1. Increasing Social Responsibility

2. 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

3. Social Responsibility
The Growth of Consumerism
Government Regulation
Improving Business Practices

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

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

13. 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

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

15. 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