SOCIAL RESPONSIBILITY OF BUSINESS

SOCIAL RESPONSIBILITY

refers to what the business does, over and above statutory requirement, for
the benefit of the society
Social responsibility is voluntary; it is about going above and beyond what is
called for by the law (legal responsibility)
Social responsibility means eliminating corrupt, irresponsible or unethical
behavior that might bring harm to the community, its people, or the
environment before the behavior happens.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

also called corporate responsibility, corporate citizenship, and responsible

business
a concept whereby organizations consider the interests of the society by
taking responsibility for the impact of their activities on customers,
stakeholders, as well as environment
This obligation is seen to extend beyond the statutory obligation to comply
with legislation and sees organizations voluntary taking steps to improve the
quality of life for employees and their families as well as for the local
community and society at large.

SOCIAL ORIENTATION OF BUSINESS

Social responsibility models:
Carrolls model
- Carroll has proposed a three dimensional conceptual model of
corporate performance.
A firm has the following four categories of obligations of corporate
performance:
o Economic
o Legal
o Ethical
o Discretionary
Firm being an economic activity, the main responsibility is economic
along with complying with the legal responsibilities.

The Pyramid of Social Responsibility

Halals model
- Halals return on resources model of corporate performance points
out that a firm can only attempt to unite the diverse interests of
various social groups to form a workable coalition engaged in creating
value for distribution among members of the coalition. Beyond a
certain level of economic activity the social issues at stake become
conflicting.
Ackermans model
There are three phases.
o The first phase is one when top management recognizes the
existence of a social problem and acknowledges the companys
policy by making it an oral or written statement.
o The second phase is characterized by the company appointing
staff specialists to study the problem and provide
recommendations.
o The third phase involves the implementation of the social
responsibility programmes.

FACTORS AFFECTING SOCIAL ORIENTATION

Promoters and top management

Board of directors
Stakeholders and internal power relationship
Societal factors
Industry and trade associations
Government and laws
Political influence
Competitors
Resources
Ethical influence

STAKEHOLDERS AND ITS MANAGEMENT

Responsibility Towards Consumers/ Customers

It has been widely recognized that customer satisfaction shall be the key
to satisfying the organizational goal.
To understand needs and wants of the customers.
To improve the efficiency of functioning of business so as to .
o Increase productivity
o Reduce prices
o Improve quality and services
o Smoothen the distribution system
To undertake R & D, to improve quality and introduce innovative product.
To supply goods at reasonable price.
To provide required after sale services.
To ensure product has no adverse effects on consumers.
To avoid misleading customers by improper advertisement.
To provide sufficient information about product

Responsibility Towards Employees

The successful organization depends to a very large extent on the morale
of the employees.
The payment of fair wages
The provision of best possible working conditions
The establishment of fair work standards and norms
The provision of labour welfare facility.
Arrangement for proper training and education of the worker.
Reasonable and proper chance for promotion
Proper recognition, appreciation and encouragement of skills.
The installation of efficient grievance handling system.
An opportunity for participation in a management decision.
Responsibility Towards Shareholders
A fair and responsible return on the capital invested by them
A part in profit or bonus payment scheme
Political and economical security for investment through stable govt. law
Knowledge about the working of a n enterprise.
Fair amount of dividend or retained earnings.
Voting rights
Responsibility Towards Inter-business
The social responsibility of business include a healthy cooperative
business relationship between diff. businesses.

Prevention of unfair and unethical competition and unfair interference in

the rivals business.
Not to spread false rumors about rivals product.
Not to show unethical advertisement.
Not to create artificial scarcity.
Businessman should adopt better designs, good advertisements, quick
and safe delivery with after sale services, reasonable prices.

