Business is not all about making money. Social responsibility is considered the “obligation of an organization’s management towards the welfare and interests of the society which provides it the environment and resources to survive and flourish, and which is affected by the organization’s actions and policies” (Business Dictionary, 2010, par. 1).
Marketers consider the type of packaging appropriate for their products that must conform to ethical standards and environmental safety concerns. Most marketers veer away from packages that are not biodegradable and which can harm the environment such as using styrofoam or plastics. Plastic bags have effects which are endangering the environment at an enormously fast pace, most governmental environmental agencies have recognized the immediate need to take drastic actions to stop or minimize the use of plastic bags.
Firms ultimately recognize that abiding by ethical standards pay off in terms of better financial performance with employees exhibiting higher performance and productivity due to an environment of trust, employees are therefore more loyal contributing to low turnover, and a preponderance for higher investor loyalty, among others. Firms that incorporate policies on ethics and cultural diversity, social responsibilities, the concern for the environment and the community, achieve their organizational goals more efficiently with the support from their various stakeholders.
2- Do you know the difference between needs and wants? When water bottlers develop their marketing strategies, do they concentrate on satisfying their customers’ needs or wants? What about a utility company? A cellular phone provider? A humanitarian agency such as the Red Cross?
Wants are everything individuals like to possess but are not necessarily needed for survival. Needs, on the other hand, are the basic necessities needed by humans to survive. Business organizations recognize that “marketing means working with markets, which in turn means attempting to actualize potential exchanges for the purpose of satisfying human needs and wants” (Kotler, 1980, 21). In this regard, the nature of the product produced by the organization typically manifests whether they are satisfying their customers’ needs to wants.
Water bottlers’ products are generally a basic human need – water for survival. The strategies of water bottlers would be focused on satisfying the customers’ needs.
A utility company provides electricity, water, or gases which are all basic needs. Therefore, their marketing strategies also emphasize the satisfaction of the customers’ needs.
A cellular phone provider designs marketing strategies that satisfy the wants of the customers more than needs. Cellular phones are considered items that are not basic necessities and are therefore not needed for survival.
Finally, a humanitarian agency, such as the Red Cross, designs marketing strategies based on customer’s needs. The agencies’ thrust is to provide service which would improve the health condition of individuals who are compromised in terms of good health status. The focus, therefore, is to enhance the information on their services to benefit the public and address their health dilemmas.