Department of Accounting Education

Mabini Street, Tagum City

Davao del Norte
Telefax: (084) 655-9591, Local 116

Big Picture in Focus: ULOc. Define the goals of society, social

issues affecting marketing and the social responsibilities as well
as the basic rights of consumers.

Metalanguage
Since this ULO defines the goals of society, social issues affecting marketing and
the social responsibilities as well as the basic rights of consumers, please
proceed immediately to essential knowledge.

Essential Knowledge
1. MARKETING AND THE SOCIETY

The Goals of the Society

An institution must be able to satisfy the needs of its intended clientele, if it
wants its own needs satisfied.
The society endeavors to raise the standard of living and the quality of life of
its constituents.

Social Issues that Affect Marketing

The Product
Typical complaints:
 Defective products,
 Low quality products,
 Poor service,
 School perceived as “diploma mills”,
 Unsanitary conditions, and
 Harmful chemical in products.

The Price
Cartels control the price to detriment of consumers. Another area of concern
is the price of electricity and telephone services. Customers complain about the
arbitrary and complicated manner of pricing in such service firms.
Distribution System
Too many middlemen involved in the selling of goods; thus unnecessary
jacking up the price of such commodities.
1
 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Another criticism of marketing is its inability to move agricultural products from

places where they are abundant to other areas where they most wanted.

Promotional Activities
Intrusion of consumer’s policy. During elections, the physical landscape
becomes a place for garbage coming from political posters.

The Concept of Social Responsibility

Social responsibility may be defined as the idea that organizations are part
of a society and are accountable to society for their actions.

Consumerism
It refers to the activities undertaken by independent individuals, groups, and
organizations to protect their rights as consumers.
Basic Consumer’s Right
Consumer’s rights cover four (4) basic areas:
 Right to safety means firms must not knowingly sell anything that could result
in personal injury or harm to consumers.
 The right to be informed refers to the freedom of the consumer to review
complete information about a product before purchase is made.
 The right to choose means competition among firms must be free to flourish.
 The right to be heard covers the following:
a. The assurance that the interest of the consumers will receive full
consideration, and
b. The assurance of fair treatment of consumers

Environmentalism
It refers to the organized movement of concerned citizens and government to
protect and enhance people’s living environment.

Government responses
The government has attempted to provide protection to consumers and the
environment in terms of constitutional guarantees and specific laws enacted by
Congress.
Examples:
“The truth Lending Act”

2
 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

“Food and Drugs Act”

“Clean Air Act”

Business Responses
Two options of business:
 Ignore the complaints, or
 Accommodate calls for improvement.

Self-Help: You can also refer to the sources below to help you
further
*Medina, R. (2013). Principles of marketing. Manila, Philippines: Rex Book
Store.
*Kotler, P. (2016). Principles of Marketing. Singapore: Pearson Education ;
South Asia P&E Ltd.

Let’s Check
Questions:
1. Discuss the relationship between business and society. Can one exist without
the other?

2. Relating its existing with society, what must a firm do to achieve its
objectives?

3. Why do the firm’s concern for the society’s present and future well – being is
of equal importance?

4. What social issues affect marketing?

5. Discuss the concept of social responsibility. How may this be applicable to the
marketing activities of large and small firms?

3
 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

6. What is consumerism? Do you agree with issues raised by consumerists?

7. What is environmentalism? How do you think it will affect marketing?

8. What are the basic consumers right?

9. What responses are made by business and government to consumerism and

environmentalism?

10. Give an example of firm’s activities concerning social responsibility.

Let’s Analyze
1. Suppose the pollution caused by a company poisoned the Tsolum River for
decades afterward. The loss to society was a salmon-spawning river and a
safe place for recreation. Our current laws and system have so many
loopholes to make the question of corporate accountability really one of
ethics. Is this the price we pay for freedom? Explain.
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________.

2. How can a commitment to corporate social responsibility (CSR) provide a

company with a competitive advantage on a global level?
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

4
 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________.

In a Nutshell
Question:
Explain why corporate social responsibility is gaining heightened importance for firms
operating with financial objectives.
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________.

Q&A Lists
Do you have any clarifications?
Issues/Questions Answers

Keyword Index
Business Responses Price
Consumerism Product
Distribution System Promotional Activities
Environmentalism Social Responses
Government Responses Society
Marketing