MKT-300 Lecture Notes - Lecture 11: Corporate Social Responsibility, Green Marketing, Stakeholder Theory
MKT 300
SPRING 2017
EXAM I REVIEW SHEET
• What are the main influences on ethical decision making in an organization?
1. Extent of ethical problems within the organization
2. Top management’s action on ethics
3. Potential magnitude of the consequences
4. Social consensus
5. Probability of a harmful outcome
6. Length of time between the decision and the onset of consequences
7. Number of people to be affected
• What is a code of ethics?
• The code of ethics is a guideline to help marketing managers and other
employees make better decisions.
o Creating ethics guidelines has several advantages:
1. Helps employees identify what their firm recognizes as acceptable business
practices.
2. Can be an effective internal control or behavior, which is more desirable than
external controls such as government regulation
3. A written code helps employees avoid confusion when determining whether their
decisions are ethical.
4. The process of formulating the code of ethics facilitates discussion among
employees about what is right and wrong and ultimately leads to better
decisions.
• What is corporate social responsibility? Stakeholder theory?
➢
Corporate Social Responsibility:
A businesses concern for society’s welfare
➢
Stakeholders Theory:
Ethical theory stating that social responsibility is paying
attention to the interest of every affected stakeholder in every aspect of the firm’s
operation
o Employees, management, customers, the local community, suppliers, owners
➢ What are the levels in the pyramid of social responsibility? How do they interact?
The pyramid of CSR:
Top: Philanthropic responsibilities
•
Be a good corporate citizen
. Contribute resources to the community; improve the
quality of life
Ethical responsibilities
•
Be ethical.
Do what is right, just, and fair. Avoid harm
Legal responsibilities
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Corporate social responsibility: a businesses concern for society"s welfare. Stakeholders theory: ethical theory stating that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of the firm"s operation: employees, management, customers, the local community, suppliers, owners. Top: philanthropic responsibilities: be a good corporate citizen. Contribute resources to the community; improve the quality of life. Law is society"s codification of right and wrong. Profit is the foundation on which all the other responsibilities rest. These four components are distinct but together they constitute a whole. Still, if the company does not make a profit, then the other three responsibilities are moot. Sustainability: the idea that social responsible companies will outperform their peers by focusing on the worlds social problems and viewing them as opportunities to build profits whilst simultaneously helping the world. Green marketing: the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment.
