SlideShare uma empresa Scribd logo
1 de 19
Baixar para ler offline
See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/320481148
Social Responsibility and Marketing
Article in SSRN Electronic Journal · January 2007
DOI: 10.2139/ssrn.3048011
CITATIONS
5
READS
586
2 authors:
Some of the authors of this publication are also working on these related projects:
migration crises and globalisation View project
Engaging CSR drivers in S.M.Es View project
Khosro S. Jahdi
Bradford College
30 PUBLICATIONS 511 CITATIONS
SEE PROFILE
Tom S. Cockburn
TLAINC & Freelance
460 PUBLICATIONS 215 CITATIONS
SEE PROFILE
All content following this page was uploaded by Tom S. Cockburn on 04 November 2017.
The user has requested enhancement of the downloaded file.
Electronic copy available at: https://ssrn.com/abstract=3048011
1
Social Responsibility and Marketing
Dr Khosro S Jahdi, Bradford Business and Law School, Bradford
College, Westbrook Building, Great Horton Road, Bradford, BD7 1AY,
West Yorkshire, UK.
Tel. +44 (01) 1274 433326
Fax. +44 (01) 1274 741 060
k.jahdi@bradfordcollege.ac.uk
Dr Tom Cockburn, Australian School of Business, University of New
South Wales, Sydney, 2052, Australia.
Tel. +61 29 3856182
t.cockburn@unsw.edu.au
Electronic copy available at: https://ssrn.com/abstract=3048011
2
Abstract
Marketing is a much-misunderstood discipline within the business world as
well as amongst consumers and society. This is hardly surprising considering
that marketing can appear in so many different guises. King (1985) refers to
four such misinterpretations:
• Thrust marketing- with its emphasis on selling by undercutting rivals
but with little regard to customer requirements.
• Marketing department marketing- a so called ‘bolt-on’ department
aimed at understanding (current) customer needs of current products.
• Accountant marketing- the organisation’s senior management have no
direct marketing experience and tend to focus on short term profits
while neglecting long term survival.
• Formula marketing- control is regarded as more important than
innovation. Tried and tested formulas are used while averting risks
where possible.
It is conceivable to ‘introduce’ social responsibility at any of these levels or
categories in order to improve the overall brand image and take genuine steps
towards achieving that goal.
However, this paper will seek to go further than that and to suggest potential
strategic repositioning of the discipline ‘brand’ of marketing. This will be done
by outlining branding opportunities in terms of CSR impact and the emerging
values convergence between Generation Y consumers and vanguard CEO’s
orientation to social responsibility. Our paper argues that marketing has not
only the potential to contribute to an organisation’s CSR and is already being
employed as a powerful tool by some companies for this purpose.
Paradoxically, given the stereotypical views of marketing and its role in
business, the discipline is ideally placed today to deliver the CSR and bottom-
line gains today than ever before.
However, the scope and extent of such contributions can vary dramatically
from one firm to another. For instance, in the way that CSR strategies are
formulated and implemented, and even more importantly in the types of
specific responsibilities that have been allocated to marketing in order to
achieve company CSR objectives. The paper will also explain the success,
significance and implications of marketing’s CSR contribution. For example, in
the variety of approaches deployed in order to create, sustain, review and
monitor an organisation’s CSR branding strategies whilst ensuring consumer
values alignment is sustained.
Key words: Values convergence, generation Y, CSR branding, marketing.
3
4
Introduction:
“There can be no effective corporate strategy that is not marketing orientated,
that does not in the end follow this unyielding prescript: the purpose of a
business is to create and keep a customer.”
(Levitt, 1986, p 19)
The above quote signifies the importance of marketing to organisations. Levitt
earlier in his ‘Marketing Myopia’ (1960) had argued against the product
centred view of the business and for the marketing approach of the company,
suggesting that businesses must be seen as customer-satisfying processes.
Despite changes in marketing since then this has remained the dominant view
in the profession. Such a narrow focus on the customer is also challenged as
yet another form of marketing myopia, by Lings (1999). He emphasises the
contributions of relationship marketing, market orientation and internal
marketing. In addition to those cause-related marketing can also be
considered to contribute to the CSR efforts of an organisation. However, focus
should be on all stakeholders, one of which is the customer.
Socially responsible corporate marketing generally means that an
organisation shows concern for both the people and the environment in which
it conducts its business. A corollary of these concerns is that such values are
communicated and enacted by everyone in the organization. In some cases,
enforcement of such values also applies to business partners, e.g., supplier of
raw material for product or services or others such as franchisees or retail
outlets distributing products. Social responsibility may also be displayed in
the corporate support of social causes, charities or staff volunteering
activities. Although most businesses appreciate the need for marketing,
there are reservations about its ability to influence top-line growth. The
challenge facing marketing is to convince finance driven organisations of its
importance and contribution to the firm. In the absence of large numbers of
chief executives with a marketing background, such persuasion is an
extremely hard task to implement, (Marketing, 2 February, 2005, pp 32-34).
Going beyond the functional specialist concerns and bottom-line expectations
to pursue socially responsible forms of marketing adds extra hurdles to be
overcome.
Furthermore, marketing is viewed by many businesses as merely another
operational function, which is strongly disputed by marketing professionals.
For instance, Gilligan and Wilson (2005, p 7) assert that “…marketing is
increasingly being conceptualised as an organisational philosophy…”. They
see marketing as ‘an approach to doing business and strategic in nature as
opposed to functional’. They further cite McDonald’s definition as
underpinning such an approach:
“Marketing is a management process whereby the resources of the whole
organisation are utilised to satisfy the needs of selected customer groups in
5
order to achieve the objectives of both parties. Marketing, then, is first and
foremost an attitude of mind rather than a series of functional activities.”
Scanning time horizons: what is marketing’s vista like?
It would also be a mistake to take what consumers say about their motives
and beliefs at face value. Devinney, et al (2006), suggest that many
consumers say they want to be socially responsible but when it comes to
buying various items their actions belie their noble intentions. Nevertheless,
against that scepticism there have been changes in many social mores and
the social and ethical norms of acceptability too. Certain formerly acceptable
and well-entrenched practices have given way to legislative and social
changes in many countries eg physical punishment is no longer the norm or
even legal in many countries as a child rearing practice, smoking has been
banned in public places, drink driving is no longer commonly accepted
(although speeding remains common practice for many). Kotler (2000) cites
Drucker as observing that an organisation’s winning formula for the last
decade will possibly be its undoing in the next decade.
Noel Turnbull (1996) predicted that a new generation of customers of
corporations in the twenty-first century would demand that businesses
demonstrate they are motivated by community interest rather than self-
interest. He called them ‘generation MM’ consumers (p. 21). He supported
that viewpoint with quotations from research finding in the US, which at that
time, showed that:
• 84% of adult Americans believed that cause marketing created a
positive company image
• 66% would switch brands and 62% wished to switch retailers to
support a cause they cared about
• 54% would pay more for a product in support of a cause
• 78% are more likely to buy products or services associated with a
cause
• 62% are impressed by companies that commit to a cause beyond one
year. (1996, p.137)
Turnbull came down in favour of future success for those ‘altruistic companies
[who] are the companies that balance the interest of all their stakeholders and
see profit as a result of a company’s total goals rather than as an end in itself’
(1996, p. 138).
These findings were subsequently confirmed elsewhere. A Millennium poll of
1000 consumers from each of 23 nations on 6 continents found 49 per cent
cited corporate citizenship factors such as business ethics, environmental
practice and labour management issues as the most significant determinant of
their impressions of companies (Marlin, 2000). Only 32 per cent were most
influenced by basic business investment factors such as finance,
management or size of enterprise. Marlin supported the data from United
States trends in investment spending, where well over one trillion dollars, or
one in every eight investment dollars, was at that time managed in social
responsibility investment vehicles (Marlin, 2000). In Europe, too, three of the
6
four scenarios outlined by the corporate consulting giant
PricewaterhouseCoopers in the late 1990s, suggested that ethical issues,
especially those relating to the environment and genetics, will have a major
influence on the future economic as well as social prosperity (McKie &
Cockburn, 1999) and governance of Europe (Pedler, 2002).
Twenty-first century, hard-nosed business perspectives, rather than nostalgia
about sustainability and public good, inform current corporate brand image
and profitability projections of CEOs (The McKinsey Quarterly, 2006, January,
p. 4). Socially responsible investment analysts at SIRAN, using KLD
Research & Analytics, Inc.’s 2006 survey of the Standard & Poor’s 100 index
companies revealed that over three-quarters (79) have special sections of
their websites dedicated to sharing information about their social and
environmentall policies and performance. That represented a 34 per cent
increase on the previous year, when 59 companies included this information
on their websites. In addition to that, institutional investors filed 19
shareholder proposals over the 2005-2006 year calling on companies to issue
sustainability reports that detailed their social and environmental performance.
The McKinsey Quarterly global survey of chief executive officers (CEOs) in
January 2006 indicated that 84 per cent of those CEOs surveyed shared
many of the views of other consumers in society about the role of the
corporation (2006, p. 2). They agreed that the role of company management
extended beyond simply satisfying shareholders and included social
responsibility (2006, p. 2). However, the confidence index also showed that
the executives were wary of the risks of trying to guess which socio-political
issues will most closely concern them in future and lacked faith in the old
remedies such as public relations and lobbying (2006, p. 5). Such values may
not translate directly into other organisational systems or relationships —
business-to-business networking, for example.
While business-to-consumer relationships continue to be important, inter-
organisational social relationships also act as coordination mechanisms,
shaping the likelihood of any extension of network use between organisations
as opposed to internally in any single one of them (Kraut et al., 1998, p. 25).
Such business-to-business relationships are marketing opportunities. Not only
are the relationships between organisations important for network
development and, ultimately, for further business growth, but so too are those
between employees for branding, internal marketing and the shared
development of corporate identity. It is important to note, too, the
interconnections between lifecycles for products, brands and communities of
practice. These also need to address life enhancing and life extending across
cycles and transitions from one generation to the next to keep the
corporation’s capital anchored.
Nevertheless the relationships between causes and corporate advocates is
not an easy one and there are a number of issues concerning consumers’
[perceptions of companies’ motivations which have an impact on the efficacy
of this approach. It has been argued by Menon and Kahn (2005), for example,
that consumer reaction is shaped by the perceived motives of the organisation
involved in a cause-related marketing campaign. Their research explored
7
consumer evaluations of the sponsors’ cause-related campaigns as a function
of two varieties of philanthropic messages. Namely: a) promotions that
promise a donation relating to the purchase of the organisation’s product; and
b) advocacy advertising of social themes sponsored by the brand. Menon and
Kahn arrived at the conclusion that cause promotions resulted in higher
ratings of CSR than the advertising of social issues. They suggest that the
reason for this is consumers’ elaboration on possible motives behind
advocacy advertising than the cause promotions. Spanish consumers’
attitudes towards Pepsi worsened following their knowledge about the
contents of some ‘cause branding’ campaigns, as indicated by Garcia, et al.
