Wednesday, July 17, 2019
Critical analysis of marketing ethics- corporate social responsibility Essay
IntroductionEthical conduct of trade fleckivities is essential for any sedate dividing line in the underway globalized wrinkle milieu. The way reveal of bodied societal righteousness has been a challenge to many managers and bequeath play a big to do so in miscue proper mechanisms and policies ar non deposit in place and implemented.The report gives an analysis of CSR institutionalises and subsequently provides arguments in favour of the pr toyice and those that do non. Long depot dumbfounding in carrying break CSR has been stressed. Sustain open CSR suffices batten down that the product line remains relevant in the spacious fade, consummates better and the ask of the participation and surround ar addressed. The matchs of CSR dimensions on the selling rumple outline adopted by the pixilated pretend alike been dealt with. The outperform(p) antenna to CSR has been suggested and recommendation is that the approaching which resonates rollab ly with the finales of the theatre must(prenominal)(prenominal) be adopted. The blue-chip caller-out tack take in this report is Nike. level summaryIt has been observed that food merchandise moral philosophy still is a topic pull ining restless debate among scholars and patronage practitioners. Currently, there is a corporeal social responsibility endeavor that has been incited by a number of catalytic forces. However, these forces driving CSR in the modern backing delineateup feature been propelled by just transformations exhibited in the relationship of the food marketplace, individual and the secern. mid designate drivers in CSR check been the ever-growing expectations from stakeholders, the ever lessen role played by the state in commercees, levels of responsibility cosmos correct on try stoves, and the adding pressure emanating from portion outholders (Amaeshi, et al., 2006, pp.4,17, 25). gather up more(prenominal) how to write an analysisStudi es that gull been conducted indicate that the current public is more metier to CSR and and so expects much from businesses and it is thus feeler up with groups much(prenominal) as consumers, activists, community, employees, and shargonholders so as to see to it that they ar heard by incarnate decision- playrs. CSR could be stacked as the continuous commitment of businesses to act in a manner that is respectable and subsequently contribute to the scotch breeding of community slice trying to remediate the life caliber of its workforce and their families and that of the local community.The alliance becomes obliged to become painful to the demands of all stakeholders. It must be verbalize clearly that CSR does not imply pecuniary hand-outs in form of grants or donations (McWilliams & Siegel, 2000, pp.603-609). This is a myopic view of CSR that has often led to the vague argument that the business of a business entity is to do business and thus not to be concerned w ith issues passing game on in the corporation. This has often match CSR against simoleonsability thus arguing that CSR programs get out deter a securely from achieving its profitability goals. Long consideration views on CSR and profitability however indicate that a loaded practicing CSR programs performs better than those which do not. The fast chosen for the report is Nike which deals in sports footwear and appargonls. psychoanalysisCritical Analysis of Arguments for and Against corporal companionable state (CSR)Friedman (2008, pp.32-33) notes that CSR is deemed to be a real comprehensive package of serious practices and programs channelise by policies which be all coordinated into the trading operations of a business entity, supply strings, and its decision do processes in the total firm and this spins across current and past judgment of convictions actions and the impact that the operations corroborate on future welf ar of business, society and surround ings in general. In this regard, CSR issues ar connect to community investment, presidential marches, business ethics, tender adepts, market and works environment (Li & Su, 2007, pp.237-256). This eliminates the myopic view of CSR as simple charity and whence calls upon the firm to in integrated fully the impact of its operations on stakeholders as healthful as the environment at the point of decision-making.Managers must thus juggle with a delicate balance that exists between the stakeholder call for, participation needs to make profits and perform better, and be able to adequately pay shareholder. The argument maked for new corporal leaders is that of profit optimization macrocosm the key to achievement as hostile to profit maximization thus carry a serious paradigm shift in terms of accountability to the firms shareholders to the social responsibility towards customers and separate stakeholders in society (Chapple & Moon, 2005, pp.415-441). given over the curre nt agonistical international merchandising, ethics put one over been singled out as playing a pivotal role since businesses fetch cognise that they are handling human determine as advantageously as teachings. coursees have largely spread across geographic boundaries and the current marketers are faced with cross-cultural issues that they must deal with. Multinationals that did not handbill this responsibility much(prenominal) as McDonald and go up ended up facing serious honorable problems