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Q: moral, ethical and social policies of companies ( Answered,   2 Comments )
Question  
Subject: moral, ethical and social policies of companies
Category: Miscellaneous
Asked by: aceshigh-ga
List Price: $20.00
Posted: 30 Nov 2002 04:14 PST
Expires: 30 Dec 2002 04:14 PST
Question ID: 116726
How to people in general base a company's moral, ethical and social
policies when purchasing their products?

Request for Question Clarification by nickyspag-ga on 30 Nov 2002 05:12 PST
Hi aceshigh-ga

Are you asking what effect a company's moral/ethical/social policies
have on people purchasing their products?

Thanks
nickyspag-ga

Request for Question Clarification by mvguy-ga on 30 Nov 2002 07:13 PST
In which part of the world? Consumer attitudes are much different in
some areas than in others.

Clarification of Question by aceshigh-ga on 30 Nov 2002 16:52 PST
Hi nickyspag-ga,
Yes, thats basically what I am looking for.

Hi mvguy-ga,
You are absolutely right.  I am looking for attitudes of Asian
(Indians, Chinese) and Westerners (North American, European) in
general.

Regards,
aceshigh-ga
Answer  
Subject: Re: moral, ethical and social policies of companies
Answered By: umiat-ga on 06 Dec 2002 14:24 PST
 
Hello, aceshigh-ga!

  Your question is an interesting one and centers on questions that
many companies are asking themselves as they consider how best to
market their products. Companies are beginning to realize that
“Cause-related marketing” is a wonderful way to attract consumers who
desire to buy from companies that are concerned about society and the
environment.

 “A number of recent studies have documented that consumers carefully
consider a company's reputation when making purchasing decisions and
that a company's community involvement boosts employee morale and
loyalty.”
 Cause-related marketing caters to this consumer sentiment and is
generally defined as “the public association of a for-profit company
with a nonprofit organization, intended to promote the company's
product or service and to raise money for the nonprofit.”
 The phrase "cause-related marketing" was first used by American
Express in 1983 to describe its campaign to raise money for the
restoration of the Statue of Liberty. American Express made a one-cent
donation to the Statue of Liberty every time someone used its charge
card; the number of new card holders soon grew by 45%, and card usage
increased by 28%.
Read “What is Cause-Related Marketing?” The Foundation Center at
http://fdncenter.org/learn/faqs/cause_marketing.html

 The UK organization, “Business in the Community,” has posted some
general statistics concerning company ethics and influences on
consumer buying. An excerpt follows:
 “Linking with a charity or cause can bring significant benefits for
both the business and the charity or cause. The research has shown a
growing expectation by consumers and acceptance by business, that
business has an intrinsic role to play in the wider community.
Business in the Community research, supported by Research
International has found that:
 *81% of consumers agree that they are more likely to buy a product or
service that is associated with a cause they care about, price and
quality being equal
 *77% of consumers who had participated in a Cause Related Marketing
programme said it had positively changed their behaviour or
perceptions towards the company or brand involved
 *67% of consumers think that more companies should be involved in
Cause Related Marketing.
Read “Marketing with a Cause.” Business in the Community at
http://www.bitc.org.uk/marketing.html

 The 1997 Cone/Roper Cause-Related Marketing Trends Report, “the
authoritative study on CRM,” revealed “an increasing majority of
Americans will reward companies that deal directly with society's
social problems:”
 “When price and quality are equal, 76% of consumers would be likely
to switch to a brand or retail outlet associated with a good cause.
 Americans are significantly more receptive to CRM than ever before.
76% believe it's acceptable for companies to engage in CRM -- a 10%
increase since 1993.
 More than half of those surveyed (59%) want companies to get involved
in improving the quality of life at the local level rather than at the
national level or globally.”
Read “Cause-Related Marketing: Overview.” New York Cares at
http://www.nycares.org/html/corporate.crm.html

