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Social Responsibility and

Ethics in Marketing

A PROJECT REPORT

SUBMITTED IN THE PARTIAL FULFILLMENT OFTHE REQUIREMENT OF THE AWARD OF THE

DEGREE OF B.COM (HONS)

PAPER NO.XXXVII

AKHIL SINGHAL

B.COM (HONS) IIIrd yr

ROLL NO. : 136

SATYAWATI COLLEGE (M)


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ACKNOWLEDGEMENT

I wish to take this opportunity to express my deep andsincere gratitude to DR. AMLA GAUR, for providingguidance and continuous encouragement throughout this

project on Social Responsibility and EthicsIn Marketing. Without her advice, suggestions andhelp, it would not have been possible to complete this

project at its best.

AKHIL SINGHAL

B.Com (Hons) IIIrd yr.

Roll No. : 136

Satyawati college (M)


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DECLARATION

I hereby declare that the work embodied in this project

entitled Social Responsibility and Ethics in Marketing is

based on my understanding of the subject matter and has not

been copied from any published source or website.

My indebtness to others works on the subject has been duly

acknowledged at the relevant places.

The work is original and has not been submitted for the award

of degree or diploma of this or any other university.

AKHIL SINGHAL

Dr. (Mrs.) Renu Jain Dr. (Mrs.) Amla Gaur

Teacher Incharge Academic Mentor

Deptt. Of Commerce Deptt. Of Commerce

Satyawati College(M) Satyawati College(M)


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INDEX

CHAPTERS Page No.

1. Introduction 5 - 71.1.Objectives of the study1.2.Methodology1.3.Limitations of the study

2. The Marketing function 8- 182.1.Definition of marketing2.2.Decision making2.3.Characteristics of modern marketers2.4.

The role of marketing

3. Corporate social responsibility 19- 323.1.Meaning of corporate social responsibility3.2.Social responsibility in marketing

3.2.1 Impact on individual costumers

3.2.2 Impact on society as a whole

4. Ethics in marketing 33 - 414.1.Significance of marketing ethics4.2.Reasons for behaving ethically in marketing4.3.Marketing ethics and its impact on marketing

5. Case Studies Relating to Social Responsibility and Ethics 42 - 465.1.Case study 15.2.Case study 25.3.Case study 3

6. Conclusion 47 - 487. Bibliography 49


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CHAPTER 1

INTRODUCTION

In the first section we lay the groundwork for our study of the field of

marketing with a close look at marketings key concepts and the important

tasks marketers perform. We will see that marketing encompasses a wide

array of business decisions that are essential to the success of nearly all

organizations. Coverage in this part includes a close examination of the

definition of marketing. A dissection of the key terms in the definition will

show that marketings primary focus is to identify and satisfy customers

in a way that helps build a solid and, hopefully,

sustained relationship that encourages customers to

continue doing business with the marketer.

We also will spend a short time on the history of

marketing and see how it has evolved from a process centered on simply

getting as many people as possible to purchase a product to todays highly

complex efforts designed to build long term customer relationships.


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Additionally, we'll see that marketing is not only important to individual

organizations it also carries both positive and negative influences at a

broader societal level. Finally we look at what it takes to be a marketer in

todays world.

1.1 Objectives of the study

The objective of the project is to know and understand the ethical issues

relating to the marketing function and to evaluate how marketers are

committed to society and under an obligation to behave ethically. We also

intend to study what corporate social responsibility means with regard to

marketing and how it affects the customer and society at large. To understand

the concepts in a better way and with practical approach, we study some case

studies from the business world.

1.2 methodologies


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For carrying out any research project, data is the most important part and

its collection is really a matter of concernThe data for the present work has

been collected from secondary sources i.e., internet and books.

1.3 limitations of the study

Due to limited time available, only a brief study about the Social

Responsibility and Ethics in Marketing could be done.

CHAPTER 2


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THE MARKETING FUNCTION

2.1 - Definition of Marketing

Some definitions focus on marketing in terms of what it means to an

organization, such as being the key functional area for generating revenue,

while other definitions lean more toward defining marketing in terms of its

most visible tasks, such as advertising and creating new products.

