Csr as a Marketing Tool in the Banking Sector

Topics: Marketing, Sampling, Corporate social responsibility Pages: 15 (5206 words) Published: March 21, 2011
chapter 1: Introduction
CSR has become an important part of the corporate fabric and it calls for socially responsible activities from corporations. There has been a significant increase in the expectations of a wide range of stakeholders- consumers, employees, investors, communities, and governments. As such, businesses are coming at the forefront position, asserting their commitment in addressing the needs of the community. The term CSR in fact stands for Corporate Social Responsibility. The concept of CSR is not new and it is more important than in the past partly because business plays an increasingly prominent role in modern society. The history of social and environmental concerns about business is as old as trade and business itself. Nowadays, businesses not only need to fulfill their economic obligations, but also have to be socially responsible in order to stay competitive and thus uses the CSR program as a marketing tool to improve image and make good business sense - particularly in terms of environmental friendly programs.

Chapter two: Literature Review
2.0 Introduction
In the last century, corporations were paying little attention to CSR issues, which they considered peripheral to the business. Business organizations as the main generator of wealth and employment are crucial to the social and economic development of the societies in which they operate. CSR is being increasingly integrated by firms as a management strategy. As it can be seen nowadays, CSR is being utilized by organizations as a marketing tool to sell and promote their products or service in the eyes of customers. 2.1 Definition of Marketing

The term marketing has changed and evolved over time, marketing today is based around providing constant benefits to the client. When these benefits are provided, a transactional exchange takes place. Philip Kotler -Professor of International Marketing:

“Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.” Kotler, Philip (1997), Marketing Management, 9th Ed., Prentice Hall, New Jersey

The Chartered Institute of Marketing:
“The management process responsible for identifying, anticipating and satisfying customer requirements profitably.”

AMA's 2007 Revised Definition:

“Marketing is the activity, conducted by organizations and individuals, that operates through a set of institutions and processes for creating, communicating, delivering, and exchanging market offerings that have value for customers, clients, marketers, and society at large.”

As the marketing definitions have changed over time, it has been identified that the marketing techniques have also changed. As per different authors, several marketing related concepts overlap with different aspects of CSR. These concepts include societal marketing (Daub and Ergenzinger, 2005), cause related marketing (e.g. Polonsky and Wood, 2001), environmental marketing (e.g. van Dam and Apeldoorn, 1996), social responsible buying (Maignan and McAlister, 2003) and sustainable consumption (Leigh et al., 1988; Dolan, 2002). As cited by Pornomi (2009), the focus of organizations nowadays is not only to satisfy customers’ needs, but also to satisfy the needs of the society which is known as societal marketing. Societal marketing which is based on the concept of social responsibility has gained immense importance during the past years because of changing consumer trends. It is reflected that the companies which act in more responsible ways, people are more concerned to invest in. Therefore, being socially responsible is increasingly important for modern organizations. As consumers are more demanding and investors become more sophisticated, Corporate Social Responsibility (CSR) therefore becomes increasingly significant for businesses that need to demonstrate responsiveness to social issues.

2.2 Definition of Corporate Social...
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