How can companies be responsible Social Marketers?

Effective marketing must be matched by a strong sense of ethics, values,

and social responsibility!

Firms like WalMart are taking a more active, strategic role in corporate social responsibility..

The company invests $500 million in sustainability projects and reduces waste by 25 percent

Eliminates excess packaging and saves

3,800 trees and 1 million barrels of oil, along with an estimated $2.4 million a year in shipping costs

Redirects 57 percent of the waste generated by stores to recycle centres instead of landfills

It created approximately

63,000 jobs around the world in 2008

A further benefit of being seen as

socially responsible is the ability to

attract employees, especially younger people who want

to work for companies they

feel good about ..

HIRE ME !!

“Firms of endearment “ are those with a culture of caring that serve the interests of their stakeholders, employees and are

passionate about customers as well as the society

A three pronged attack for a socially responsible company relies on :

Legal Behavior

Ethical Behavior

Social responsibility Behavior

Legal Behavior :

Organization must make sure every employee knows and observes relevant laws.

Accepting or offering Bribes by sales people to purchasing agents

They must not Trade secrets through Bribery or industrial espionage

They must not disparage competitors or their products by false accusations

Lying to Consumers and misleading them

Ethical Behavior:

Bribery, Theft of trade secrets, exclusive dealings and tying agreements, Inaccurate labeling, false advertising are all unethical practices to be avoided….

A few Consequences of false advertising :

A disgruntled customer might bad-mouth an unethical or poorly performing firm to 12 other people and today, via the internet, He or she can reach Thousands, which results in a bad reputation and internet memes like :

Social Responsibility Behavior :

Individual marketers must exercise their social conscience in specific dealings with customers and stakeholders

Walmart and Bank of America each have donated $100 million or more to charities in a year !

However, Philip Morris Company’s $250 million ad campaign touting its charitable activities was met with skepticism because of its negative image as a tobacco company! The Dilemma always Exists !

Good deeds can be overlooked- even resented-if the company is seen as exploitive or false to live up to a “good guy” image..

Communicating corporate social responsibility can be a challenge. Many well –intentioned product or marketing initiatives can have unforeseen or unavoidable negative consequences…

Another idea that tops many corporate agendas these days is…

SUSTAINABILITY- The ability to meet humanity’s needs without harming future

generations. It means more than being eco-friendly, It also means you are in it for the

long haul !

Energy,waste,CO2, and waste productivity

Leadership Diversity

CEO-to-average-worker pay

Taxes paid !

Sustainability leadership and pay link

Innovation capacity

Transparency

The 11 factors which lead to a sustainable corporations are :

Cause Related Marketing The marketing efforts that have at least one non economic objective related to social welfare and use the resources of the company and/or of its partners.

Customers who shop at TESCO receive one voucher for every 10 pounds spent, which they can donate to a school of their choice or any club

It is a clever way of..

• Building brand awareness• Enhancing brand image• Establishing brand credibility• Evoke brand feelings• Create a sense of brand community• Elicit brand engagement

Social Marketing

It “Furthers” a cause.Such as “say no to drugs” or “ Don’t drink and drive”.

Different kinds of organizations conduct social marketing in India, Which include Government Departments, autonomous institutions, NGO’s etc.

Note : Cause relating marketing “SUPPORTS” a cause.

One organization that has excelled social marketing through the application of modern marketing practices is the WWF- World

wildlife Foundation

Created by Aishwarya Kandukuri, IIITD&MK during an internship by Prof. Sameer Mathur, IIM Lucknow.

www.IIMInternship.com