There probably is no one best way to define marketing, however, whatever

definition is used should have an orientation that focuses on the key to

marketing success customers.

We will define marketing as follows:

Marketing consists of the strategies and tactics used to identify, create and

maintain satisfying relationships with customers that result in value for

both the customer and the marketer.

The process by which companies create value for customers and build

strong customer relationships in order to capture value from customers in

return - PHILIP KOTLER


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Marketing Definition Dissected

Lets examine our definition of marketing in a little more detail by

looking at the key terms.

Strategies and Tactics - Strategies are best explained as the direction the

marketing effort takes over some period of time while tactics are actionable

steps or decisions made in order to follow the strategies established. For

instance, if a companys strategy is to begin selling its products in a new

country, the tactics may involve the marketing decisions made to carry this

out. Performing strategic and tactical planning activities in advance of taking

action is considered critical for long-term marketing success.

Identify - Arguably the most important marketing function involves efforts

needed to gain knowledge of customers, competitors, and markets (i.e., where

marketers do business).

Create - Competition forces marketers to be creative people. When

marketers begin new ventures, such as building a new company, it is often

based around something that is new (e.g., a new product, a new way of


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getting products to customers, a new advertising approach, etc.). But once

something new is launched innovation does not end. Competitive pressure is

continually felt by the marketer, who must respond by again devising new

strategies and tactics that help the organization remain successful. For

marketers, the cycle of creating something new never ends.

Maintain - Todays marketers work hard to insure their customers return to

purchase from them again and again. Long gone (see our discussion of

History of Marketing below) are the days when success for a marketer was

measured simply in how many sales they made each day. Now, in most

marketing situations, marketing success is evaluated not only in terms of

sales figures but also by how long a marketer retains good customers.

Consequently, marketers efforts to attract customers do not end when a

customer makes a purchase. It continues in various ways for, hopefully, a

long time after the initial purchase.

Satisfying Relationships - A key objective of marketing is to provide

products and services that customers really want AND to make customers

feel their contact with the marketer is helping build a good relationship


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between the two. In this way the customer becomes a partner in the

transaction, not just a source of revenue for the marketer.

Value for Both Customer and Marketer - Value refers to the perception of

benefits received for what someone must give up. For customers, value is

most often measured by how much benefit they feel they are getting for their

money, though the value one customer feels may differ from what another

customer feels even though they purchase the same product. On the other side

of the transaction, the marketer for a for-profit organization may measure

value in terms of how much profit they make for the marketing efforts and

resources expended. For a successful marketing effort to take place both the

customer and the marketer must feel they are receiving something worth in

return for their efforts. Without a strong perception of value it is unlikely a

strong relationship can be built. Throughout this tutorial we will emphasize

value and show ways marketers build value into the products they offer.

2.2 Decision Making


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In order to reach the goal of creating a relationship that holds value for

customers and for the organization, marketers use a diverse toolkit that

includes (but is not limited to)making decisions regarding:

1.Target Markets markets consist of customers identified as possessing needs the marketer believes can be addressed by its

marketing efforts

2.Products consists of tangible (e.g., goods) or intangible (e.g.,services) solution to the markets needs

3.Promotion a means for communicating information about themarketing organizations products to the market

4.Distribution the methods used by the marketer that enable themarket to obtain products

5.Pricing ways for the marketer to set and adjust the cost paid by themarket to obtain products

6.Supporting Services additional options that enhance a productsvalue.


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Each option within the marketers toolkit is tightly integrated with all other

options so that a decision in one area could, and often does, impact decisions

in other areas. For instance, a change in the price of a product (e.g., lowering

the price) could impact the distribution area (e.g., requires increased product

shipments to retail stores).

