marketing ppt

BCOBM222 Marketing in Action Unit 8: Environmental and Ethical Aspects

Ryan Bytenski (MBA)

BCom., BCom Honors (Cum Laude)., PGDip., M.B.A.

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Ethical and Social Responsibility

Review

Ethical Marketing Principles

1. Transparency: An ethical marketing campaign will reveal all truths about the products to the

customer, including ingredients, components, and production processes.

2. Customer Data Protection: Ethical marketers don't disclose customer information without consent.

The information collected is only used to benefit the customers, e.g. recommending products that

match their previous purchases.

3. Human Rights Compliance: Marketing campaigns should not offend certain population groups by

criticizing their mistakes or flaws.

4. Sustainability: With environmentalism on the rise, companies should show how their products are

sustainable and ethically produced in marketing campaigns.

5. Customer Value: Ethical marketing should aim to bring as much value to the customer as possible

while limiting societal risks.

Ethical Norms

There are 6 ethical values that marketers are expected to uphold, and these are:

1. Honesty: Be forthright in dealings and offer value and integrity.

2. Responsibility: Accept consequences of marketing practices and serve the needs of customers of

all types, while being good stewards of the environment.

3. Fairness: Balance buyer needs and seller interest fairly and avoid manipulation in all forms while

protecting the information of the consumers.

4. Respect: Acknowledge basic human dignity of all the people involved through efforts to

communicate, understand and meet needs and appreciate contributions of others.

5. Transparency: Create a spirit of openness in the practice of marketing through communication,

constructive criticism, action, and disclosure.

6. Citizenship: Fulfill all legal, economic, philanthropic and societal responsibilities to all stakeholders

as well as giveback to the community and protect the ecological environment.

Practices to Ensure Marketing Ethics

Practices to ensure Marketing Ethics:

• Reveal all details of the product to customers.

• Refrain from disclosing customer information

without their consent.

• Avoid deceptive advertisements.

• Only promote products that are safe for

customers to use.

• Offer fair pricing.

• Abide by the state laws.

Benefits of Integrating Ethics into Marketing Strategy

• Moral Marketing Compass: This is especially

important in economic downturns, when unethical

practices become tempting.

• Win-Win Marketing: The focus on customer value

will increase company value.

• Keeps Marketing Legal: Reduces the risk of

cutting corners and turning a blind eye.

• Goodwill: Goodwill and strong reputation among

clients and associates are the benefits which

companies cannot afford to overlook.

• Improved Quality of Recruits and Increases

Retention: A good company attracts good

employees, suppliers, investors, and customers,

who will be happy to help the company to achieve

its goals.

Ethical Marketing Examples: Patagonia

Patagonia "Dont Buy This Jakcet" Campaign

Patagonia, an outdoor clothing and gear company, built its brand

around sustainability and social responsibility. Patagonia's

marketing campaigns emphasize its commitment to environmental

protection, fair labor practices, and transparency in its supply

chain.

In 2011, Patagonia ran an advertising campaign that urged

customers not to buy their jackets unless they really needed them

as a way to promote sustainable consumption. The company was

honest with its customers about the environmental impact of its

products and encouraged them to consider the true cost of their

purchases.

Video: https://www.youtube.com/watch?v=9N_MXCQzASs

Ethical Marketing Examples: The Body Shop’s

The Body Shop's "Forever Against Animal Testing" campaign

The Body Shop launched the "Forever Against Animal Testing"

campaign in 2017, which aimed to end animal testing in the

cosmetics industry. The company was open about the fact that

many cosmetic ingredients are still tested on animals, despite the

availability of alternative methods. The campaign encouraged

customers to sign a petition to ban animal testing in the industry

and raised awareness about the issue.

Video: https://www.youtube.com/watch?v=LTW5VSIBjFg

Main Aspects of Socially Responsible Marketing

• Consumer Orientation: This socially responsible practice teaches that companies should base

policies and operations on a consumer perspective.

• Innovation: Improving products and services in innovative manner improves the experience for

users.

• Value of the Product: A company that produces valuable products and focuses on offering the

customer great pricing, excellent experiences and great customer service will not have to resort to

pushy sales tactics and gimmicks.

• Sense of Mission: A clearly defined corporate mission will help companies be clear about their

plans, goals, and practices.