(2003). Despite the strong concerns of the overall Spanish consumers vis-à-
vis social issues, the commercial abuse of the concept was not tolerated
(ibid). Similar concerns were aired in the UK in the aftermath of a “Which?”
magazine report indicating that brands, rather than causes, benefited
substantially from some campaign efforts, (Mason, 2002). The top 100
companies in Australia donated AUD $121 million on good causes during
2000-2001 that was approximately 0.6 cents for every dollar of their total $
19.46Bn profit figure after tax according to Lloyd (2002). Amongst those that
articulate strongly against such accusations is Tim Mason the MD of Tesco
Plc., who asserts that cause-related marketing results in £millions for causes
rather than £thousands. Unfortunately no statistics are offered to suggest that
some of these donations are not filtered away down to other less marketable
or small causes (Endacott, 2004).
Is marketing ready for change?
Drucker (1973, pp 64-65) again makes the following observation:
“That after twenty years of marketing rhetoric consumerism could become a
powerful popular movement proves that not much marketing has been
practised. Consumerism is the ‘shame’ of marketing.”
Consumerism in this sense means the creation of ‘artificial’ wants and needs
by marketers and the persuasion of consumers to pay for them. It is the
“artificial stimulation of consumer desires by means of manipulative
advertising for mass produced consumer products” (Thompson, 2002); it is
akin to selling materialism as a creed. However, Drucker made that remark
over 30 years ago and considering the increasing level of sophistication of
customers, their knowledge of products and services on offer, as well as and
access to those of competitors’, the awareness of their legal rights, growth of
investigative reporting and journalism and the explosion of online
communications, it is becoming increasingly difficult to manipulate consumers
en masse. Although there will always be vulnerable customer groups in
society who may fall victim to certain marketing tactics such as small children,
it can be argued that they too are growing immune to marketing persuasion
efforts and are becoming increasingly hard to manipulate. That said, Mintel’s
(1998) research on marketing to children acknowledges the trend that children
are changing and yet states: “…it is clear that beneath all the layers of
8
supposed sophistication, they are not mini-adults, but children, with limited
experience of the world”.
The 10 Ps of Marketing Approaches to CSR
Below is a table suggesting how marketing currently contributes to CSR in
organisations.
Approach CSR type, outcomes and examples
Posthumous CSR applied for damage limitation purposes; a death mask
Seib and Fitzpatrick (1995) refer to the Exxon Valdez incident
that involved a tanker tearing itself open on a reef in Alaska’s
Prince William Sound on March 24, 1989 and spilling more
than 10 million gallons of crude oil. A combination of
international media coverage, Exxon’s apparent lack of
preparation and hesitancy to tackle the media effectively and
efficiently exacerbated the situation.
Instead, Exxon could have gone beyond mere damage repair
and regulatory compliance by admitting to having created an
environmental disaster, investing in a complete clean up
operation and formulation of relevant CSR strategies that
would make Exxon the future industry CSR champion.
Pantomime Superficial play-acting dressed up as CSR: a masque
British arms manufacturer, BAE systems are not only the
global suppliers of lead free eco-bullets (since ‘lead used in
ammunition can harm the environment and pose a risk to
people’), they are in addition developing a whole host of
‘green’ munitions such as less noisy warheads (to reduce
noise pollution), smoke free hand grenades, and armoured
vehicles fitted with hybrid engines (New Internationalist,
November, 2006). The company has employed a Director of
Corporate Social Responsibility who rather philosophically
explains: “Weapons are going to be used and when they are,
9
we try to make them as safe for the user as possible, to limit
the collateral damage and impact as little as possible to the
environment”. What the Director of BAE Systems overlooks
is the fact that the company’s core products are designed to
harm people.
Piecemeal Token gestures in application of CSR: masking mosaic
Certain petroleum companies have also attempted to jump on
the CSR bandwagon by publicising their investment in
alternative fuel research and development (usually a fraction
of their overall investment) while maintaining the status quo
and producing conventional fuels attracting the largest part of
their investment. When John Browne -a former CEO of BP
and Nick Butler (Financial Times, 2007) call for government
action on climate change, they are talking about a carbon-
trading scheme likely to profit BP without the company having
to make any great effort to reduce emissions. In addition,
critics, such as Dreisen (1998) have also identified the
adverse impact of such schemes on developing nations.
Public
Relations Communicating CSR intent to stakeholders: word masks
CSR helps to ‘greenwash’ the company's image; covering
negative impacts with positive images of their CSR
credentials in a barrage of targeted media releases. Stauber
(2007) webpage, http://www.prwatch.org/taxonomy/term/110
lists a number of ‘front groups’ such as the SUV owners’
Association, whose board is composed of industry
representatives and which paid $400,000 to a PR firm
Stratacomm to lobby the US senate against proposed higher
fuel economy standards legislation.
Parsimonious Frugal CSR spend: modesty masks
This may occur when an organisation is under legal or
regulatory pressure to formulate and implement CSR policies.
No more financial or non-financial resources are invested in
such activities, policies, operations etc. beyond compliance
with requirements. Although the company may wish to
convey a socially responsible image due to adherence to the
laws of the land and communicate a clean-cut image.
BusinessWeek ran an article entitled The New Netrepreneurs
- Dot-com veterans are creating smarter startups for a
chastened world (October, 2001) and argued that following
the dot com bubble bursting entrepreneurs were being more
financially prudent and closely monitoring costs and
expenditure (accessed 30/11/07 at http:// www. sparkpr. com/
client _news/ 2001/ 10/the_new_netrepreneurs _dotcom_ v.
shtml).
10
Parrot fashion Follows competition blindly: ‘me too’ masks
Sometimes this sort of thing occurs accidentally. At other
times, there is a deliberate campaign of ‘tit for tat’ copycat
marketing as recently discussed by C. Turner in Marketing
Week (August 9th
2007,last accessed on 30th
November,
2007 at http:// www. marketingweek. co. uk/item/ 57443/pg
_dtl _art _news/pg_hdr_art/pg_ftr_art when reviewing the
dispute between Npower and EoN about their respective
advertising campaigns. Each accuses the other of a copycat
campaign and Npower has admitted using one but argued
that Eon did it first in their Go Green campaign.
Profit driven CSR for economic gains only: Midas mask
Some companies seek a CSR path due chiefly to its
anticipated financial rewards. In June 2007 General Electric,
for instance, announced how it is profiting from its
environmentalism efforts and is on track to double its
earnings from clean technology to £20 billion over five years
(Marketing Week, 31st
May 2007).
Partnership Collaborative CSR paradigm: sharing unmasked
The Co-operative Bank in the UK uses such an approach as
it consults its customers on major issues the results of which
are then published in its Partnership Reports (see Jahdi and
Cockburn, 2007). This is where the communication arm of the
marketing mix could be effectively used to contribute to
company CSR. In marketing parlance, this approach could be
applicable at the highest level of CRM (Customer
Relationship Management) and KAM (Key Account
Management).
Proactive Anticipation of possible CSR benefits: Unmasked vision
Zadek (2003) writes that some organisations could find that
taking advantage of certain opportunities may be beyond their
reach as individual firms. To remedy this, competencies and
capacities can be stretched by means of tri-partite
partnerships, involving business, ‘civil-society’ organisations
and government agencies. Although alliances such as this
pose particular challenges as they aim to bring together
diverse interests, philosophies and organisational cultures,
they are also capable of offering mutually beneficial
outcomes, if managed effectively and efficiently. However,
the main focus of these partnerships tends to be on business
generation rather than CSR application
11
Philanthropic Welfare of fellow humans: Altruism unmasked
Nan and Heo (2007, p 64) warn that: “while these research
findings are encouraging to companies using cause-related
marketing, the absolute nature of the measures makes it
difficult to quantify the amount of positive effects that cause-
related marketing has on consumer responses.”
The first seven approaches above are often regarded as the ‘business as
usual’ way that companies do CSR by many consumers, as indicated above.
That complaint thereby justifies some of the consumers’ own inconsistent or
hypocritical approaches to purchasing. The last three Ps above may provide a
scaffold for future marketing patterns of a more socially responsible type. The
latter is premised on more economically and socially advantaged societies
taking the lead for two reasons. Firstly, an economic surplus in household
income and security of employment or availability of a ‘safety net’ is usually
needed before consumers begin to even consider themselves as having a
choice. Subsistence is a social space where they are able and willing to make
such choices. Secondly, as a sign of goodwill to demonstrate to hesitant
companies and governments in emergent economies that they will not be
drawn into any competitive ‘ambush’ that some feel occurs with carbon
trading proposals as mentioned above.
The potential contribution of Cause Related Marketing to CSR:
On the other side of the coin, what contribution can cause-related marketing
make to both enhance social capital and general public good without
detriment to the corporate stakeholders? As suggested earlier it can be
argued that marketing has the potential to contribute to the creation and
maintenance of a socially responsible organisation image. One such
approach has been the use of Cause Related Marketing by organisations.
Varandarajan and Menon (1998, p 60) define CaRM as: “the process of
formulating and implementing marketing activities that are characterised by an
offer from the firm to contribute a specified amount to a designated cause
when customers engage in revenue-providing exchanges that satisfy
organisational and individual objectives. “ The term cause-related marketing
was introduced originally by American Express in 1983. It made a donation
when its customers used the card, in an attempt to renovate the statue of
Liberty (Kleppner, 1996). The outcome was a total donation of $1.7 million as
well as a 28% increase in the American Express card use. Gummesson
(2002, p 122) writes that: “cause related marketing has become a term for
‘doing good in society’, but is primarily part of sponsorship and public relations
with the purpose of boosting the public image”. Jobber (2004, p 144),
however, states that “companies are becoming more proactive in this
12
acceptance of social responsibility through the practice of cause related
marketing. This is a commercial activity by which businesses and charities or
causes form a partnership with each other to market an image, good, or
service for mutual benefit.”
Overall, studies have suggested (see Webb and Mohr, 1998, for reference)
that consumer attitudes towards organisations employing cause-related
marketing strategies are largely positive. Furthermore, consumers perceive
organisations involved in CaRM promotions as socially responsible, according
to Ross, et al. (1992). In addition the customer willingness to purchase an
organisation’s products is positively influenced by CaRM activities write Smith
and Alcorn (1991). In comparison with reduction in prices and increase in
promotional expenditure, Mason (2002) asserts that cause-related cause
related marketing may provide better results. That said, Nan and Heo (2007,
p 64) warn that: “while these research findings are encouraging to companies
using cause-related marketing, the absolute nature of the measures makes it
difficult to quantify the amount of positive effects that cause-related marketing
has on consumer responses.”
Evans et al. (2004) view CaRM as a short term as well as a longer term
marketing strategy where a brand’s product is linked to a ‘good cause’.
However, they also question its impact: can it lead to any long term gains;
does it not adversely affect donations to charities by drawing funds away from
other fundraising activities? A number of success stories highlight the positive
effects of CaRM campaigns. Tesco’s Computers for Schools, for instance,
where customers were encouraged to collect vouchers with their groceries
resulted in 190,000 spending significantly more during the six week period of
campaign (ibid.). Lawrence (2003) quoted in Evans et al. (2004) writes that
considering the fact that some 43% of the UK population donate less than
£5.00 annually to charities, CaRM manages to draw on a major pool of
untapped new donors without affecting the funds that are generated by
