Social Responsibility in Marketing Essay Example

Social Responsibility in Marketing Essay Example Social Responsibility in Marketing Essay Social Responsibility in Marketing Essay The topic, ‘social responsibility in marketing’ refers to a few ethical principles that the corporations are expected to follow.   Main motive of the businessmen is to earn maximum revenue. However, in recent years, society expects that the corporate world also contribute to the welfare of the people. Therefore, while marketing the products the companies need to take into consideration the possible impact of marketing techniques on the society. Recently, a few tobacco companies, including British American Tobacco, have been criticized for not openly acknowledging the fact that tobacco products can lead to dangerous consequences. Tobacco companies have misled the users of tobacco by not directly stating that consumption of tobacco products would lead to harmful effects on the health of the individuals. These companies have been inspiring the young people to consume tobacco.(Chapman 445) The young people are informed that by smoking they could achieve happiness in life. These advertisements have destroyed the life several individuals who have used tobacco. A few scholars and activists have registered their protest against the companies headed by corporate leaders like Philip Morris who attempted to give the impression that his company is committed to bring welfare of the people in the society. These tobacco companies decided to sponsor a few conferences on corporate responsibility and ethical marketing. Participants of these conferences have expressed their reluctance to be associated with the tobacco companies because these scholars are convinced that these industries have not worked for the welfare of the society. Through their effective marketing techniques, these companies have been able to obtain substantial profits. However, in the process, this has affected the health of millions of people. Recently, a US court gave the verdict that all internal documents of t obacco firms should be made public, which means that now the public would be able to analyze the marketing techniques and real motives of these companies. Millions of documents of these companies are now available in their websites. This has imposed a great pressure on the corporations to prove that they have responded to the feelings and aspirations of the society. These companies need to contribute to the welfare of society. On the contrary, the scholars are unhappy with these companies because they have avoided their social responsibility while marketing their products. The scholars have boycotted such companies from academic bodies, indicating that the companies need to change their attitude towards marketing ethics.(Chapman 446) Many industrialists have realized that they need to make positive contributions to the society and that they are expected to restructure their marketing techniques so as to achieve the twin objectives of profit enhancement and following the principles of marketing ethics. Academicians and industrialists have participated in conferences to discuss the desired strategy of corporate people in order to avoid negative impact of marketing techniques pursued by these industrialists. Academicians have argued that apart from achieving brand name and customer satisfaction in the form of product quality, the corporations also need to believe in the principles of social welfare and quality of life. By introducing a few changes in the marketing of the products it is possible to achieve social welfare. For example, in the developing countries, the drugs related to AIDS are sold at a cheaper price. These pharmaceutical companies have done a great service to the society by understanding the needs of the community. In a similar manner, industries belonging to other sectors also need to collaborate with social activists in order to justify their marketing practices. The academicians have requested the industrialists to incorporate responsibility management perspective in their marketing strategies. (Bhattacharya et.al.) The corporations have been justifying their unethical marketing techniques by claiming that they have been following marketing techniques, which are considered as legal. This would mean that as long as a particular product is not banned by the government, the industrialists can continue to market products such as cigarettes and fast food. However, it is proved that many of these products, although legal, are not ethical. The corporations are required to distinguish between legal and ethical aspects while marketing a product. However, lack of ethics can be found in other spheres also. For example, the politicians have been involved in various scandals, and they have allowed the corporations to continue to sell their products in spite of the fact that they affect the overall health of the society. However, legislators cannot introduce laws that can prohibit all the marketing techniques that can be perceived as unethical. (Nucifora) The corporations have used advertisements in order to determine the attitude of the people. The companies have used the service of celebrities in order to market their products. This has encouraged the people to consume products such as tobacco and food products which have harmed their health. However, in recent years people are becoming wiser. Corporate marketing strategies are analyzed by the media, and this has increased the awareness of the public regarding the marketing techniques used by the companies in order to make the people to consume their products. For example, it has been found that the young people have been consuming too much fat when compared to the earlier generation. Many Physicians have reported that several young people are suffering from cholesterol-related health problems. Pizza and hamburger shops have justified their advertising techniques although their products do not contribute to welfare of the people. Now the people have become more concerned with profit motives of the companies. This indicates that the corporations need to contribute to the social welfare. They need to design products and market them so that they would not harm the individuals in the society. (Nucifora) Different scholars have given various definitions of the concept of corporate social responsibility. For Milton Friedman this concept meant attempt made by the corporations to maximize their profits by following the rules of the state.