• Impact on Society: Socially responsible marketers are more focused on providing goods and

services consumers want, gaining feedback for improvement and giving back to the communities

that helped them become who they are.

Social Responsibility Marketing and Impacts

Marketing social responsibility is the process of attracting customers by using an ethical business

structure and supporting popular social causes.

Socially responsible marketing is a long-term investment that affects businesses in many ways,

including:

• Establishing a Brand: Social responsibility establishes a business's brand by representing its

values based on the social cause it chooses.

• Becoming More Competitive: Consumers prefer doing business with ethical companies, by

incorporating social marketing, a company can show consumers it listens to them and responds to

social demands.

• Proving its Commitment: Building trust with a consumer base requires a business to prove that it

follows through on promises.

Social Responsibility Marketing and Impacts

Socially responsible marketing is a long-term investment that affects businesses in many ways,

including:

• Improving Morale and Work Culture: Responsible marketing involves more than growing profits.

It's a matter of the company using its voice ethically.

• Developing Customer Loyalty: Companies that take part in social projects can draw consumers

who care about business ethics.

• Generating a Reputation: When businesses incorporate social marketing, it comes under

increased scrutiny.

• Growing Profits and Business Value: Depending on the social cause, businesses can reduce

operational costs through ethical initiatives.

• Becoming More Appealing to Investors: Investors often prefer to support companies that partake

in socially responsible causes.

What is Marketing Social Responsibility?

Ethical & Social Responsible Marketing Categories Include:

• Children’s Interests: This campaign involves providing social resources and supporting children's

activities, including sports, academics, and toys.

• Healthcare Initiatives: Medical topics personalize marketing campaigns and include topics such as

diabetes, heart health, and Alzheimer's.

• Environmental Friendliness: A universally accepted approach that involves reducing your carbon

footprint and promoting a healthy ecosystem.

• LGBTQ + Support: This social topic can show diversity and inclusivity for liberal markets and

provide a sense of community engagement.

• Food Support Systems: Participating in food bank initiatives and school lunch and breakfast

campaigns shows a dedication to the local community and healthcare.

• Housing Support Structures: This social approach involves supporting non-profits and businesses

with ties to ethical community housing initiatives.

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Sustainable Marketing

Video: https://www.youtube.com/watch?v=kTXCtsEhvRM

Sustainable Marketing

“Sustainable marketing is an approach to marketing that considers the environmental and social

impact of a company's products or services”.

“Sustainable marketing is a purpose-driven practice that works to orientate businesses, brands and

society towards a sustainable future, influencing appropriate awareness, aspiration, adoption and

action across economic and sociocultural systems by taking necessary accountability for its impacts

and opportunities. In doing so, it acts in service of long-term wellbeing for all”.

Principals of Sustainable Marketing:

• Your Plan is Long-Term.

• Your Plan is Consistent.

• Your Strategy is Fully Integrated Across Your Business.

Sustainable Marketing Strategy: Levels

1. Doing Less Bad:

• Focus on change within existing structures or arrangements.

• 3 Attributes:

• Production Conditions: How products are made, (e.g. child labor, working conditions, emissions from production).

• Product Characteristics: What the product contains and what it does, (e.g. CO2 emissions of use, chemicals).

• Exposures and Risks: How product use affects people and the environment, (e.g. VOCs, trans-fats).

• Doing Less Bad doesn’t challenge notions of private consumption or

product ownership.

• Those considerations come with Doing More Good and Doing

Different.

Sustainable Marketing Strategy: Levels

2. Doing More Good:

• Acknowledges that current consumption levels are

unsustainable, usually reflecting on either inequity

between developed and developing nations or the

Earths’ limited resources.

• Doing More Good is focused on promoting sustainable

lifestyles.

• 3 Key Shifts:

• From individual ownership to leasing and sharing.

• From customer focus to external stakeholder focus.

• From sales orientation to an education orientation.

Sustainable Marketing Strategy: Levels

3. Doing Different:

• Focused on promoting sustainable systems

and institutions, in addition to the lifestyles

and products.

• There is an emphasis on promoting and

supporting social enterprise since Doing

Different recognizes that many products

and consumption models need to be

disrupted.