Responsibility Towards the State/ Government

It will be a law abiding citizen.
It will pay its dues and taxes other state fully and honestly.
It will not purchase political support by unfair means;
It will sell his goods, commodities and services without adulteration at fair
and reasonable prices, and
It will maintain fair trade practices and refrain from activities like restraint
of trade
Responsibility Towards the Community
Major areas where business can and does contribute towards community
welfare
Taking appropriate steps to prevent environmental pollution and preserve
ecological balance.
Rehabilitation of population disabled by the business.
Assisting in over all development of locality.
Taking steps to conserve scarce resources
Improving the efficiency of business operation.
Contributing to R&D
Development of backward areas
Responsibility in the Field of Industry
Industry/business can help rural areas by introducing self-help and earnwhile-you-learn programmers.
Carpentry, pottery, spinning, weaving, agro-based industry, farming, dairy
farming, poultry and pig rearing, storage, etc., so that increasing
employment could be provided in rural areas.
Identification of areas needing improvement, facilities, skill requirements
and financial assistance may be surveyed by business experts.
Responsibility in the Field of Industry
Industry/business can help rural areas by introducing self-help and earnwhile-you-learn programmers.
Carpentry, pottery, spinning, weaving, agro-based industry, farming, dairy
farming, poultry and pig rearing, storage, etc., so that increasing
employment could be provided in rural areas.
Identification of areas needing improvement, facilities, skill requirements
and financial assistance may be surveyed by business experts.

 Responsibility in the Field of Agriculture

To provide full-time employment to the vast unemployed rural labour
force.
Providing facilities for irrigation, water supply and actual supply of
fertilizers, seeds, pesticides, expertise, and finances.
Housing Facilities

Business can, play its role in changing house-building, extending loans

and financial aid facilities, providing material and manpower support

Transportation
Development of cheap public transport and distribution systems through
improved journey planning and traffic regulation, increased operational
efficiency and utilization of road capacity.
Health and Education
Business organizations also hold a responsibility towards improvement of
the quality of life the people in the community.
Providing water sources for drinking and bathing, improving sewage
disposal system, cleaning dirty areas of the solid waste, reducing
pollution, improving sanitary facilities.
Reduce preventable and water-borne diseases.
They can also distribute free medicines, nutritious food to school-going
children and pregnant mothers, the aged and the sick.
Holding of open camps for operation of minor ailments, eye diseases,
family planning
Industrial Aid to Education in Urban Areas
5 forms of educational aid
Cash contribution to educational institutions;
Scholarship and loans to undergraduate students;
Contribution of material and equipments to educational institutions;
Teaching aids for students and teachers;
Contribution of company manpower;
Social Audit on Factual Assessment
social audit means a comprehensive evaluation of the way a company
discharges all its responsibilities to shareholders, customers, employees,
community and the government.
Towards Input Suppliers
Providing technical know-how and assistance
Providing fair price
Assuring continuous purchase of inputs
Helping them in expansion and development
Towards Bankers and Financial Institutions
Providing correct data and information for project appraisal
Prompt payment of interest

Clearance of the principal amount on or before due date

Towards Market Intermediaries

Providing products quiet in advance

Providing freedom to have price margins
Taking back poor quality products
Training the personnel
Providing freedom in promotional programmes
(Bajaj Finserv, 2013 ; Mr. Krishnaraj Jadav)

VIRALS AND TRENDS IN MARKETING

VIRAL MARKETING

Viral Marketing focuses on content people would feel compelled to pass

around, and as a result, "things that tend to spread in a truly viral way are
things that most clients wouldn't necessarily want their brand to be
associated with, says Bruce Sinclair, a national creative director from Tribal
DDB Canada (a media company that plans, builds and sells client brands by
generating brand demand).
Any strategy that encourages individuals to pass on a marketing message to
others, creating the potential for exponential growth in the messages
exposure and influence
The term viral marketing was coined by Tim Draper and used to describe
the e-mails that aided advertising of products.
Off the Internet, viral marketing has been referred to as word-of-mouth,
creating a buzz, leveraging the media, network marketing. But on the
Internet, for better or worse, its called viral marketing.
All viral marketing initiatives share the goal of turning customers into a sales
and marketing channel.
Also known as:
o

