Marketing Communications

578 CHAPTER 16 ETHICAL ISSUES IN MARKETING COMMUNICATIONS

Corporate social responsibility

Companies that want to build an ethical reputation oft en invest in corporate social responsibility

(CSR) , also referred to as ‘corporate citizenship’.^121 CSR is an idea that includes the social, the

economic and the environmental aspects of business activity (‘triple bottom line’). It is the

integration of social and environmental values within a company’s core business operations

and an engagement with stakeholders to improve the well-being of society.^122 It is consistent

with the need to engage eff ectively with a range of stakeholders (stakeholder dialogue). CSR

programmes demonstrate actions that appear to further some social good, beyond the inter-

ests of the fi rm and that which is required by law. For instance, embodying the product with

socially responsible attributes (e.g. pesticide-free, non-animal-tested ingredients) or signals

(e.g. fair trade label) that convey to stakeholders and consumers that the company is con-

cerned about certain social issues. Companies believe that, in developing CSR programmes,

they will build a positive image and reputation for themselves and that consumers, by buying

their products, will support and reward them. Th is implies that companies undertake two

things: eliminating negatives and doing positives ( Table 16.2 ).^123 Companies communicate

about their CSR initiatives as a means to defend their reputation. For instance, an experi-

mental study showed that the use of a CSR claim in times of crisis is more eff ective, i.e. counters

negative publicity, reduces consumer scepticism and leads to better attitudes towards a

company and its products, the longer a company is involved in CSR matters.^124 E ff ective CSR

programmes combine sound business and social responsibility. Th is implies that a company

should identify areas in which it can make a positive diff erence, make (local) media aware of

eff orts in order to enhance the chances of positive publicity, inform employees with the goal

of having them report the company’s good deeds to their families, friends and neighbours,

and invest in advertising to highlight company eff orts.^125

Well-known CSR areas or techniques are cause-related marketing, green marketing and

socially responsible or fair trade marketing. Cause-related marketing is the support of a social

cause that a fi rm generates through fi nancial interactions with its customers. For instance, a

fi rm donates a certain percentage of its income or profi ts to a specifi c non-profi t cause.

Carefully selecting causes can have a positive impact on a fi rm’s sales. Th e impact can be even

greater if a fi rm can fi nd ways to utilise its products and services in the programme (see, for

instance, the Procter–UNICEF case at the end of this chapter). Green marketing is the develop-

ment and promotion of products that are environmentally safe: biodegradable, recycled, etc.

Socially responsible marketing implies selling products that embody certain social ethical

values, such as products free of child labour, produced in companies where trade unions are

allowed, in decent social circumstances, and at fair wages.

Table 16.2 Building an ethical reputation: do’s and don’ts

Image-destroying activities Image-building activities

Discrimination Empowerment of employees

Harassment Charitable contributions

Pollution Sponsoring local events

Misleading communications Selling environmentally safe products

Deceptive communications Outplacement programmes

Offensive communications Support community events

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