Corporat Social Responsibility & Green Marketing

Corporate Social Responsibility & Green

Marketing

Idea Behind CSR Idea Behind CSR

Consider the interest of societyTaking responsibility of impact of their activities on

CustomerSupplierEmployeeShare holderCommunityEnvironmentFuture 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 CSRBusiness Benefits of CSR

Goodwill.

Branding.

Improved Perception about Company.

UNDERSTANDING SOCIAL RESPONSIBILITY IN MARKETING

• Concepts of Social Responsibility

• Green Marketing

Stakeholder Responsibility

Societal Responsibility

• 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:

ConsumersSuppliersCreditorsCompetitorsCommunity.

• 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 cause-related 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” green

marketing.c) “Sustainable” green

marketing.

Why green marketing?

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

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.

Napkins & bags are made of recycled paper.