Part Three
Questions 15-20
Read the following article about marketing and ethics and the questions on the opposite page.
For each question (15-20), mark one letter (А, В, С or D).
Corporate social responsibility and sustainability are ethical choices that companies make about how they do business. Current thinking indicates that, as a society, we are beginning to appreciate more fully that there must be limits to our consumption of natural resources, and that business activities must take greater account of this impact on society and economies, as well as the environment in which we live. It is well documented that the corporate sector is in a position of unparalleled dominance and that the global resources of a rising number of multinational companies dwarf many of the national economies in which they operate.
Market liberalisation and privatisation have created new global markets, and extended the role of the private sector in public services and civil infrastructure projects. As a result, businesses are now heavily involved in public policy issues throughout the world. For these reasons, businesses must be accountable - not just to shareholders but to consumers, employees and other stakeholders. This means that as corporations continue to grow in power, their responsibility grows too, increasing the number of ethical considerations they must face. Companies who ignore this development will increasingly find themselves challenged by different groups of stakeholders questioning the values and practices of businesses.
These issues present major challenges for the role of marketing, and an opportunity for a timely response for individual marketers to consider what this means in their day-to-day work. Marketing is the guardian of the brand, so a company's marketing team must be able to take account of how social and cultural changes impact on the health of the brand. How is this to be addressed by marketers? How widely does marketing engage with the company's stakeholders? A more holistic, inclusive approach across the business is required to safeguard the brand's intangible assets of trust, goodwill and long-term value to the business. Marketers may aim to establish whether they can connect with customers in a way that extends the marketer's role beyond merely communicating the offer to prospective buyers. Marketing's role could well come to be seen more broadly in terms of connecting with stakeholders not only in terms of value, but values.
In a world where intangible assets and corporate reputation are critical components of corporate success, it is inevitable that these newer approaches to marketing are becoming involved with ethics and sustainability issues. It means that marketers can enjoy new opportunities to add value to brands. There are tangible benefits to be gained in product development, innovation and competitive advantage when broader sustainability and ethical considerations are taken into account.
But if marketing is about selling more and sustainability is about consuming fewer resources and producing less pollution, how on earth are marketers supposed to pursue both goals at the same time? Perhaps it's easy to overestimate the depth and scale of the opposition between these goals -and to underestimate the degree to which marketers can align traditional corporate objectives with those of ethics and sustainability. Marketing's core role is to align what the business produces to what the market wants - the route to increased sales.
It all means that the firm must invest money, people and resources only in the things that add value for customers. It requires the business not to waste any effort, money or resources doing things that don't add value for users. Responsible marketing, in other words, is actually all about helping business avoid and eliminate waste, as well as continuing to manage natural or man-made resources. It is an important role for marketers and one that has not been fully recognised or appreciated in terms of potential to create innovative solutions.
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