regular givers. Lawrence sees CaRM as a win-win promotion, benefiting both
the charity and the participating brand. Kotler (2003, p 27) views cause-
related marketing employed by organisations as: “an opportunity to enhance
their corporate reputation, raise brand awareness, increase customer loyalty,
build sales and increase press coverage.”
Organisations such as the UK Co-operative Bank have built their corporate
image and sustained their ethical reputation on cause- related marketing in
part. Papasolomou et al (2006) suggest that the reputation of an organisation
is instrumental in gaining a competitive advantage in addition to building
financial and social success. They further assert that: “a positive image that
people share about an organisation can yield positive influence on the quality
of the relationships between that organisation and its stakeholders.” (ibid p
273). The Bank joined forces with Friends of the Earth in 2006 to lobby the
government to raise its commitment to the environment and pledge to reduce
CO2 emissions by 3% year on year. For every £100 that the Bank’s
customers spend on its credit and debit cards, it donates 1.25p to the
campaign fund. Its previous campaigns have provided over £3 millions to
mental health charities and those seeking to abolish landmines. Furthermore,
13
the Co-operative Group has entered into a contract with Scottish Power to
provide its stores over the next three years with energy from renewable
sources.
But do both parties benefit from Cause-related marketing activities? Lafferty et
al (2004) while researching what they term as cause-brand alliance arrived at
the conclusion that although both the brand and the cause benefit from such
an alliance, the cause is likely to benefit more. They do, however, emphasise
the fit between the brand and the cause, i.e. if it is not perceived by
consumers as a ‘good’ fit, the authenticity of the alliance might well be
questioned. Others that have also reiterated the importance of fit include
Drumwright, (1996), Strahilevitz and Myers (1998). Rifon et al. (2004) have
focused on the communications effects of ‘fit’. However, Nan and Heo (2007)
state that little research has been carried out into the role of brand/cause fit in
determining the effects of cause-related marketing.
Further research by Lafferty and Goldsmith (2005), assessed cause and
brand attitudes at three time intervals: pre-exposure, exposure and post-
exposure to the partnership. The degree of change as a consequence of the
partnership was examined by comparing the change in attitudes during those
three points in time. The outcome suggested that both cause and brand
benefit from a ‘good’ cause-brand alliance, albeit with a different degree. “If
the brand is high in familiarity and has relatively positive attitudes before the
alliance, then the impact of cause familiarity as something that moderates the
effect of the cause-brand alliance on brand attitudes might be less relevant.
The low familiar cause has greater benefit of cause-brand alliance than the
high familiar cause, which could be due to the familiar and positive brand
serving as an anchor for the unknown cause, however, cause-brand alliance
has little effect because there was insignificant movement in attitudes towards
the cause from pre-exposure to exposure.” (Chiagouris and Ray, 2007).
Rebranding marketing for the 21st
century
Business in The Community (BiTC) offers a set of Cause-related marketing
principles as follows:
1. “Integrity: behaving ethically and honestly
2. Transparency: misleading information could cast doubt on the equity of
the partnership.
3. Sincerity: consumers need to be convinced about the strength and
depth of cause-related marketing partnership.
4. Mutual respect: the partner and its values must be appreciated and
respected.
5. Partnership: each partner needs to recognise the opportunities and
threats the relationship presents.
14
6. Mutual benefit: for the relationship to be sustainable, both sides must
benefit.” l
(Source: Jobber, 2004, p 144)
By employing the above principles as guidance an organisation could work
towards creating and sustaining a positive and socially responsible profile.
Papasolomou et al. (2006) suggest that cause-related marketing can
potentially facilitate a brand and empower it to demonstrate an organisation’s
commitment to current social issues via resource allocation and funding while
addressing business marketing objectives.
Conclusion
Perceptions of marketing still remain as a functional unit and as a means of
revenue generation for the organisation and little else. Its potential, scope of
influence and capabilities vis- a- vis CSR are overlooked by the majority of
organisations who as said earlier are run by non-marketing directors. Beyond
selling, advertising, PR, wants/needs creation and contributing to an
increasingly materialistic society, marketing is perceived as incapable of
anything further. Doyle (1998, p 51) reiterates this by writing that: “marketing
departments frequently control only the visible ‘trappings’ marketing-
advertising, promotions and packaging. Too many managers see these
manifestations as the content of marketing. Real marketing depends on cross-
functional co-operation.”
Inroads into CSR by marketers have been made as mentioned earlier,
however, rather than the exception this must become the rule in order to have
any significant impact. A step in the right direction may be the creation of an
ethical code of conduct. The Chartered Institute of Marketing (CIM) in its
codes of professional ethics appears to be preoccupied with preventing its
members bringing the CIMinto disrepute. Strong leadership and authority is
lacking in its dealings with CSR issues. CIM members are required to act with
‘honesty and integrity and promote and seek business in a professional and
ethical manner.’ No further elaboration or explanation is apparently offered.
The Advertising Standards Authority (ASA), according to Thompson (2002),
comes across as more decisive by asking advertisers to be decent, honest,
truthful and legal. However, a great deal more is expected from such bodies in
terms of ensuring CSR is put into daily practice by organisations and
individuals alike.
On an organisational level the formulation and implementation of cause-
related marketing strategies can contribute effectively towards the creation of
a socially responsible corporate image and/or reputation. Once that image
has been established the organisation will have no alternatives but to pursue
similar initiatives to maintain that image and sustain the reputation. Consumer
scepticism of CSR initiatives by some organisations can be tackled by the
continuation of such efforts while focusing on the best fit for the brand and the
cause. Furthermore, as Glenn (2003) advises cause-related marketing only
works for organisations that have nothing to feel guilty about and CSR begins
with the company being a good employer. This excludes the so-called ‘sin
15
industries’. However, even they can take steps in a CSR direction and start to
clean up their acts.
References
Browne, J and Butler, N. (2007), We need an International Carbon Fund
Financial Times, last accessed, 30th
November,2007 at http:// www.ft.com
cms/s/0/c3a8d506-034a-11dc-a023-000b5df10621.html
Chiagouris , L. and Ray, I. (2007), ‘Saving the World with Cause-related
Marketing: it’s time to look at the latest principles and practices’. Marketing
management, July/August 2007.
Devinney, T.M., Auger,P., Eckhardt, G & Birtchnell , T.( 2006) The Other CSR
, Stanford Social Innovation Review, Fall, last accessed on 1-06-07 at
http://www.ssireview.org/articles/entry/the_other_csr/
Doyle, P. (1998), ‘Marketing Management and Strategy’. Prentice Hall
Europe.
Driesen, D.M.(1998) Free Lunch or Cheap Fix?: The Emissions Trading Idea
and the Climate Change Convention, 26 B.C. ENVTL. AFF. L. REV. 1, 6
n.13
Drucker, P.F. (1973), ‘Management: Tasks, Responsibilities, Practices’. New
York: Harper and Row, pp 64-65.
Drumwright, M.E., (1996), ‘Company advertising with a Social Dimension: The
role of Non-economic Criteria’. Journal of marketing, 60 (October), 17-87.
Endacott, W.J., ‘Consumers and CRM: a national and global perspective’.
Journal of Consumer Marketing, vol 21, No 3, 2004, pp 183-189.
Evans, M, O’Malley, L., Patterson, M. (2004), ‘Exploring Customer
Relationship Marketing’. London: Thomson.
Garcia, I., and Mujika, J. (2003), ‘A Study on the effect of cause-related
marketing on the attitude towards the brand: the case of Pepsi in Spain’.
Journal of Non-profit& Public Sector Marketing, Vol 11, No 1, pp 111-35.
Gilligan, C. and Wilson, R.S. (2005), ‘Strategic Marketing Management:
planning, implementation and control’. Oxford: Butterworth Heinemann.
Glenn, M. (2003), ‘There’s a simple rationale behind ties with causes’.
Marketing, 20 March.
16
Gummesson, E. (2002), ‘Total Relationship Marketing’. Butterworth
Heinemann.
Jahdi, K.S. (2006), ‘A study of ethical green marketing’. PhD thesis. Sheffield
Hallam University.
Jahdi, K.S. and Cockburn, T. (2007) Good with money:ethics at the Co-op
Bank, conference paper presented at 9th International Forum on The
Sciences, Techniques and Art Applied to Marketing. Academy and
Profession, Madrid, Spain, November 29th-30th.
Jobber, D. (2004), ‘Principles and Practice of Marketing’. London: McGraw
Hill.
King, S. (1985), ‘Has marketing failed, or was it never really tried?’ Journal of
Marketing Management, Vol 1,pp 1-19.
Kleppner, (1996), ‘Advertising Procedures’. London: Prentice Hall.
Kotler, P. (2000), ‘Kotler on Marketing: How to Create, Win and Dominate
Markets’. New York: Free Press.
Kotler, P. (2003), ‘Marketing Management’. London, International edition,
PHIPE: Prentice Hall,
Lafferty, A., Goldsmith, R.E. Tomas, G., and Hult, G.T. ‘Psychology and
Marketing, 2004.
Lafferty, A. and Gioldsmith, E. (2005), Journal of Business Research, 2005.
Levitt, T. (1986), ‘After the Sale is Over…’. Harvard Business Review,
September-October, pp. 87-93.
Lings, I.N., (1999), ‘Balancing Internal and External Market Orientations’.
Journal of Marketing Management, 1999, Vol 15, pp. 239-263.
Marketing Week, 31st
May 2007, ‘The Limits of Government’.
Marlin,A.T.(2000).Social and Ethical Quality in a global Competition,
conference paper in: Innovation, Manufacturing and Services: How to
improve ethical quality? IESE, Graduate School of management,
University of Navarre, 9-10 Nov., 2000.
Mason, T., (2002), ‘Good causes deliver for brands’. Marketing 4 January.
17
McKie, D. and Cockburn, T. (1999), ‘Strategic conversations: Existing
scenarios, public relations theory and futures’. Paper published in
conference proceedings, Public Relations, Public Affairs and Corporate
Communications in the New Millennium, The Future. Ljubljana, Slovenia.
McKinsey Quarterly online survey of business executives, January 2006, last
retrieved on 24-08-06 from http://www.mckinseyquarterly.com
Mintel (1998), ‘Marketing to Children’, London, March 1998, Mintel.
Menon, S. and Kahn, B. (2005), Journal of Consumer Psychology, 2005.
Nan, X. and Heo, K. (2007), ‘Consumer Responses to Corporate Social
Responsibility (CSR) Initiatives: examining the role of brand-cause fit in
cause-related marketing’. Journal of Advertising, Vol 36, No 2 (Summer,
2007), pp 63-74.
New Internationalist, November 2006.
Papasolomou, I., Demetriou, M. and Crowther, D. (2006), ‘Cause related
Marketing in financial service organisations in Cyprus’. Social
Responsibility Journal, Vol 2, No.3/4, November 2006.
Pedler, R. (ed.), (2002). European Union Lobbying: Changes in the Arena
New York: Palgrave
Rifon, N., Choi, S.M., Trimble, c.S., and Li, H. (2004), ‘Congruence Effects in
sponsorship: The mediating role of sponsor credibility and consumer
attributions of sponsor motive’. Journal of Advertising, 33, (1), 29-42.
Ross, J.K., Patterson, L.T., and Strutts, A., (1992), ‘Consumer Perceptions of
Organisations that Use cause-related Marketing’. Journal of the Academy
of Marketing Science, 20 (1), 93-97.
Seib, P. and Fitzpatrick, K. (1995), ‘Public Relations Ethics’. Harcourt Brace
SIRAN, (2006). Socially Responsible Investment Analysts Find More Large
U.S. Companies Reporting on Social and Environmental Issues, last
retrieved on 14-10-06 from SIRAN-KLD website at http://www.kld.com/
newsletter/ archive/ press/ pdf/ 071106_SIRAN_KLD_Study.pdf
Smith, S.M., and Alcorn, D.S., (1991), ‘Cause Marketing: A New Direction in
the Marketing of Social Responsibility’. Journal of Consumer Marketing, 8
(3), 19-34.
18
Strahilevitz, M. and Myers, J.G. (1998), ‘Donations to Charity as Purchase
Incentives: how well they work may depend on what you are trying to sell’.
Journal of Consumer Research, 24 (March), 434-446.
Thompson, M. (2002), ‘Marketing Virtue’. Journal of Business Ethics, A
European Review. Vol 11, No. 4, October 2002.
Turnbull, N. (1996). The millennium edge: Prospering with generation MM.
Sydney: Allen and Unwin.
Turner, C. (2007), Npower's 'copycat' ads aim to poach Eon's customers,
Marketing Week, 9th
August,last accessed on 30th
November, 2007 at
http:// www. marketingweek. co. uk/item/ 57443/
Varandarajan, P. Rajan and Menon, A. (1988), ‘Cause related Marketing: A
Coalignment of Marketing Strategy and Corporate Philanthropy’. Journal of
Marketing, 52 (July), 58-74.
Webb, D.J., and Mohr, L.A.(1998), ‘A Typology of Consumer Responses to
cause-related Marketing: From Sceptics to Socially Concerned’. Journal
of Public Policy and Marketing, 17 (2), 226-238.
Zadek, S (2003). ‘Tomorrow’s History’. Greenleaf Publishing.
View publication stats
View publication stats

