Social Responsibility & Welfare of Customers
Critics argue that corporate social responsibility (CSR) distracts from the fundamental economic role of businesses. While brands are incorporating social responsibility efforts into their marketing communication strategies, media and industry critics have accused companies of greenwashing human rights and environmental issues. Others argue that social responsibility efforts are an attempt to impose self-regulations and preempt the role of governments as a watchdog over powerful corporations.
Greenwashing
Critics of social responsibility often accuse corporate brands of "greenwashing. "
Despite these accusations, mega brands such as Walmart and Coca-Cola have built social and environmental programs into their overall business agendas. Recent scientific data pointing to climate change and dwindling natural resources, as well as concerns over human rights, have promoted companies to recognize its societal role and act to benefit society at large. It has also been a marketing exercise for business-to-business and consumer companies, as they strive to educate stakeholders on their social responsibility efforts and initiatives. Social responsibility has thus become part of the latest management strategies where companies try to create a positive impact on society, while strengthening their brand image and doing good business.
Social Responsibility
For example, a large information technology (IT) firm can produce IT products that enable instructors in the United States to teach online courses to students residing in poor and developing countries. Developing energy-efficient products made with non-toxic and recyclable materials is another way that brands can generate profit while considering the welfare of society and the environment. In other words, social responsibility drives organizations to discover and satisfy the needs of customers in ways that also provide for society's well-being.
Customer Health and Safety
Ensuring that industrial factories and production sites create safe and reliable products is integral to the trustworthiness and ultimate survival of a brand. Since the beginning of the 20th century, there has been a concerted effort in the United States to implement consumer protection laws related to food, drugs, and cosmetics. The emergence of consumerism during the 1960s intended to increase consumer influence, power, and rights in dealing with corporate institutions.
Today, many of the ethical issues arising from consumer health and safety concerns have led to practices that prevent or reduce the frequency of unethical behavior in companies. Organizations are expected to have a "code of conduct" or set of ethical policies that help guide employees, partners and suppliers in safe, legal, and fair business practices. Though organizations establish corporate ethics policies to facilitate the process of recovery in the case of an ethical scandal, it also serves to promote ethical standards throughout the organization. Marketing organizations communicate these values by developing campaigns and programs designed to influence behavior that improves both the consumer's personal welfare and that of society. From providing free leaflets offering "green" tips, to advice on how to safely dispose of electronics, social marketing is fast becoming a competitive advantage in global business.