Marketing Ethics and Social Responsibility

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MARKETING STRATEGYO.C. FERRELL MICHAEL D.
HARTLINE
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Marketing Ethics and Social Responsibility
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The Role of Ethics and SocialResponsibility in
Marketing Strategy

• Dimensions of Social Responsibility
• Social responsibility
• Marketing ethics
• Marketing Ethics and Strategy
• The Challenges of Being Ethical and Socially
  Responsible

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Marketing Strategy in Action

• R.J. Reynolds has been accused by critics of
  using its Joe Camel cartoon character, as shown
  in this 1988 ad, to target children for cigarette
  consumption.
• How has society acted to protect children from
  advertising such as this? What obligations do
  companies have to protect children?

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The Pyramid of Social Responsibility
Exhibit 12.1
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Potential Ethical Issues in Marketing
Exhibit 12.2
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Perceived Values in the Workplace
Exhibit 12.3
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Discussion Question

• Why is marketing ethics a strategic consideration
  in organizational decisions? Who is most
  important in managing marketing ethics the
  individual or the firms leadership? Explain
  your answer.

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Deceptive Practices in Marketing

• Deceptive Communication and Promotion
• False/deceptive statements
• Exaggerated claims
• Ambiguous statements
• Product labeling issues
• Fraud
• Regulating Deceptive Marketing Practices
• Trade associations
• Better Business Bureau (BBB)

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Better Business Bureau
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Organizational Determinants of Marketing Ethics
and Social Responsibility (1 of 2)

• Ethical Climate
• Codes of Conduct
• Six highly desirable core values
• 1) Trustworthiness
• 2) Respect
• 3) Responsibility
• 4) Fairness
• 5) Caring
• 6) Citizenship

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Key Considerations in Developing and Implementing
a Code of Ethical Conduct
Exhibit 12.4
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Texas Instruments
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Discussion Question

• Why are we seeing more evidence of widespread
  ethical marketing dilemmas within firms today?
  Is it necessary to gain the cooperation of
  marketing managers to overstate revenue and
  earnings in a corporation?

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Organizational Determinants of Marketing Ethics
and Social Responsibility (2 of 2)

• Marketing Ethics and Leadership
• Great leaders
• 1) Create a common goal or vision
• 2) Obtain buy in
• 3) Motivate others to be ethical
• 4) Use available resources
• 5) Enjoy their jobs
• Ethics training can ensure that everyone
• 1) Recognizes ethical decision making situations
• 2) Understands the culture and values of the firm
• 3) Is able to evaluate the impact of ethical
  decisions

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Ethics, Social Responsibility,and Marketing
Performance

• Firms that are ethical and socially responsible
  are rewarded with greater marketing performance.
• Having a strong ethical climate
• Increases employee commitment
• Is conducive to a strong market orientation
• Creates trust among a firms stakeholders
• Increases customer loyalty

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Discussion Question

• What is the relationship between marketing ethics
  and organizational performance? What are the
  elements of a strong compliance program to
  support responsible marketing and a successful
  marketing strategy?

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Incorporating Ethics and Social Responsibility
Into Strategic Planning

• AMA Code of Ethics
• Federal Sentencing Guidelines for Organizations
  (FSGO)
• Marketing strategy and implementation plans
  should reflect an understanding of
• 1) The ethical and social consequences of
• strategic choices
• 2) The values of organizational members and
• stakeholders

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AMA Code of Ethics for the Internet
Exhibit 12.6
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Frequency of Misconduct andPenalties Under the
FSGO
Exhibit 12.7