Social Trends, Social Responsibility, and Making Ethical Decisions in Business - Coursework Example

Social Trends, Social Responsibility, and Making Ethical Decisions in Business The Article The article being analyzed is entitled 10 Social Media Trends for 2011, authored by Hall. In this respect, the article focuses on 10 social media trends for 2011. There are social media strategies that businesses need to apply in order to maintain or possibly improve their performances in the year 2011. These strategies include location-based marketing, video platforms, text campaigns, for cause tweet-a-thons, the move to higher bandwidth [4G], Wordpress-based websites, plug-ins, review sites, (Hall 1) monitoring conversations, and presentation platforms (Hall 2). The article will be analyzed and related to the social trends, social responsibilities and making ethical decisions in business. Social Trends, Social Responsibilities and Making Ethical Decisions in Business The most complex environmental factor for the managers and the owners to influence, forecast and incorporate into the business plan is the aspect of social change. Lifestyles, attitudes and values are among social factors. These factors have influence on the products which individuals buy, the price paid for the product and the effectiveness of a particular promotion. “Social factors influence the products people buy, the prices paid for the products, the effectiveness of specific promotions, and how, where, and when people expect to purchase products” (Althouse et al. 089). The Growth of Component Lifestyles A component lifestyle is a method of lifestyle that is made up of complex collections of instructions and choices (Althouse et al. 089). This means that the individuals are choosing services and products that meet their various interests and needs rather than following the traditional stereotypes (Hair, Lamb and McDaniel 90). In the contemporary world, lifestyle has changed and an individual can be so many things at once such as a banker and at the same time a fitness enthusiast, gourmet, conservationist and a dedicated single parent. Each of the lifestyle is linked to different types of goods and services and they are a representative of a unique market (Althouse et al. 090). Two-Income Families The component lifestyle has evolved because the customer is capable of choosing a number of services and goods and majority of these consumers have the money to perform these options. Two-income families have also grown and they have resulted in the increase of the purchasing power (Althouse et al. 090). Demographic Trends This factor is very important to the managers and it is one of the uncontrollable aspects in the business surroundings. “Demography is the study of people’s vital statistics, such as their age, race and ethnicity, and location” (Althouse et al. 091). In the article, location-based marketing is one of the trends projected in 2011. Applications such as Facebook Places, Gowalla and Foursquare will be used to target the prospective consumers according to their interests and likes. Demographics are very essential because the individual s is the basis of the market. Demographics are also used for the determination of the composition and the size of the workforce. The article provides projections for 2011 and one thing the article takes into consideration is the interests and the likes of the market place (Hall 1). The interests and the likes of the market place are quite different and these interests influence the pattern of the purchasing decisions. The market place is composed of different generations and each generation has its own interests and likes. The likes and interests of these generations will determine the purchase pattern. The generations include Generation Y, Generation X, baby boomers and the older consumers. A look into each generation will provide the outlook of the market and its purchasing capabilities. Generation Y These are individuals born between the years 1979 and 1994. The members of this demographic group are quite large enough to enable them to have a footprint on the society. The marketing impact of this group is significant. Majority of the companies that sell software, videos, toys, and clothing have been benefited from this group. The members of this group were born into an entirely different world from their parents. “The changes in family, the workforce, technology, and demographics in recent decades will no doubt affect their attitudes, but often in unpredictable ways” (Althouse et al. 091). In the article, the future projections indicate large use of the video platforms. These video platforms will be more business focused. Technology changes are very rampant in this generation. The changes will affect the attitude of the consumers in many unpredictable ways (Althouse et al. 091). The generation leads a quiet life and they spend their time hanging with friends, listening to music, watching TV, dining out and going to movies. High-action activities such as motorcycling and tennis are rarely participated by this group. Majority of them are pragmatic, value oriented, like convenience, impatient, family oriented, inquisitive, opinionated, diverse, time managers and street smart (Hair, Lamb and McDaniel 76). This group demands the latest trends in the market and is brand and fashion conscious (Althouse et al. 092). Generation X These are people born between the years 1965 and 1978. This is the first generation of dual career households and half of the cases are from separated or divorced parents. The generation has been bombarded by the media since their early stages of development and thus they are cynical and savvy customers. The generation X spending varies and it is mainly found in these areas; housing, food and transportation (Althouse et al. 092). Baby Boomers There are people born in the late 1940s and in the late 1960s. The group likes convenience and as a result there has a growing demand for the following items; furniture, large appliances, and groceries. This generation encouraged the emergence of businesses and raised their children in a style that they would think for themselves. The business provided the baby boomers a wide variety of customized products; furniture, houses, cars, appliances, vacation, clothes, leisure time, beliefs and jobs (Althouse et al. 092). Older Consumers They are defined as the mature market by the demographers. These people are healthier, wealthier and more educated than those of the earlier generations. They are far from being out of the consumer market. Since they spend most of their times at the home, their budget is mostly directed towards food (Althouse et al. 094). Individual Business Ethics “Individual business ethics are shaped by personal choices and the environment in which we live and work. In addition, the laws of our society are guideposts for choosing between right and wrong” (Althouse et al. 096). The article provides a prediction about reviewing of the sites. The sites that dedicate customer reviews will dominate the market and the consumers who want to voice out their concerns will be able to do so. Most of the companies will have to review their strategies