Improved ability to attract and build effective and efficient supply chain relationships. A firm is vulnerable to the weakest link in its suppl y chain.
Like-minded companies can form profitable long -term business relationships by improving standards, and thereby reducing risks. Larger firms can stimulate smaller firms with whom they do business to implement a CSR approach.
For example, some large apparel retailers require their suppliers to comply with worker codes and standards. Enhanced ability to address change. I m p r o v e d c i t i z e n and stakeholder understanding of the firm and its objectives and activities translate into improved stakeholder relations. This, in turn, may evolve into more robust and enduring public, private and civil society alliances all of which relate closely to CSR reputation, discussed above.
Their memories of the socially responsible business will last forever. Advantages for the society Employment. This refers to the overall amount of produce which industry of any country achieves within a time pe riod of a ye a r. The social responsibility of business involves ethics which must be reflected in the philosophy of business organisation. To be effective, a sound ethics must be recognised by top management and reflected in the policies of the fir m.
Members should voluntarily accept it. By offering course in the business ethics in MBA programmes helps in creating conscientious managers with a morally responsible approach to business Disadvantages of being socially responsible to the firm Role of Profit. One of the biggest features addressed by CSR is its intent to cause companies to recognize responsibilities to stakeholders outside of shareholders.
This includes customers, communities, e m p l o ye e s a n d s u p p l i e r s. With CSR, detecting measurable bottom line benefits is a challenge as social and environmental programs are hard to account for with regard to financial gain.
Competitive Disadvantage. One of the most common arguments companies make when indicating reluctance to CSR policies is the disadvantage it causes against companies that do not. In other words, if company A does its part to invest resources to take care of its communities and the environment and company B does not, company B retains its resources, including money, for other business pursuits.
Thus, without strict adherence industry wide, some companies argue that they cannot fall b ehind by putting money into CSR programs. Loss of Focus. A main driver at the onset of CSR was increased interest in making the customer a primary focus of business operations. D a v i d V o g e l p o i n t s o u t i n his "CSR Doesn't Pay" article for Forbes that many companies that abide by CSR guidelines do so more from fear of public backlash than because they believe it is good for long -term business performance.
He adds that most parties generally agree that taking care of customers is good in the long run, but expensiv e requirements in human rights, environmental sustainability and community development are too much to ask of many companies. Growth in marketing activities have resulted into rapid economic growth, mass production with the use of advanced technology, comfortable and luxurious life style, severe competition, use of unhealthy marketing tactics and techniques to attract customers, exaggeration in advertising, liberalization and globalization, creation of multinational companies, retailing and distribution by giant MNCs, etc.
Departmental stores, specialty stores and shopping malls are flooded with useful as well as useless products. These all have threatened welfare of people and ecological balance as well. Particularly giant factories have become the source of different pollutions. Production, Consumption and disposal of many products have affected environment adversely. Economic growth via production and consumption threatens peaceful life of human being on the earth.
Green marketing is an attempt to protect consumer welfare and environment the nature through production, consumption, and disposal of eco-friendly products S. According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe.
Thus, green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Thus "Green Marketing" refers to holistic marketing concept wherein the production, marketing consumption an disposal of products and services happen in a manner that is less detrimental to the environment with growing awareness about the implications of global warming, non-biodegradable solid waste, harmful impact of pollutants etc, both marketers and consumers are becoming increasingly sensitive to the need for switch in to green products and services.
Thus, green marketing is a marketing philosophy that promotes production and selling of pure eco-friendly products with protection of ecological balance. Green marketing involves multiple activities. Green Marketing encourages production of pure products by pure technology, conservation of energy, preservation of environment, minimum use of natural resources, and more use of natural foods instead of processed foods. Efforts of people, social organizations, firms, and governments in this regard can be said as green marketing efforts.
It is necessary that businessmen and users should refrain from harmful products. It has traditionally been seen as a philanthropic activity. And in keeping with the Indian tradition, it was an activity that was performed but not deliberated. As a result, there is limited documentation on specific activities related to this concept.
