Marketing chapter 4a ethical and social responsibility in marketing

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.


LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 4, YOU SHOULD BE ABLE TO:

Explain the differences between legal and ethical behavior in
LO1

marketing.

Identify factors that influence ethical and unethical marketing
LO2

decisions.

LO3

Describe the different concepts of social responsibility.

LO3

Recognize unethical and socially irresponsible consumer behavior.
4-2


ETHICAL BEHAVIOR IN MARKETING

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.


ETHICS DEFINITION

The moral principles and values that govern the actions and decisions of an individual or
group.

They serve as guidelines on how to act rightly and justly when faced with moral/ethical
dilemmas.

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NATURE AND SIGNIFICANCE
LO1

OF MARKETING ETHICS
FRAMEWORK

 Ethics

 Laws

 Ethical-Legal Continuum

•

Ethical-Illegal

•

Ethical-Legal

•

Unethical-Illegal

•

Unethical-Legal

 Current Perceptions of Ethical Behavior
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FIGURE 4-1 Four ways to classify marketing decisions according to ethical
and legal relationships

4-6


FIGURE 4-2 A framework for understanding ethical behavior

4-7


ETHICAL MARKETING BEHAVIOR

LO2

BUSINESS CULTURE AND INDUSTRY PRACTICES

 Business Cultures
 Ethics of Exchange

•

Caveat Emptor

•

Consumer Bill of Rights (1962)

•

U.S. Consumer Product Safety Commission

•

Federal Trade Commission (FTC)
4-8


ETHICAL MARKETING BEHAVIOR

LO2

BUSINESS CULTURE AND INDUSTRY PRACTICES

 Ethics of Competition

•

Economic Espionage

•

Bribes and Kickbacks

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MAKING RESPONSIBLE DECISIONS
Corporate Conscience in the Cola War

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ETHICAL MARKETING BEHAVIOR

LO2

CORPORATE CULTURE AND EXPECTATIONS

 Corporate Culture

 Code of Ethics

 Ethical Behavior of Top Management and Co-Workers

•

Whistle-Blowers
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ETHICAL MARKETING BEHAVIOR

LO2

PERSONAL MORAL PHILOSOPHY AND ETHICS

 Moral Idealism


Individual rights or duties are universal regardless of the
outcome

 Utilitarianism


Greatest good for the greatest number

4-12


SOCIAL RESPONSIBILITY
IN MARKETING

McGraw-Hill/Irwin

Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.


FIGURE 4-4 Three concepts of social responsibility

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LO3

SOCIAL RESPONSIBILITY IN MARKETING
CONCEPTS OF SOCIAL RESPONSIBILITY

 Social Responsibility

 Profit Responsibility

 Stakeholder Responsibility

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SOCIAL RESPONSIBILITY IN MARKETING

LO3

CONCEPTS OF SOCIAL RESPONSIBILITY

 Societal Responsibility

•

Green Marketing

•

ISO 14000

•

Cause Marketing
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SOCIAL RESPONSIBILITY IN MARKETING

LO3

THE SOCIAL AUDIT

 Social Audit

 Sustainable Development


Protecting natural environment while making economic
progress

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Ethics

Ethics are the moral principles and values that govern the
actions and decisions of an individual or group.

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Laws

Laws are society’s values and standards that are
enforceable in the courts.

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Caveat Emptor

Caveat emptor is the legal concept of “let the buyer
beware” that was pervasive in the American business
culture prior
to the 1960s.

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Consumer Bill of Rights (1962)

The Consumer Bill of Rights (1962) is a law that codified
the ethics of exchange between buyers and sellers,
including the rights to safety, to be informed,
to choose, and to be heard.

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Economic Espionage

Economic espionage is the clandestine collection of trade
secrets or proprietary information about a company’s
competitors.

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Code of Ethics

A code of ethics is a formal statement of ethical principles
and rules of conduct.

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Whistle-Blowers

Whistle-blowers are employees who report unethical or

illegal actions of their employers.

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Moral Idealism

Moral idealism is a personal moral philosophy that
considers certain individual rights or duties as universal,
regardless of the outcome.

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