Additionally, options within the toolkit are affected by factors that are not

controlled by the marketer. These factors include economic conditions, legal

issues, technological developments, social/cultural changes, and many

more. While not managed in the way marketers control their toolkit, these

external factors must be monitored and dealt with since these can cause

considerable harm to the organization. As part of the strategic and tactical

planning process discussed above it is wise for marketers to pay close

attention to the environment outside the organization.

Finally, as noted earlier, research plays a significant role in all marketing

decisions areas. Marketing decisions should not be made

without first committing time and resources to obtaining needed

information.


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2.3-Characteristics Of Modern Marketers

As weve seen, marketing is a critical business function that operates in an

environment that is highly scrutinized and continually changing. Todays

marketers undertake a variety of tasks as they attempt to build customer

relationships and the knowledge and skill sets needed to perform these tasks

successfully are also varied.

Among the most important knowledge and skills needed to be successful

are:

a)Basic Business SkillsMarketers must possess some basic business skills, these basic skills include

problem analysis and decision-making, oral and written communication,

basic quantitative skills, and working well with others.

b) Understanding Marketings ImpactMarketers must know how their decisions will impact other areas of the

company and others business partners. They must realize that marketing

decisions are not made in isolation and that decisions made by the marketing

team could lead to problems for others.


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c) Technology SavvyTodays marketers must have a strong understanding of technology on two

fronts. First, marketers must be skilled in using technology as part of their

everyday activities. Not only must they understand how basic computer

software is used to build spreadsheets or create slide presentations, but in a

world where information overload is a problem marketers must investigate

additional technologies that can improve their effectiveness and efficiency,

such as multifunction cell phones, GPS navigation services and web-based

productivity applications. Second, marketers must understand emerging

technology and applications in order to spot potential business opportunities

as well as potential threats.

d) The Need for a Global PerspectiveWith Internet nearly any company can conduct business on a global scale.

Yet, just having a website that is accessible to hundreds of millions of people

worldwide does not guarantee success. Marketers selling internationally must

understand the nuances of international trade and cultural differences that

exist between markets.


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e) Information SeekerThe field of marketing is dynamic. Changes occur continually and often

quickly. Marketers must maintain close contact with these changes through a

steady diet of information.

2.4 - The Role of Marketing


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As weve seen the key objective of an organizations marketing efforts is to

develop satisfying relationships with customers that benefit both the

customer and the organization. These efforts lead marketing to serve an

important role within most organizations and within society.

At the organizational level, marketing is a vital business function that is

necessary in nearly all industries whether the organization operates as a for-

profit or as a not-for-profit. For the for-profit organization, marketing is

responsible for most tasks that bring revenue and, hopefully, profits to an

organization. For the not-for-profit organization, marketing is responsible

for attracting customers needed to support the not-for-profits mission, such

as raising donations or supporting a cause. For both types of organizations, it

is unlikely they can survive without a strong marketing effort.

Marketing is also the organizational business area that interacts most

frequently with the public and, consequently, what the public knows about an

organization is determined by their interactions with marketers. For example,


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customers may believe a company is dynamic and creative based on its

advertising message.

At a broader level marketing offers significant benefits to society. These

benefits include:

y Developing products that satisfy needs, including products that

enhance societys quality of life

y Creating a competitive environment that helps lower product

prices

y Developing product distribution systems that offer access to

products to a large number of customers and many geographic

regions

y Building demand for products that require organizations to expand

their labor force

y Offering techniques that have the ability to convey messages that

change societal behavior in a positive way (e.g., anti-smoking

advertising)


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CHAPTER - 3

CORPORATE SOCIAL

RESPONSIBILITY

3.1 - Meaning of Corporate Social Responsibility

There is no single commonly accepted notion of Corporate Social

Responsibility (CSR). CSR means many things but it usually emphasizes on

the concept of sustainable development.