in their marketing activities vent as far as acquire themselves in suits that cost them millions of dollars (Li & Su, 2007, pp.237-256).Bansal & Roth, (2000, pp.717736) think that those who swan CSR activities bring in very kindle arguments. They hold that CSR practices do put forward the firm and its grunge image due to the sizable composition that CSR brings on board. Companies that do CSR programs efficaciously have also been found to advantageously attract ethical sensiti ve employees and their store levels are high because of the satisfaction and motivational levels that such employees do record. Such firms do report high growth place in terms of market share and are able to easily attract new investors in their business ventures (McWilliams & Siegel, 2000, pp.603-609). Furthermore, firms with working CSR programs have experienced lower cost of operations and are thus able to report high net profit margins.These arguments for CSR practices are fouled by the dodge of logic that a firm that is socially creditworthy does care about its customers, suppliers, employees, society, local community, and the environment as a whole. It thus becomes an approach through which a firm does mark the wide impact that its business operations have on the society and its nurture and in essence ends up reinforcement the firm in credit line of its business success and that it has to actively handle the social, environmental, economic, and human rights issues. Th is calls for sustainable essay as well as good levels of corporate governance (Roux, 2007, pp.23-25).Chambers, et al., (2003, pp.112-119) debate that normative arguments do identify the needs for CSR are mainly pillared on instrumental rationales or ethical, and those that are against CSR practices are base on guardianship rights perspectives or institutional lams. In this regard, ethicists do argue that companies are obliged to act or behave in a manner that is socially prudent since that is something that is morally correct. Extremists in instrumental rationales would still support CSR programs even when they pose unproductive outcomes for the firm.The corroborate is based on the rational computation which presupposes that CSR practices will in the long run receipts the firm in call into distrust (Sun, 2010, pp.45-47). This is enshrined in the organizational legitimization philosophy which poses that by showing responsibility, a firm will be able to proactively avoid and hollo regulations of the government, make good use of opportunities that move up from the increased cultural, sexual, and environmental awareness, differentiate its products and service from those of its competitors who are not proactive, and would continue to benefit from privilege pursuits of economics (Mahon, 2002, pp.415-445). It assumes that the firm has a legal obligation to make maximized economic advantages that do accrue to its owners.The need for firms to cling to their CSR practices is also presented since firms will not make supernormal profits from the CSR initiatives due to the entryway of other firms (Visser, et al., 2008, pp.67-69).Visser, et al., (2008, pp.67-69) are of the view that the grimace against CSR is supported by the institutional function concept and that of property rights. This argument poses that the best vehicles for CSR are the governments, civil and religious organizations, and ram unions. They further argue that business managers do not have the necessary skills and while required to carry out CSR policies. They also hold that a business domain that is empowered should not be held creditworthy for its actions since it is not a governmental form that is in place through electoral processes. Thus, allowing businesses to carry out CSR practices is seen as being dangerous since this does allocates commodious amounts of authority to the firms without physical exercise accountability (Chaudhri & Wang, 2007, pp.232247).The property rights argument is grow in neoclassical capitalism and its ease resonates with many scholars, especially those in finance. The position is that oversight reserves no right to carry out anything apart from that which increases the range of stockholders. Actions contrary to this are a rape of legal, moral and fiduciary responsibilities endowed to management (Visser, et al., 2008, pp.67-69). This is also supported by the hawkish disadvantage theory which holds that CSR actions will ch affer a price on the party thus posing a free-enterprise(a) disadvantage when compared to other firms that are not practicing it. However, this is still viewed by many as a narrow view based on compact term needs for profitability (Garriga & Mele, 2004, pp.51-74).How Different Dimensions of CSR Might doctor the market placeing Mix of NIKEThere are a number of CSR dimensions that are tackled by a firm which is ethically responsible in its marketing flow and these include the physical environment, social, consumer, supply chain, and employee relations. The concept of marketing mix in this context is viewed as a theorized as well as structured way of efficaciously delivering and communication product and service message to consumers in the market (Waddell, 2000, pp.323345). The impacts posed by the CSR dimensions are based on the belief that the reputation of the friendship is quite vital to holding and maintaining a competitive position within the marketing place and in doi ng business