Transcript Chapter 6 - Amazon Web Services

CHAPTER
6
Community,
Consumerism,
and the Media
PowerPoint Presentation Design by Charlie Cook
© 2014 Routledge, Inc., Taylor and Francis Group. All rights reserved.
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Learning Outcomes
After studying this chapter, you should be able to:
1. Define community and briefly explain the business–community
interrelationship
2. Discuss community relations and community involvement programs
3. Explain differences between customers, consumers, and consumerism
4. Characterize each of the five consumer rights
5. State what the federal consumer protection regulatory agency
acronyms CFPB, CPSC, FTC, FDA, NHTSA, and SEC stand for, and
discuss their regulatory responsibilities
6. Compare and contrast various types of warranties
7. Describe what makes a story newsworthy, including its coverage and
treatment
8. Define key terms in the chapter
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Business–Community Interrelationship
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Business
Community
Economic development
Products and services
Employment and jobs
Careers and training
Taxes
Philanthropy
Infrastructure
Transportation
Public safety
Health care
Education
Employees
Customers
Figure 6.1
Eli Lilly and Company and Its Corporate Social Responsibility
to Community
At Lilly, we’re committed to being a leader in corporate
responsibility, which includes being an active participant
in the communities we serve. We have a robust history
of community involvement and believe we can make an
impact that extends far beyond the medicines we make.
Many of our donations—including those provided
through the Eli Lilly and Company Foundation—focus on
improving access to medicines and quality health care
for millions of people around the globe.
© Copyright Eli Lilly and Company. All Rights Reserved. Used with Permission.
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Community Relations as Public Relations
Community
Involvement Programs
Volunteer
programs
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Philanthropic
resource (inkind) giving
Philanthropic
cash giving
Collaborative
partnerships
Figure 6.2
Standards of Excellence in Corporate Community Involvement
1.
Leadership. Top managers demonstrate support, commitment, and
participation in community involvement programs.
2.
Issues Management. Managers engage in issues management
(Chapter 2) to identify and monitor issues important to the firm’s
operations and corporate reputation.
3.
Relationship Building. Managers build and maintain trust relationships
with the community as part of the firm’s operations and strategy.
4.
Strategy. Managers develop and implement a strategic plan for
community involvement on issues of mutual benefit to the firm and the
community.
5.
Accountability. Managers at all levels have specific roles and
responsibilities for community involvement.
6.
Infrastructure. Managers incorporate systems and policies for
supporting, communicating, and instigating community involvement.
7.
Measurement. Managers monitor and evaluate community involvement
programs and their effect on the firm and the community.
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Consumerism
• Customers buy products from business.
• Consumers use business products.
• Consumerism
 The organized collective efforts to safeguard all
consumers by promoting their rights and power.
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Consumer Rights
The right
to safety
The right to
be informed
The right to
be heard
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The right to
choose
The right to
privacy
Figure 6.3
Major Federal Consumer Protection Agencies
Consumer Financial
Protection Bureau (CFPB)
Food and Drug
Administration (FDA)
Consumer Product Safety
Commission (CPSC)
National Highway Traffic
Safety Administration
(NHTSA)
Federal Trade
Commission
Securities and Exchange
Commission (SEC)
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Warranties
Types of
Warranties
Express
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Implied
Full or
limited
Extended
Service and
shipping
Product Liability Litigation
• Product liability litigation
 The process of a consumer filing a lawsuit against a
firm seeking compensation for harm resulting from
defective products or business actions.
• Negligence
 An unintentional failure to act as a reasonable
prudent person exercising ordinary care.
• Class action lawsuit
 The joining of plaintiffs into a group to litigate a case
against a business, agreeing to one common
judgment or settlement.
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Strict and Absolute Liability
• Strict liability
 The plaintiff (injured party) does not have to prove
negligence when the activity or product is inherently
dangerous.
• Absolute liability
 Strict liability is extended to the unknown for problems
and hazards arising from the product or activity.
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The Cost of Product Liability and Reform
Place the burden of proving liability on
consumers—eliminate absolute liability
Adopt uniform
federal liability
standards
Limit punitive
damages
Reforming
product
liability
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The Nature of the Media
The Media Industry
Broadcasting
technology
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Broadcasting
content
Delivering
services
The Influence of Media on Society
Roles for Media
To provide
news and
information
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To shape
attitudes and
values
To develop
nonmarket
issue agendas
The News Media
Public
interest
Interesting
people
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Newsworthy
coverage
Immediate
or urgent
Controversy
or conflict
Social
significance
Easily
told
Treatment of Newsworthy Stories
Types of treatment
of stories
Factual
stories
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Interpretation
stories
Implication
stories
Advocacy
stories
Business Nonmarket and Market Strategies
and Ethics
• Media Relations Guidelines
 Reality (assume everything stated is on the record)
 Tell the truth plainly, admit mistakes
 Tailor advocacy message to audience
 Adopt a society-benefits strategy
 Summarize key points of business side of the issue
 Elaborate positively on key points of the issue
 Follow the three As of the crisis management plan by
acknowledging crisis, stating actions taken, and how
future crisis will be avoided
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Societal Consumer Strategies
American Society
for Quality (ASQ)
Consumer Affairs
Department
Total Quality
Management (TQM)
Six Sigma
Quality
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Customer
Relations
Management
(CRM)
International
Organization for
Standards (ISO)
Ethics and Codes
of Conduct
Key Terms
advocacy advertisements
customers
collaborative partnerships
express warranty
community
implied warranty
community involvement
newsworthy stories
community involvement programs product liability
community relations
product liability litigation
consumer rights
strict liability
consumerism
warranty
consumers
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