It has been described/defined inmany ways:

y CSR is described as how business takes account of its economic,social and environmental impacts in the way it operates maximizing

the benefits and minimizing the downsides. In other words, it is

about taking responsibility for the impact of our business on all

those who are affected by it.

y CSR is the continuing commitment by the business to behaveethically and to contribute to economic development while


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improving the quality of life of the workforce and their families as

well as local community and society at large

y Business for Social Responsibility suggests the idea of CSR relatesto business-decision making linked to ethical values, compliance

with legal requirements and respect for people, communities and

the environment, in a manner that meets or exceeds ethical, legal,

commercial and public expectations, that society has of business.

Under these and most other definitions CSR is essentially about what

organizations do, how they do it and the impact of their behavior on the wider

society. It focuses on a variety of issues ranging from actions in the

workplace and marketplace to questions such as community investment,

environment impact, business ethics and human rights.

Thus CSR can be summed up as follows:

y A voluntary activity in excess of legal compliancey Acting in an ethical values


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y Creating positive working environment for employeesy Giving back to the local community and the society at largey Minimizing the adverse impact of the operations of the company on the

environment

3.2 - Social Responsibility in Marketing

The societalm

arketing concept calls uponm

arketers to build social

responsibilities among society into their marketing practices. It stresses

the need for an organization to balance three factors while taking

marketing decision: Consumer satisfaction + Companys profit +

Societys well-being. In other words, firms should not just make consumer

satisfying goods but also environmental friendly and consumer health

oriented products. Because of marketing, consumers can enjoy new and

better varieties of goods and services which increase their standard of living.

It generates employment, improves quality and reduces costs by way of

research and development and stiff competition in the market. It creates

utility, and also enhances economic growth by ensuring optimum and

judicious utilization of available resources.


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An organization can create a positive impact on the society if it produces

products that are useful to society and do not harm it. Organizations seriously

started considering their responsibility towards society, around forty years

ago. They have realized that organizational social commitment comprises of

four types of responsibilities. They are economic, legal, ethical and

philanthropic responsibilities. Although these four categories of

responsibilities have existed for decades, ethical and social dimensions have

gained increased significance in recent years. Firms are established largely to

offer goods and services to people and their aim is to maximize profits. In

their profit maximizing efforts, their responsibilities towards society are

almost forgotten. As consumers now realize the need to protect environment

and society, companies are also forced to realize their responsibilities towards

society and environment. Most marketing organizations do not intentionally

work in isolation from the rest of society. Instead they find that greater

opportunity exists if the organization is visibly accessible and involved with

the public. As weve seen, because marketing often operates as the public

face of an organization, when issues arise between the public and the

organization marketing is often at the center. In recent years the number and


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variety of issues raised by the public has increased. One reason for the

increase is the growing perception that marketing organizations are not

just sellers of product but also have an inherent responsibility to be more

socially responsible, including beingmore responsible for its actions and

more responsive in addressing social concerns.

y Being socially responsible means an organization shows concern for

the people and environment in which it transacts business. It also

means that these values are communicated and enforced by everyone in

the organization and, in some cases, with business partners, such as

those who sell products to the company (e.g., supplier of raw material

for product production) and those who help the company distribute and

sell to other customers (e.g., retail stores).

y In addition to insuring these values exist within the organization and its

business partners, social responsibility may also manifest itself in the

support of social causes that help society. For instance, marketers may

sponsor charity events or produce cause-related advertising.

y Marketers who are pursuing a socially responsible agenda should bear

in mind that such efforts do not automatically translate into increased


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revenue or even an improved public image. However, organizations

that consistently exhibit socially responsible tendencies may eventually

gain a strong reputation that could pay dividends in the form of

increased customer loyalty.

3.2.1 - IMPACT ON INDIVIDUAL CUSTOMER

Consumers are becoming increasingly aware of the social commitments of

organizations and some prefer to buy products of those firms that are socially

responsible. Organizations are gradually realizing that following unethical

practices for short-term gains, would spoil a companys image in the long run

and the costs incurred in becoming socially responsible would improve

organizational sustainability in the long run. Firm must give maximum

importance to the customers they are serving. Consumer needs and their

purchasing power should be kept in mind while developing products and

services. Products should satisfy the quality requirements of target customers.

