Corporate Social Responsibility & Green Marketing

Idea Behind CSR
Consider the interest of society Taking responsibility of impact of their activities on 
Customer  Supplier  Employee  Share holder  Community  Environment  Future generation

Drivers of CSR 
Ethical consumerism Globalization Social awareness Laws and regulation

CSR Examples
A Social Initiative that brings Together children in need of education & people who can devote little time to teach them. Provided hearing aids to nearly deaf children.

India s biggest benevolent organization
€Tata nagar in Orissa €Health care programme €Child education €Women welfare

Business Benefits of CSR 

Goodwill. Branding. Improved Perception about Company.

UNDERSTANDING SOCIAL RESPONSIBILITY IN MARKETING

‡ Concepts of Social Responsibility 
Stakeholder Responsibility  Societal Responsibility
‡ Green Marketing ‡ Cause Marketing

Stakeholder Responsibility
Stakeholder ‡ A person, group, organisation, or system who affects or can be affected by an organization's actions. ‡ Internal stakeholders :
± Shareholders ± Employee ± Management

‡ External stakeholders: Consumers Suppliers Creditors Competitors Community.

‡

The stakeholder responsibilities often involve moral and citizenship duties requiring collective action. In general the responsibilities of stakeholders separate into four general categories: ± ± ± ± With the firm Among stakeholders themselves Common pool resources (especially nature) The commonwealth

‡

The most obvious instances of stakeholder responsibility involves ‡ The global natural environment ±enviornmental protection The global labour standards ± minimum wages, working hours Basic human rights ±right to live, follow religion, choose occupation etc.

‡

‡

Cause Marketing
The term refer to marketing effort for social and other charitable causes, including in-house marketing efforts by non-profit organizations.

‡ Launched in early 2006, Product Red is an example of one the largest causerelated marketing campaigns to date. Product Red was created to support The Global Fund to Fight AIDS, Tuberculosis & Malaria and includes companies such as Apple Computer, Motorola, Giorgio Armani, and Dell as participants.

Avon
Why do companies engage in cause marketing?

Green Marketing
Developing & Promoting products & services that satisfy customer s want & need for Quality, Performance, Affordable Pricing & Convenience without having a Detrimental input on the Environment.

Evolution of Green Marketing
There are three Phases :
a) Ecological green marketing. b) Environmental c) Sustainable green marketing.

green marketing.

Why green marketing?
As resources are limited& human wants are unlimited ± it is important to utilize the resources efficiently. Growing interest among the consumers regarding protection of environment. Opportunities or Competitive advantage, CSR, Government pressure, Competitive pressure, Cost or profit issues, etc.

Benefits of green marketing
Companies that develop new & improved products & services with environment inputs enjoys the following benefits : 1) Access to new markets. 2) Increased profit sustainability. 3) Enjoy a competitive advantage.

Green Marketing Mix
To use 4 P s of green marketing in an innovative manner is a challenge before the marketer. Product: The objective behind is to Reduce resource consumption & pollution & to Increase conservation of scarce resources.

Price: Most consumers will only pay additional if there is a perception of extra product value. Promotion: There are three types of green advertising 
That show relationship between a Product/ Service & Biophysical Environment. That promotes a Green Lifestyle. That present a corporate image of environmental responsibility.

Place: Where & When to make a product available will have significant impact on the customers. Very few customers will go out of their way to buy green products.

Challenges Ahead
Green products require renewable & recyclable material, which is Costly. Requires a technology which initiates Huge investment in R&D. Majority of customers are Not Aware of green products & their uses. Majority of the consumers are Not Willing to pay a premium.

Some Examples
Napkins & bags are made of recycled paper. Pumped syrup directly from tank instead of plastic which saved 68 million pound/year. CFL lamp saves lots of electricity as compared to ordinary bulb.

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