Social responsibility an organizations

obligation to maximize its positive impact

and minimize its negative impact on
society

Social Responsibility

Marketing/Corporate Citizenship

Stakeholders

Marketing Ethics

Cause-Related Marketing

Strategic Philanthropy

The adoption of a strategic focus for fulfilling

the economic, legal, ethical, and philanthropic
social responsibilities expected by stakeholders.

Source: From Archie B. Carroll, The Pyramid of Corporate Social Responsibility: Toward the Moral Management of
Organizational Stakeholders, adaptation of Figure 3, p. 42. Reprinted from Business Horizons, July/Aug. 1991.
Copyright 1991 by the Foundation for the School of Business at Indiana University. Reprinted with permission.

Carrolls Four Part Definition

Understanding the Four Components

Responsibil Societal
ity
Expectati
on

Examples

Economic

Required

Be profitable. Maximize
sales, minimize costs,
etc.

Legal

Required

Obey laws and

regulations.

Ethical

Expected

Do what is right, fair and

just.

Discretiona Desired/

Be a good corporate
citizen.

Principles and standards that define

acceptable marketing conduct as determined
by various stakeholders.

The practice of linking products to a particular

social cause on an ongoing or short-term
basis.

The synergistic use of organizational core

competencies and resources to address key
stakeholders interests and achieve both
organizational and social benefits.
Ads\Strategic Philanthropy.wmv.mp4

The specific development, pricing, promotion,

and distribution of products that do not harm
the natural environment.
Ads\AB0501 Green Marketing - Are Our Work
Environments Green.mp4

Eliminate concept of waste

Reinvent concept of a product
Make prices reflect the cost
Make environmentalism profitable

 Restricts

the free
market goal of
profit
maximization
Business is not
equipped to
handle social
activities
Limit the primary
aim of business

Decrease

business power
Limits the ability
to compete in a
global
marketplace

Addresses social
issues business
caused and allows
business to be part
of the solution
Protects business
self-interest

Limits future
government
intervention
Addresses issues by
using business
resources and
expertise
Addresses issues by
being proactive

Demonstrate a commitment to societys

values and contribute to societys social,
environmental, and economic goals
through action.
Insulate society from the negative impacts
of company operations, products and
services.
Share benefits of company activities with
key stakeholders as well as with
shareholders.
Demonstrate that the company can make
more money by doing the right thing.

Pride Ferrell (2008), Marketing 14th Edition.