Increasing Social Responsibility

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 • 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