 Cause-related Marketing has grown in acceptance particularly since
the tragedy of Sept. 11th. “As The Washington Post put it: "For
hundreds of U.S. companies hawking products including jewelry,
sneakers and credit cards, the Sept. 11 terrorist attacks have
provided an extraordinarily successful marketing tool. And the sales,
which guarantee a portion will go to the American Red Cross or other
charities, have created an unprecedented boost in donations, with
millions of dollars still pouring in from Christmas-related sales of
heart-shaped pins, coffee mugs and 'courage candles,' among others.”
Read “Special Report: A Civil Society,” by Jon VanTil. The
NonProfitTimes (4/1/2002) at http://www.nptimes.com/Apr02/sr2.html

 Asian companies are also considering the value of Cause-Related
Marketing in their strategy to attract consumers. An excerpt from “The
Asian Consumer Market: Identifying Trends and Winning Strategies.”
East Asia Economic Summit 1999 (10/19/1999) at
http://www.weforum.org/site/knowledgenavigator.nsf/Content/The+Asian+Consumer+Market:+Identifying+Trends+and+Winning+Strategies
An excerpt follows:
 “Charles Bergh, Vice-President, ASEAN, Australasia, India, Procter&
Gamble (P&G), based in Singapore, discussed a non-traditional approach
to consumer marketing. He reported that P&G is engaged in
"cause-related marketing", which not only helps it make a difference
to people in its local markets, but makes good business sense too.
Consumers, he said, bond with brands that represent values in which
they believe. That, in turn, helps differentiate the brands from those
that are not the focus of such cause-related marketing strategies. He
gave the example of P&G's "Open Minds" programme that was established
to address the negative impact of the Asian economic crisis on the
region's children, primarily in terms of increasing numbers of school
dropouts as children forgo education for work to help their families.
Education, he added, is a key to breaking the poverty cycle and
improving the quality of life - and a prosperous and healthy customer
base is important for any company.”

“ …increasingly, Asian workers and consumers want and expect business
to take on social responsibilities -not by way of charity, but as part
of business culture.” Read “Why Asian business has to care about
poverty,” by Robert Davies. Business Times (Singapore) (9/2000) at
http://www.pwblf.org/csr/csrwebassist.nsf/content/f1d2b3u4.html

 The results of a significant poll undertaken in 1999 by Environics
International of Canada in association with The Prince of Wales
Business Leaders Forum, which surveyed “25,000 people in 23 countries
in the Americas, Europe, Africa and Asia, including China, Malaysia,
Indonesia, India and Japan” are excerpted below:
 “The poll asked the public about their attitudes towards the
responsibilities of business in society. Across all the countries,
over two-thirds of respondents felt that large companies "should be
held completely responsible" for health and safety at the workplace
(79 per cent), avoiding bribery and corruption (75 per cent),
protecting the environment (73 per cent), avoiding child labour (72
per cent) and applying the same standards all over the world (60 per
cent).
Asked about the primary role of large companies in society, 28 per
cent of Malaysian respondents, for example, felt this was "making
profits, paying taxes, providing jobs and obeying the law" but 30 per
cent felt it was "to set higher ethical standards and help build a
better society for all".
The corresponding results for the US were 11 per cent and 35 per cent;
for the UK, 17 per cent and 39 per cent; and for China, 44 per cent
and 31 per cent.
People in Indonesia and India also had high expectations for the
social role of business. Moreover, throughout Asia, there are signs of
a growing trend to take business to task for failing to meet basic
standards of corporate citizenship. Some 38 per cent of Asian
consumers have considered action against offending companies.
Companies operating in Asia are, therefore, faced with a new
challenge: how to integrate social responsibility into the culture of
their business.”
Read “Why Asian business has to care about poverty,” by Robert Davies.
Business Times (Singapore) (9/2000) at
http://www.pwblf.org/csr/csrwebassist.nsf/content/f1d2b3u4.html

