Chapter 4 Conscious Marketing Corporate Social Responsibility and

Chapter 4 Conscious Marketing, Corporate Social Responsibility, and Ethics ©Mc. Graw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of Mc. Graw-Hill Education.

Learning Objectives (1 of 2) Learning Objective 4. 1 Define conscious marketing. Learning Objective 4. 2 Describe what constitutes marketing’s greater purpose. Learning Objective 4. 3 Differentiate between conscious marketing and corporate social responsibility. Learning Objective 4. 4 Describe the ways in which conscious marketing helps various stakeholders. 2 © Mc. Graw-Hill Education

Learning Objectives (2 of 2) Learning Objective 4. 5 Explain how conscious leadership can produce a conscious culture in the firm. Learning Objective 4. 6 Describe how ethics constitute an integral part of a firm’s conscious marketing strategy. Learning Objective 4. 7 Identify the four steps in ethical decision making. . 3 © Mc. Graw-Hill Education

Conscious Marketing Principles – Recognition of marketing’s greater purpose – Consideration of stakeholders and their interdependence. – The presence of conscious leadership, creating a corporate culture. – The understanding that decisions are ethically based. 4 © Mc. Graw-Hill Education

Marketing's Greater Purpose Corporate Social Responsibility – Ethical Performance – Social Performance – Environmental Performance https: //www. youtube. com/watch? v=V 6 m-VJy 8 Toc 5 © Mc. Graw-Hill Education

PROGRESS CHECK (1 of 4) 1. What are the criteria for being a conscious marketer? 2. Is Walmart a conscious marketer or is it a practitioner of CSR? 6 © Mc. Graw-Hill Education

The Stakeholders of Conscious Marketing © Mc. Graw-Hill Education Jump to Appendix 1 long image description 7

Employees Basic responsibility: – Ensure a safe working environment free of threats to their physical safety, health, or well-being. 8 © Mc. Graw-Hill Education © Suzi Pratt/Getty Images

Customers Current trends – Privacy – Health Conscious marketing focus – Increases awareness – Leads to better brand equity – Increases sales 9 © Mc. Graw-Hill Education © Deshakalyan Chowdhury/Stringer/Getty Images

Marketplace One firm in the industry can lead the way toward conscious marketing. Partners and competitors often have no choice but to follow. 10 © Mc. Graw-Hill Education Source: General Electric Company

Society A firm that fails to act responsibly causes damage to all the preceding stakeholders as well as to itself. 11 © Mc. Graw-Hill Education

Environment Sustainability is a special category that combines considerations of all stakeholders. Adding Value 4. 1 – Why is Walmart attempting to position itself as the retail industry’s sustainability leader? 12 © Mc. Graw-Hill Education Source: Walmart Corporation/Flickr/CC BY 2. 0

PROGRESS CHECK (2 of 4) 1. What is the difference between conscious marketing and corporate social responsibility? 2. Provide a specific example of a conscious marketing firm that considers the needs of each of its stakeholders. 13 © Mc. Graw-Hill Education

Integrating Conscious Marketing Planning Phase Implementation Phase Control Phase 14 © Mc. Graw-Hill Education

Planning Phase The mission or vision statement sets the overall ethical tone for planning. Mission statements can be used as a means to guide a firm’s SWOT analysis. 15 © Mc. Graw-Hill Education

Implementation Phase Should the firm be relocating production to another country? Should the firm be targeting this market with this product? Should the firm be selling its product in this market in this manner? 16 © Mc. Graw-Hill Education

Control Phase Check successful implementation React to change • • New technology and markets ensure that new potentially troubling issues continually arise. Marketers collect data on people’s location • • Purchase transactions Posts on social and media sites (Facebook, Twitter) 17 © Mc. Graw-Hill Education

PROGRESS CHECK (3 of 4) 1. What ethical questions should a marketing manager consider at each stage of the marketing plan? 18 © Mc. Graw-Hill Education

The Link Between Ethics and Corporate Social Responsibility © Mc. Graw-Hill Education Jump to Appendix 2 long image description 19

A Framework for Ethical Decision Making © Mc. Graw-Hill Education Jump to Appendix 3

Step 1: Identify Issues © Mc. Graw-Hill Education Jump to Appendix 4 long image

Step 2: Gather Information and Identify Stakeholders Identify all ethical issues and relevant legal information Identify all relevant stakeholders and get their input on any identified ethical issues 22 © Mc. Graw-Hill Education

Step 3: Brainstorm Alternatives Halt the market research project Make responses anonymous Institute training on the AMA Code of Ethics for all researchers 23 © Mc. Graw-Hill Education

Step 4: Choose a Course of Action Weigh the alternatives Take a course of

Ethical Decision-Making Metric (1 of 2) Test Yes 1 2 Maybe 3 4 5 No 6 7 The Publicity Test Would I want to see the action I’m about to take on the front page of the local paper or in a national magazine? The Moral Mentor Test Would the person I admire the most engage in this activity? The Admired Observer Test Would I want the person I admire most to see me doing this? 25 © Mc. Graw-Hill Education

Ethical Decision-Making Metric (2 of 2) Test Yes 1 2 Maybe 3 4 5 No 6 7 The Transparency Test Could I give a clear explanation for the action I’m contemplating, including an honest and transparent account of all my motives, that would satisfy a fair and dispassionate moral judge? The Person in the Mirror Test Will I be able to look at myself in the mirror and respect the person I see there? The Golden Rule Test Would I like to be on the receiving end of this action and all its potential consequences? Source: Adapted from The Art of Achievement: Mastering the 7 Cs of Business and Life. © 2002 by Tom Morris, published by Andrews Mc. Meel Publishing LLC, an Andrews Mc. Meel Universal company, Kansas City, Missouri. 26 © Mc. Graw-Hill Education