Week14 Bba261 Social Responsibility

Marketing Management
Sixteenth Edition
Chapter 21
Socially Responsible
Marketing
Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved
Companies Engage in Social
Responsibility...
• when creating societal benefits is a key element of the
corporate culture and the company’s value system
• to differentiate themselves by appealing to consumers
who favor companies that exhibit civic virtues
• for their collaborators, who prefer to deal with
companies that care about creating value for society
• to build a bank of public goodwill to offset potential
criticisms and deal with eventual marketing crises
• to increase employee loyalty and create investor
goodwill
TRIPPLE BOTTOM LINE
• Tripple bottom line is a broader definition of bottom line:
Societal and environmental benefits are added as key
components next to financial performance of a
company
• Organizations should consider not only their financial
performance but also their impact on people and the
planet.
• “Triple Bottom Line” measures a business’ success
in three areas:
– People (community/social component)
– Planet (sustainability component)
– Profit (market profit/monetary component)
Community-Based
Corporate Social Responsibility
• There are several domains in which community-based
corporate social responsibility typically occurs:
- improving the workplace,
- engaging in corporate philanthropy,
- supporting low-income communities,
- fostering cause marketing,
- engaging in social marketing
IMPROVING THE WORKPLACE
– Fair compensation
– Work–life balance
– Diversity
– Safe and healthy working environment
– Employee development
If the company values corporate social responsibility:
- employees are more likely to do so themselves
- the company can recruit, motivate, and retain key
employees, for whom social responsibility can be as
important as the financial compensation
CORPORATE PHILANTHROPY
• Corporate Philanthropy (corporate giving) can have a

positive impact in at least three domains by enhancing:
– company image
– customer loyalty
– perceived product performance
E.g.:The Ronald Donald Houses that McDonald's
operates to help families while their children are
hospitalized is an example of corporate philanthropy
Turkcell Digital Skills Training Program, aims to bridge
the digital skills gap by providing training to individuals
from underserved communities
SERVING LOW-INCOME COMMUNITIES
Bottom of the pyramid (BOP): A socioeconomic concept
used in reference to the largest but poorest group of the
world’s population living on a daily income of less than $2.50
 Business model: “low-price, low-margin, high-volume”
 Companies focus on BOP to profitably serve these
customers, while at the same time promoting social
change
Reverse Innovation: Transferring innovations from a
developing market to create an inexpensive product that can
be introduced as a cheaper alternative in developed markets
E.g.: Nestlé repositioned its low-fat Maggi brand dried
noodles—a popular, low-priced meal in rural Pakistan and
India—as a budget-friendly health food in Australia
CAUSE MARKETING
Cause marketing:
• links the firm’s contributions toward a designated cause,
to customers engaging directly or indirectly in revenue-
producing transactions with the firm
• involves aligning a company's marketing efforts with
a social or environmental cause
• done by for-profit organizations (!) (they can come
together with a non-for profit organization)
 E.g.: Patagonia donates 1% of their sales to support
environmental organizations through their "1% for the
Planet" initiative.
 E.g : Coca-Cola partnering with organizations like the World
Wildlife Fund (WWF) to protect water resources and
promote sustainable agriculture.
Cause Marketing Can…
• improve social welfare
• create differentiated brand positioning for companies
• build strong consumer bonds
• enhance the company’s public image (positive reputation)
AND increase its market value
• drive sales
• create a reservoir of goodwill
• boost internal morale
• motivate and inspire employees
SOCIAL MARKETING
Social marketing:
• aims to further a cause not directly related to business
activities (unlike cause marketing which supports a cause
related to its business activities)
• typically done by non-profit or government
organizations (!) E.g.: World Wildlife Fund, UNICEF, TEGV to
raise awareness, change attitudes or promote positive
behaviors
 E.g.: “exercise more”, “no to drugs”, “safe driving”
 E.g.: Campaigns to promote gender equality, racial justice,
LGBTQ+ rights
 E.g.: Campaigns to promote recycling, reduce energy
consumption, conserve water, promote public transportation,
and protect natural habitats
SUSTAINABILITY-FOCUS
• Sustainability is the ability to meet humanity’s needs
without harming future generations
E.g.: Whole Foods no longer sells fish caught in areas subject
to overfishing OR 20% of the denim material in Levi’s new
“Waste<Less” jeans and jackets comes from plastic bottles
• Greenwashing is providing misleading information or giving

a false impression that products or practices are
environmentally friendly without living up to that promise
E.g.: An car manufacturer promoting its cars as being
environmentally friendly when the company is in fact a major
polluter
E.g.: A cosmetic company labeling its products as "natural" and
"chemical-free" while still using synthetic ingredients that are
harmful to the environment and not revealing their true
composition Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved
Corporate Responsibility and Trends
• Socially responsible marketing recognizes the need to

integrate environmental issues into the firm’s strategic
plans.
– Some key trends for marketers to be aware of:
▪ Shortage of raw materials
▪ Increased cost of energy
▪ Increased pollution levels
▪ Changing role of governments
Balancing Social Responsibility and
Corporate Profitability
• Developing ethical marketing communications
 Advertisers must not make false claims, use false
demonstrations or create ads with the capacity to
deceive, even if no one is actually deceived
E.g.: A floor wax advertiser can’t say the product gives six
months’ protection unless it does so under typical conditions.
OR a baker can’t say its diet bread has fewer calories because
its slices are thinner
• Managing customer privacy (transparency concern)

 concern that marketers may know too much about
consumers, too much data are captured and used by
companies (risk for consumers)

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Marketing Management

• Corporate Philanthropy (corporate giving) can have a

• Greenwashing is providing misleading information or giving

• Socially responsible marketing recognizes the need to

• Managing customer privacy (transparency concern)

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