Cummins Engine Case Study

2292 Words 10 Pages
Register to read the introduction… A perfect example would be the Cummins Engine Company. Year after year this company insisted on donating to charitable foundations. And year after year they were threatened by bankruptcy. Any business or economics professor will tell you that their choices were not the smartest in the world. Their short term benefits suffered greatly because of these choices. Their long term, however have not suffered. They now produce over $5 billion in revenues each year. "The iron law of responsibility states that in the long run, those who do not use power in ways that society considers responsible will tend to lose it (McGraw-Hill, Pg. 4)." Cummins Engines saw their long run capabilities and stuck with them. They prove the stewardship principle that profits and social responsibility can …show more content…
These are topics that catch the eye of the average person. They catch our attention because they interesting subjects. They intrigue us. They spark our curiosity. They also raise a lot of controversy. As we have seen, sex may or may no sell a product. For the short run of a company a sexual ad might provide good profits, but as we saw with Cummins Engines, the long run is far more valuable. A company with a clean image of donating to charity, using clean ad schemes or just doing the right thing is going to prosper a lot longer than the ones using slogans like "Tickle My Taco." CSR needs to be a higher priority in the advertising schemes of all companies. They need to not over use sex and not use it for irrelevant products (such as a hamburger). "Advertising is a very limited and very limiting form of communication, costly to undertake and difficult to carry out successfully. The marketing question of how to best communicate is a conservative one, but is also an effort to maximize the likelihood of a favorable consumer response. Too often, the advertising writers seem focused on titillating each other with the overuse of lewd jewelry, exposed breasts and other distractions. In the end, the sex does not sell

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