23. Business ethics and csr

Corporate social responsibility means obligations of a company to society and the ways it can affect society and environment.

Demands and expectations of governments and society become greater, business need to stick to such issues as social responsibility, sustainability and transparency.

Companies are now thinking about commercial viability of ethical fashion. They try to highlight working practice in developing countries to assure consumers that their products don’t make in sweatshop conditions and by child labour. A brand’s value nowadays may not just be in profit and loss, but also accountability – being able to demonstrate clearly where and how product is made.

Transparency is an important aspect of corporate responsibility. Growing number of companies are reporting on social, environmental and economic issues. Sustainability means that company should provide financial and non-financial reports.

Some will argue that the product comes first and ethics will always be secondary to the consumers’ self-interest. Nevertheless, consumers now do care about where and how the products they buy, are made.

24. Customer service

Customer service is all the activities involves in marking it easy for customers to reach the right parties within the company and receive quick and satisfactory service, answer and resolutions of problems (Philip Kotler).

Customers have expectations, and when these are met there is customer satisfaction. When they are exceeded, there may be delight which depends on the degree of involvement in the purchase.

Today a lot of services can be sold by the telephone (banking, insurance). This is replacing face-to-face contact. The customer helpline can be a channel of communication to complement face-to-face contact. Or it can be used to before or after buying goods like a source of information or for complaints.

Facts:

1. 95% of dissatisfied customers don’t complain, but just change suppliers.

2. Customers receiving good service create new business by telling up to 12 other people. Those treated badly will tell up to 20 people.

3. 80% of people who feel their complaints are handled fairly will stay loyal and customer allegiance will be built.

Customer retention is important thing. Getting repeat business is five times cheaper than finding new customers. Lost customer analysis always helps to reduce customer defection.

For example, mobile phones or cable TV providers who always tracks the number of customers who chose another company or stop using their service.

Sometimes the customer interactions are difficult to control. If a product or service breaks down, fixing the problem may build customer loyalty, but it will also eat into the profit margin. Customers must be satisfied or delighted, but at profit.

Marketing networks comprising a number of companies. Making the product is just part of all. The logistics of selling and organizing the services needed by each customer becomes key.

Example: In Russia customer service is only developing. Not all stores can easily return or exchange goods. There is a special customer helpline where we can ask about our customer rights. Also government amended the law “on consumer rights” in part about defective items. Now we can:

*Free rectify the defects found;

*reimburse you the cost of examination and repair;

*reduce the price of the goods;

*replace the purchase of the similar goods or equipment of another brand;

* return the money for the purchase.