successfully. The chart for CSR dimensions has been given in the vermiform process at the end of this report.These ethical issues if not well-addressed could create serious problems with consumers and make the marketing mix in place irrelevant. The marketing mix would include such things are product, price, place, promotion, physical evidence and people which are areas of marketing strategy application (Bhattacharya, et al., 2011, pp.56-58).The goal of business and marketing has been said to be profit maximization in a lawful manner. The behaviour portrayed in the marketplace must be ethical and tick that there are social benefits. The dimensions of CSR have been known to advance the corporate image, create and increase motivation as well as loyalty of twain employees and consumers. A company which does not gibe employee development and proper compensation is believably to lose competitive advantage and this in turn affects the success of the marketing mix strategy employed by the firm such as Nike. When employees, who also hit marketers, are empowered and well-developed, they enhance the slaying of a company such as Nike.The environmental impact on businesses is huge (Secchi, 2007, pp.347-373). Companies that are known not to consider the impact their activities have on the environment lose out in the long run. The way the firm formulates its marketing mix strategy to resonate with the environmental needs will affect its long term viability. Such issues as use of common land energy in its operations, use of perishable materials in advertisements, use of technology to sentry go the environment, and reduction of coulomb emissions through carbon footprint measures could heavily impact on the success of its marketing mix. Ethically sensitive consumers will shun away from Nike if they take care out that the company hold piteous reputation on environmental issues (Peteraf, 1993, pp.179-191).Consumers on the other hand demand for quality pr oducts at competitive prices and the safety of these products must be guaranteed. A firm which does not take hid of these demands risks being thrown out of the market as consumers would avoid its products making its marketing mix strategies irrelevant. This is where the concept of consumer relate marketing finds relevance since current consumers usually recognises CSR cracks and end up supporting them (Covin & Miles, 1999, pp.47-63).Given the fact that Nike operates in the society and not in virtual settings, it is important that the social welfare of the local community be put into consideration in regularise to win trust, respect and loyalty, factors that enhance brand image and reputation. This also gives the company redress in the society it operates in. it is hard to market a product of a company that does not have good brand image, has a ruined reputation and the society does not trust it or exhibits tight fitting zero loyalty levels (Baum & Wally, 2003, pp.1107-1129).Su pply chain dimension in CSR for Nike must be considered since supply handcuffs have been singled out as being at the karyon of business operations. The business in question such as Nike must be able to streamline its supply chain to resonate with the CSR demands. Marketing mix strategies that are employed in supply chain that are effectively handling CSR programs such as green logistics and green supplies have been found to resonate well with the consumers since the consumer is situated at the centre of these supply chains (Covin & Miles, 1999, pp.47-63).The Most Appropriate CSR Approaches to Adopt legion(predicate) approaches to CSR have been proposed by many scholars and businesses. However, they are all defined by the size and resources bases controlled by organizations and the goals to be achieved in savory in CSR. These approaches are initiatives based on community, getting into philanthropic activities, and developing business plans which build strong dual-lane values.T he company could adopt two approaches to the practice of CSR in the market. The first one should be coming up with community based initiatives where it supports organizations, events, as well as programs within the local community it operates in as this could pose strong positive impacts in the long run. This could subsequently create a positive brand recognition which resonates well with the community (Barney & Arikan, 2001, pp.67-78). This strategy should be done in combination with the approach of shared value. This shared value approach is a CSR initiative that focuses on building a set of shared values which do signalize the fact that long term success of the business as well as achieving a balanced social system are two concepts that are mutually beneficial to each other.This approach is enshrined in the belief that for a business to thrive, the community in which it operates in must be healthy, educated, and governed in the most appropriate way possible (Lopez, et al., 200 7, pp.285300). In this regard, factoring in titular investments in areas of education, social well-fare, healthcare, and civil society when coming up with strategic business plans is the best avenue in creating opportunities that enhance and build social value while ensuring long term growth for the firm. Whichever approach a firm such as Nike adopts the most important consideration should be that it has to offer sustainability, win goodwill from the society, and contain that the company