Introduction
When you study marketing you learn about some companies that also have goals to ensure that they adopt a corporate social responsibility position.
These types of companies focus on both the short term and long term effects of their marketing process and seek to have corporate social responsibility and sustainability as an important priority in their business dealings.
Contents
Societal marketing concept
In introductory marketing chapters, textbooks often differentiate between the marketing concept and the societal marketing concept.
Firms that have a significant belief in corporate social responsibility tend to be practicing the societal marketing concept. Whereas firms that begrudgingly meet their obligations in terms of environmental and/or charitable work, are still probably practicing the marketing concept.
The difference between the two types of concepts is whether the organization involved really believes that a contribution to society – that is, improving overall society through their existence – is an equal goal to their own profit and growth intention and is equal to meeting the needs of customers.
There are numerous factors that would influence of company to willingly be engaged in socially responsible activities, as well as legislative requirements.
Some of the more common forces to impact a company’s decision to engage in socially responsible actions are the following:
- government legislation,
- customers’ expectations of firms in that industry,
- the extent of costs involved, the type of industry in which they operate,
- potential for a competitive advantage by brand image,
- strength of lobby groups, and
- possible related media coverage (either positive or negative).
It is also a reflection of the overall corporate culture and values of the organization, which is typically derived from top management personnel and their personal values.
Please note that these factors are discussed in more detail in the article on factors driving corporate social responsibility.
As we know as students and practitioners of marketing, many organizations will have a strategic plan that outlines their actions relative to customers, employees and competitors.
It is also common that in a strategic plan a company also will describe its interaction in the communities and environments in which it operates.
In the past, the environmental consideration was primarily to identify potential threats (by their SWOT analysis). However, it is becoming more common to consider how the organization can benefit society and the broader environment. Therefore, more proactive firms are integrating socially responsible goals into their top-level strategic plan.
Philip Kotler proposed the following definition for corporate social responsibility:
- “Raising the level of socially responsible marketing calls for making a three-pronged attack that relies on proper legal, ethical, and social responsibility behavior”.
Legal behavior
The legal behavior mentioned by Kotler is simply observing, following and respecting all the relevant laws for the activity of a certain organization.
For example, the sales process must not mislead customers into buying certain products or services nor should it disparage competitors on false arguments. The legal behavior of an organization usually also addresses other issues such as corporate espionage or bribery.
Ethical behavior
As far as the ethical behavior is concerned, some companies have developed a written code of ethics and ensure that their employees follow those ethical guidelines in every activity they engage in.
To more successfully integrate this into the long-term operations of an organization, a company should seek to build a tradition of ethical behavior over time.
In terms of marketing issues, inaccurate labeling or deceptive advertising would be clearly unethical, but there is still debate on whether advertising to children constitutes ethical marketing behavior.
Sustainability
Sustainability is another concept frequently associated with corporate social responsibility. The ability to meet consumer’s needs without harming future generations, sustainability is now considered as a priority for many companies.
It is becoming apparent in the business community that sustainability needs to be more prominent, particularly as environmental concerns of lobby groups become stronger and more engaged.
Brand image
Reinforcing a sense of social responsibility may lead to raising a company’s or a brand’s credibility and respect. It may be possible for these organizations, who actively demonstrate strong social responsibility behavior to build consumer preference and loyalty, thus differentiating themselves from their competitors.
Some companies have attempted to connect their brand quite strongly to socially responsible activities. One example here is a financial institution in Australia who provides discounted home loans to customers who have environmentally friendly features in their homes.
FAQs on Corporate Social Responsibility and Marketing
What is the societal marketing concept?
The societal marketing concept is a marketing strategy that involves a company making marketing decisions not only based on consumer needs and wants, but also the long-term interests of society. This includes considering factors such as social and environmental impact.
How does the societal marketing concept differ from the traditional marketing concept?
The traditional marketing concept focuses solely on meeting the needs of customers to generate profits. The societal marketing concept, on the other hand, considers an equal goal of contributing to societal good alongside meeting customer needs and pursuing profit.
Why should businesses adopt the societal marketing concept?
Businesses should adopt the societal marketing concept because it can yield long-term benefits such as improved brand image, customer loyalty, and competitive advantage.
Additionally, it’s an ethical approach aligning with modern consumers’ expectations for companies to behave responsibly.
How can societal marketing lead to a competitive advantage?
Societal marketing can lead to a competitive advantage by enhancing a company’s brand image and fostering customer loyalty.
Companies that demonstrate a strong commitment to social responsibility can differentiate themselves from their competitors, leading to increased preference among consumers.
What factors might influence a company’s decision to engage in socially responsible actions?
Factors influencing this decision can include government legislation, customer expectations, costs, industry norms, potential competitive advantages, the strength of lobby groups, and the potential for positive or negative media coverage.
How does corporate culture relate to societal marketing?
Corporate culture plays a significant role in societal marketing. The values and ethics of an organization, often established by top management, will dictate how seriously they consider societal impact in their business strategies, including marketing.
How is societal marketing incorporated into a company’s strategic plan?
More proactive companies incorporate socially responsible goals into their top-level strategic plans. This can involve outlining actions that benefit customers, employees, and the broader community and environment.
What is the definition of corporate social responsibility (CSR) as per Philip Kotler?
According to Philip Kotler, CSR involves a three-pronged approach of observing proper legal, ethical, and social responsibility behavior.
What does ‘legal behavior’ mean in the context of CSR?
Legal behavior refers to a company’s adherence to all relevant laws governing its activities. This includes fair sales processes, ethical competition, and avoidance of practices like corporate espionage or bribery.
How does ethical behavior factor into CSR?
Ethical behavior in CSR often involves companies adhering to a written code of ethics. This might cover diverse areas from accurate labeling and truthful advertising, to fair employment practices.
How is sustainability related to CSR and societal marketing?
Sustainability, which involves meeting current consumer needs without compromising the ability of future generations, is a key aspect of CSR. Many companies are recognizing its importance in maintaining long-term success and societal approval.
Can adopting CSR and societal marketing enhance a brand’s image?
Yes, strong CSR practices and societal marketing can significantly enhance a brand’s image. They demonstrate a company’s commitment to the broader society, which can lead to increased customer respect and loyalty.
How do companies link their brand to socially responsible activities?
Companies often do this by integrating socially responsible practices into their business model or marketing strategy. For instance, offering discounted services to customers who also engage in responsible activities.
How is societal marketing related to customer expectations?
Today’s customers often expect companies to operate responsibly and contribute to societal good. Therefore, a strong commitment to societal marketing can help meet these expectations, fostering customer satisfaction and loyalty.
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