Cause related marketing
a partnership between a for-profit entity and a non-profit entity
-for-profit benefits by being affiliated with with a good cause
-non-profit benefits by getting resources that they need
Civil society
one in which people adhere to norms of behavior that are somewhat acceptable to everyone involved
Modes of social control
factors that help maintain order and keep people/organizations intact
5 modes of social control
1. ethics
2. laws
3. formal/informal group norms
4. the media
Mylan (Epipen company) example for civil society
social media was the driving force for my land offering a generic version of the epi pen with lower prices -- FTC didn't get involved, a civil society did
Two parts of self regulation/ definition
- Getting together and deciding what is acceptable and what is not for your industry
1. Foster consumer trust and confidence
2. Avoid government intervention
What are the most protected groups of consumers?
Children
Foster consumer trust and confidence examples/information
-CFBAI company products/efforts = company's ways of showing consumers that they're not taking advantage of their children
Avoid government intervention examples/information
Federal Trade Commission bans 75 debt collection agencies -- people were complying to the Better Business Bureau because they were being threatened, so the FTC got involved instead of a civil society being able to solve it
Institutional theory
we as members of an organization exist in a much larger network, and each of these networks and subgroups are characterized by what is acceptable and what is not. when these two groups come together, these norms are somewhat different, and how our social
Example of institutional theory as an organization
when a company based out of the US decides to open up internationally you have to be aware of cultural norms
Ex) IKEA catalog
Logics
organizing principles that guide thoughts, decisions, and behaviors of people and organizations with larger institutional environments-- the set of norms that characterize a group
Ex) DOCA: some people say we need to protect our borders, some say we need
What country is an individualist?
America
What country is a communitarian/collectivist?
Japan
Shareholders vs. stakeholders
America is a shareholder, which means making decisions based off what they want.
Japan is a stakeholder, which means that instead of looking at just the people who gave us the money to run a company, what else are we impacting?
Voting majority vs. consensus
Voting majority (America)- majority rules
Consensus (Japan)- everybody has to agree/disagree
Competitiveness vs. cooperation
Cooperation (Japan)- work together with people to meet a common goal
A values reconciliation example
Tim Galwey & IBM
- don't insult the dominant logic
-they were selling well but losing customer value, so they rewarded the people who had learned the most not the person who sold the most and it shifted from competing for sale to competing for information
Ethics in Business examples
Mini keurigs- burning people, they issued recall but did not take them off the shelves so they had to pay 800k because they didn't remove it
Keurig 2.0- made in incompatible with anything except the certain k-cups which caused extreme backache
*an act of
Code of Ethics components
1. Helps identify acceptable business practices
2. Helps control behavior internally
3. Avoids confusion in decision making
4. facilitates discussion about write and wrong
Verizon example
'up' program - you have have to give them access to your personal browsing/information to get their promotionals
FTC norms for ethical use of consumer information
the FTC has identified the following norms for the ethical use of consumer information
1. notice
2. consent
3. access
4. security
5. enforcement
Notice
disclose collection and dissemination
Consent
obtain consumer consent
Access
provide protocol for consumers' access -- show costumers what information you have
Security
explain the measures you (the company) are taking to protect the customer's information
Enforcement
explain the response you would have if there was a breach of information
Corporate social responsibility (CSR)
a corporation's initiatives to assess and take responsibility for the company's effects on environmental and social wellbeing
Stakeholder theory
says that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm's operation
Sustainability theory
says that socially responsible companies will outperform their peers. It is in a business's best interest to find ways to attack society's ills. It's in their best interest to do good things.
Shared value
When organizational operations benefits society and the bottom line. based on the belief that business and social stakes are increasingly intertwined
CRS share of brand perceptions
42 % of brand feelings are based on CSR efforts
Benefit Corporations
A legally recognized form, a business incorporation, that allows companies to be organized and be focused both on financial and social goals. It allows companies to define success in social terms.
Benefit corporation examples
Patagonia, Kickstar, 2ReWear- shoes you can re-wear
Ben & Jerry's dilemma
A company that prides itself on having a socially responsible mission to the community was offered two offers for selling the company and they had to choose the bigger company with more money rather than the smaller company that stuck to their values, thu
Regulatory/legal matters company examples
Starbucks breaking agreements with Simon mall company by selling Teavana
Wells Fargo- fraudulent actions by the employees because the company's set goals were unattainable
Regulatory agencies
The consumer product safety commissions
Food and Drug Administration
Federal trade commission
Consumer Product Safety Commission
insures that products adhere to acceptable safety regulation and standards
-mini keurig
Food and Drug Administration
enforces safety regulations for food and drug products
Federal Trade Commission
prevents unfair methods of competition in commerce
Bureau of the FTC
bureau of competition
bureau of consumer protection
Bureau of competition
-reviews mergers and acquisitions
-challenges anticompetitive conduct
-promotes competition
-provides information
Bureau of consumer protection
-enforces federal laws that protect consumers
-empowers consumers with information
-communicates with consumers about fraud and identity theft
Foreign corrupt practices act (FCPA)
-prohibits US corporations from making illegal payments to foreign officials
-has been criticized for putting US business at a disadvantage
-has encouraged some countries to implement their own anti-bribery laws
consumer privacy government acts
CAN-SPAM Act: has to do with email marketing
Children's online privacy protection act rule: talks about the things you much do in order to maintain appropriate marketing