Marketing Management

Sixteenth Edition

Chapter 21
Socially Responsible
Marketing

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Learning Objectives
21.1 Discuss the role that corporate social responsibility
plays in marketing management.
21.2 Explain how companies manage corporate social
responsibility in the workplace.
21.3 Identify the strategies that companies use to promote
sustainability.
21.4 Describe how companies balance social responsibility
and corporate profitability.

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The Role of Social Responsibility in
Marketing Management
• Triple bottom line
– People (social component)
– Planet (sustainability
component)
– Profit (monetary component)

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Community-Based Corporate Social
Responsibility (1 of 6)
• Corporate social
responsibility in the
workplace
– Fair compensation
– Work–life balance
– Diversity
– Employee development

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Community-Based Corporate Social
Responsibility (2 of 6)
• Corporate Philanthropy
– Enhancing company image
– Enhancing customer loyalty
– Enhancing perceived product performance

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Community-Based Corporate Social
Responsibility (3 of 6)
• Serving low-income communities
– Bottom of the pyramid (BOP)
▪ A socioeconomic concept used in reference to the
largest but poorest group of the world’s population,
who live on less than $2.50 a day

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Community-Based Corporate Social
Responsibility (4 of 6)
• Serving low-income communities
– Reverse innovation
▪ Create an inexpensive product that can be
introduced as a cheaper alternative in developed
markets

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Community-Based Corporate Social
Responsibility (5 of 6)
• Cause marketing
– Links the firm’s
contributions toward a
designated cause to
customers engaging
directly or indirectly in
revenue-producing
transactions with the firm

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Cause Marketing Can…
• Improve social welfare • Create a reservoir of goodwill
• Create differentiated • Boost internal morale
brand positioning
• Galvanize employees
• Build strong consumer
• Drive sales
bonds
• Increase the firm’s market value
• Enhance the company’s
public image

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Community-Based Corporate Social
Responsibility (6 of 6)
• Social marketing
– Aims to further a cause
• Brand activism
– Taking a stand on an
important—typically
controversial—social,
economic, environmental,
or political issue

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Sustainability-Focused Corporate
Responsibility (1 of 2)
• Sustainability
– The ability to meet
humanity’s needs
without harming future
generations
– Greenwashing

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Sustainability-Focused Corporate
Responsibility (2 of 2)
• Integrate environmental issues
into strategic plans
– Trends:
▪ Shortage of raw materials
▪ Increased cost of energy
▪ Increased pollution levels
▪ Changing role of
governments

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Balancing Social Responsibility and
Corporate Profitability (1 of 2)
• Developing ethical marketing
communications
– It is not always easy to draw a
clear line between normal
marketing practice and
unethical behavior

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Balancing Social Responsibility and
Corporate Profitability (2 of 2)
• Managing customer privacy
– Does online data profiling go too far?
▪ Transparency concerns
▪ “Do Not Track” legislation
▪ General Data Protection Regulation

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Discussion Questions (1 of 2)
• After H&M, Nike, and Adidas spoke out against the
use of cotton from the Xinjiang province of China
because of human rights violations against those
producing it, China called for a boycott of their
products.
– Consider the dilemma for these companies.
Should they maintain their position on human
rights abuse and risk losing sales in China or
overlook the situation to preserve sales and
profits?

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Discussion Questions (2 of 2)
• The COVID-19 pandemic has highlighted differences
between rich and poor nations.
– Do companies producing COVID vaccines have a
social obligation to commit to selling some of their
product to poorer countries (potentially at a lower
price) or do they have an obligation to their
shareholders and employees to sell to those
countries that can pay more?

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Copyright

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