Mais conteúdo relacionado

Semelhante a socialresponsibilityandmarketing.pdf

The Effect of CSR on Brand Equity in the IT Solutions Industry; the Case of A...
The Effect of CSR on Brand Equity in the IT Solutions Industry; the Case of A...The Effect of CSR on Brand Equity in the IT Solutions Industry; the Case of A...
The Effect of CSR on Brand Equity in the IT Solutions Industry; the Case of A...frank acheampong
 
A STUDY ON THE GROWTH, EVOLUTION, BENEFITS AND KEY CHALLENGES OF CAUSE RELATE...
A STUDY ON THE GROWTH, EVOLUTION, BENEFITS AND KEY CHALLENGES OF CAUSE RELATE...A STUDY ON THE GROWTH, EVOLUTION, BENEFITS AND KEY CHALLENGES OF CAUSE RELATE...
A STUDY ON THE GROWTH, EVOLUTION, BENEFITS AND KEY CHALLENGES OF CAUSE RELATE...IAEME Publication
 
Companies with social responsibility and services
Companies with social responsibility and servicesCompanies with social responsibility and services
Companies with social responsibility and servicesSharun Ichigo
 
Analysis Of Starbucks And Wal Mart Essay
Analysis Of Starbucks And Wal Mart EssayAnalysis Of Starbucks And Wal Mart Essay
Analysis Of Starbucks And Wal Mart EssayCrystal Williams
 
Mehak 3c corporate social responsibilty of five different brands and their co...
Mehak 3c corporate social responsibilty of five different brands and their co...Mehak 3c corporate social responsibilty of five different brands and their co...
Mehak 3c corporate social responsibilty of five different brands and their co...Mehak Kalra
 
‘ICHAPTER TWOChapter Objectives• To define stakehold
‘ICHAPTER TWOChapter Objectives• To define stakehold‘ICHAPTER TWOChapter Objectives• To define stakehold
‘ICHAPTER TWOChapter Objectives• To define stakeholdLesleyWhitesidefv
 
Bus169 Kotler Chapter 03
Bus169 Kotler Chapter 03Bus169 Kotler Chapter 03
Bus169 Kotler Chapter 03Alwyn Lau
 
Corporate social responsibility_csr_over
Corporate social responsibility_csr_overCorporate social responsibility_csr_over
Corporate social responsibility_csr_overKush Juthani
 
A Study Of Corporate Social Responsibility And Its Impact On Performance Of C...
A Study Of Corporate Social Responsibility And Its Impact On Performance Of C...A Study Of Corporate Social Responsibility And Its Impact On Performance Of C...
A Study Of Corporate Social Responsibility And Its Impact On Performance Of C...Joe Andelija
 
Harshad trada csr& cg report of facebook company
Harshad trada csr& cg report of facebook companyHarshad trada csr& cg report of facebook company
Harshad trada csr& cg report of facebook companyharshad trada
 
Week Six Lecture Welcome to the world of public relations!.docx
Week Six Lecture Welcome to the world of public relations!.docxWeek Six Lecture Welcome to the world of public relations!.docx
Week Six Lecture Welcome to the world of public relations!.docxalanfhall8953
 
Corporate Social Responsibility Activities of Tata Group
Corporate Social Responsibility Activities of Tata GroupCorporate Social Responsibility Activities of Tata Group
Corporate Social Responsibility Activities of Tata GroupManjit Singh
 

Semelhante a socialresponsibilityandmarketing.pdf (20)

The Effect of CSR on Brand Equity in the IT Solutions Industry; the Case of A...
The Effect of CSR on Brand Equity in the IT Solutions Industry; the Case of A...The Effect of CSR on Brand Equity in the IT Solutions Industry; the Case of A...
The Effect of CSR on Brand Equity in the IT Solutions Industry; the Case of A...
 
Csr lyn
Csr  lynCsr  lyn
Csr lyn
 
A STUDY ON THE GROWTH, EVOLUTION, BENEFITS AND KEY CHALLENGES OF CAUSE RELATE...
A STUDY ON THE GROWTH, EVOLUTION, BENEFITS AND KEY CHALLENGES OF CAUSE RELATE...A STUDY ON THE GROWTH, EVOLUTION, BENEFITS AND KEY CHALLENGES OF CAUSE RELATE...
A STUDY ON THE GROWTH, EVOLUTION, BENEFITS AND KEY CHALLENGES OF CAUSE RELATE...
 
Companies with social responsibility and services
Companies with social responsibility and servicesCompanies with social responsibility and services
Companies with social responsibility and services
 
Analysis Of Starbucks And Wal Mart Essay
Analysis Of Starbucks And Wal Mart EssayAnalysis Of Starbucks And Wal Mart Essay
Analysis Of Starbucks And Wal Mart Essay
 
Business ethics-and-morality
Business ethics-and-moralityBusiness ethics-and-morality
Business ethics-and-morality
 
Mehak 3c corporate social responsibilty of five different brands and their co...
Mehak 3c corporate social responsibilty of five different brands and their co...Mehak 3c corporate social responsibilty of five different brands and their co...
Mehak 3c corporate social responsibilty of five different brands and their co...
 
‘ICHAPTER TWOChapter Objectives• To define stakehold
‘ICHAPTER TWOChapter Objectives• To define stakehold‘ICHAPTER TWOChapter Objectives• To define stakehold
‘ICHAPTER TWOChapter Objectives• To define stakehold
 
FINALTHESIS
FINALTHESISFINALTHESIS
FINALTHESIS
 
Thesis Statement On CSR
Thesis Statement On CSRThesis Statement On CSR
Thesis Statement On CSR
 
Bus169 Kotler Chapter 03
Bus169 Kotler Chapter 03Bus169 Kotler Chapter 03
Bus169 Kotler Chapter 03
 
Theoretical Analysis of Managing Corporate Social Responsibility in Developin...
Theoretical Analysis of Managing Corporate Social Responsibility in Developin...Theoretical Analysis of Managing Corporate Social Responsibility in Developin...
Theoretical Analysis of Managing Corporate Social Responsibility in Developin...
 
Corporate social responsibility_csr_over
Corporate social responsibility_csr_overCorporate social responsibility_csr_over
Corporate social responsibility_csr_over
 
A Study Of Corporate Social Responsibility And Its Impact On Performance Of C...
A Study Of Corporate Social Responsibility And Its Impact On Performance Of C...A Study Of Corporate Social Responsibility And Its Impact On Performance Of C...
A Study Of Corporate Social Responsibility And Its Impact On Performance Of C...
 
