Source: Image of scale, people at conference table, globe, crowd of people, images by Video Scribe, License held by Jeff Carroll; Image of female executive at whiteboard, Creative Commons, Kelly Eddington.
Hi, I'm Jeff. And in this lesson, we'll learn about the ethics of marketing and how social responsibility should be applied. So let's get started. When developing a marketing strategy and designing marketing materials, a business has an ethical responsibility to the stakeholders of the organization-- the customers, the employees, the suppliers, the local community, and any investors in the company. This responsibility extends to all areas where a business might have an impact.
A business has responsibility to the environment. It should be the goal of any company not to damage the environment in such a way that is detrimental to society. To do so would show that the business doesn't have concern for those that are impacted by this damage. This would make it difficult for customers and investors to support the company and for employees to remain part of the organization.
A business has a responsibility to its customers. And in their marketing, a company should be honest and ethical. It should be said that not all customers are supportive of all social responsibility though. Some will not pay higher prices if those prices are due to the company supporting social responsibility causes that the customer doesn't support.
It can be argued that the responsibility of a company is to make money for its investors, employ people, and return money to the local economy. And some people will be satisfied with the ethics of any company that meets these goals. Other people will prefer companies that extend their social responsibility beyond these guidelines. In any case, it is the government's responsibility to set reasonable and safe guidelines for how a business meets these goals and the information that is presented in marketing materials.
Organizations have four choices when they use marketing to respond to areas of social responsibility. They can take an obstructionist stance, which is an approach to social responsibility in which the organization actively tries to avoid, slow, or stop social responsibility. Enron is a good example. This company avoided social responsibility by using dishonest materials in their marketing and investment reports. This eventually was discovered and resulted in the company's bankruptcy.
They can take a defensive stance, which is an approach to social responsibility in which the organization will fight any allegations of social irresponsibility. Tobacco companies have approached social responsibility in this manner by arguing against any allegations that they have intentionally harmed people with smoking products or marketed to younger individuals.
They can use an accommodative stance. This is an approach to social responsibility in which the organization goes beyond the minimal standards of social responsibility but does not necessarily seek to make major changes. Finally, some companies take a proactive stance, which is an approach to social responsibility in which the organization goes beyond the minimal standards of social responsibility by actively anticipating future issues.
Companies that use biodegradable packaging and those that are switching to solar power for their operations are taking a proactive approach. These companies are then able to market their brand as forward looking and concern for the society as a whole. You should note that the marketing constraints lessened as we went down this list. Those companies taking an obstructionist stance have the most amount of constraints on their marketing materials, while those taking a proactive stance have the least.
OK, well done. In this lesson, we discussed the ethical and social responsibility of business, the role profit plays in this responsibility, and how those social responsibilities can extend to marketing. Thanks for your time, and have a great day.
