kerinmarketing4

AFTER READING THIS CHAPTER

YOU SHOULD BE ABLE TO:

•Appreciate the nature and significance of ethics in marketing.

•

•Understand the differences between legal and ethical behavior in marketing.

•

•Identify factors that influence ethical and unethical marketing decisions.

•Distinguish among the different concepts of ethics and social responsibility.

•

•Recognize the importance of ethical and socially responsible consumer behavior.

ETHICS AND SOCIAL RESPONSIBILITY IN MARKETING

THERE IS MORE TO
ANHEUSER-BUSCH
THAN MEETS THE
PALATE

NATURE AND SIGNIFICANCE OF MARKETING ETHICS

•Ethical/Legal Framework in Marketing

§Laws

•Current Perceptions of Ethical Behavior

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

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

FIGURE 4-1 Classifying marketing decisions according to ethical and legal relationships.

1. What are ethics?

A: Ethics are 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 dilemmas.

2. What are four possible reasons for the present
state of ethical conduct in the United States?

A: (1) Increased pressure on business people to make decisions in a society characterized by diverse value systems, (2) Growing tendency for business decisions to be judged publicly by groups with different values and interests, (3) Public’s expectations of business ethical behavior has increased, and (4) Ethical business conduct may have declined.

UNDERSTANDING ETHICAL MARKETING BEHAVIOR

FIGURE 4-2 A framework for understanding ethical behavior.

UNDERSTANDING ETHICAL MARKETING BEHAVIOR

•Societal Culture and Norms

•Business Culture and Industry
Practice

•Ethics of Exchange

§Caveat emptor
§Consumer bill of rights

•Ethics of Competition

§Economic espionage

Caveat emptor is a legal concept which means let the buyer beware.

Consumer Bill of Rights

The consumer bill of rights codified the rights to safety, to be informed, to choose, and to be heard.

Economic Espionage

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

UNDERSTANDING ETHICAL MARKETING BEHAVIOR

•Corporate Culture and Expectations

•Codes of Ethics
•Ethical Behavior of Top Management
and Co-Workers
§Whistleblowers

•Personal Moral Philosophy and
Ethical Behavior

•Moral Idealism
•Utilitarianism

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

Whistleblowers are employees who report unethical or illegal actions of their employers.

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

Utilitarianism is a personal moral philosophy that focuses on “the greatest good for the greatest number.”

1. What rights are included in the Consumer Bill of Rights?

A: The rights to safety, to be informed, to choose, and to be heard.

2. Economic espionage includes what kinds of activities?

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

3. What is meant by moral idealism?

A: It is a personal moral philosophy that considers certain individual rights or duties as universal regardless of outcome.

UNDERSTANDING SOCIAL RESPONSIBILITY IN MARKETING

Concepts of Social Responsibility

•Profit Responsibility
•Stakeholder Responsibility
•Societal Responsibility
§Green marketing
§ISO 14000
§Cause-related marketing

•The Social Audit: Doing well by
Doing Good

§Sustainable development

•Turning the Table: Consumer Ethics
and Social Responsibility

FIGURE 4-4 Three concepts of
social responsibility

Social Responsibility

Social responsibility means that organizations are part of a larger society and are accountable to that society for their actions

Green marketing efforts are designed to produce, promote, and reclaim environmentally sensitive products.

ISO 14000 consists of worldwide standards for environmental quality and green marketing practices.

Cause-Related Marketing

Cause-Related marketing occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.

A social audit is a systematic assessment of a firm’s objectives, strategies, and performance in the domain of social responsibility.

Sustainable Development

Sustainable development involves conducting business in a way that protects the natural environment while making economic progress.

1. What is meant by social responsibility?

A: Social responsibility means that organizations are part of a larger society and they are accountable to that society for their actions.

2. Marketing efforts to produce, promote, and reclaim environmentally sensitive products are called
_______________.

A: Green Marketing

3. What is a social audit?

A: A social audit is a systematic assessment of a firm’s objectives, strategies, and performance in the domain of social responsibility.

Chapter 4 - Summary

Ethics are the moral principles and values that govern the actions and decisions of an individual or group. Laws are society's values and standards that are enforceable in the courts. Operating according to the law does not necessarily mean that a practice is ethical.
Ethical behavior of businesspeople has come under severe criticism by the public. There are four possible reasons for this criticism: (a) increased pressure on businesspeople to make decisions in a society characterized by diverse value systems, (b) a growing tendency to have business decisions judged publicly by groups with different values and interests, (c) an increase in the public's expectations for ethical behavior, and (d) a possible decline in business ethics.
Numerous external factors influence ethical behavior of businesspeople. These include the following: (a) societal culture and norms, (b) business culture and industry practices, and (c) corporate culture and expectations. Each factor influences the opportunity to engage in ethical or unethical behavior.
Ultimately, ethical choices are based on the personal moral philosophy of the decision maker. Two moral philosophies are most prominent: (a) moral idealism and (b) utilitarianism.
Social responsibility means that organizations are part of a larger society and are accountable to that society for their actions.
There are three concepts of social responsibility: (a) profit responsibility, (b) stakeholder responsibility, and (c) societal responsibility.
Growing interest in societal responsibility has resulted in systematic efforts to assess a firm's objectives, strategies, and performance in the domain of social responsibility. This practice is called a social audit.
Consumer ethics and social responsibility are as important as business ethics and social responsibility.

Hosted by www.Geocities.ws

Chapter 4

Marketing: Ethics and Social Responsibility in Marketing