Harshad trada csr& cg report of facebook company
Harshad trada csr& cg report of facebook companyHarshad trada csr& cg report of facebook company
Harshad trada csr& cg report of facebook company
 
Week Six Lecture Welcome to the world of public relations!.docx
Week Six Lecture Welcome to the world of public relations!.docxWeek Six Lecture Welcome to the world of public relations!.docx
Week Six Lecture Welcome to the world of public relations!.docx
 
1 (2)
1 (2)1 (2)
1 (2)
 
Csr
CsrCsr
Csr
 
Corporate Social Responsibility Activities of Tata Group
Corporate Social Responsibility Activities of Tata GroupCorporate Social Responsibility Activities of Tata Group
Corporate Social Responsibility Activities of Tata Group
 
Csr
CsrCsr
Csr
 

Mais de MiressaBeJi

7_Grybs_Creating_New_Trends....pdf
7_Grybs_Creating_New_Trends....pdf7_Grybs_Creating_New_Trends....pdf
7_Grybs_Creating_New_Trends....pdfMiressaBeJi
 
ETIMM_V01_2016_72.pdf
ETIMM_V01_2016_72.pdfETIMM_V01_2016_72.pdf
ETIMM_V01_2016_72.pdfMiressaBeJi
 
sustainability-10-00097.pdf
sustainability-10-00097.pdfsustainability-10-00097.pdf
sustainability-10-00097.pdfMiressaBeJi
 
1458051979_1048B.pdf
1458051979_1048B.pdf1458051979_1048B.pdf
1458051979_1048B.pdfMiressaBeJi
 
31224_book_item_31224.pdf
31224_book_item_31224.pdf31224_book_item_31224.pdf
31224_book_item_31224.pdfMiressaBeJi
 
687-new-trends-in-international-marketing-80129.pdf
687-new-trends-in-international-marketing-80129.pdf687-new-trends-in-international-marketing-80129.pdf
687-new-trends-in-international-marketing-80129.pdfMiressaBeJi
 

Mais de MiressaBeJi (9)

7_Grybs_Creating_New_Trends....pdf
7_Grybs_Creating_New_Trends....pdf7_Grybs_Creating_New_Trends....pdf
7_Grybs_Creating_New_Trends....pdf
 
jorda249.pdf
jorda249.pdfjorda249.pdf
jorda249.pdf
 
FULLTEXT01.pdf
FULLTEXT01.pdfFULLTEXT01.pdf
FULLTEXT01.pdf
 
MR1308.pdf
MR1308.pdfMR1308.pdf
MR1308.pdf
 
ETIMM_V01_2016_72.pdf
ETIMM_V01_2016_72.pdfETIMM_V01_2016_72.pdf
ETIMM_V01_2016_72.pdf
 
sustainability-10-00097.pdf
sustainability-10-00097.pdfsustainability-10-00097.pdf
sustainability-10-00097.pdf
 
1458051979_1048B.pdf
1458051979_1048B.pdf1458051979_1048B.pdf
1458051979_1048B.pdf
 
31224_book_item_31224.pdf
31224_book_item_31224.pdf31224_book_item_31224.pdf
31224_book_item_31224.pdf
 
687-new-trends-in-international-marketing-80129.pdf
687-new-trends-in-international-marketing-80129.pdf687-new-trends-in-international-marketing-80129.pdf
687-new-trends-in-international-marketing-80129.pdf
 

Último

Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesMysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesDipal Arora
 
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRLMONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRLSeo
 
Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st CenturyFamous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Centuryrwgiffor
 
0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdf0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdfRenandantas16
 
How to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityHow to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityEric T. Tung
 
RSA Conference Exhibitor List 2024 - Exhibitors Data
RSA Conference Exhibitor List 2024 - Exhibitors DataRSA Conference Exhibitor List 2024 - Exhibitors Data
RSA Conference Exhibitor List 2024 - Exhibitors DataExhibitors Data
 
Grateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdfGrateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdfPaul Menig
 
Insurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usageInsurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usageMatteo Carbone
 
VIP Call Girls In Saharaganj ( Lucknow ) 🔝 8923113531 🔝 Cash Payment (COD) 👒
VIP Call Girls In Saharaganj ( Lucknow  ) 🔝 8923113531 🔝  Cash Payment (COD) 👒VIP Call Girls In Saharaganj ( Lucknow  ) 🔝 8923113531 🔝  Cash Payment (COD) 👒
VIP Call Girls In Saharaganj ( Lucknow ) 🔝 8923113531 🔝 Cash Payment (COD) 👒anilsa9823
 
Boost the utilization of your HCL environment by reevaluating use cases and f...
Boost the utilization of your HCL environment by reevaluating use cases and f...Boost the utilization of your HCL environment by reevaluating use cases and f...
Boost the utilization of your HCL environment by reevaluating use cases and f...Roland Driesen
 
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...anilsa9823
 
KYC-Verified Accounts: Helping Companies Handle Challenging Regulatory Enviro...
KYC-Verified Accounts: Helping Companies Handle Challenging Regulatory Enviro...KYC-Verified Accounts: Helping Companies Handle Challenging Regulatory Enviro...
KYC-Verified Accounts: Helping Companies Handle Challenging Regulatory Enviro...Any kyc Account
 
7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...Paul Menig
 
Mondelez State of Snacking and Future Trends 2023
Mondelez State of Snacking and Future Trends 2023Mondelez State of Snacking and Future Trends 2023
Mondelez State of Snacking and Future Trends 2023Neil Kimberley
 
Monthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptxMonthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptxAndy Lambert
 
Cracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxCracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxWorkforce Group
 
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756dollysharma2066
 
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756dollysharma2066
 

Último (20)

Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesMysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
 
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRLMONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
 
Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st CenturyFamous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Century
 
0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdf0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdf
 
How to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityHow to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League City
 
RSA Conference Exhibitor List 2024 - Exhibitors Data
RSA Conference Exhibitor List 2024 - Exhibitors DataRSA Conference Exhibitor List 2024 - Exhibitors Data
RSA Conference Exhibitor List 2024 - Exhibitors Data
 
Grateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdfGrateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdf
 
Insurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usageInsurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usage
 
VIP Call Girls In Saharaganj ( Lucknow ) 🔝 8923113531 🔝 Cash Payment (COD) 👒
VIP Call Girls In Saharaganj ( Lucknow  ) 🔝 8923113531 🔝  Cash Payment (COD) 👒VIP Call Girls In Saharaganj ( Lucknow  ) 🔝 8923113531 🔝  Cash Payment (COD) 👒
VIP Call Girls In Saharaganj ( Lucknow ) 🔝 8923113531 🔝 Cash Payment (COD) 👒
 
Boost the utilization of your HCL environment by reevaluating use cases and f...
Boost the utilization of your HCL environment by reevaluating use cases and f...Boost the utilization of your HCL environment by reevaluating use cases and f...
Boost the utilization of your HCL environment by reevaluating use cases and f...
 
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
 
KYC-Verified Accounts: Helping Companies Handle Challenging Regulatory Enviro...
KYC-Verified Accounts: Helping Companies Handle Challenging Regulatory Enviro...KYC-Verified Accounts: Helping Companies Handle Challenging Regulatory Enviro...
KYC-Verified Accounts: Helping Companies Handle Challenging Regulatory Enviro...
 
7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...7.pdf This presentation captures many uses and the significance of the number...
7.pdf This presentation captures many uses and the significance of the number...
 
Mondelez State of Snacking and Future Trends 2023
Mondelez State of Snacking and Future Trends 2023Mondelez State of Snacking and Future Trends 2023
Mondelez State of Snacking and Future Trends 2023
 
Monthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptxMonthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptx
 
Cracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxCracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptx
 
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
 
VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...
VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...
VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...
 
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabiunwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
 
