Social Responsibility, Ethics and the Marketing Environment Chapter 2 Instructor Shan A. Garib, Fall 2012

2.1 Corporate Social Responsibility Corporate Social Responsibility: a business’s concern for society’s welfare

Corporate Social Responsibility Four Components of Total Corporate Social Responsibility: Economic Legal Ethical Philanthropic

2.2 Ethical Behaviour in Business Ethics: Morals:

Ethical Behaviour in Business Morality and Business Ethics -The values of business people have been acquired through family, education and religion -To develop a personal set of ethics: -

Ethical Behaviour in Business Morality and Business Ethics -To develop a personal set of ethics: -evaluate the consequance of a particular act -stress importance of rules, laws -develop moral character through: 1. preconventional morality 2. conventional morality 2. postconventional morality

Ethical Behaviour in Business Ethical Decision Making is influenced by:

Ethical Behaviour in Business (Code of) Ethical Guidelines to help managers make better decisions Advantages: 1. 2. 3.

2.2 The External Marketing Environment Understanding the External Environment -Managers must constantly change the marketing mix (4P’s) to reflect the ever changing environment -

2.2 The External Marketing Environment Environmental Management: sometimes the company can implement strategies that influence the environment -done through lobbying -environmental factors include:

2.4 Social Factors -Hardest to infulence and change -they influence what you buy, prices paid... -examples are: consumer attitudes, values and lifestyles

Social Factors Market-oriented Values Value: a strongly held belief, determines what is important and not important Four values influencing our lifestyles and attitudes: 1. 2. 3. 4.

Social Factors Values influence our buying habits. -consumers insist on high quality products -ranking characteristics of product quality: 1. 2. 3. 4. 5. 6.

Social Factors The growth of component lifestyles -choosing products and services that meet diverse needs and interests Eg. Banker/biker

Social Factors The changing role of families and working women Duel incomes means greater purchasing power!

2.5 Demographic Factors Demography: study of people’s vital statisitcs -strongly related to consumer behaviour -each age group has own tastes and biases Tweens: Generation Y: Gen X:

Demographic Factors Demography: Boomers: 50% of population now in larger cities

2.6 Growing Ethnic Markets Ethnic and Cultural Diversity Multiculturalism:

2.7 Economic Factors Three areas of concern for marketers: 1. 2. 3.

Economic Factors Three areas of concern for marketers: 1.

Economic Factors Three areas of concern for marketers: 1a. 1b.

Economic Factors Three areas of concern for marketers: 2. inflation:

Economic Factors Three areas of concern for marketers: 3. Recession: -different marketing approach:

2.8 Technological Factors External technology important to marketing managers: 1. 2.

Technological Factors Staying technologically relevant means managers need to do research and adopt new technologies Research: Applied research:

2.9 Political and Legal Factors Federal Legislation affecting how business is conducted is administered through the competition bureau -enforces laws covering:

Political and Legal Factors Self-regulation: indusrty groups that police themselves eg. CMA developing guidelines and ethical practices Consumer Privacy -Every firm should be able to justify the type and use of information it has -

2.10 Competitve Factors The competitive environment is made up of: 1. 2.

Competitve Factors Competition for Market Share and Profits -As population grows, costs rise, resources limited firms have to work harder to maintain profits and market share!!!!!