Marketing and Social Responsibility

1. Marketing and Social Responsibility • Marketers cannot think only about selling products and making a profit… they must be aware of other effects of their activities • Marketers must be willing to pay attention to society’s needs to determine how business to contribute to solutions • Trend today: greater expectation for business to be socially responsible to aid in solving the problems that face society • Social responsibility – concern about the consequences of actions on others

2. Environmental Issues • Socially responsible businesses follow the law that govern environmental issues and understand their roles in helping to preserve our natural resources • Air and Water Pollution… • Governed by Environmental Protection Agency (EPA) • Clean Air Act – automobile manufacturers had to modify their engines to meet EPA emission standards • Mandatory that all cars use unleaded gasoline to protect people and nature from the harmful effects of lead • Chlorofluorocarbons (CFCs)? • Agricultural pesticides? • Industrial waste?

3. Environmental Issues • Conservation and recycling • Conservation of our natural resources depends on cooperation among business, government, and consumers • Many local governments require mandatory recycling of glass, plastic, and aluminum through local trash collection • Oil consumption will reach 113,000,000 barrels a day by 2020… Can producers meet demand? • Exploration of other fuels is necessary • Manufacturers responded by producing smaller and more fuel-efficient automobiles • “Clean fuels” are becoming more common such as certain types of alcohol, electricity, natural gas, and propane • Electric cars are becoming more common

4. Environmental Issues • Green marketing • The growing importance of ecological issues has brought about green marketing • In green marketing, Companies are making efforts to produce and promote environmentally safe products • Products are often labeled as ozone-safe, recyclable, environmentally friendly, or biodegradable • Green marketing strategies have become an increasingly important way for companies to build customer loyalty

5. Consumerism • Social responsibility involves the relationship of marketing with all of society • Consumerism – the societal effort to protect consumer rights by putting legal, moral, and economic pressure on business • Began in the early 1900s with focus on product purity, product shortages, antitrust concerns, postal rates, and banking • Continued through the 1950s with concentration on product safety, labeling, misrepresentation, deceptive advertising, consumer refunds, and bank failures

6. Consumerism • JFK’s Consumer Bill of Rights (1960) • States that consumers have four basic rights: • To be informed and protected against fraud, deceit, and misleading statements, and to be educated in the wise use of financial resources • To be protected from unsafe products • To have a choice in goods or services • To have a voice in product and marketing decisions made by government and business

7. Workplace Trends & Concerns • Today’s socially responsible businesses must consider these issues: • Telecommuting • Flextime • Family leave • Health care reform • On-site child care • Help for the physically challenged • Sexual harassment • Computer use, privacy, and security

8. Starbucks Social Responsibility • Go to Starbucks.com and find the following. You can find this under the “about us” section or search for the Corporate Social Responsibility Annual Report. • Environment - 4 elements of Starbucks environmental social responsibility. • Global - 4 • Employee Relations - 4 • Recycling - 4 • Local Involvement - 4