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
 

socialresponsibilityandmarketing.pdf

  • 1. See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/320481148 Social Responsibility and Marketing Article in SSRN Electronic Journal · January 2007 DOI: 10.2139/ssrn.3048011 CITATIONS 5 READS 586 2 authors: Some of the authors of this publication are also working on these related projects: migration crises and globalisation View project Engaging CSR drivers in S.M.Es View project Khosro S. Jahdi Bradford College 30 PUBLICATIONS 511 CITATIONS SEE PROFILE Tom S. Cockburn TLAINC & Freelance 460 PUBLICATIONS 215 CITATIONS SEE PROFILE All content following this page was uploaded by Tom S. Cockburn on 04 November 2017. The user has requested enhancement of the downloaded file.
  • 2. Electronic copy available at: https://ssrn.com/abstract=3048011 1 Social Responsibility and Marketing Dr Khosro S Jahdi, Bradford Business and Law School, Bradford College, Westbrook Building, Great Horton Road, Bradford, BD7 1AY, West Yorkshire, UK. Tel. +44 (01) 1274 433326 Fax. +44 (01) 1274 741 060 k.jahdi@bradfordcollege.ac.uk Dr Tom Cockburn, Australian School of Business, University of New South Wales, Sydney, 2052, Australia. Tel. +61 29 3856182 t.cockburn@unsw.edu.au
  • 3. Electronic copy available at: https://ssrn.com/abstract=3048011 2 Abstract Marketing is a much-misunderstood discipline within the business world as well as amongst consumers and society. This is hardly surprising considering that marketing can appear in so many different guises. King (1985) refers to four such misinterpretations: • Thrust marketing- with its emphasis on selling by undercutting rivals but with little regard to customer requirements. • Marketing department marketing- a so called ‘bolt-on’ department aimed at understanding (current) customer needs of current products. • Accountant marketing- the organisation’s senior management have no direct marketing experience and tend to focus on short term profits while neglecting long term survival. • Formula marketing- control is regarded as more important than innovation. Tried and tested formulas are used while averting risks where possible. It is conceivable to ‘introduce’ social responsibility at any of these levels or categories in order to improve the overall brand image and take genuine steps towards achieving that goal. However, this paper will seek to go further than that and to suggest potential strategic repositioning of the discipline ‘brand’ of marketing. This will be done by outlining branding opportunities in terms of CSR impact and the emerging values convergence between Generation Y consumers and vanguard CEO’s orientation to social responsibility. Our paper argues that marketing has not only the potential to contribute to an organisation’s CSR and is already being employed as a powerful tool by some companies for this purpose. Paradoxically, given the stereotypical views of marketing and its role in business, the discipline is ideally placed today to deliver the CSR and bottom- line gains today than ever before. However, the scope and extent of such contributions can vary dramatically from one firm to another. For instance, in the way that CSR strategies are formulated and implemented, and even more importantly in the types of specific responsibilities that have been allocated to marketing in order to achieve company CSR objectives. The paper will also explain the success, significance and implications of marketing’s CSR contribution. For example, in the variety of approaches deployed in order to create, sustain, review and monitor an organisation’s CSR branding strategies whilst ensuring consumer values alignment is sustained. Key words: Values convergence, generation Y, CSR branding, marketing.
  • 4. 3
  • 5. 4 Introduction: “There can be no effective corporate strategy that is not marketing orientated, that does not in the end follow this unyielding prescript: the purpose of a business is to create and keep a customer.” (Levitt, 1986, p 19) The above quote signifies the importance of marketing to organisations. Levitt earlier in his ‘Marketing Myopia’ (1960) had argued against the product centred view of the business and for the marketing approach of the company, suggesting that businesses must be seen as customer-satisfying processes. Despite changes in marketing since then this has remained the dominant view in the profession. Such a narrow focus on the customer is also challenged as yet another form of marketing myopia, by Lings (1999). He emphasises the contributions of relationship marketing, market orientation and internal marketing. In addition to those cause-related marketing can also be considered to contribute to the CSR efforts of an organisation. However, focus should be on all stakeholders, one of which is the customer. Socially responsible corporate marketing generally means that an organisation shows concern for both the people and the environment in which it conducts its business. A corollary of these concerns is that such values are communicated and enacted by everyone in the organization. In some cases, enforcement of such values also applies to business partners, e.g., supplier of raw material for product or services or others such as franchisees or retail outlets distributing products. Social responsibility may also be displayed in the corporate support of social causes, charities or staff volunteering activities. Although most businesses appreciate the need for marketing, there are reservations about its ability to influence top-line growth. The challenge facing marketing is to convince finance driven organisations of its importance and contribution to the firm. In the absence of large numbers of chief executives with a marketing background, such persuasion is an extremely hard task to implement, (Marketing, 2 February, 2005, pp 32-34). Going beyond the functional specialist concerns and bottom-line expectations to pursue socially responsible forms of marketing adds extra hurdles to be overcome. Furthermore, marketing is viewed by many businesses as merely another operational function, which is strongly disputed by marketing professionals. For instance, Gilligan and Wilson (2005, p 7) assert that “…marketing is increasingly being conceptualised as an organisational philosophy…”. They see marketing as ‘an approach to doing business and strategic in nature as opposed to functional’. They further cite McDonald’s definition as underpinning such an approach: “Marketing is a management process whereby the resources of the whole organisation are utilised to satisfy the needs of selected customer groups in
  • 6. 5 order to achieve the objectives of both parties. Marketing, then, is first and foremost an attitude of mind rather than a series of functional activities.” Scanning time horizons: what is marketing’s vista like? It would also be a mistake to take what consumers say about their motives and beliefs at face value. Devinney, et al (2006), suggest that many consumers say they want to be socially responsible but when it comes to buying various items their actions belie their noble intentions. Nevertheless, against that scepticism there have been changes in many social mores and the social and ethical norms of acceptability too. Certain formerly acceptable and well-entrenched practices have given way to legislative and social changes in many countries eg physical punishment is no longer the norm or even legal in many countries as a child rearing practice, smoking has been banned in public places, drink driving is no longer commonly accepted (although speeding remains common practice for many). Kotler (2000) cites Drucker as observing that an organisation’s winning formula for the last decade will possibly be its undoing in the next decade. Noel Turnbull (1996) predicted that a new generation of customers of corporations in the twenty-first century would demand that businesses demonstrate they are motivated by community interest rather than self- interest. He called them ‘generation MM’ consumers (p. 21). He supported that viewpoint with quotations from research finding in the US, which at that time, showed that: • 84% of adult Americans believed that cause marketing created a positive company image • 66% would switch brands and 62% wished to switch retailers to support a cause they cared about • 54% would pay more for a product in support of a cause • 78% are more likely to buy products or services associated with a cause • 62% are impressed by companies that commit to a cause beyond one year. (1996, p.137) Turnbull came down in favour of future success for those ‘altruistic companies [who] are the companies that balance the interest of all their stakeholders and see profit as a result of a company’s total goals rather than as an end in itself’ (1996, p. 138). These findings were subsequently confirmed elsewhere. A Millennium poll of 1000 consumers from each of 23 nations on 6 continents found 49 per cent cited corporate citizenship factors such as business ethics, environmental practice and labour management issues as the most significant determinant of their impressions of companies (Marlin, 2000). Only 32 per cent were most influenced by basic business investment factors such as finance, management or size of enterprise. Marlin supported the data from United States trends in investment spending, where well over one trillion dollars, or one in every eight investment dollars, was at that time managed in social responsibility investment vehicles (Marlin, 2000). In Europe, too, three of the
  • 7. 6 four scenarios outlined by the corporate consulting giant PricewaterhouseCoopers in the late 1990s, suggested that ethical issues, especially those relating to the environment and genetics, will have a major influence on the future economic as well as social prosperity (McKie & Cockburn, 1999) and governance of Europe (Pedler, 2002). Twenty-first century, hard-nosed business perspectives, rather than nostalgia about sustainability and public good, inform current corporate brand image and profitability projections of CEOs (The McKinsey Quarterly, 2006, January, p. 4). Socially responsible investment analysts at SIRAN, using KLD Research & Analytics, Inc.’s 2006 survey of the Standard & Poor’s 100 index companies revealed that over three-quarters (79) have special sections of their websites dedicated to sharing information about their social and environmentall policies and performance. That represented a 34 per cent increase on the previous year, when 59 companies included this information on their websites. In addition to that, institutional investors filed 19 shareholder proposals over the 2005-2006 year calling on companies to issue sustainability reports that detailed their social and environmental performance. The McKinsey Quarterly global survey of chief executive officers (CEOs) in January 2006 indicated that 84 per cent of those CEOs surveyed shared many of the views of other consumers in society about the role of the corporation (2006, p. 2). They agreed that the role of company management extended beyond simply satisfying shareholders and included social responsibility (2006, p. 2). However, the confidence index also showed that the executives were wary of the risks of trying to guess which socio-political issues will most closely concern them in future and lacked faith in the old remedies such as public relations and lobbying (2006, p. 5). Such values may not translate directly into other organisational systems or relationships — business-to-business networking, for example. While business-to-consumer relationships continue to be important, inter- organisational social relationships also act as coordination mechanisms, shaping the likelihood of any extension of network use between organisations as opposed to internally in any single one of them (Kraut et al., 1998, p. 25). Such business-to-business relationships are marketing opportunities. Not only are the relationships between organisations important for network development and, ultimately, for further business growth, but so too are those between employees for branding, internal marketing and the shared development of corporate identity. It is important to note, too, the interconnections between lifecycles for products, brands and communities of practice. These also need to address life enhancing and life extending across cycles and transitions from one generation to the next to keep the corporation’s capital anchored. Nevertheless the relationships between causes and corporate advocates is not an easy one and there are a number of issues concerning consumers’ [perceptions of companies’ motivations which have an impact on the efficacy of this approach. It has been argued by Menon and Kahn (2005), for example, that consumer reaction is shaped by the perceived motives of the organisation involved in a cause-related marketing campaign. Their research explored
