Ch 16: Marketing and Social Responsibility

What is the current state of consumer optimism and trust? (From the Edelman Trust Barometer)

• Customers are concerned about the lack of control and privacy for their data

• They do not feel optimistic

• Increasingly more people feel that their family will be worse off in 5 years

Should companies speak out on social issues?

86% of the general population expect CEOs to speak publicly on social issues

The risks and rewards of Bud Light’s partnership with Dylan Mulvaney

Dylan Mulvaney was gifted custom beer cans, but Bud Light received a huge backlash and decreased sales

The CEO acknowledged that they have supported LGBT in the past and would continue to, but that they would have beer as their #1 focus

What are the 4 corporate social responsibilities

1. Philanthropic: Be a good corporate citizen

2. Ethical: Be ethical

3. Legal: Obey the law

4. Economic: Be profitable

Triple Bottom Line

Idea that firms should be prioritizing their Social and Environmental Impacts in addition to Financial performance, rather than just profit

What are the 3 components of the Triple Bottom Line

1. Profit: Maximize profits while reducing costs for Shareholders benefit

2. People: Commitment to stakeholders (customers, employees, communities)

3. Planet: Limiting pollution and combating climate change

What do consumers believe about climate change?

61% care about climate change and want to protect the environment, but only 51% believe individual choices drive real change

Consumers expect brands not individuals to lead

What are the 5 types of environmental marketing strategies?

1. Eco-efficiency

2. Environmental cost leadership

3. Beyond-compliance leadership

4. Eco-branding

5. Sustainable value innovation

Eco-Efficiency Strategy

Environmentally friendly practices that also create cost savings

Beyond-Compliance Leadership

Focus on communicating company’s attempts to go beyond others in adopting environmentally friendly practices

Eco-Branding

Create a credible green brand

Environmental Cost Leadership

Firms seek a price premium for their environmentally friendly products

Sustainable Value Innovation

Reshape the industry through creation of differential value for the consumer