developed markets. Asia Pacific Journal of Marketing and Logistics.
https://doi.org/10.1108/apjml-09-2022-0761

Li, X. (2022, August 24). The discursive construction of corporate identity in the corporate
social responsibility reports: A case study of Starbucks. Frontiers in Psychology, 13.
https://doi.org/10.3389/fpsyg.2022.940541

Pornsrimate, K., & Khamwon, A. (2021, April 27). How to convert Millennial consumers to
brand evangelists through social media micro-influencers. Innovative Marketing, 17(2), 18–
32. https://doi.org/10.21511/im.17(2).2021.03

Schons, L. M., Scheidler, S., & Bartels, J. (2017, October 26). Tell Me How You Treat Your
Employees. Journal of Marketing Behavior, 3(1), 1–37.
https://doi.org/10.1561/107.00000043
GPT 2:

The concept of social responsibility as a new marketing reality refers to the increasing
expectation from consumers that companies not only provide quality products or services but
also demonstrate ethical behavior and contribute positively to society. It emphasizes the idea
that companies have a broader responsibility beyond generating profits and should actively
consider the social and environmental impacts of their actions.

This shift in consumer expectations has significant implications for both companies and
consumers:

Impact on Companies:

Reputation and Brand Image: Social responsibility practices can enhance a company's
reputation and brand image. When companies demonstrate ethical behavior, such as fair
treatment of employees, community involvement, and sustainable practices, they build trust
and loyalty among consumers.

Competitive Advantage: Social responsibility can be a source of competitive advantage.

Companies that prioritize ethical practices and contribute to social causes may differentiate
themselves from competitors and attract socially conscious consumers.

Risk Management: Embracing social responsibility helps companies mitigate risks associated
with negative publicity, boycotts, or legal actions resulting from unethical practices. By
proactively addressing societal concerns, companies can minimize reputational and financial
risks.

Impact on Consumers:
Ethical Consumption: Consumers are increasingly making purchasing decisions based on
ethical considerations. They want to support companies that align with their values and
demonstrate responsible behavior. This has led to the rise of ethical consumerism, where
individuals actively seek out products and services from socially responsible companies.

Trust and Loyalty: Socially responsible companies often build trust and loyalty among
consumers. When consumers perceive a company as socially responsible, they are more
likely to develop an emotional connection and long-term loyalty to the brand.

Empowerment and Engagement: Socially responsible companies engage consumers in

meaningful ways, such as through cause-related marketing or community initiatives. This
involvement allows consumers to feel a sense of empowerment and contribution to positive
social change.

Overall, the concept of social responsibility as a new marketing reality signifies a

fundamental shift in consumer expectations and values. Companies that embrace social
responsibility not only fulfill their ethical obligations but also have the potential to gain
competitive advantage, strengthen brand loyalty, and build long-term relationships with
consumers. On the other hand, consumers now have the power to influence companies
through their purchasing choices, rewarding socially responsible behavior and holding
companies accountable for their actions.