  • 8. 7 consumer evaluations of the sponsors’ cause-related campaigns as a function of two varieties of philanthropic messages. Namely: a) promotions that promise a donation relating to the purchase of the organisation’s product; and b) advocacy advertising of social themes sponsored by the brand. Menon and Kahn arrived at the conclusion that cause promotions resulted in higher ratings of CSR than the advertising of social issues. They suggest that the reason for this is consumers’ elaboration on possible motives behind advocacy advertising than the cause promotions. Spanish consumers’ attitudes towards Pepsi worsened following their knowledge about the contents of some ‘cause branding’ campaigns, as indicated by Garcia, et al. (2003). Despite the strong concerns of the overall Spanish consumers vis-à- vis social issues, the commercial abuse of the concept was not tolerated (ibid). Similar concerns were aired in the UK in the aftermath of a “Which?” magazine report indicating that brands, rather than causes, benefited substantially from some campaign efforts, (Mason, 2002). The top 100 companies in Australia donated AUD $121 million on good causes during 2000-2001 that was approximately 0.6 cents for every dollar of their total $ 19.46Bn profit figure after tax according to Lloyd (2002). Amongst those that articulate strongly against such accusations is Tim Mason the MD of Tesco Plc., who asserts that cause-related marketing results in £millions for causes rather than £thousands. Unfortunately no statistics are offered to suggest that some of these donations are not filtered away down to other less marketable or small causes (Endacott, 2004). Is marketing ready for change? Drucker (1973, pp 64-65) again makes the following observation: “That after twenty years of marketing rhetoric consumerism could become a powerful popular movement proves that not much marketing has been practised. Consumerism is the ‘shame’ of marketing.” Consumerism in this sense means the creation of ‘artificial’ wants and needs by marketers and the persuasion of consumers to pay for them. It is the “artificial stimulation of consumer desires by means of manipulative advertising for mass produced consumer products” (Thompson, 2002); it is akin to selling materialism as a creed. However, Drucker made that remark over 30 years ago and considering the increasing level of sophistication of customers, their knowledge of products and services on offer, as well as and access to those of competitors’, the awareness of their legal rights, growth of investigative reporting and journalism and the explosion of online communications, it is becoming increasingly difficult to manipulate consumers en masse. Although there will always be vulnerable customer groups in society who may fall victim to certain marketing tactics such as small children, it can be argued that they too are growing immune to marketing persuasion efforts and are becoming increasingly hard to manipulate. That said, Mintel’s (1998) research on marketing to children acknowledges the trend that children are changing and yet states: “…it is clear that beneath all the layers of
  • 9. 8 supposed sophistication, they are not mini-adults, but children, with limited experience of the world”. The 10 Ps of Marketing Approaches to CSR Below is a table suggesting how marketing currently contributes to CSR in organisations. Approach CSR type, outcomes and examples Posthumous CSR applied for damage limitation purposes; a death mask Seib and Fitzpatrick (1995) refer to the Exxon Valdez incident that involved a tanker tearing itself open on a reef in Alaska’s Prince William Sound on March 24, 1989 and spilling more than 10 million gallons of crude oil. A combination of international media coverage, Exxon’s apparent lack of preparation and hesitancy to tackle the media effectively and efficiently exacerbated the situation. Instead, Exxon could have gone beyond mere damage repair and regulatory compliance by admitting to having created an environmental disaster, investing in a complete clean up operation and formulation of relevant CSR strategies that would make Exxon the future industry CSR champion. Pantomime Superficial play-acting dressed up as CSR: a masque British arms manufacturer, BAE systems are not only the global suppliers of lead free eco-bullets (since ‘lead used in ammunition can harm the environment and pose a risk to people’), they are in addition developing a whole host of ‘green’ munitions such as less noisy warheads (to reduce noise pollution), smoke free hand grenades, and armoured vehicles fitted with hybrid engines (New Internationalist, November, 2006). The company has employed a Director of Corporate Social Responsibility who rather philosophically explains: “Weapons are going to be used and when they are,
  • 10. 9 we try to make them as safe for the user as possible, to limit the collateral damage and impact as little as possible to the environment”. What the Director of BAE Systems overlooks is the fact that the company’s core products are designed to harm people. Piecemeal Token gestures in application of CSR: masking mosaic Certain petroleum companies have also attempted to jump on the CSR bandwagon by publicising their investment in alternative fuel research and development (usually a fraction of their overall investment) while maintaining the status quo and producing conventional fuels attracting the largest part of their investment. When John Browne -a former CEO of BP and Nick Butler (Financial Times, 2007) call for government action on climate change, they are talking about a carbon- trading scheme likely to profit BP without the company having to make any great effort to reduce emissions. In addition, critics, such as Dreisen (1998) have also identified the adverse impact of such schemes on developing nations. Public Relations Communicating CSR intent to stakeholders: word masks CSR helps to ‘greenwash’ the company's image; covering negative impacts with positive images of their CSR credentials in a barrage of targeted media releases. Stauber (2007) webpage, http://www.prwatch.org/taxonomy/term/110 lists a number of ‘front groups’ such as the SUV owners’ Association, whose board is composed of industry representatives and which paid $400,000 to a PR firm Stratacomm to lobby the US senate against proposed higher fuel economy standards legislation. Parsimonious Frugal CSR spend: modesty masks This may occur when an organisation is under legal or regulatory pressure to formulate and implement CSR policies. No more financial or non-financial resources are invested in such activities, policies, operations etc. beyond compliance with requirements. Although the company may wish to convey a socially responsible image due to adherence to the laws of the land and communicate a clean-cut image. BusinessWeek ran an article entitled The New Netrepreneurs - Dot-com veterans are creating smarter startups for a chastened world (October, 2001) and argued that following the dot com bubble bursting entrepreneurs were being more financially prudent and closely monitoring costs and expenditure (accessed 30/11/07 at http:// www. sparkpr. com/ client _news/ 2001/ 10/the_new_netrepreneurs _dotcom_ v. shtml).
  • 11. 10 Parrot fashion Follows competition blindly: ‘me too’ masks Sometimes this sort of thing occurs accidentally. At other times, there is a deliberate campaign of ‘tit for tat’ copycat marketing as recently discussed by C. Turner in Marketing Week (August 9th 2007,last accessed on 30th November, 2007 at http:// www. marketingweek. co. uk/item/ 57443/pg _dtl _art _news/pg_hdr_art/pg_ftr_art when reviewing the dispute between Npower and EoN about their respective advertising campaigns. Each accuses the other of a copycat campaign and Npower has admitted using one but argued that Eon did it first in their Go Green campaign. Profit driven CSR for economic gains only: Midas mask Some companies seek a CSR path due chiefly to its anticipated financial rewards. In June 2007 General Electric, for instance, announced how it is profiting from its environmentalism efforts and is on track to double its earnings from clean technology to £20 billion over five years (Marketing Week, 31st May 2007). Partnership Collaborative CSR paradigm: sharing unmasked The Co-operative Bank in the UK uses such an approach as it consults its customers on major issues the results of which are then published in its Partnership Reports (see Jahdi and Cockburn, 2007). This is where the communication arm of the marketing mix could be effectively used to contribute to company CSR. In marketing parlance, this approach could be applicable at the highest level of CRM (Customer Relationship Management) and KAM (Key Account Management). Proactive Anticipation of possible CSR benefits: Unmasked vision Zadek (2003) writes that some organisations could find that taking advantage of certain opportunities may be beyond their reach as individual firms. To remedy this, competencies and capacities can be stretched by means of tri-partite partnerships, involving business, ‘civil-society’ organisations and government agencies. Although alliances such as this pose particular challenges as they aim to bring together diverse interests, philosophies and organisational cultures, they are also capable of offering mutually beneficial outcomes, if managed effectively and efficiently. However, the main focus of these partnerships tends to be on business generation rather than CSR application
  • 12. 11 Philanthropic Welfare of fellow humans: Altruism unmasked Nan and Heo (2007, p 64) warn that: “while these research findings are encouraging to companies using cause-related marketing, the absolute nature of the measures makes it difficult to quantify the amount of positive effects that cause- related marketing has on consumer responses.” The first seven approaches above are often regarded as the ‘business as usual’ way that companies do CSR by many consumers, as indicated above. That complaint thereby justifies some of the consumers’ own inconsistent or hypocritical approaches to purchasing. The last three Ps above may provide a scaffold for future marketing patterns of a more socially responsible type. The latter is premised on more economically and socially advantaged societies taking the lead for two reasons. Firstly, an economic surplus in household income and security of employment or availability of a ‘safety net’ is usually needed before consumers begin to even consider themselves as having a choice. Subsistence is a social space where they are able and willing to make such choices. Secondly, as a sign of goodwill to demonstrate to hesitant companies and governments in emergent economies that they will not be drawn into any competitive ‘ambush’ that some feel occurs with carbon trading proposals as mentioned above. The potential contribution of Cause Related Marketing to CSR: On the other side of the coin, what contribution can cause-related marketing make to both enhance social capital and general public good without detriment to the corporate stakeholders? As suggested earlier it can be argued that marketing has the potential to contribute to the creation and maintenance of a socially responsible organisation image. One such approach has been the use of Cause Related Marketing by organisations. Varandarajan and Menon (1998, p 60) define CaRM as: “the process of formulating and implementing marketing activities that are characterised by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue-providing exchanges that satisfy organisational and individual objectives. “ The term cause-related marketing was introduced originally by American Express in 1983. It made a donation when its customers used the card, in an attempt to renovate the statue of Liberty (Kleppner, 1996). The outcome was a total donation of $1.7 million as well as a 28% increase in the American Express card use. Gummesson (2002, p 122) writes that: “cause related marketing has become a term for ‘doing good in society’, but is primarily part of sponsorship and public relations with the purpose of boosting the public image”. Jobber (2004, p 144), however, states that “companies are becoming more proactive in this
  • 13. 12 acceptance of social responsibility through the practice of cause related marketing. This is a commercial activity by which businesses and charities or causes form a partnership with each other to market an image, good, or service for mutual benefit.” Overall, studies have suggested (see Webb and Mohr, 1998, for reference) that consumer attitudes towards organisations employing cause-related marketing strategies are largely positive. Furthermore, consumers perceive organisations involved in CaRM promotions as socially responsible, according to Ross, et al. (1992). In addition the customer willingness to purchase an organisation’s products is positively influenced by CaRM activities write Smith and Alcorn (1991). In comparison with reduction in prices and increase in promotional expenditure, Mason (2002) asserts that cause-related cause related marketing may provide better results. That said, Nan and Heo (2007, p 64) warn that: “while these research findings are encouraging to companies using cause-related marketing, the absolute nature of the measures makes it difficult to quantify the amount of positive effects that cause-related marketing has on consumer responses.” Evans et al. (2004) view CaRM as a short term as well as a longer term marketing strategy where a brand’s product is linked to a ‘good cause’. However, they also question its impact: can it lead to any long term gains; does it not adversely affect donations to charities by drawing funds away from other fundraising activities? A number of success stories highlight the positive effects of CaRM campaigns. Tesco’s Computers for Schools, for instance, where customers were encouraged to collect vouchers with their groceries resulted in 190,000 spending significantly more during the six week period of campaign (ibid.). Lawrence (2003) quoted in Evans et al. (2004) writes that considering the fact that some 43% of the UK population donate less than £5.00 annually to charities, CaRM manages to draw on a major pool of untapped new donors without affecting the funds that are generated by regular givers. Lawrence sees CaRM as a win-win promotion, benefiting both the charity and the participating brand. Kotler (2003, p 27) views cause- related marketing employed by organisations as: “an opportunity to enhance their corporate reputation, raise brand awareness, increase customer loyalty, build sales and increase press coverage.” Organisations such as the UK Co-operative Bank have built their corporate image and sustained their ethical reputation on cause- related marketing in part. Papasolomou et al (2006) suggest that the reputation of an organisation is instrumental in gaining a competitive advantage in addition to building financial and social success. They further assert that: “a positive image that people share about an organisation can yield positive influence on the quality of the relationships between that organisation and its stakeholders.” (ibid p 273). The Bank joined forces with Friends of the Earth in 2006 to lobby the government to raise its commitment to the environment and pledge to reduce CO2 emissions by 3% year on year. For every £100 that the Bank’s customers spend on its credit and debit cards, it donates 1.25p to the campaign fund. Its previous campaigns have provided over £3 millions to mental health charities and those seeking to abolish landmines. Furthermore,
