Question

Some companies have built a business model on social responsibility. Some see “social responsibility” as a need component for marketing in the future. Specifically, knowing what you now know about consumer-buying behavior, is “socially responsible” a determinant for future success, or just a trend? State the opposing arguments to social responsibility being a determinant for marketing success or a trend; compare and contrast these arguments in terms of benefits and detrimental effects on individuals, businesses, and the societies or nations in which they function. Finally, evaluate the arguments, supporting your stance for one argument over the other.

Answer 1

Socially responsbile has become a buzzword among many companies these days. Many companies like to advertise that their products have been manufactured through 'socially responsible" methods and the company too, as a whole, tries to project a socially responsible image.

Being socially responsible encompasses many things. It invludes making sure the products are not being made in sweat shops, that child labor is not involved, that the working conditions of the labor is good, that pollution is not being created by the production, that the product doesnt harm the environemnt and much more.

We need to decide whether being socially responsible a positive economic growth driver for a company. Can it be a marketing success.

From the current trends, it is increasingly important to be socially responsbile, especially if targeting the coveted young demographics. Young people are increasingly aware about the environment and how the product was made. From purely a marketing perspective, its very important to be socially responsible and is an important driver of marketing success. Most people are more likely to identify and associate with a company/product which they consider socially responsible.

In terms of the effect of this trend on individuals, its a positive effect only. They feel good associating with such brands and in long term this trend has positive impact on the environment and hence, by extension, on the individual.

Its a double edge sword for a business as they do need to balance being socially repsonsible with costs. Often socially responsible manufacturing incurs higher costs. As long as this balance is maintained, this can be a positive impact on the businesses. If not, it can be negative.

For socities and nations also this is a double edge sword. On one hand reduced pollution, better conditions for those employed etc are definite positive, on the other hand the increased cost of providing these may result in taking away the cost advantage of many developing countries where these companies manufacture. This may result in the companies no longer operating there- resulting in a net loss.