• Marketing can help support the disruptions

that emerge from start-ups focused on

profitable ways of addressing social and

environmental issues.

The 4 C’s of The Sustainable Marketing Mix

• Consumer Solution: Products and services that delight customers while outperforming alternatives

on human health, community impact, and environmental performance.

• Consumer Price: Pricing strategies that reflect full life cycle costs upstream (e.g. sourcing) and

positive impact downstream (e.g. return, re-use, recycle);

• Includes pricing and product strategies for remanufactured products and those serving low- income communities.

• Convenience: Features and benefits that lower the total customer cost for accessing the product or

service, and for returning it in the case of take back programs (e.g. cell phones).

• Communication: Product claims are supported by sound research and made transparent to the

customer.

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Green Marketing &

Greenwashing

Video (Greenwashing): https://www.youtube.com/watch?v=9UkT5At-3Og

Video (Green Marketing): https://www.youtube.com/watch?v=n_kf7bpOk00

Green Marketing

“Green marketing is when a company promotes environmentally friendly or sustainable products

and/or business practices”.

• For example, if your packaging is made from 100% recycled paper products, and you share this in your marketing or brand-building initiatives, this is green marketing.

• Examples of Green Marketing:

• Products are manufactured locally.

• Raw materials are certified to be from sustainable sources.

• People are paid a fair wage and provided with ethical working conditions.

• The company donates a percentage of profits to rainforest rehabilitation initiatives.

• What’s the difference between Green Marketing vs Greenwashing?

• Green marketing is when a company honestly lives up to its green and sustainability claims. It’s honest and transparent. Greenwashing is when a company does not live up to (or is perceived to live up to) its green and sustainability claims.

Greenwashing

“Greenwashing is when a company is (purposefully or is perceived to be) making false claims about its

green and sustainability initiatives.”

• It doesn’t matter if greenwashing allegations are true or false. They can have devastating effects on your business.

• Examples of Greenwashing:

• Claiming your packaging is made from 100% recycled plastic (when it’s not or is less than 100%).

• Saying your product produces no harmful CO2 emissions, but it failed that certification test, or you never submitted for certification.

• Telling the world you have “strong environmental conservation values,” yet you don’t have any environmental standards or initiatives.

• Using words like “certified” when you’re not certified or accredited by a third party.

• Using vague words like eco-friendly, organic, natural, and green without the facts to support these claims.

Greenwashing: Examples

• H&M Clothing Brand: They promoted a “green” men’s shirt made from “100% organic cotton” as a

sustainably made shirt. In fact, we know it takes about 20,000 litres of water to produce cotton, so

critics questioned whether that is still considered an environmentally friendly shirt.

• McDonalds: In 2018, fast-food giant McDonald’s introduced paper straws to be more eco-friendly

and recyclable. However, they were discovered to be too thick for recycling plants to process.

• Ikea: Ikea uses a lot of wood in its products, but in 2020, they were called out for not ethically

sourcing its wood products. It was discovered that they were using illegally logged wood. In their

defense, the wood they purchased was FSC certified, so this case also raised concerns about the

FSC ethics and transparency.

• Ryanair: This discount airline made false claims regarding the emissions of their planes. Ryanair

claimed to be the lowest emission airline in Europe, yet they were proven wrong, and their ads

were pulled.

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Marketing to Children & Elderly

Marketing to Children

• Specific vulnerabilities of children should be taken into account when designing advertisement or

marketing techniques that are likely to be seen by children.

• (Online) Service providers must not design or operate their interface in a manner that deceives children unduly influences them to take a particular action.

• Certain marketing techniques, e.g., personalised marketing, could be inappropriate to use due to the specific vulnerabilities of children.

• Children’s particular vulnerability because of their age or credulity is not to be exploited.

• When general marketing content is addressed to children or is likely to be seen by them, the

marketing purpose should be indicated in a manner that is appropriate and clear for children.

• Children are not to be targeted, urged or otherwise prompted to purchase in-app or in-game

content, and games marketed for free should not require in-app or in-game purchases to play them

in a satisfactory manner.

• Children should not be profiled for advertisement purposes.

Marketing to the Elderly: Best Practices

• Adjust the Relevant Criteria: When selling a product, the basic goal isn’t to sell the product, but

rather, what the product can do for the customer.

