Markets, Marketing & Strategy

Markets, Marketing & Strategy 

MM1F12

11 / May / 2016

Pyramid of Social Responsibility (Carroll 1991)                                                             ____________________                                                                                                                 Desired

Philanthropic Responsibilities                                                                                                            (Be a good corporate citizen, contribute to community and improve quality of life      __________________________________________________                                                      Expected

Ethical Responsibilities                                                                                                                      (Be ethical, do what is right & avoid harm)  __________________________________________________________________                          Required 

Legal Responsibility                                                                                                                       (Obey the law)  ______________________________________________________________________________ Required

Economic Responsibility                                                                                                                   (Be profitable, foundation upon which all others rest)

Friedman (Neo - Classical)                                                                                  Stakeholder View

<---------------------------------------------------------------------------------------------------------> Generating Wealth                                                                             Doing good for stakeholders

Friedman / Neo-classical view:

• Only social responsbility is to engage in activities to increase profits (doing so without deception / fraud)

• If a manager acts socially philanthropically then he is...

1. Reducing returns to shareholders

2. Raising prices for customers

3. Lowering wages for employees

Stakeholder View

• Corporate social responsibility important for brand / reputation / competitive advantage

• Society & business have mutual obligations within a social contract

• All stakeholders NEEDS should be considered

Examples of advanatages of CSR:

- CISCO: Networking Academy (creating shared-value / integration between business & society)

- General Electricl: Ecomagination 

- Marks & Spencer: Plan A

- Toyota: Prius (Fuel-efficient car benefiting environment) 

Porter & Kramer