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Recognize that marketing’s first social
responsibility is to be ever more efficient and
effective and understand the charges made
against the marketing role in this regard
Understand that marketing's second social
responsibility is to behave ethically and
honestly with customers, colleagues, and
ourselves as marketers
Observe how marketers must obey the letter of
the law and spirit of various laws as a third
social responsibility
Appreciate how marketing exercises its fourth
responsibility via cause-related marketing
Marketing and Social Responsibility
Social Responsibility
The collection of marketing philosophies,
policies, procedures, and actions intended
primarily to enhance society’s welfare
Marketing’s First Social Responsibility:
Be Ever More Efficient and Effective
Too Many New Unneeded Products are
Marketed that Fail
Arguments made for better marketing,
not less marketing
Marketing’s First Social Responsibility:
Be Ever More Efficient and Effective
Too Many New Unneeded Products are
Marketed that Succeed
Planned obsolescence—the design of a
product with features that the company
knows will soon be superseded, thus
making the model obsolete
Example--www.gateway.com
Marketing’s First Social Responsibility:
Be Ever More Efficient and Effective
Market Distribution Systems are Inefficient
Fierce competitors who are trendsetters
in innovation of new, more efficient
distribution processes will take away
business
Example—Wal-Mart and Home Depot
Marketing’s First Social Responsibility:
Be Ever More Efficient and Effective
A Lot of Advertising Is Wasteful Expenditure
Inefficient targeting—results when
advertising and distribution reach too
broad an audience, most of whom are not
interested in the product
Marketing’s First Social Responsibility:
Be Ever More Efficient and Effective
Marketers’ Self-interested, Unintended
Consequences on Supply
Tragedy of the commons—name given to
the process which individuals, pursuing
their own self-interest, overuse a
common good to such an extent that the
common good is destroyed
Marketing’s First Social Responsibility:
Be Ever More Efficient and Effective
Marketers’ Self-interested, Unintended
Consequences on Supply
Supply-side market failure—individual
activities of a supplier inadvertently lead
to destructive effects on the overall
supply
Marketing’s First Social Responsibility:
Be Ever More Efficient and Effective
Marketers’ Self-interested, Unintended
Consequences on Supply
Marketing’s First Social Responsibility:
Be Ever More Efficient and Effective
Marketers’ Self-interested, Unintended
Consequences on Supply
Marketing’s First Social Responsibility:
Be Ever More Efficient and Effective
Marketers’ Self-interested, Unintended
Consequences on Demand
Demand-side market failure—the
cumulative effect of the marketing
practices on many thousands of
advertising campaigns that has a residual
negative impact on the values of buyers
and the demand for various products
Marketing’s Second Social Responsibility:
Behave Ethically
IBM and Proctor & Gamble
Marketing’s Second Social Responsibility:
Behave Ethically
IBM and Proctor & Gamble
Marketing’s Second Social Responsibility:
Behave Ethically
I Was Only Following
Orders
Marketing’s Second Social Responsibility:
Behave Ethically
Choose to Do the Most Good for the Most
People
Principle of utility is that “ethical
behavior” is the behavior that produces
the most good for the most people in a
specific situation
Marketing’s Second Social Responsibility:
Behave Ethically
What If Everyone Did It?
Situational ethics—societal condition
where “right” and “wrong” are
determined by the specific situation,
rather than by universal moral principles
Marketing’s Second Social Responsibility:
Behave Ethically
Where Do Our Basic Values Come From?
www.ymca.com
Youth groups, sports teams, school
related organizations
Marketing’s Second Social Responsibility:
Behave Ethically
Recognizing Ethical Issues
Marketing’s Second Social Responsibility:
Behave Ethically
Recognizing Ethical Issues
Ethical vigilance—means paying constant
attention to whether one’s actions are
“right” or “wrong,” and if ethically
“wrong,” asking why one is behaving in
that manner
Marketing’s Third Social Responsibility:
Obey the Law
Obey the Law
Marketing’s Fourth Social Responsibility:
Help Market Good Causes
Good Causes
Marketing’s Fourth Social Responsibility:
Help Market Good Causes
Cause-Related Marketing
Activities that governments, public service
organizations, companies, and individuals
undertake in an effort to encourage target
customer participation in socially redeeming
programs
Marketing’s Fourth Social Responsibility:
Help Market Good Causes
Cause-Related Marketing
Example—The National High Blood Pressure
Education Program (NHBPEP)—partnership of
over 40 organizations to raise awareness and
provide diagnosis
Marketing’s Fourth Social Responsibility:
Help Market Good Causes
Cause-Related Marketing
Allstate
Insurance
Marketing’s Fourth Social Responsibility:
Help Market Good Causes
Cause-Related Marketing