  • 14. 13 the Co-operative Group has entered into a contract with Scottish Power to provide its stores over the next three years with energy from renewable sources. But do both parties benefit from Cause-related marketing activities? Lafferty et al (2004) while researching what they term as cause-brand alliance arrived at the conclusion that although both the brand and the cause benefit from such an alliance, the cause is likely to benefit more. They do, however, emphasise the fit between the brand and the cause, i.e. if it is not perceived by consumers as a ‘good’ fit, the authenticity of the alliance might well be questioned. Others that have also reiterated the importance of fit include Drumwright, (1996), Strahilevitz and Myers (1998). Rifon et al. (2004) have focused on the communications effects of ‘fit’. However, Nan and Heo (2007) state that little research has been carried out into the role of brand/cause fit in determining the effects of cause-related marketing. Further research by Lafferty and Goldsmith (2005), assessed cause and brand attitudes at three time intervals: pre-exposure, exposure and post- exposure to the partnership. The degree of change as a consequence of the partnership was examined by comparing the change in attitudes during those three points in time. The outcome suggested that both cause and brand benefit from a ‘good’ cause-brand alliance, albeit with a different degree. “If the brand is high in familiarity and has relatively positive attitudes before the alliance, then the impact of cause familiarity as something that moderates the effect of the cause-brand alliance on brand attitudes might be less relevant. The low familiar cause has greater benefit of cause-brand alliance than the high familiar cause, which could be due to the familiar and positive brand serving as an anchor for the unknown cause, however, cause-brand alliance has little effect because there was insignificant movement in attitudes towards the cause from pre-exposure to exposure.” (Chiagouris and Ray, 2007). Rebranding marketing for the 21st century Business in The Community (BiTC) offers a set of Cause-related marketing principles as follows: 1. “Integrity: behaving ethically and honestly 2. Transparency: misleading information could cast doubt on the equity of the partnership. 3. Sincerity: consumers need to be convinced about the strength and depth of cause-related marketing partnership. 4. Mutual respect: the partner and its values must be appreciated and respected. 5. Partnership: each partner needs to recognise the opportunities and threats the relationship presents.
  • 15. 14 6. Mutual benefit: for the relationship to be sustainable, both sides must benefit.” l (Source: Jobber, 2004, p 144) By employing the above principles as guidance an organisation could work towards creating and sustaining a positive and socially responsible profile. Papasolomou et al. (2006) suggest that cause-related marketing can potentially facilitate a brand and empower it to demonstrate an organisation’s commitment to current social issues via resource allocation and funding while addressing business marketing objectives. Conclusion Perceptions of marketing still remain as a functional unit and as a means of revenue generation for the organisation and little else. Its potential, scope of influence and capabilities vis- a- vis CSR are overlooked by the majority of organisations who as said earlier are run by non-marketing directors. Beyond selling, advertising, PR, wants/needs creation and contributing to an increasingly materialistic society, marketing is perceived as incapable of anything further. Doyle (1998, p 51) reiterates this by writing that: “marketing departments frequently control only the visible ‘trappings’ marketing- advertising, promotions and packaging. Too many managers see these manifestations as the content of marketing. Real marketing depends on cross- functional co-operation.” Inroads into CSR by marketers have been made as mentioned earlier, however, rather than the exception this must become the rule in order to have any significant impact. A step in the right direction may be the creation of an ethical code of conduct. The Chartered Institute of Marketing (CIM) in its codes of professional ethics appears to be preoccupied with preventing its members bringing the CIMinto disrepute. Strong leadership and authority is lacking in its dealings with CSR issues. CIM members are required to act with ‘honesty and integrity and promote and seek business in a professional and ethical manner.’ No further elaboration or explanation is apparently offered. The Advertising Standards Authority (ASA), according to Thompson (2002), comes across as more decisive by asking advertisers to be decent, honest, truthful and legal. However, a great deal more is expected from such bodies in terms of ensuring CSR is put into daily practice by organisations and individuals alike. On an organisational level the formulation and implementation of cause- related marketing strategies can contribute effectively towards the creation of a socially responsible corporate image and/or reputation. Once that image has been established the organisation will have no alternatives but to pursue similar initiatives to maintain that image and sustain the reputation. Consumer scepticism of CSR initiatives by some organisations can be tackled by the continuation of such efforts while focusing on the best fit for the brand and the cause. Furthermore, as Glenn (2003) advises cause-related marketing only works for organisations that have nothing to feel guilty about and CSR begins with the company being a good employer. This excludes the so-called ‘sin
  • 16. 15 industries’. However, even they can take steps in a CSR direction and start to clean up their acts. References Browne, J and Butler, N. (2007), We need an International Carbon Fund Financial Times, last accessed, 30th November,2007 at http:// www.ft.com cms/s/0/c3a8d506-034a-11dc-a023-000b5df10621.html Chiagouris , L. and Ray, I. (2007), ‘Saving the World with Cause-related Marketing: it’s time to look at the latest principles and practices’. Marketing management, July/August 2007. Devinney, T.M., Auger,P., Eckhardt, G & Birtchnell , T.( 2006) The Other CSR , Stanford Social Innovation Review, Fall, last accessed on 1-06-07 at http://www.ssireview.org/articles/entry/the_other_csr/ Doyle, P. (1998), ‘Marketing Management and Strategy’. Prentice Hall Europe. Driesen, D.M.(1998) Free Lunch or Cheap Fix?: The Emissions Trading Idea and the Climate Change Convention, 26 B.C. ENVTL. AFF. L. REV. 1, 6 n.13 Drucker, P.F. (1973), ‘Management: Tasks, Responsibilities, Practices’. New York: Harper and Row, pp 64-65. Drumwright, M.E., (1996), ‘Company advertising with a Social Dimension: The role of Non-economic Criteria’. Journal of marketing, 60 (October), 17-87. Endacott, W.J., ‘Consumers and CRM: a national and global perspective’. Journal of Consumer Marketing, vol 21, No 3, 2004, pp 183-189. Evans, M, O’Malley, L., Patterson, M. (2004), ‘Exploring Customer Relationship Marketing’. London: Thomson. Garcia, I., and Mujika, J. (2003), ‘A Study on the effect of cause-related marketing on the attitude towards the brand: the case of Pepsi in Spain’. Journal of Non-profit& Public Sector Marketing, Vol 11, No 1, pp 111-35. Gilligan, C. and Wilson, R.S. (2005), ‘Strategic Marketing Management: planning, implementation and control’. Oxford: Butterworth Heinemann. Glenn, M. (2003), ‘There’s a simple rationale behind ties with causes’. Marketing, 20 March.
  • 17. 16 Gummesson, E. (2002), ‘Total Relationship Marketing’. Butterworth Heinemann. Jahdi, K.S. (2006), ‘A study of ethical green marketing’. PhD thesis. Sheffield Hallam University. Jahdi, K.S. and Cockburn, T. (2007) Good with money:ethics at the Co-op Bank, conference paper presented at 9th International Forum on The Sciences, Techniques and Art Applied to Marketing. Academy and Profession, Madrid, Spain, November 29th-30th. Jobber, D. (2004), ‘Principles and Practice of Marketing’. London: McGraw Hill. King, S. (1985), ‘Has marketing failed, or was it never really tried?’ Journal of Marketing Management, Vol 1,pp 1-19. Kleppner, (1996), ‘Advertising Procedures’. London: Prentice Hall. Kotler, P. (2000), ‘Kotler on Marketing: How to Create, Win and Dominate Markets’. New York: Free Press. Kotler, P. (2003), ‘Marketing Management’. London, International edition, PHIPE: Prentice Hall, Lafferty, A., Goldsmith, R.E. Tomas, G., and Hult, G.T. ‘Psychology and Marketing, 2004. Lafferty, A. and Gioldsmith, E. (2005), Journal of Business Research, 2005. Levitt, T. (1986), ‘After the Sale is Over…’. Harvard Business Review, September-October, pp. 87-93. Lings, I.N., (1999), ‘Balancing Internal and External Market Orientations’. Journal of Marketing Management, 1999, Vol 15, pp. 239-263. Marketing Week, 31st May 2007, ‘The Limits of Government’. Marlin,A.T.(2000).Social and Ethical Quality in a global Competition, conference paper in: Innovation, Manufacturing and Services: How to improve ethical quality? IESE, Graduate School of management, University of Navarre, 9-10 Nov., 2000. Mason, T., (2002), ‘Good causes deliver for brands’. Marketing 4 January.
  • 18. 17 McKie, D. and Cockburn, T. (1999), ‘Strategic conversations: Existing scenarios, public relations theory and futures’. Paper published in conference proceedings, Public Relations, Public Affairs and Corporate Communications in the New Millennium, The Future. Ljubljana, Slovenia. McKinsey Quarterly online survey of business executives, January 2006, last retrieved on 24-08-06 from http://www.mckinseyquarterly.com Mintel (1998), ‘Marketing to Children’, London, March 1998, Mintel. Menon, S. and Kahn, B. (2005), Journal of Consumer Psychology, 2005. Nan, X. and Heo, K. (2007), ‘Consumer Responses to Corporate Social Responsibility (CSR) Initiatives: examining the role of brand-cause fit in cause-related marketing’. Journal of Advertising, Vol 36, No 2 (Summer, 2007), pp 63-74. New Internationalist, November 2006. Papasolomou, I., Demetriou, M. and Crowther, D. (2006), ‘Cause related Marketing in financial service organisations in Cyprus’. Social Responsibility Journal, Vol 2, No.3/4, November 2006. Pedler, R. (ed.), (2002). European Union Lobbying: Changes in the Arena New York: Palgrave Rifon, N., Choi, S.M., Trimble, c.S., and Li, H. (2004), ‘Congruence Effects in sponsorship: The mediating role of sponsor credibility and consumer attributions of sponsor motive’. Journal of Advertising, 33, (1), 29-42. Ross, J.K., Patterson, L.T., and Strutts, A., (1992), ‘Consumer Perceptions of Organisations that Use cause-related Marketing’. Journal of the Academy of Marketing Science, 20 (1), 93-97. Seib, P. and Fitzpatrick, K. (1995), ‘Public Relations Ethics’. Harcourt Brace SIRAN, (2006). Socially Responsible Investment Analysts Find More Large U.S. Companies Reporting on Social and Environmental Issues, last retrieved on 14-10-06 from SIRAN-KLD website at http://www.kld.com/ newsletter/ archive/ press/ pdf/ 071106_SIRAN_KLD_Study.pdf Smith, S.M., and Alcorn, D.S., (1991), ‘Cause Marketing: A New Direction in the Marketing of Social Responsibility’. Journal of Consumer Marketing, 8 (3), 19-34.
  • 19. 18 Strahilevitz, M. and Myers, J.G. (1998), ‘Donations to Charity as Purchase Incentives: how well they work may depend on what you are trying to sell’. Journal of Consumer Research, 24 (March), 434-446. Thompson, M. (2002), ‘Marketing Virtue’. Journal of Business Ethics, A European Review. Vol 11, No. 4, October 2002. Turnbull, N. (1996). The millennium edge: Prospering with generation MM. Sydney: Allen and Unwin. Turner, C. (2007), Npower's 'copycat' ads aim to poach Eon's customers, Marketing Week, 9th August,last accessed on 30th November, 2007 at http:// www. marketingweek. co. uk/item/ 57443/ Varandarajan, P. Rajan and Menon, A. (1988), ‘Cause related Marketing: A Coalignment of Marketing Strategy and Corporate Philanthropy’. Journal of Marketing, 52 (July), 58-74. Webb, D.J., and Mohr, L.A.(1998), ‘A Typology of Consumer Responses to cause-related Marketing: From Sceptics to Socially Concerned’. Journal of Public Policy and Marketing, 17 (2), 226-238. Zadek, S (2003). ‘Tomorrow’s History’. Greenleaf Publishing. View publication stats View publication stats