• Use Multi-Channel Marketing: Use a multi-channel approach that includes both more traditional

advertising and digital marketing strategies.

• Personalize Their Experience: They value being able to reach a real person for their concerns

and will likely be more comfortable with phone calls over texts or automated chats.

• Retargeting: It allows marketers to continue reaching seniors who have visited a landing page or

expressed interest in a product or service, without ever having followed through.

• Value-Added Marketing: A value added piece can be an objective, informational piece, a small

gift, or something useful like a checklist or a calendar.

• Educate: Older consumers tend to be slower to purchase, so take the time to help your senior

customers understand your product and how it’s used. Because the world and technology have

evolved so rapidly, this is especially important with any products that may not have been around

when seniors were younger.

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The Role of ESG and Purpose

Video: https://www.youtube.com/watch?v=AkbGz3CYvqE

ESG (Environmental, Social, & Governance)

“ESG is a framework that helps stakeholders understand how an organization is managing risks and

opportunities related to environmental, social, and governance criteria”.

• ESG takes the holistic view that sustainability extends beyond just environmental issues.

1. Environmental: Environmental factors refer to an organization’s environmental impact(s) and risk

management practices.

• These include direct and indirect greenhouse gas emissions, management’s stewardship over natural resources, and the firm’s overall resiliency against physical climate risks (like climate change, flooding, and fires).

2. Social: The social pillar refers to an organization’s relationships with stakeholders.

• Includes fair wages and employee engagement and an organization’s impact on the communities in which it operates.

3. Governance: Corporate governance refers to how an organization is led and managed.

• Understand better how leadership’s incentives are aligned with stakeholder expectations, how shareholder rights are viewed and honored, and what types of internal controls exist to promote transparency and accountability on the part of leadership.

Why ESG is Important in the Workplace

ESG create more fulfilling work environments where people can thrive and business can grow.

• Risk Management: ESG factors can be used to identify and manage potential risks that may

impact a company’s financial performance or reputation.

• Competitive Advantage: Consumers and investors are increasingly looking for companies that

are active in sustainability and social responsibility, and companies that do so may be more

attractive to these stakeholders.

• Reputation: A company seen as a leader in sustainability may enhance its reputation and attract

positive attention from stakeholders.

• Innovation: A company that focuses on reducing its carbon footprint may develop new

technologies and processes that are more efficient and cost-effective.

ESG: Environmental Pillar

What Falls Under The Environmental Pillar?

• Emissions such as greenhouse gases and air, water and ground

pollution emissions.

• Resources use such as whether a company uses virgin or recycled

materials in its production processes and how a company ensures

that from cradle to grave the maximum material in their product is

cycled back into the economy rather than ending up in a landfill.

• Similarly, companies are expected to be good stewards of water

resources.

• Land use concerns like deforestation and biodiversity disclosures

also fall under the Environmental Pillar.

• Companies also report on positive sustainability impacts they

might have, which may translate into long-term business

advantage.

ESG: Environmental Pillar

What Falls Under The Environmental Pillar?

• Emissions such as greenhouse gases and air, water and ground

pollution emissions.

• Resources use such as whether a company uses virgin or recycled

materials in its production processes and how a company ensures

that from cradle to grave the maximum material in their product is

cycled back into the economy rather than ending up in a landfill.

• Similarly, companies are expected to be good stewards of water

resources.

• Land use concerns like deforestation and biodiversity disclosures

also fall under the Environmental Pillar.

• Companies also report on positive sustainability impacts they

might have, which may translate into long-term business

advantage.

ESG: Social Pillar

What Falls Under The Social Pillar?

• Under the Social Pillar companies report on how they manage their

employee development and labour practices.

• They report on product liabilities regarding the safety and quality of

their product.

• They also report on their supply chain labour and health and safety

standards and controversial sourcing issues.

• Where relevant companies are expected to report on how they

provide access to their products and services to underprivileged

social groups.

ESG: Governance Pillar

What Falls Under The Environmental Pillar?

• The main issues reported under the Governance Pillar are

shareholders rights, board diversity, how executives are

compensated and how their compensation is aligned with

the company’s sustainability performance.

• It also includes matters of corporate behaviour such as

anti-competitive practices and corruption.

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Thank you! Ryan Bytenski

[email protected]