Companies must also ensure that they deal with customers in a fair and

respectful manner at all points of contacts. Several companies have been

criticized for misleading customers through advertisements, pricing and


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have banned the use of CFC in any product and processes. They should also

adopt fair practices of employment like, giving equal opportunities to both

men and women of the community, and provide a safe and healthy work

environment for employees along with adequate compensation packages.

A goodmarketingsense, with the corporate bottom line in mind, is still the

single most important motivation for the application of ethics in marketing.


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Marketing ethics has come to mean the concern over the three major

stakeholders in the conduct of business: the company, the industry, and

society. These three groups have logically different and differing needs and

wants. Out of these differences, ethical conflicts arise. However, the

inescapable fact remains that ethics plays an important role in the relationship

between a company and the public.

Ethics in marketing can result in positive company reputation and image, as

well as positive customer impression of the company and its products and

services. The ethical marketer knows too well that unethical marketing

practices can only lead to bad company reputation and image, bad publicity,

dissatisfied customers, lack of consumer trust and confidence, and loss of

business or even legal action in the extreme.

A sensible marketer will want to avoid the pitfalls of unethical marketing.

Ethical abuses result in pressure from government watchdogs and social

concerngroups. Marketing irresponsibility will only be meted with negativecontroversy that can very well backfire on the business organization.

Consumer interest groups, professional associations, and self-regulatory


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groups exist precisely to exert influence towards the full practice of ethics in

marketing.

Consumers have heard about corporate social responsibility (CSR) that seems

to embody the essence of ethics in the conduct of business. CSR,

promulgated and implemented by the human resources of a company, can

very well be the umbrella over all ethical functions of a business organization

that considers all stakeholders. The institutionalization of corporate social

responsibility within the corporate structure, and as eventually translated to

marketing, is associated with the changing personal values of individual

managers, as individuals can make a difference (Hemingway and Maclagan,

2004). The marketing discipline has a major contribution to CSR as it can

undertake actions congruent to the organizational and stakeholder desired

norms of ethics (Maignan and Ferrell, 2004).

Good corporate citizenship should be the foremost ethical consideration in

formulating and implementing marketing strategies. This should be the other

bottom line, aside from profits. The underlying factors are truth, honesty,

fairness, and transparency. The ethical marketer will promote an ethical

product that, in turn, will make an ethical consumer. The marketing strategist


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should be responsible in implementing ethics down the line, as he or she has

the power and influence to sway consumer behavior. While general norms

and standards in society determine if a product is good or bad, it is the

ethical marketer that initially made him or her think so.


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ThreeConcepts of Social Responsibility

Profit responsibility-Companies have a duty to maximize profits for their

owners or stockholders.


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Stakeholder Responsibility-Focuses on the obligations an organization has

to those who can affect achievement of its objectives. These constituencies

include customers, employees, suppliers, distributors.

Societal Responsibility- Societal responsibility refers to obligations that

organizations have to the preservation of the ecological environment and

general public.

CHAPTER - 4


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Ethics in Marketing

Some critics argue that the money-making motive of some marketers has

encouraged many to cross the line in terms of ethical business behavior.

Ethics is concerned with what is right and what is wrong. Many people

assume that only actions that violate laws are considered unethical. While it

is true that illegal activity is also unethical, a business activity can be

unethical even though no laws are violated. For instance, some consider it

unethical for marketing companies to aggressively promote unhealthy foods

to children though such promotional practices are generally not viewed as

illegal.

Sometimes the line between what is considered ethical and unethical is

difficult to distinguish since what is right and wrong differs depending on

such factors as nationality, culture, and even industry. For example, many

websites offer users access at no monetary charge to their content (e.g.,

articles, videos, audio clips, etc.) but do so only if users register and provide

contact information including email addresses. Some of these sites then


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automatically add registrants to promotional email mailing lists. Some view

the practice of automatic opt-in to a mailing list as being unethical since

customers do not request it and are forced to take additional action to be

removed from the list (opt-out). However, many marketers see no ethical

issue with this practice and simply view adding registered users to an email

list as part of the cost to customers for accessing material.