W.O.M. - Word of Mouth Marketing

Edgy gossip / Buzz Marketing

Stealth Advertising

Guerrilla Marketing aka Ambush Marketing

(http://webmarketingtoday.com; http://www.witiger.com)

ADVANTAGES AND DISADVANTAGES

Advantages:
o the opportunity to continuous promotion adjustments
o high credibility
o The time and resources are easily available.
o high efficiency
o low costs
o Cuts thrugh th clutter f traditional advertising, allowing marketers t
effectively reach th audience.
o Unlk traditional advertising viral s nt n interruptive technique.
nstd, viral campaigns work th Internet t deliver exposure v peer-topeer endorsement.
o Viral campaigns, whthr ultimately lkd r disliked, r ftn welcomed
b th receiver. h focus s n campaigns wth material tht consumers
wnt t spend time interacting wth nd spreading proactively.
(www.friendlyconnect.com)
Disadvantages:
o Brand Dilution
- Viral marketing depends upon people not versed in your brand to do the
"selling" for you. It is important to carefully craft a message that is strong
enough to endure misinterpretations or make your communication
brandless.
o Association with unknown groups
- Viral marketing's strength is its potential to spread exponentially from
person to person. During this process, it is possible that your message
could wind up in the hands of and passed on by someone you would
rather not be associated with. The only way to partially counter this is to
ahead of time define and limit what information you make available for
your viral marketing.
o Avoid making purely financial-based offer
- The best viral campaigns work on the principle of value not greed. If you
try to use money as an incentive there is a chance that
1) Your offer will be spammed across the web and you'll be broke and left
with the nightmare of figuring out who gets what
2) Your offer will be perceived as "too good to be true" and won't work at
all.
o Large-scale spam issues
- If done poorly, viral marketing can lead to large-scale spam issues.

(http://www.witiger.com)

6 BASIC PRINCIPLES OF VIRAL MARKETING

1. Gives away products or services - Free is the most powerful word in a
marketers vocabulary. Most viral marketing programs give away valuable
products or services to attract attention.
2. Provides for effortless transfer to others - Viruses only spread when
theyre easy to transmit. The medium that carries your marketing message
must be easy to transfer and replicate: email, website, graphic, software
download.
3. Scales easily from small to very large - To spread like wildfire, the
transmission method must be rapidly scalable from small to very large.
4. Exploits common motivation and behaviors - Clever viral marketing
plans take advantage of common human motivations. Design a marketing
strategy that builds on common motivations and behaviors for its
transmission, and you have a winner.
5. Utilizes existing communication networks - Learn to place your message
into existing communications between people, and you rapidly multiply its
dispersion.
6. Takes advantage of others resources. - The most creative viral
marketing plans use others resources to get the word out.
(http://webmarketingtoday.com)
6 MAIN TYPES OF VIRAL MESSAGES
1. Pass-along - A message at the bottom of an e-mail that prompts the reader

to pass it along (eg. chain letters). The success of this method depends on
how interesting or exciting or believable the message is.
2. Incentivised viral - Offering rewards for providing someone's address. This
can dramatically increase referrals. However, this is most effective when the
offer requires another person to take action.
3. Undercover - A viral message presented as a cool or unusual page, activity
or piece of news, without obvious incitements to link or pass-along. Particular
effort is made to make the discovery of the item seem spontaneous and
informal, to encourage natural memetic behaviour.
4. "Edgy gossip/Buzz Marketing" - Ads or messages that create controversy
by challenging the borders of taste or appropriateness. Discussion of the
resulting controversy can be considered to generate buzz and word of mouth
advertising. - Ads or messages that create controversy by challenging the
borders of taste or appropriateness. Discussion of the resulting controversy can
be considered to generate buzz and word of mouth advertising.
5.

