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Socially Responsible Marketing

Social responsibility in marketing is also known as “societal marketing”. The concept was developed in the 1970s, advising that small companies could sell their ideas, behaviors, and attitudes alongside their services and/or products. Companies are able to demonstrate socially responsible marketing in various ways. Examples include hosting charity events, using eco-friendly practices and products, or donating their products to aid in disaster or crisis relief. Using the concept of Socially responsible marketing helps companies share their core values with consumers and possible consumers by creating a powerful connection with those who share similar values. This connection encourages consumers to try their products and/or services. Companies are able to build brand awareness when consumers come to recognize a company for their credible practices and initiatives which make them stand apart from competitors. Product promotion is achieved when small companies donate their products or services during a crisis to help people and communities in need. Typically, societal marketing for promotional purposes is followed by local media coverage. This results in more publicity for the donating company. Greater profits come overtime instead of immediately, as consumers become brand loyal when they feel that a company cares about them and shares their same core values.

Larger companies choose to use socially responsible marketing in different ways such as altering their marketing campaigns for the good of their consumers. For example General Mills has created guidelines for marketing their sugary cereals. Posted on their website are two main goals of the company which state “No General Mills product may be advertised on any program targeted to preschool children” and “General Mills brands marketed to children under 12 years of age must meet General Mills’ Guidelines for Healthy Dietary Choices and the sugar guideline”. General Mills abides by child marketing limitations to avoid marketing sugary cereals to children, some of which include; “No advertising on programming targeted to children”, and “No promotion marketing targeted to children, including sweepstakes, contests, premiums, movie tie-ins, etc.”. Taking initiatives like these demonstrates that General Mills is making an effort to not target vulnerable children with sugary ad campaigns, though they are not choosing to create a healthier product for consumers.

Modern society is witnessing a transformation in understanding the role of the corporation. In the past, corporations’ primary responsibility was to its shareholders and the key objective was to maximize profits, with little regard to the effects a company had on the environment or communities. Running a company in this manner meant that social factors should not interfere with a corporation’s business operations, since it runs contrary to a company’s core values of maximizing wealth for shareholders. In today’s business market, however, a company’s objective of profit maximization is seen to be supported by a more proactive approach towards corporate social responsibility. Furthermore, adopting a socially responsible business strategy has been associated with business success and stakeholder confidence. Stakeholder confidence in a company is rated based upon areas pertaining to trust, ethics, corporate culture, employee satisfaction, environmental behavior and community responsibility. Just some of the many benefits of adopting a socially responsible business strategy include increased reputational standing within communities (which in turn leads to increased potential for new customers), increased customer confidence and improved communication channels to local community and a more durable social license to operate. Randy Spitzer, an active leader in civic affairs, outlines three levels of ethical behavior that companies should embrace. They include Enlightened Self-Interest: I won’t bother you if you don’t bother me, Justice: do the right thing because it is the right thing to do and Selflessness: be merciful, be charitable, be unselfish, and even lay down your life for others.[4] In following these basic principles, socially responsible corporations can ensure long-term consumer loyalty and higher profits over time as a result. According to Spitzer, modern businesses in today’s marketplace can be both profitable as well as socially conscience, without having to sacrifice one for the other.

ISO 26000: A guide for socially responsible corporations

Key concepts in understanding social responsibility standards can be found in the ISO 26000, which serves as a guide that every company should adopt into their business model. The core principles include: Compliance with the law Accountability Transparency Sustainable development Ethical conduct Respect for fundamental human rights Respect for diversity

Philip Kotler elaborates these concepts further by introducing a quality-of-life (QOL) approach to marketing, which showcases a way of “developing goods, services and programs that can enhance the wellbeing of certain consumers and to market those products effectively and efficiently in ways that would minimize negative side effects to consumers as well as other publics, while generating long-term profit”. The quality of life concept can also be referred to as the Triple Bottom Line, which was first coined by John Elkington, founder of British consultancy firm called SustainAbility. Elkington makes the claim that companies need to prepare three separate “bottom lines” – corporate profit (the “bottom line” we know in the corporate environment), “people account” (how socially responsible organizations act in their day-to-day operations) and “planet account” (how environmentally responsible the organization has been). TBL consists of the 3 Ps – people, profit and planet, which touches upon the societal marketing concepts outlined by Kotler.[6] QOL marketers strive to establish long-term relationships with their customers by serving their needs effectively and efficiently enhancing customer’s wellbeing. Developing and maintaining goodwill not only impacts how a corporation is viewed internally by its employees, but also how the company’s image is viewed externally via product development and marketing efforts. In focusing solely on financial and growth-based marketing objectives, traditional marketers fail to act in a socially responsible manner.

This is just an upload complete with simple edits. No references are listed yet.StudyComm270 (talk) 16:58, 5 June 2013 (UTC)