Increasing Social Responsibility

Consumer Protection Social Responsibility: concern about the consequences of actions on others Most businesses realize they cannot succeed in the long run if they are not socially responsible

Social Responsibility The Growth of Consumerism Government Regulation Improving Business Practices

The Growth of Consumerism Consumerism: the organized actions of groups of consumers seeking to increase their influence on business practices Consumers as individuals have only a small influence over businesses, but consumers as an organized group have a great deal of influence

The Growth of Consumerism Product Testing Consumer Education Lobbying Consumer Information Boycott: an organized effort to influence a company by refusing to purchase its products

Government Regulation Laws and guidelines put into place by the US Government designed to protect the consumer Drinking/smoking age and advertisements Nutritional Guidelines on packages of food Consumer Protection Laws

Consumer Protection Laws Sherman Antitrust Act 1890: prevents monopolies and increases competition Food & Drug Act 1906: content and labeling of food and formed the FDA Federal Trade Commission Act 1914: Formed the FTC to protect consumer rights Robinson-Patman Act 1936: unfair pricing against small businesses

Consumer Protection Laws Fair Package and Labeling Act 1966: Required packages to be accurately labeled and fairly represents the contents Consumer Credit Protection Act 1968: require disclosure of credit requirements and rates to loan applicants Consumer Product Safety Act 1972: set safety standards and formed the CPSC

Consumer Protection Laws Americans with Disabilities Act 1990: prohibit discrimination and provide equal opportunity for persons with disabilities Telemarketing and Consumer Fraud and Abuse Prevention Act 1994: prohibit deceptive telemarketing practices and limits and regulates calls made to consumers’ homes Millennium Digital Commerce Act 1999: regulates use of electronic contracts and signatures

Improving Practices Code of Ethics Self-Regulations Social Actions A statement of responsibilities for honest and proper conduct Self-Regulations Business taking personal responsibility for their actions Social Actions Donating time and money to social or charity causes and needs

Responsibilities of the Marketer Product Development and Management Disclose all substantial risks associated with a product or service Identify substitutions that change the product or impact buying decisions Identify extra cost-added features

Responsibilities of the Marketer In Promotions Avoiding false and misleading advertising Rejecting high-pressure or misleading sales tactics and promotions

Responsibilities of the Marketer In Distribution Not exploiting customers by manipulating the availability of a product Not using coercion Not exerting undue influence over the reseller’s choice to handle a product

Responsibilities of the Marketer In Pricing Not engaging in price fixing Not practicing predatory pricing Disclosing the full price associated with any purchase

Responsibilities of the Marketer In Market Research Prohibiting selling or fundraising disguised as conducting research Avoiding misrepresentation and omission of pertinent research data Treating clients and suppliers fairly