12. Future trends in marketing Flashcards
What is the different reasons for businesses to have social responsibilities?
Ethical reasons
- It’s the right thing to do
- Firms should do no harm
- Firms should use their power responsibly
Strategic/Business reasons
- it will maximise profits
- There are opportunities for being sustainable
- There are risk for not being sustainable
Political reasons
- It will protect the system that firms and people rely on to thrive
Firms rely on a healthy economy, society and natural environment
What is the definition of consumer culture?
Marketing that promotes people to purchase more and more products
How does marketing affect climate change?
- It causes the crisis by encouraging rampant, limitless consumption
- It distracts us from the fact that climate change is occurring
What is conspicuous consumption?
The purchase of goods or services for the specific purpose of displaying one’s wealth
What is the definition of consumerism?
A social and economic order that promotes the purchase of products in an increasing amount
What is the definition of overconsumption?
a situation where the resources are being used up too quickly that exceeds the sustainable capacity of the ecosystem.
What are the results of continued overconsumption?
- Environmental degradation
- Climate change
- Biodiversity loss
- Loss of resources (e.g fossil fuels)
- Obesity
- Poverty and financial instability
- Excess garbage and wastage
What is the definition of Corporate Social Responsibility (CSR)?
A company that have to be economically responsible and voluntarily go beyond of what is expected of them ethically in their activities while taking into account the impact of their actions on society.
What are the two types of CSR?
Traditional CSR
- focuses on the risk of not being ethical
- Drivers: image, brand, public acceptance
- A reactive response
Contemporary CSR
- focuses on the reward of being ethical
- Drivers: performance, markets, products
- Proactive response
What are the motivations driving CSR?
Value-driven CSR
- CSR being one of the company’s value
Performance-driven CSR
- Introduced as an economic mission
- To improve its financial performance and competitive posture
Stakeholder-driven CSR
- Presented as a response to the hate the stakeholder groups
What are the 2 tensions in contemporary CSR?
Narrow CSR
- strictly adhering to social responsibilities can be directly shown to impact profitability
Broad CSR
- Long-term investment for the firm for employee productivity and the improvement of society
What are the 4 parts of the Carroll’s 4 part CSR model?
- Discretionary/philanthropic
* not prescribed by society, up to managers - Ethical
* including below, but additional behaviours
and activities not codified into law, but
expected - Legal
* societal laws and regulations under which
business must operate - Economic
* business is the basic economic unit of
society, producing goods and services,
making profits
What is the definition of CSIR?
Corporate social irresponsibility, the actions that don’t lead to a more sustainable society
What are the different ways a product can made ethically?
Deceptive product offerings
- S18 ACL: prohibits misleading and deceptive conduct in trade or commerce
Warranty
- S54: guarantee as to acceptable quality
Product safety
- Consumer rights: Mandatory warning labels
- E,g thermomix was fined due to burns caused by appliance even though product was fine, but the user caused the burn from cooking
What are socially controversial products?
- The debate between protecting minority of abusers vs freedom of majority to have responsible fun in moderation
- It is better to allow it than drive it underground - nudging