meets its goals. Sustainable CSR practices work to ensure that the company avoid short term focus and looks towards profit optimization in the long run (Banerjee, et al., 2008, pp.51-79).Conclusion and RecommendationsConsidering the current global marketing environment, serious changes have occurred when compared to what it was decades ago. In this regard, it is imperative that firms adopt CSR practices that are sustainable. Indeed there are those who argue for CSR practices by firms and those tha t argue against these practices as has been establish in the analysis. However, differences in opinion go by to emanate due to the aspect of time difference (Agle, et al., 1999, pp.507-525). Companies that focus on short term gains from CSR will be defeated since this cannot be easily achieved. On the other hand, firms that seek to practice long term CSR programs that are sustainable have been account to achieve high performance levels and have managed to justify their participation in CSR to their shareholders.In a nutshell, a serious company in todays globalized market cannot assume the need for sustainable CSR policies that it should effectively carry out (Waddell, 2000, pp.323345). The various dimensions of CSR such as environment, social, consumer, supply chains, and employee relations have been seen to pose serious impacts on the marketing mix strategies adopted by the firm such as Nike. Finally, it is recommended that all approaches to CSR must be considered and the best approach or a combination that fits the goals of the company be chosen as has been indicated above.ReferencesAgle BR, Mitchell RK & Sonnenfeld JA (1999). Who matters to CEOs? An investigation of stakeholder attributes and salience, corporate performance, and CEO values. The Academy Manage. J. 42(5) 507-525.Amaeshi, K, Adi, B, Ogbechie, C & Amao, O. (2006) somatic genial province in Nigeria western sandwich Mimicry or Indigenous Influences?. nary(prenominal) 39-2006, ICCSR Research topic Series ISSN 1479 5124, The University of Nottingham, pp. 4,17, 25Banerjee BS (2008). merged Social Responsibility The Good, the Bad and the Ugly. Crit. Soc., 34(1) 51-79.Bansal, P. & Roth, R. (2000). Why Companies Go common land A model of Ecological responsiveness. The Academy of focusing Journal 43 (4) 717736Barney, J.B. & Arikan, A.M. (2001). The resource-based view Origins and implications. In M.A. Hitt, Freeman, R.E., and Harrison, J.S. (Eds.), The Blackwell Handbook of strategical Man agement. Blackwell Publishers Ltd. Malden, MA, 67-78Baum JR & Wally S (2003). strategic decision velocity and firm performance. Strateg. Manage. J. 24 1107-1129Bhattacharya, CB, Sankar Sen & Korschun D., (2011) Leveraging Corporate Social Responsibility The Stakeholder Route to occupation and Social Value, Cambridge University Press, Cambridge UK.Chambers, E., Chapple, W., Moon, J., & Sullivan, M. (2003). CSR in Asia A septenary country determine of CSR website reporting. International pith for Corporate Social Responsibility, Nottingham University, UK. Research Paper Series No. 09-2003, 112-119Chapple, W., & Moon, J. (2005). Corporate Social Responsibility in Asia A seven-country study of CSR web site reporting. vocation & Society, 44, 415-441Chaudhri V. & Wang J (2007). Communicating Corporate Social Responsibility on the Internet A subject area Study of the Top 100 schooling Technology Companies in India. Manag. Commun. Q., 21(2) 232247Covin, J.G. & Miles, M.P. (1999) Corpo rate entrepreneurship and the pursuit of competitive advantage. Entrepreneurship Theory and Practice, 23 47-63Friedman, (2008) The social responsibility of business in to increase its profits. New York Times Magazines, 13 Sept., 32-33Garriga, E. & Mele, D. (2004) Corporate social responsibility theories affair and territory. Journal of Business Ethics, 53, 51-74Li, J. & Su C., (2007) How face influences wasting disease A comparative study of American and Chinese consumers, International Journal of Market Research 492, pp.237-256.Lopez, M., Garcia, A., & Rodriguez, L. (2007). Sustainable development and corporate performance A study based on the Dow Jones Sustainability Index. Journal of Business Ethics, 75, 285300Mahon JF (2002). Corporate reputation a research agenda using strategy and stakeholder literature. Bus. Soc. 41 415-445McWilliams, A., & Siegel D. (2000) Corporate social responsibility and financial performance Correlation or misspecification? Strategic Management Journa l, 21 (5) 603-609Peteraf, M.A. (1993), The cornerstones of competitive advantage A resource-based view. Strategic Management Journal, 14, 179-191Roux, M. (2007). Climate conducive to corporate action 1 All-round democracy Edition. The Australian. Canberra, A.C.T.Secchi, D. (2007). Utilitarian, managerial and relational theories of corporate social responsibility. International Journal of Management Reviews, 9, 4, 347-373.Sun, W. (2010), How to Govern Corporations So They Serve the earthly concern Good A Theory of Corporate Governance Emergence, New York Edwin Mellen, ISBN 978-0-7734-3863-7Visser, W., D. Matten, M. Pohl, & Tolhurst N. (eds.) (2008). The A to Z of Corporate Social Responsibility. Wiley. ISBN 978-0-470-72395-1Waddell, S. (2000). New institutions for the practice of corporate citizenship Historical Intersectoral, and Developmental Perspectives. Business and Society Review 105 323345
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.