 A study by Cavil & Co. evaluated the various factors influencing
Australian consumers in purchasing goods from a particular company. In
a rating system where 10 means maximum positive influence and 1 meant
no influence, the importance of ethics and charitable contributions
were rated as follows:
  Values and ethics – 7.3
  Contributions to charitable or community causes – 6.4
 The highest-ranking reasons behind consumer purchases in this
particular study were:
  Good value for the money – 8.3
  Good customer service – 8.2
  Company located in Australia – 8.0
  Recommendations from trusted acquaintance – 8.0
  Ready availability of products and good access to the company - 7.6
*Therefore, out of 11 variables mentioned, values, ethics and company
social contributions ranked 6th and 7th.
 According to Cavill & Co., “Values, ethics and contribution to causes
can influence consumer purchases, but clearly basic elements of the
marketing mix must be in place. This positive influence will only
occur if people are aware of your values, ethics and contribution to
causes, so start telling people!”
Read “Influencing Consumer Purchases.” Cavill & Co. (no date)  at
http://www.cavill.com.au/Australia/NewBottomLine/Extract5.html
Further in-depth information about this report, and links to order a
copy can be found at
http://www.cavill.com.au/Australia/NewBottomLine/Origin.html
Also refer to the chart which measures consumer preference for buying
a product of the same price and quality from a company with “cause
related marketing” vs. a company without such marketing at
http://www.cavill.com.au/Australia/NewBottomLine/Extract1.html

 ACNeilson Company surveyed 1000 New Zealand consumers 15 years and
older in respect to their purchasing preferences when companies are
involved in ethical and social causes. The results follow:
 Supporting a charity can impact your brand.
 New Zealanders show strong support for cause related marketing
activity
 94% of New Zealanders think it is a good idea for companies to
support
  charities  
 85% of New Zealanders tend to think more highly of companies that
support
  charities
 82% of New Zealanders say they would be more likely to buy products
or
  services from a company that supports a worthy cause (45% feel
strongly about
  this)
 74% would be prepared to change their normal brand or service if a
similar
  brand or service supported a worthy cause
 65% would buy even if they are slightly more expensive (females and
household
  shopper are more likely to agree)  
 62% of New Zealanders can name a company that support a charitable
cause
  (Long term, well-published relationships are more likely to be
remembered
   eg. Westpac Trust Rescue Helicopters and Ronald McDonald House) 
 59% believe it should be standard business practice for companies to
  financially support charitable causes
 Child related causes are perceived as the most worthy (followed by
medical,
  poverty and educational related causes)  
 Employee Loyalty is much stronger in companies that support cause
marketing
 72% of employees working for a company involved in cause activities
have a
  strong feeling of loyalty for that company vs. 55% amongst staff at
companies
  that don't support a charity.
Read “Sponsorship and its Impact on Brands.” ACNeilson Omnibus at
http://www.acnielsen.co.nz/MRI_pages.asp?MRIID=14

Additional Reading
  “Integrating Corporate Social Responsibility with Competitive
Strategy,” by Dan O’Brien. Georgia State University (2001) at
http://www.bc.edu/centers/ccc/Media/2001_mbawinner.pdf

 I hope the above information helps to answer your question! Let me
know if I can be of further help.

umiat-ga

Google Search Strategy
company ethics influencing consumer purchases
cause related marketing
+asian consumers +cause related marketing
+asian consumers +ethical companies
Comments  
Subject: Re: moral, ethical and social policies of companies
From: shananigans-ga on 30 Nov 2002 22:58 PST
 
I'm not sure the kind of information you want will be out there, but I
thought you might be interested in my own spending habits (I'm in
Australia, by the way).

Firstly, I don't buy clothes from any company who uses sweatshop
labour, or who have not had it confirmed that they *don't* use
sweatshop labour. Secondly, I won't buy from companies who test things
on animals, or from companies who do not have a policy that involves
never using, or phasing out the use of, genetically modified
ingredients in food or anything else. I'm also vegetarian, so I avoid
animal products of all kinds except eggs from 'happy chickens'.

Needless to say, this takes a lot of effort, and I carry around a lot
of little booklets whenever I go shopping! The point I'm trying to
make is that despite not experiencing real poverty myself, and not
being in a country where real poverty is 'in my face' everyday, I
still make choices that hopefully make the world better for the abused
and exploited.
Subject: Re: moral, ethical and social policies of companies
From: aceshigh-ga on 01 Dec 2002 06:24 PST
 
Thanks shananigans-ga.  
Your comments are helpful, but I am looking for more general
information rather of those of one individual.

I do however appreciate your input.

Regards,
aceshigh-ga

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