Anonymous matching - This service requires each user to create a

confidential list of friends and acquaintances they are interested in dating. A

match only occurs if the object of their affection reciprocates by logging in and
placing them on their own secret list; thus, each user has an incentive to get
their crushes to visit the site.
6. Guerrilla Marketing - So the principle is that you have less people and less
money for equipment and resources, but by employing particular strategies and
tactics, you can have a significant "effect".
(http://www.witiger.com)
TECHNIQUES USED IN VIRAL MARKETING
1. Giveaways - These offer something exciting or fun. People love to talk
about what they got for free - and will tell others how to get it for
themselves.
2. Videos - A video can offer a viewers a chance to engage in the product
and experience. It can be very fun and entertaining. The more memorable,
funny, or shocking your video is, the more likely it is to go viral.
3. Social Media - It's pretty much impossible to engage in broad-scale viral
marketing without using Facebook, Twitter, YouTube, or any other sources.
These media allow people to easily share your message and greatly
increase the likelihood that it will go viral.
4. Reinforcement - A one-time viral message can be quickly forgotten.
However, having a series of viral messages will strengthen the
effectiveness of your campaign.
(study.com)
MARKETING TREND
A market trend is a tendency of financial markets to move in a particular direction
over time. These trends are classified as secular for long time frames, and
secondary for short time frames.
When the trading market responds to the ups and downs of the prices associated
with investments and securities. The terminology that applies to a market trends is
bull or bear.

The overall direction of trading in the broader market on either a short- midor long-term basis.
Uptrend - trend that moves higher
Downtrend trend that moves generally lower
Short term trends - cycle within the broader trend, sometimes
moving with it and sometimes against it
Long-term bull market- comprised of a series of shorter-term
uptrends and downtrends
(http://www.investorguide.com)

FOUNDATION FOR EFFECTIVE MARKETING TREND

1. Master Goal Setting as a marketer you should know your goals first before
setting up tactics to market your products.
2. Master Measurement - measurement legitimizes your goals.
3. Master Planning - when youve created a marketing plan, trends become
tactics if they contribute to your plans success.
4. Master Execution - working backward creates checks and balances in your
marketing strategy.

4 FACTORS THAT SHAPE MARKET TRENDS

Major Market Forces
1. Governments - Governments hold much sway over the free markets. Fiscal
and monetary policy have a profound effect on the financial marketplace. By
increasing and decreasing interest rates the government and Federal Reserve
can effectively slow or attempt to speed up growth within the country. This is
called monetary policy.
2. International Transactions - The flow of funds between countries impacts
the strength of a country's economy and its currency. The more money that is
leaving a country, the weaker the country's economy and currency. Countries
that predominantly export, whether physical goods or services, are
continually bringing money into their countries. This money can then be
reinvested and can stimulate the financial markets within those countries.
3. Speculation and Expectation - Speculation and expectation are integral
parts of the financial system. Where consumers, investors and politicians
believe the economy will go in the future impacts how we act today.
Expectation of future action is dependent on current acts and shapes both
current and future trends. Sentiment indicators are commonly used to gauge
how certain groups are feeling about the current economy. Analysis of these
indicators as well as other forms of fundamental and technical analysis can
create a bias or expectation of future price rates and trend direction.
4. Supply and Demand - Supply and demand for products, currencies and
other investments creates a push-pull dynamic in prices. Prices and rates
change as supply or demand changes. If something is in demand and supply
begins to shrink, prices will rise. If supply increases beyond current demand,
prices will fall. If supply is relatively stable, prices can fluctuate higher and
lower as demand increases or decreases.
(http://www.investopedia.com)
EXAMPLES OF MARKETING TREND

Relationship Marketing
Marketing Automation
Location-Based Marketing Technology
Virtual Reality
Ephemeral Marketing
The Internet of Things (IoT)