MKTG10001 Lecture Notes - Lecture 10: Corporate Social Responsibility, Risk Management

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6 Jun 2018

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MKTG10001 - PRINCIPLES OF MARKETING

Lecture 10 . 1 – Marketing Ethics

Corporate Social Responsibility: the integration of business operations & values whereby the interests

of all stakeholders including customers, employees, investors, & the environment are reflected in the

company’s policies & actions

• Moral reasons (normative):

• Corporations cause social problems or have social impacts

• With power comes responsibility

• Because governments can’t fix all social problems

• Corporations rely on resources from a broader set of stakeholders

• Business reasons (instrumental; ‘enlightened self-interest’):

• Employees may be more attracted / committed

• Forestall legislation (‘licence to operate’)

• Risk management

• Reputation / brand enhancement or differentiation

• Extra & / or more satisfied customers vs boycotts etc.

• Research shows customers will pay only a small premium for

ethically produced goods, but will punish unethically made ones

harshly (size of the effect depends on customer expectations for being

ethical) (effects are much less pronounced in reality)

Classifying stakeholders: stakeholder framework →

• Power: ability to bring about desired outcomes (despite resistance)

• Legitimacy: actions of an entity are desirable, proper, or appropriate

• Urgency: issues are time sensitive & of great importance

LECTURE 10 . 2 – GUEST LECTURER

Marketing in developing countries – not a part of examinable content

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