4.1-SIGNIFICANCE OF MARKETING ETHICS

Business ethics relate to the behavior of businessman and managers in a

business situation. The manager has to evaluate the impact of his actions on

customers, workers, investors and society at large in terms of business ethics.

If the manager is just and fair in his actions, his behavior will be deemed to

be ethical. The manager has to follow the social norms of ethical behavior

whether he personally likes it or not.

As a part of society, a business is responsible o act credibly and behaves

ethically. The significance of business ethics has arisen in the modern age

because of the impact of marketing practices on customers, employees,

industry , managers and the society as discussed below:


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y SOCIETY. Ethics are a part of the social environment of the country.If a business is careful about the ethical standards, the whole society is

benefited.

4.2 REASONS FOR BEHAVING ETHICALLY IN MARKETING

Marketing executives should practice ethical behavior because it is morally

correct. While this is simple and beautiful in concept, it is not sufficient

motivation for everyone. So lets consider four pragmatic reasons for ethical

behavior:


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y To reverse declining public confidence in marketing. periodically we hearabout false claims in ads, phony list prices, misleading package labels

and infringements of well established trademarks. Though such

practices are limited to only a small proportion of all marketing, the

reputations of all marketers are damaged. To reverse the situation

business leaders must demonstrate convincingly that they are aware of

their ethical responsibility and will fulfill it.

y To avoid increases in government regulation. Business apathy, resistance, ortoken responses to unethical behavior simply increase the probability of

more government regulation. Indeed most of the government

limitations on marketing are the result of managements failure to live

up to its ethical responsibilities at one time or the other.

y To regain the power granted by society. Marketing executives wield a greatdeal of social power as they influence market and speak out on

economic issues. If marketers do not use their power in a socially

acceptable manner, that power will be lost in the long run.


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many customers prefer not to buy products or services of Companies that

have resorted to unethical practices either in the past or at present. Thus, if

Companies do not ensure that their policies and practices are ethical they are

bound to lose potential customers. These customers may also engage in a

negative campaign against the Company.

Practicing ethics in marketing means deliberately applying standards of

fairness, or moral rights and wrongs, to marketing decision making, behavior,

and practice in the organization. In other words, Ethics in Marketingis a

sub-set of business ethics and examines themoral issues relating to

marketing decisionsmade by organizations. In a market economy, a

business may be expected to act in what it believes to be its own best interest.

The purpose of marketing is to create a competitive advantage. An

organization achieves an advantage when it does a better job than its

competitors at satisfying the product and service requirements of its target

markets. Those organizations that develop a competitive advantage are able

to satisfy the needs of both customers and the organization. According to

Kotler, in recent years, people have started questioning the value of

marketing concept, when the world is faced with environmental degradation,


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resource shortages, hunger and poverty and neglected social services. Ethics

are a collection of principles of right conduct that shape the decisions

that people or organizations make.

Marketers must develop ethical standards that are followed by the entire

organization and ensure that these standards are never compromised. A firm

which strictly adheres to these standards without compromising on them for

short-term benefits would definitely find itself in a profitable position in the

long run. Though it might be legal to use children in advertisements, it may

be unethical to use them. Similarly, a pharmaceutical Company can provide

technical details about its products in advertisements, but can hide critical

information about their side effects. In such a case, the Company might not

be breaking any rule, but it will be morally incorrect to deprive customers of

the information which may affect their health adversely. A salesperson of a

financial services company can sell a product to a customer, which does not

suit his needs.

Concerned about the ethical values adopted by organizations is on rise, the

increasing impact of media and the increase in its reach are making

information available to the public, fast. For example, media, on number of


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occasions, has focused attention on alleged exploitative employment

practices of suppliers used by some of the biggest brand names in sportswear.

There is a myth that if a Company acts ethically, its profit objective will be

adversely affected. It actually adds to profitability in the long run. For

example, good safety standards and employment policies can improve

productivity.

