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Marketing to the Base of the Pyramid: A Corporate Responsibility Approach with Case Inspired Strategies

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  • Santos Nicholas J.C.

    (Santa Clara University)

  • Laczniak Gene R.

    (Marquette University)

Abstract

The economic and political outcomes of market globalization continue to be complex. As international corporations engage developing markets, they increasingly find consumers who lack market sophistication, meaningful purchasing options and economic leverage. Such conditions are ripe for the exploitation of these market segments but also can be mitigated by enlightened managers willing to thoughtfully consider their ethical and professional obligations to vulnerable consumers. This paper builds on a normative ethical framework, labeled the integrative justice model (IJM) for impoverished markets that was introduced in the marketing and public policy literature. Specifically, the paper will extend the normative ethics of the IJM by proposing logically reasoned decision principles for managers, particularly in MNC subsidiaries, that might better shape ethical business strategy when targeting impoverished segments. Additionally, numerous case examples are given to illustrate how a number of these decision principles are already being applied by companies around the world. Such an approach can serve as a counterweight to the difficulty of crafting global regulations for market development.

Suggested Citation

  • Santos Nicholas J.C. & Laczniak Gene R., 2012. "Marketing to the Base of the Pyramid: A Corporate Responsibility Approach with Case Inspired Strategies," Business and Politics, De Gruyter, vol. 14(1), pages 1-44, April.
    • Handle: RePEc:bpj:buspol:v:14:y:2012:i:1:n:4
    DOI: 10.1515/1469-3569.1364
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    References listed on IDEAS

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    1. Dana Brown & Antje Vertterlein & Anne Roemer-Mahler, 2010. "Theorising transnational corporations as social actors : An analysis of corporate motivations," Post-Print hal-02312984, HAL.
    2. Brown, Dana L. & Vetterlein, Antje & Roemer-Mahler, Anne, 2010. "Theorizing Transnational Corporations as Social Actors: An Analysis of Corporate Motivations," Business and Politics, Cambridge University Press, vol. 12(1), pages 1-37, April.
    3. Scott Kelley & Patricia H. Werhane & Laura P. Hartman, 2008. "The End of Foreign Aid as We Know It: The Profitable Alleviation of Poverty in a Globalized Economy," Palgrave Macmillan Books, in: Charles Wankel (ed.), Alleviating Poverty through Business Strategy, chapter 0, pages 5-32, Palgrave Macmillan.
    4. Ron Berger & Chong Choi & Jai Kim, 2011. "Responsible Leadership for Multinational Enterprises in Bottom of Pyramid Countries: The Knowledge of Local Managers," Journal of Business Ethics, Springer, vol. 101(4), pages 553-561, July.
    5. Brown Dana L & Vetterlein Antje & Roemer-Mahler Anne, 2010. "Theorizing Transnational Corporations as Social Actors: An Analysis of Corporate Motivations," Business and Politics, De Gruyter, vol. 12(1), pages 1-39, April.
    6. Rüdiger Hahn, 2009. "The Ethical Rational of Business for the Poor – Integrating the Concepts Bottom of the Pyramid, Sustainable Development, and Corporate Citizenship," Journal of Business Ethics, Springer, vol. 84(3), pages 313-324, February.
    7. Bishop, John Douglas, 2000. "A Framework for Discussing Normative Theories of Business Ethics," Business Ethics Quarterly, Cambridge University Press, vol. 10(3), pages 563-591, July.
    8. A. Coskun Samli, 2008. "Globalization from the Bottom Up," Springer Books, Springer, number 978-0-387-77098-7, December.
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    Cited by:

    1. Angela P. Chen & Giorgia Nigri & Thomas E. Culham & Barbara Nussbaum & Richard Peregoy & Margot Plunkett, 2024. "The Manager and Love: Evoking a Loving Inquiry in a Group Setting," Humanistic Management Journal, Springer, vol. 9(2), pages 183-202, August.
    2. Nicholas Santos & Gene Laczniak & Tina Facca-Miess, 2015. "The “Integrative Justice Model” as Transformative Justice for Base-of-the-Pyramid Marketing," Journal of Business Ethics, Springer, vol. 126(4), pages 697-707, February.
    3. Laczniak, Gene R. & Murphy, Patrick E., 2019. "The role of normative marketing ethics," Journal of Business Research, Elsevier, vol. 95(C), pages 401-407.

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