The ultimate goal of many businesses is profit maximization; however, in pursuit of this goal, firms are required to fulfill different obligations and responsibilities to other players in the economy such as consumers and the government. Social responsibility is when a business invests in the welfare of the community. For example, by promoting environmental conservation or nurturing talents in their areas of operation, businesses give back to the society. Traditionally, social responsibility was primarily viewed as an act of generosity; however, more and more companies are embracing it as a marketing tool. Ethical and Social responsibility practices affect consumers behavior; businesses could, therefore, leverage it to drive up sales and increase the visibility of their brands.
Industrialization has created social and environmental issues such as pollution and mistreatment of workers. This has attracted the attention of the media, politicians, and academia. The focus has, in turn, increased consumer social consciousness. According to Harris and Freeman (2008), it is damaging for companies to ignore social responsibility because the role of businesses in the society has shifted from profit making to how responsibly a business acts towards other players in the players economy. The effect of the increase in social consciousness is that customers will factor social value in their buying choices; customers are more likely to look for brands whose principles reflect their own values. This effect is already being seen in different surveys. In a 2015 survey, which involved more than 30, 000 consumers from 30 countries, 66 percent indicated they are willing to spend more on products from firms that show social commitment (Komornicki, 2015). As more attention is given to corporate behavior, social consciousness among consumers can only increase.
Delegate your assignment to our experts and they will do the rest.
Ethical and social responsibility is a way of increasing the visibility of a business by engaging the society. Through participation in community projects, a firm can get the media and the general public talking about its products. Positive coverage by the media specifically projects the brand to a broader audience. On the other side, though person to person advertisement through word of mouth may not reach a big audience like media coverage, they are more effective in influencing a customer's purchasing choices. In another 2015 study, 80 percent of the respondents indicated that they would inform other people about a company’s ethical and social responsibility practices (Komornicki, 2015). By incorporating social responsibility in their marketing strategies, businesses get more positive press, thus increasing the value of their brands.
There is a relationship between the level of social responsibility a firm shows, and its sales. In today's world where consumers are socially conscious, ethical and social responsibility is more likely to affect consumer behavior; different studies have proven this assertion. For example, in the 2015 survey, up to 90 percent of the respondents indicated they would boycott a firm's product if they were aware of its unethical practices (Komornicki, 2015). Also, according to Cryer (1997), many consumers consider social responsibility an important factor when making their purchase choices. With that, questions may arise over which particular types of social responsibility carry the most weight in influencing consumer choices. Studies carried out in France and Germany concluded that the types of social responsibility that have the highest impact on consumer behavior are legal, ethical, philanthropic, and economic ethics in that order (Maigan, 2001).This means that firms can leverage social responsibility to influence customer behavior positively.
In conclusion, though the main aim of a business is to maximize profits, it must acts responsibly towards other players in the economy. Today, ethical and social responsibility is not only an act of generosity but also a marketing strategy that businesses can adopt to increase sales and the visibility of their brand. Social responsibility influences consumer behavior, including purchasing trends. This shows that businesses have a lot to gain by embracing ethical and social responsibility.
References
Creyer, E. H. (1997). The influence of firm behavior on purchase intention: do consumers really care about business ethics?. Journal of Consumer Marketing, 14(6), 421-432.
Harris, J. D., & Freeman, R. E. (2008). The impossibility of the separation thesis: A response to Joakim Sandberg. Business Ethics Quarterly, 18(4), 541-548
Komornicki, S. (2015, May 27). Global Consumers Willing to Make Personal Sacrifices to Address Social and Environmental Issues. Retrieved from http://www.conecomm.com/news-blog/2015-cone-ebiquity-csr-study-press-release
Maignan, I. (2001). Consumers' perceptions of corporate social responsibilities: A cross-cultural comparison. Journal of business ethics, 30(1), 57-72