Because not all managers have fine moral sensitivity, Companies need to

develop corporate marketing ethics policies-broad guidelines that everyone in

the organization must follow. These policies should cover distributor

relations, advertising standards, customers service, pricing, product

development and general ethical standards. Companies and managers should

apply high standards of ethics and morality when making corporate decisions.

Companies are also developing programs to teach managers about important

ethics issues and help them find the proper responses. They hold ethics

workshops and seminars and setup ethics committees. .

CHAPTER - 5


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Case Studies Relating to Social

Responsibility and Ethics

5.1 CASE STUDY 1:

Organizations following the best business practices are being encouraged

through awards like Business Ethics which include 100 best corporate

citizens who adheres marketing ethics and its responsibility towards society.

One of the leading organization among the list of 100 best corporate citizens

is Hewlett Packard (HP). HPs started its tradition of serving the

community from the year 1939, when its founders Hewlett and Packard

donated $ 5 to charity in their first year of business. Since then HP has been

involved in social welfare activities to improve economic conditions in many

countries across the world. Being a good citizen was among HPs key

corporate objectives formulated in 1957. HP was recognized as philanthropic

leader among global corporations. In 1996, HP and its employees worked in

many ways to enrich communities, improve the quality of life, and promote

economic development around the world. In 1998, HP gave $ 64.8 million in

cash and equipments to not only for profit agencies but also to educational


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institutions worldwide. HP emphasized on the environment by paying special

attention to its own products and operations. As part of its culture, HP

evaluated environmental effects at the earliest stages of its product

development process in order to conserve resources, as well as, prevent or

minimize any adverse environmental impact.

This case study reflects the positive impact of social responsibility. HPs

have gained peoples faith and goodwill of the organization by getting

involved in social welfare activities, thus reflecting the concept of

responsibilities towards society as a whole.

5.2 CASE STUDY 2:

In 1995 the Royal Dutch/Shell faced in tensed public protests over its

decision to dump one of its obsolete oil storage platforms into the North Sea.

Greenpeace activists gathered in large numbers on April 29th 1995, the day

the Company has planned to sink the platform in the sea. They protested

against the move, contending that it would pollute the environment. The

international media extensively covered the protest. Shell immediately took

the matter to court, seeking legal protection. The court passed its judgments


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in favor of Shell. Subsequently, Shell forcibly removed the activists from its

precincts. For weeks afterwards, Shell took radical steps to prevent

Greenpeace activists from causing any further damage to its plans. The

Company even blasted boats occupied by Greenpeace activists with water

cannons to stop them from entering its premises. Although Shell won legally,

it failed ethically in the eyes of people around the world, as they started

boycotting Shell gas stations. Due to these developments, the Company

announced that it was abandoning its plans to sink the platform in the North

Sea.

After this protest, Shell has understood the societal responsibilities and

ethical values and then introduced a new committee called Social

Responsibility Committee. He reviewed the policies with respect to the

statement of general business guidelines and the groups policy and

commitment concerning health, safety and environment.

From the case study, we have come to know that by going against the will

of society and polluting the environment, facing back to the social

responsibility, Shell had to face difficult situations losing faith of the

people and also the reputation or goodwill which he has gained.


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side by side shows a positive flow of business which enables a marketer to

not only maximize his profit but also increase the credit worthiness of his

organization and gain goodwill. On the other hand, marketing done in an

unethical manner, not following the laws and regulations, results in losses

and poor reputation, which leads to a long term negative impact on the

goodwill of the marketer. The issue of social responsibility and ethics poses

challenges for marketers. The growing consensus among todays marketers is

that it is important to make commitment to a common set of shared standards

worldwide.

Also from the case studies we have come to know that to be a successful

marketer in the market one must follow business ethics and consider

responsibility towards society. This is profitable not only to the marketer but

also to the society as a whole. So it means a marketing system should sense,

serve, and satisfy consumer needs and improve their standard of living by

taking meaningful decisions keeping in mind the rules and regulations.


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Documents

Social_Responsibility_in_Marketing2