Week2 Term Paper Example | Topics and Well Written Essays - 500 words

Week2 - Term Paper Example When brand attachment occurs, the consumer will often participate in brand communities, such as discussing the merits and benefits of the company and its products in social media. This is free word-of-mouth advertising that is highly valuable to a business brand. When a business includes social responsibility and ethical behavior as part of its strategic plan, trust in the company’s integrity is developed. According to Riegelsberger et al. (2005, p.383), trust is built on â€Å"reliability and predictability† of an organization. As one example, a company that contributes a small margin of their profit toward urban development can use press releases and promotional advertisements to illustrate their sponsorship or investment support in building a better local infrastructure. When consumers witness that the business believes in improving the human condition and lifestyle, trust in their brand, product and leadership is developed especially when these activities happen recurrently. Thus, having an ethical focus and a belief in social responsibility can assist in developing promotional strategies, charity as competitive advantage, and better consumer relationship development. One example of a company that overstepped ethical boundaries is Pulte Homes, a major national home and commercial builder with a significant profit margin. In 2006, the former president of Pulte Homes, Steve Seymoure, determined it would be a positive strategic decision to develop a variety of first-class, luxury vacation getaways in Mexico. Pulte Homes conducted considerable ethical and responsible preliminary research and legal negotiations to ensure that a disputed area of land cleared all ownership and construction laws for development of high-class condominiums for American tourists. However, well into the construction phase, a variety of expired commercial leases on the existing property where Pulte was building were