Marketing Chapter 3

Chapter 3

1. In corporate social responsibility, the 4 components are economic, legal, ethical and philanthropic.

Economic- be profitable. Profit is the foundation on which all others responsibilities rest.

Legal- Obey to the law. Law is the society codification of right and wrong.

Ethical- Be ethical. Do what is right, just and fair. Avoid harm.

Philanthropic- be a good corporate citizen. Improve the quality of life.

Before doing the CSR, these 4 terms has to be revised. In the example, the Red products campaign can be launched if it gains profit. People buying the product with its characteristic associated with the charity. Therefore, it brings in profit if all the people are thinking of doing charity.

In terms of legal, the charity needs to obey the law. The regulation in the state has to be followed before its run. For example, the red product needs to be registered under the state government so that it can be launched. Besides that, the name charity campaign has to bring in the meaning of charity. The company has to be giving out the donation collected to the Global funds.

In terms of ethical, the products really mean to fulfill the charity purpose. The profit from the product has to be donated out after the name of the charity has been used. The red products in the context do giving out part of its profit to the society although it doesn’t giving out all of the profits.

In terms of philanthropic, the charity campaign is the important events for the company to portrait good corporate citizen. The Red product sold with the name of helping the people in needs. This shows that the company is contributing its resources to improve the society.

By joining a cause related events, the company shows its CSR to the publics. For example, the Red products sold by Oprah and Bono Company in conjunction with the HIV AIDS in Africa. The joining in the events exposed the company name to the society where they are helping the Global Fund in this event. The...