Ethical dilemmas in Marketing. -PPT.pptx

CSR is about how companies manage the business processes to produce an overall positive impact on society.
It is a body of management systems and tools that help companies minimize their environmental impact adhere to international labor standards.
Contribute to their communities and manage toward a more economically sustainable world.
Social responsibility is operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has on business.
CSR is the decision making and implementation process that guides all company activities in the protection and promotion of international human rights, labor and environmental standards and compliance with legal requirements within its operations and in its goals.
CSR brings a variety of competition advantages such as Enhanced access to capital and markets
Increased sales and profits
Operation cost savings
Improved productivity and quality
Efficient human resource base
Improved brand image and reputation
Enhanced customer loyalty
Better decision making and risk management processes.
With this it is clear that CSR refers to the concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment.

Under CSR companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.

CSR is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders.
Towards customers
To prospective customer
To community
Towards human resource
To society and ecological environment
Towards government
To Global business environment
Arguments in favor of CSR of business:

Business is a creation of society and therefore it should respond to the demands of the society
The self interest of business is best served by meeting the aspirations of society
To improve the public image of business
It is the moral thing to do

Arguments against CSR of Business:

Responsibility of Government
Conflicting considerations of private market mechanism and social responsibility
Disregard of market mechanism (inappropriate allocation of scarce resources)
Arbitrary power to businessmen (no right to interfere with government responsibility)

1. Ethics in marketing Ethical Dilemmas in marketing. Module-3

2. Marketing ethics Marketing ethics addresses principles and standards that define acceptable conduct in the market place. Marketing usually occurs in the context of an organization, and unethical activities usually develop from the pressure to meet performance objectives. Some obvious ethical issues in marketing involves clear cut attempts to deceive or take advantage of a situation

3. Marketing Ethics & Consumer Rights The law and regulations are generally designed to protect the consumers from unethical practices by businesses These laws and regulations recognize that consumers have certain basic rights in the market place Each marketer must relay on his/her own value system to determine what is and is not ethical

4. GOVERNMENT REGULATORY AGENCIES • Federal Trade Commission has broadest regulatory powers over marketing. • Others include Consumer Product Safety Commission, the Federal Power Commission , OTHER REGULATORY FORCES • Consumer interest organizations. • Self-regulatory groups. CONTROLLING THE POLITICAL-LEGAL ENVIRONMENT • Complying with laws and regulations serves customers and avoids legal problems. • Influencing the outcome of legislation through lobbying or boycotts.

5. ETHICAL ISSUES IN MARKETING • Marketing ethics Marketers’ standards of conduct and moral values. • Many companies create ethics programs to train employees to act ethically. • Employees’ personal values sometimes conflict with employers’ ethical standards.

6. ETHICS IN MARKETING RESEARCH Invalid or unreliable research studies Invasion of consumer privacy, not respecting confidentiality Disguising sales as research Failure to secure voluntary and informed participation Competitive intelligence gathering Consumers are concerned about privacy, and Internet has increased privacy concerns

7. ETHICS IN PRODUCT/PACKAGE STRATEGY Example: Package strategy. Larger packages are more noticeable on the shelf. Oddly sized packages make price comparison difficult Actual versus apparent size Example: Product strategy . Misleading or inadequate information Excessive or environmentally-unfriendly packaging Product testing: on animals or insufficient testing to reveal safety concerns Marketing socially controversial products Marketing unsafe products

8. ETHICS IN DISTRIBUTION • What is the appropriate degree of control over the distribution channel? • Should a company distribute its products in marginally profitable outlets that have no alternative source of supply? ETHICS IN PROMOTION • Truth in advertising is the bedrock of ethics in promotion. • Marketing to children has come under increased scrutiny. • Marketing beer to college students, including through providing promotional items such as shirts and hats, raises ethical questions. ETHICS IN PRICING • Most regulated aspect of a firm’s marketing activities.

9. Deceptive Pricing: Where a salesperson tries to influence lure customers into a store. Thereafter, a salesperson tries to influence to buy a higher-priced item. Unfair Pricing: When competitors are driven out by low prices the company raises price back to their former level. FOUR AREAS OF PRICING ARE CONSIDERED UNETHICAL AND ILLEGAL:

10. Price Discrimination : It can be unethical if similar buyers are charged different prices for the same based on their ability to pay. Price fixing: It is an agreement among firms in an industry to set up prices at certain levels. Two types of price fixing. FOUR AREAS OF PRICING ARE CONSIDERED UNETHICAL AND ILLEGAL:

11. SOCIAL RESPONSIBILITY IN MARKETING • Social responsibility Marketing philosophies, policies, procedures, and actions that have the enhancement of society’s welfare as a primary objective.

12. “Marketers shall uphold and advance the integrity, honor and dignity of the marketing profession, by being honest in serving consumers, clients, employees, suppliers, distributors, and the public.” Marketing Ethics & Consumer Rights

13. ETHICAL VALUES Honesty : to be truthful and forthright in our dealings with customers and stakeholders. Responsibility : to accept the consequences of our marketing decisions and strategies. Fairness : to try to balance justly the needs of the buyer with the interests of the seller. Respect : to acknowledge the basic human dignity of all stakeholders.

14. TODAY: Seller’s Versus Consumers’ Rights Sellers’ rights: To introduce products of different styles and sizes, To set its own prices, provided no discrimination occurs To spend to promote the product To use any product message, provided it is not misleading To use buying incentives Consumers’ rights: To choose To be informed To safety To be heard To redress To consumer education To participate in marketplace decision making To have access to basic services To a sustainable environment

15. Business Culture & Industry Practices Ethics of Competition stealing trade secrets Includes trespassing, wiretapping, dumpster diving Bribes - payment before service Kickbacks- payment after service

16. Concept of Social Responsibility Profit Responsibility- company’s duty is to maximize profits Profiteering- shrink supply to raise price & profit Stakeholder Responsibility- company’s duty is to protect the interests of owners people who gain from it Societal Responsibility – company’s duty is to preserve environment p rotect users of their products while reaping profit

17. Whistle-blowers Whistle-blowers are employees who report unethical or illegal actions of their employers.

18. Social responsibility means that organizations are a part of a larger society and are accountable to that society for their actions. Social Responsibility

19. Green marketing consists of marketing efforts to produce, promote, and reclaim environmentally sensitive products. Green Marketing

20. Reference I.S.K. Chakraborthy , Foundation of Managerial works Contribution Indian thoughts. HPH. Bombay. V.S. Mahesh, Thresholds of motivation, Tata Mc Graw hills. Brady, F, Neil, Ethical managing, Macmillan Pub.co. Gupta.L.C . Corporate management & accountability. Websites. Business Ethics in marketing.