Real-Time Updates

Business in Action, 4th Edition
with Real-Time Updates
by Bovèe and Thill

Chapter 2

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U.S. consumers are changing the criteria they consider at the grocery store, valuing locally grown products over organic, according to the BBMG Conscious Consumer Report. This new national consumer study on purchasing behavior and social values found that adults have a strongly favorable response to eco-labels and attributes including biodegradable (48% strongly favorable), cruelty free (46%), and locally grown (45%), a measure that falls dramatically for USDA Organic (26%).

The largest indirect employer of Vietnamese workers is the Nike brand. Last December, the company told producers of a U.S. television documentary that there had recently been 10 strikes in its 35 supplier factories; since that time, 31,000 more contract-workers have launched strikes–one over forced overtime and the other for higher pay. Indeed, fully 85% of strikes in Vietnam have taken place in foreign-investment factories producing for export, according to government figures.

That bizarre trailer for a new series about a supermodel-spy-superhero-cyborg-actress named Scarlet, that we featured a while back, turned out to be a marketing hoax just as everybody had suspected. It’s a stealth marketing campaign for a new TV set from Korea’s LG Electronics, with a red back panel.

"They identify your machine whenever you go somewhere… it knows that you’ve been there before," said Daniel Salazar of TechSavies.

He’s talking about cookies–special packets of information the websites you visit send to your computer to identify you and what you’ve done on that site.

Hundreds and hundreds could be stored on your computer.

Citing a lack of interest or priority, 62.5% of companies are not engaged in corporate social responsibility programs according to a study conducted by The Marketing Executives Networking Group (MENG).

These results seem at odds with the fact that 60% of respondents think that corporate social responsibility programs have or will have a positive impact on profitability and overall performance of the company. Additionally, the key opportunities associated with these programs included employee motivation (71%), influencing customer behaviors (54%), growth and innovation (54%) and increased profits (25%).

 

After labeling all its products with a quality seal last year to put the pesticide row behind it, PepsiCo India is again set to roll out a global first. Starting March end, the soft drink company will replace all existing packs of Aquafina, its packaged water brand, with new labels.

Whether it’s Microsoft paying a journalist to edit the company’s entry on Wikipedia or the CEO of Whole Foods giving an anonymous online thrashing to competitor Wild Oats or Sony Corporation funding an "independent" fan blog, deceptive marketing practices on the Internet are a growing problem, new-media analysts say.

On the surface, one might argue, it looks like the business world is headed in a decidedly socially conscious direction.

Coffee giant Starbucks supports fair prices for its coffee growers. Wal-Mart, the department store dynasty, has instituted a number of measures to lighten its environmental footprint. Companies everywhere tout their eco-friendly products and packaging, and public awareness and support for such trends continue to grow.

This list—CRO’s 100 Best Corporate Citizens 2008—matters.

If you think for a minute that it doesn’t, then get on the phone or sit upright at your computer to listen to or read some of the phone calls and e-mails CRO magazine received from irate companies that found themselves MIA from the list or lower in the rankings than they would have liked.

Somewhere in a corporate boardroom or in the compliance officer’s suite, rest assured that an Excel wizard is analyzing the category ranks and studying the algorithm, trying to figure out what Intel (No. 1) did right in Environment or Climate Change, or why a competitor ascended or nosedived this year in the ordering.

According to a new IBM survey, corporate responsibility is now seen as an opportunity for growth rather than a regulatory compliance burden or philanthropic pursuit.

Conducted by IBM’s Institute for Business Value, the global survey of 250 organisations (30 percent of which are situated in the Asia Pacific) found that 68 percent of organisations focused on generating revenue through Corporate Social Responsibility (CSR) activities.