ETHICAL PROGRAMS FUNCTIONS Corporate Social Responsibility CSR Corporate

ETHICAL PROGRAMS & FUNCTIONS Corporate Social Responsibility (CSR) • Corporate social responsibility is concerned with the relationship between an organization and the society in which it operates The notion of corporate social responsibility was first formalised by Bowen (1953) as an obligation to pursue policies, to make decisions, or to follow lines of action which are desirable in terms of the objectives and values of society Corporate social responsibility is a concept whereby companies integrate social and environmental concerns in business operationsowinojoseph@gmail. com in a voluntary manner 28/02/2021 1

Corporate Social Responsibility Social responsibility is concerned with transparent and ethical behaviour that is consistent with sustainable development and the welfare of society Marketers are required to incorporate ethical and socials aspects in their marketing activities and programmes Corporate social responsibility should be a part of a companies’ mission and marketers would have to integrate it in the marketing strategy, as a way of satisfying shareholders, consumers and public interest 28/02/2021 owinojoseph@gmail. com 2

Corporate Social Responsibility A marketer should not think only in terms of profitability but also how the company can add value to community and society Corporate social responsibility programs may be associated with significant and measurable benefits for companies CSR is behaviour by businesses over and above legal requirements, voluntarily adopted because businesses deem it to be in their long-term interest 28/02/2021 owinojoseph@gmail. com 3

Principles of CSR a) Sustainability Is concerned with the effects of actions taken today on options available in the future Sustainability implies that society must use no more of a resource that can be regenerated Think about tobacco companies (BAT, Mastermind, cement factories, timber companies) 28/02/2021 owinojoseph@gmail. com 4

b) Accountability Is concerned with recognition by organizations its actions affect external environment and therefore, assuming responsibility for effects of its actions The concept implies reporting quantified effects of its actions to all parties affected Such reporting should be based upon the following characteristics: Ø Ø 28/02/2021 Understandability of all parties concerned Relevance to users of information provided Reliability in terms of measurement Comparability over time and between organizations owinojoseph@gmail. com different 5

c) Transparency • The principle means that the external impact of the actions of the organization can be ascertained from the organization’s reporting and pertinent facts are not disguised in reporting 28/02/2021 owinojoseph@gmail. com 6

Corporate Social Responsibility Programs Corporate social responsibility programs is associated with significant and measurable benefits for companies Some of the programs used in CSR include the following: 1. Cause Promotion It implies supporting a social cause through sponsorships to enhance corporate reputation Successful cause promotion campaigns depend on the way the company selects the social cause and then links it to the products or services it offers The cause would have to resonate with the companies’ values 28/02/2021 owinojoseph@gmail. com 7

2. Cause related marketing Cause-related marketing is a promotional strategy that combines public relations and sponsorship strategies where a company makes a philanthropic commitment to a societal need though a specific campaign Cause related marketing increases brand loyalty as long as the company has a long-term commitment to the campaign Cause-related marketing is also a tool to build reputation and to create corporate image while supporting worthwhile causes 28/02/2021 owinojoseph@gmail. com 8

3. Corporate Philanthropy Refers to making a direct contribution to a charity or a cause Philanthropy builds corporate image and reputation. It also enhances morale and loyalty among stakeholders and it is a good way of advertising 4. Community Volunteering • Is an initiative that a company uses to encourage employees or collaborators to freely involve in activities that support society 28/02/2021 owinojoseph@gmail. com 9

CONSUMER RIGHTS AND OBLIGATIONS Consumer Rights (Ref: Consumer Protection Act 2012) 1. Right to safety To be protected against products, production processes and services which are hazardous to health or life (e. g. X-Ray and pregnant women, cholesterol in cooking fat) Personal data and privacy should be respected and protected (doctor and patient relationship; bank account data) 28/02/2021 owinojoseph@gmail. com 10

Consumer Rights (Cont’d) 2. The right to be informed Consumers have rights to be given the facts needed to make an informed choice Right to be protected against dishonest or misleading advertising and labelling (Think about Diet Coke) Information to consumers such as product specification, place of origin, safety warnings, price, mode of payment, date of quality assurance, description of after-sale services, warranty, ingredient, nutritional facts should be provided to consumers 28/02/2021 owinojoseph@gmail. com 11

Consumer Rights (Cont’d) 3. The right to choose Consumers have a right to be able to select from a range of products and services, offered at competitive prices with an assurance of satisfactory quality 4. The right to be heard Consumer interests should be represented in the policy making process of government, trade, professional and industry associations, where the making and execution of those policies will have an impact on the supply of goods and services to consumers 28/02/2021 owinojoseph@gmail. com 12

Consumer Rights (Cont’d) 5. The right to redress To receive a fair settlement of just claims, including compensation for misrepresentation, shoddy goods or unsatisfactory services 6. The right to consumer education To acquire knowledge and skills needed to make informed, confident choices about goods and services, while being aware of basic consumer rights and responsibilities and how to act on them 28/02/2021 owinojoseph@gmail. com 13

Consumer Rights (Cont’d) 7. The right to a healthy and sustainable environment To live and work in an environment which is nonthreatening and sustainable to the well-being of present and future generations 8. Right to recover payments made to a supplier in case of breach of contract 9. Cancellation of future performance if service delivery falls below expectation 28/02/2021 owinojoseph@gmail. com 14