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Chapter 3

Mar-3023 Chapter Notes - Chapter 3: Customer Satisfaction, Whole Foods Market, Marketing Ethics

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TOPIC 1: Corporate Social Responsibility
What should Tide do?
Kids were eating the pods cause they looked like candy
Social Responsibility
Is an organization’s obligation to maximize its positive impact and
minimize its negative impact on society
Can generate positive publicity
Promotes goodwill
Attracts potential customers and employees
Generates indirect long term benefits such as
Greater employee commitment
Improved business performance
Dimensions of Social Responsibility
Socially responsible firms strive for marketing citizenship
o Marketing citizenship is accomplished when a firm fulfills the
economic, legal, ethical and philanthropic social responsibilities
expected by stakeholders
Economic Responsibility
o At the most basic level, all companies have an economic responsibility
to be profitable so they can
Provide a return on investment to their owners and investors
Create jobs for the community
Contribute goods and services to the economy
o Dan Price: CEO of Gravity payments. Known for increasing his firms
minimum wage to $70,000.
Legal Responsibility
o Marketers are expected to follow all laws and regulations designed to
keep U.S. companies’ actions within the range of acceptable conduct
and fair competition
o Economic and legal responsibilities are the most basic levels of social
responsibility for a good reason
Ethical Responsibility
o Marketing Ethics are principles and standards defining acceptable
conduct in marketing as determined by various stakeholders
The public
Government regulators
Private-interest groups
The organization itself
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o Unethical or Illegal?
Honest Soap by Jessica Alba
Lawsuit claims product contains unnatural and
ineffective ingredients
o Paying 20% more for these products
What is natural?
o Certain % of ingrediance in the product have to
be organic
What is effective?
o It’s a big issue
o At what point does it have to clean or not clean
to be effective?
Philanthropic Responsibilities
o Philanthropic responsibilities are not required of a company, but they
promote human welfare or goodwill
Cause-related marketing the practice of linking products to
a particular social cause on an ongoing or short-term basis
Do these examples affect your buying behavior?
o Starbucks: For a limited time they were donating
$1 for check in to help protect forest land
o KFC: Tried to raise money for Breast Cancer
Awareness with buckets for a cure
Strategic philanthropy use of organizational core
competencies and resources to promote a good will for the
environment. Its more long-term
Home Depot: partners with habitats for humanities.
Their core competency is the industry that they’re
competing in and their dominance in this industry
Toms: People can argue that the reason toms is so
successful is because their strategic philanthropy plan is
that for every pair of shoes bought, they will donate a
pair to kids in Ethiopia
Social Responsibility Issues
o Sustainability: Consumers insisting not only on a good quality of life
but on a healthful environment so they can maintain a high standard of
living during their lifetime
Major Concerns
Water/Air/Land Pollution
Example: Whole Foods- introducing a rating system on
o Eliminate the concept of waste
o Reinvent the concept of a product
Consumables, durable goods and unsalables
find more resources at oneclass.com
find more resources at oneclass.com
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