Increasing Social Responsibility

Consumer Protection

Social Responsibility: concern about the consequences of actions on others

Most businesses realize they cannot succeed in the long run if they are not socially responsible

Social Responsibility

The Growth of Consumerism Government Regulation Improving Business Practices

The Growth of Consumerism Consumerism: the organized actions

of groups of consumers seeking to increase their influence on business practices

Consumers as individuals have only a small influence over businesses, but consumers as an organized group have a great deal of influence

The Growth of Consumerism Product Testing Consumer Education Lobbying Consumer Information Boycott: an organized effort to

influence a company by refusing to purchase its products

Government Regulation

Laws and guidelines put into place by the US Government designed to protect the consumer Drinking/smoking age and

advertisements Nutritional Guidelines on packages of

food Consumer Protection Laws

Consumer Protection Laws

Sherman Antitrust Act 1890: prevents monopolies and increases competition

Food & Drug Act 1906: content and labeling of food and formed the FDA

Federal Trade Commission Act 1914: Formed the FTC to protect consumer rights

Robinson-Patman Act 1936: unfair pricing against small businesses

Consumer Protection Laws

Fair Package and Labeling Act 1966: Required packages to be accurately labeled and fairly represents the contents

Consumer Credit Protection Act 1968: require disclosure of credit requirements and rates to loan applicants

Consumer Product Safety Act 1972: set safety standards and formed the CPSC

Consumer Protection Laws

Americans with Disabilities Act 1990: prohibit discrimination and provide equal opportunity for persons with disabilities

Telemarketing and Consumer Fraud and Abuse Prevention Act 1994: prohibit deceptive telemarketing practices and limits and regulates calls made to consumers’ homes

Millennium Digital Commerce Act 1999: regulates use of electronic contracts and signatures

Improving Practices

Code of Ethics A statement of responsibilities for honest and

proper conduct Self-Regulations

Business taking personal responsibility for their actions

Social Actions Donating time and money to social or charity

causes and needs

Responsibilities of the Marketer Product Development and

Management Disclose all substantial risks associated

with a product or service Identify substitutions that change the

product or impact buying decisions Identify extra cost-added features

Responsibilities of the Marketer In Promotions

Avoiding false and misleading advertising

Rejecting high-pressure or misleading sales tactics and promotions

Responsibilities of the Marketer In Distribution

Not exploiting customers by manipulating the availability of a product

Not using coercion Not exerting undue influence over the

reseller’s choice to handle a product

Responsibilities of the Marketer In Pricing

Not engaging in price fixing Not practicing predatory pricing Disclosing the full price associated with

any purchase

Responsibilities of the Marketer In Market Research

Prohibiting selling or fundraising disguised as conducting research

Avoiding misrepresentation and omission of pertinent research data

Treating clients and suppliers fairly