in order to be capable of responding to negative and positive reviews. Individual business ethics will come in handy and the following components of individual business ethics will have to be taken into consideration; utilitarianism, individual rights, and justice. The stages of ethical development will have to be considered because they will enable the individual and the organization to distinguish what is ethically wrong and correct. It is also imperative to recognize some of the unethical business activities. Utilitarianism It seeks the best of the most of the people and its focus is on the action taken by the organization or the individual. When an action affects the people in the wrong and adverse ways, it is considered morally wrong. “The notion that ‘people should act so as to generate the greatest good for the greatest number’ is derived from utilitarianism” (Althouse et al. 096). The philosophy has several problems; (a) it is difficult to predict correctly how a decision will influence a huge number of people (Althouse et al. 096), (b) it encompasses both the losers and the winners, and (c) some costs however small relative to the possible good are very much negative to an extent that the society deems them negative (Althouse et al. 097). Individual Rights Rights do exist under certain conditions regardless of the external environment. The rights serve as the guide when people make ethical decisions. Human rights are granted at birth and cannot be randomly taken away. Denying an individual or a group its rights is considered illegal and unethical in most parts of the world (Althouse et al. 097). Justice It is defined as to what it is fair according to the prevailing standards of the society. Every person expects to be fairly treated. In the contemporary world, justice is taken as equitable distribution of the rewards and burdens that the society has to provide in accordance with the legal or ethical standards (Ferrell, Ferrell and Fraedrich 168). The democratic society believes in the doctrine of equal pay for equal work and the people are rewarded based on the free market value of their services (Althouse et al. 097). Stages of Ethical Development There are three levels of ethical development; (a) Preconventional ethics – characterized by self-centeredness and selfishness and it is on the basis of a probable reward or punishment. The individual views the ethical rules as imposed from the outside of the self (Nelson and Trevino 78). (b) Conventional ethics - it shifts from the egocentric view to the expectations of the society. Obedience and loyalty become vital in the organization. Wrong or right does not matter as the biggest issue is whether the operation will benefit the company. (c) Postconventional ethics – the businesses are concerned with their judgments over a long period of time. They are not much concerned with how people will view them. It is a representation of a mature ethical standard (Althouse et al. 098). Recognizing Unethical Business Activities Unethical business activities may fall into one of the following categories: 1. The unauthorized taking or the use of property that does not belong to you. 2. The inaccurate reporting of conversations and falsely assigning blame is considered to be a lie. In other words, saying things that are not considered to be true. 3. Allowing or the giving of false impressions. 4. Engagement in a conflict of interest or the purchase of influence (Althouse et al. 099). 5. Exposure or the hiding of information. 6. Taking advantage of the consumer unfairly. 7. Committing personal behavior that is considered improper. 8. Abusing the other individual. 9. Allowing organizational abuse. 10. Violation of the rules (Althouse et al. 100). Managing a Socially Responsible Business “Social responsibility is the concern of business for the welfare of society as a whole. It consists of obligations beyond those required by law or union contract” (Althouse et al. 107). Corporate social responsibility is described as a commitment to the improvement of the community well being through the contributions of the corporate resources and the discretional business practices (Kotler and Lee 3). In the article, there are obligations that have been mentioned and are considered a trend in 2011. Monitoring conversations is considered a probable trend in 2011 (Hall 2). It requires the business to provide or offer an opportunity to the customer to feel he or she is taken into consideration. Such a move may be incorporated into the company through its social responsibility program. The obligations in the social responsibility framework are quite broad. “They extend beyond investors in the company to include workers, suppliers, consumers, and communities” (Althouse et al. 107). Other than the consumers, the business may take into consideration the employees, investors, stakeholders, suppliers, society, and governments. Responsibility to Different Stakeholders The business sets to meet the obligations of the stakeholders (employees, customers, general public and investors). “Stakeholders are the individuals or groups to whom a business has a responsibility” (Althouse et al. 109). The best thing a company can do for the society is to keep the individuals employed and allowing them to enjoy the fruits of their hard work. The main thing in the contemporary society and especially in businesses is to satisfy the customer and deliver the promises made. Although it is the obligation of the business to be responsible to the investors, the investors are now putting more emphasis on other sections of social responsibility (Althouse et al. 109). It is imperative for the businesses to offer support to their suppliers. Many of the companies are adopting e-business technology in attempt to realize the effectiveness the technology to the suppliers. The business offers jobs, services and goods to the community and it also goes further to pay taxes that go for the support of the schools, better roads and hospitals (Gitman and McDaniel 48). Most of the government revenue is collected as corporate tax and these “corporations are responsible for accurately reporting their earnings and fulfilling their tax obligations” (Althouse et al. 110). Works Cited Althouse, N., Rose, S., Allan, L., Gitman, L., & McDaniel, C. The Future of Business (Second Canadian Edition). Toronto: Thomson Nelson, 2008. Print. Ferrell, L., Ferrell, O. C. & Fraedrich, J. Business Ethics: Ethical Decision Making and Cases. Mason, OH: Cengage Learning, 2009. Print. Gitman, Lawrence, J. & McDaniel, Carl. The Future of Business: The Essentials. Mason, OH: Cengage Learning, 2008. Print. Hair, J. F., Lamb, C. W. & McDaniel, C. Essentials of Marketing. Mason, OH: Cengage Learning, 2008. Print. Hair, J. F., Lamb, C. W. & McDaniel, C. Marketing. Mason, OH: Cengage Learning, 2008. Print. Hall, Starr. “10 Social Media Trends for 2011.” Reuters., 20 Dec. 2010. Web. 26 March 2011. Kotler, Philip & Lee, Nancy. Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause. Hoboken, NJ: John Wiley and Sons, 2005. Print. Nelson, Katherine, A. & Trevino, Linda, K. Managing Business Ethics. Hoboken, NJ: John Wiley and Sons, 2010. Print. Read More