Ethics and Social Responsibility in Marketing

1
Ethics and Social Responsibility in Marketing

• Chapter Four

2
Ethics Versus Laws

• Ethics The personal moral principles and values
  that govern the actions and decisions of an
  individual or group.
• Laws Societys values and standards that are
  enforceable in the courts.

3
Understanding Ethical Marketing Behavior

• Societal Cultural Norms
• Business Culture and Industry Practices
• Corporate Culture and Expectations
• Personal Moral Philosophy and Ethical Behavior

4
Societal Cultural Norms

• Culture the set of values, ideas, and attitudes
  of a homogeneous group of people.
• Ethical standards are often relative to a
  particular culture.
• Child Labor
• Intellectual Property

5
Business Culture and Industry Practices

• Business Culture sets the boundaries between
  competitive and unethical behavior, serves as the
  code of conduct in business dealings, and is
  established from the top down.
• Consumer Bill of Rights rights to
• safety
• be informed
• choose
• be heard
• Economic Espionage stealing trade secrets or
  proprietary information about a company's
  competitors.
• Bribes and Kickbacks

6
Transparency International Bribe Payers Index
2002
7
Corporate Culture and Expectations

• Code of Ethics a formal statement of ethical
  principles and rules of conduct.
• Whistle-Blowers employees who report unethical
  or illegal actions of their employees.

8
Personal Moral Philosophy and Ethical Behavior

• Moral Idealism a philosophy that considers
  certain individual rights or duties as universal.
  
• Utilitarianism a philosophy that focuses on
  the greatest good for the greatest number.

9
Social Responsibility in Marketing

• Social Responsibility organizations are
  accountable to the larger society for their
  actions.
• Profit Responsibility duty to maximize profits
  for shareholders
• Stakeholder Responsibility the obligation of the
  company to its employees, customers, vendors, and
  suppliers
• Societal Responsibility the obligation of the
  company to the ecological environment and the
  general public.

10
Societal Marketing Practices

• Green Marketing marketing efforts to produce,
  promote, and reclaim environmentally sensitive
  products.
• ISO 14000 worldwide standards for environmental
  quality and green marketing practices.
• Cause-Related Marketing when charitable
  contributions of a firm are tied directly to the
  customer revenues produced through the promotion
  of one of its products.

11
The Social Audit

• A systematic assessment of a firms objectives,
  strategies, and performance in social
  responsibility
• Sustainable Development Conducting business in
  a way that protects the natural environment while
  making economic progress.