Ch. 3 - Ethics & Social Responsibility 

Most good companies are built upon sound business practices and in order for businesses to help create order and promote prosperity in our societies, they should be involved in strong ethical business practices. However it is always easier said than done because you just cannot develop them overnight as many factors determine the nature of ethical decisions. Ethics is defined as the moral principles or values that govern the conduct or behavior of a person or group. Knowing this, it is just not important for businesses to be built upon good ethics but also it is imperative for the business to hire ethical people to run it. Another option that has become popular of late is the introduction of code of ethics in some business settings. These written codes are used as guidelines to help marketing managers and employees in general to make better decisions.

Social Responsibility (aka. Corporate Social Responsibility) is an ethical framework which suggests that businesses should voluntarily have concern for the welfare of the societies in which they operate in. Meaning a balance should be sustained between the businesses interests and activities that directly advance social objectives in a good way. The pyramid of CSR has four main components. It has economic performance, which is for a business to be profitable, as the foundation of the three other responsibilities which are Legal(obey the law), Ethical(do what's right and avoid harm) and Philanthropic(be a good corporate citizen and contribute resources to the community). A new theory in social responsibility which also drives corporate success is Sustainability which is the idea that companies that are socially responsible will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time. This is mainly true because companies that are involved in social responsibility are more likely to attract loyalty from customers and the public at large who have similar concerns as them.

The founders of Proactiv Solution have another business venture by partnering with independent business owners and giving them the opportunity to earn income based on sales of their products under the name of Rodan + Fields Dermatologists. They are very active in empowering independent business owners by giving them competitive pay and good benefits. Rodan and Fields also came up with The Prescription For Change™ (PFC) Foundation. The PFC Foundation supports students in need on their journey to becoming a "prescription for change" in their communities by fostering belief in themselves. This is a good example for Corporate Social Responsibility because not only do they have individuals helping to boost their sales in exchange for compensation, they are also helping to contribute resources to the community which satisfies both the company and society's interests. Rodan and Fields PFC Foundation are also involved in partnerships with non-profit organisations like Attitudes & Attire and buildOn, one provides the tools to raise self esteem, promote ethics and build the confidence necessary for women in need to develop successful life and job skills; the others goals are to break the cycle of poverty, illiteracy and low expectation through youth services and education.

sources: www.rodanandfields.com, MKTG, Pronciples of Marketing by Lamb Hair and McDaniel