(Coelho et.al.) However, this definition is not accepted by many other scholars who have argued that corporate social responsibility involves not only legal issues but also ethical aspects expected from businessmen. Therefore, businessmen, apart from trying to obtain profits, also should strive to achieve the social welfare. In order to achieve this, an attempt should be made by the marketing companies to realize the negative consequences of the use of marketing techniques. (Coelho et.al.) However, some scholars believe that corporate social responsibility should not be imposed on the companies as this would violate the rights of the shareholders. The main motive of the company should be to increase company revenue. By involving in social responsibility tasks, the companies may lose their image as profit making enterprises, which may compel the shareholders to withdraw their investments from these companies. It is suggested by these scholars that a company should give importance to social responsibility only when these tasks improve the revenue or brand image of the company. This shows that some scholars have objected to the argument that organizations should give importance to the concept of social responsibility. When the companies give greater importance to their social responsibility this would mean that money is not spent for the welfare of the shareholders and customers, and this may negatively affect the revenue potential of the company. (Lantos 2) The corporations are expected to give importance to various kinds of responsibilities including ethical responsibility, which refers to conduct of business through fair means without harming the society. However, it is found that many companies have failed to concentrate on ethical responsibility as they have given greater importance to their economic responsibility, which refers to earning profits in order to satisfy the shareholders. Some scholars have argued that main responsibility of the companies is to follow the rules framed by the government pertaining to marketing of a particular product. However, while sticking to rules, the companies also can violate ethical principles as particular marketing techniques can harm social groups. It has been argued by Lantos that companies need to give importance to only strategic responsibility.(Lantos 3) This would mean that they need to accept only those social responsibilities that can lead to increased revenue to the company. For example , by exhibiting the company interest in following ethical principles, the company can get more customers. However, the motive of this theory of social responsibility can be questioned because many scholars believe that profit motive and corporate social responsibility should be differentiated in order to achieve the welfare of the society. The above argument of Lantos is not acceptable. The various companies have been marketing their products with the intention of gaining profits. However, they also need to assess the impact of their products and try to modify the products when they find that their products have negative impact on the health of the majority. The companies claim that they produce and market only those products that are demanded by customers. Their argument is that customers would not ask for something which is bad for them. However, in all the cases customers may not be able to judge the value of different products. One product such as tobacco or alcohol may be good for some customers, while it may be bad for the society as a whole. Taking into consideration such situations, one can suggest that companies need to market only those products which the companies can justify. By producing quality products, the marketing companies can be proud of their achievement as they have contributed to the welfare of t he society.(Kotler) The company needs to research the methods of removing side effects of its products. Negative effect of products can be removed by introducing measures such as encouraging companies to produce safe products, restricting the sale of particular products which affects many people in the society, imposing taxes on harmful products so that people will lose their interest in some products, and public education campaigns. Socially responsible companies can also become profitable companies by pursuing measures necessary to achieve the objectives of obtaining profit and at the same time become socially responsible. Many companies have remained socially responsible, while at the same time increasing their revenue. Marketers have introduced various products such as computers, automobiles and other items which have benefited many people, while they are abused by some customers. In such cases, one cannot blame the companies. However, the corporations are expected to follow a few basic ethical prin ciples so that they would not hurt the physical and mental health of the people. There is a need for minimum government intervention in the corporate activities in order to encourage the businessmen to follow ethical principles while marketing their products. (Kotler) Although the main motive of the companies is to earn revenue and satisfy the demands of shareholders, the corporations are also expected to understand their social responsibility. While marketing the products, the companies need to analyze the positive and negative impact of such products on the society. The modern customer has obtained information regarding ethical principles that a company is expected to follow while introducing a product. Many academicians believe that the corporations need to introduce products that lead to  Ã‚   welfare of the society.