As some observers have pointed out, the practice of CSR in India still remains within the philanthropic space, but has moved from institutional building educational, research and cultural to community development through various projects. Also, with global influences and with communities becoming more active and demanding, there appears to be a discernible trend, that while CSR remains largely restricted to community development, it is getting more strategic in nature that is, getting linked with business than philanthropic, and a large number of companies are reporting the activities they are undertaking in this space in their official websites, annual reports, sustainability reports and even publishing CSR reports.
Apart from the Tatas, other business groups have also supported good causes. A sample of select 50 companies understudy indicates that over 80 percent companies provide some social programme.
The Companies Act, has introduced the idea of CSR to the forefront and through its disclose-or- explain mandate, is promoting greater transparency and disclosure. It will be interesting to observe the ways in which this will translate into action at the ground level, and how the understanding of CSR is set to undergo a change. Challenges Ahead Although a large number of firms are using green marketing, there are a number of problems which need to be addressed.
One of the main problem is that firms using green marketing must ensure that their activities are not misleading to the consumers or the industry, and do not breach any of the regulations or laws dealing with environmental marketing. Conclusion Green marketing is still in its infancy in India still this study shows that it is offering a number of significant benefits to Indian Market: 1.
Marketers can charge a premium on products that are seen as more eco-responsible. Organizations that adopt green marketing are perceived to be more socially responsible. Green marketing builds brand equity and wins brand loyalty among customers. Most customers choose to satisfy their personal needs before caring for the environment. Social responsibility in marketing involves focusing efforts on attracting consumers who want to make a positive difference with their purchases.
Many companies have adopted socially responsible elements in their marketing strategies as a means to help a community via beneficial services and products.
Interestingly, the philanthropic practice can be a good business tool as well. The research is plentiful. Recyclable packaging, promotions that spread awareness of societal issues and problems, and directing portions of profits toward charitable groups or efforts are examples of social responsibility marketing strategies. For example, a clothing company's marketing team may launch a campaign that encourages consumers to buy a bundle of socks versus just one pair. Using this model, the company can donate a bundle of socks to military personnel overseas or to local homeless shelters for each bundle sold.
As a result of these donations , the company brands itself as socially responsible and charitable, which ultimately attracts customers who are motivated by socially responsible commitments and who want to support the welfare of the community.
Corporate responsibility goes hand in hand with socially responsible practices. For example, administrators, executives, shareholders, and stakeholders must practice ethical behaviors and join the community in promoting responsible marketing efforts.
Solely putting on appearances or greenwashing , the practice of promoting deceptive environmentally-friendly processes or products, indicates to customers that the company is not committed to social responsibility. Instead, such behaviors can ultimately hurt the brand and the company's success. Consumers often can see through gimmicks, slogans, or efforts that are not genuine or effective. Some critics question the concept of social responsibility in marketing, noting that these highly-publicized, expensive campaigns are colorful but highly limited both in scope and in duration , doing little to eradicate the root sources of problems.
They wonder if it wouldn't be more efficient if companies—or consumers, for that matter—just contributed funds directly to charities or philanthropic causes. Certainly, the strategies that seem the most effective are those in which a company finds a way to link its core product directly to its socially responsible endeavor, and also to broaden its efforts.
The popular TOMS label is a case in point. The shoemaker began in with its "one for one" campaign: for every pair of slip-ons or boots bought, TOMS donated a pair of shoes to a child in need. Similarly, for every pair of glasses, it paid for an eye exam and treatment for an impoverished person.
Although TOMS has furnished millions with shoes and eye care, and the buy-one-donate-one model has been adopted by other trendy brands, TOMS' founder Blake Mycoskie received a lot of criticism regarding the materialistic approach to tackling poverty, and even "dumping shoes" to children who perhaps didn't need any. As a pivot to address more underlying issues of poverty, Mycoskie committed to manufacturing shoes in areas around the globe where he donated them.
As of , TOMS reports that it has donated more than 95 million pairs of shoes, aided in , sight restorations, and provided , weeks of safe water. The company also has its eye on improving infrastructure : having expanded into coffee, TOMS donates the proceeds of its sales to building clean-water systems in the communities where the beans are grown. Although an initial investment may be involved to share profits or donate to those in need, social responsibility in marketing promotes an enhanced company image, which can significantly impact profitability and even productivity favorably.
Accessed Dec.
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