Business Ethics

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Business Ethics

• Unit Eight

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Marketing Ethics

• Principles that define acceptable conduct in
  marketing.

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Marketing Mix Ethical Issues
Product Issues
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Marketing Mix Ethical Issues
Product Issues
Customers
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Marketing Mix Ethical Issues
Product Issues
Pricing Issues
Customers
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Marketing Mix Ethical Issues
Product Issues
Pricing Issues
Customers
Promotion Issues
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Marketing Mix Ethical Issues
Product Issues
Pricing Issues
Customers
Distribution Issues
Promotion Issues
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The Nature of Ethics

• Ethical Issues in Marketing
• Ethical issue
• An identifiable problem,
• situation, or opportunity
• requiring a choice
• among several actions
• that must be evaluated
• as right or wrong,
• ethical or unethical
• Ford Pinto cost less to pay claims than retrofit
  gas tanks that exploded on rear impact. Ethical?
  Legal?

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The Nature of Ethics (contd)

• The Ethical Decision-Making Process
• Influence factors
• Individualpersonal values and principles of
  right and wrong, socialization through family,
  social groups, religion, and education
• Organizationalwork groups, committees, coworkers
• Opportunitybusiness and organizational
  conditions which limit, punish, encourage, or
  reward ethical/unethical decisions

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The Nature of Ethics (contd)

• Implementing Ethics and Legal Compliance Programs
• Provide open communication and coaching on
  ethical issues (create a value-based corporate
  culture).
• Enforce standards and impose penalties or
  punishment for codes of conduct violations.
• Revise compliance programs as necessary.
• Make compliance programs an essential part of the
  overall marketing strategy implementation.

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The Nature of Ethics

• Ethical Issues in Marketing
• Ethical Issues Defined
• The Ethical Decision-Making Process

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Opportunity
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The Nature of Ethics

• Ethical Issues in Marketing
• Ethical Issues Defined
• The Ethical Decision-Making Process
• Improving Ethical Conduct in Marketing

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7 Steps to Ethical Compliance

• Codes of Conduct
• High-Level Compliance Manager
• Care in Delegation of Authority
• Training and Communication
• Monitor and Audit for Misconduct
• Enforce and Discipline
• Revise Program as Needed

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The Nature of Ethics

• Ethical Issues in Marketing
• Ethical Issues Defined
• The Ethical Decision-Making Process
• Improving Ethical Conduct in Marketing

• Codes of Conduct
• Ethics Officers
• Implementing Ethics and Legal Compliance Programs

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The Nature of Ethics

• Ethical Issues in Marketing
• Ethical Issues Defined
• The Ethical Decision-Making Process
• Improving Ethical Conduct in Marketing

• Code of Conduct
• Ethics Officers
• Implementing Ethics and Legal Compliance Programs

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Major Laws that Protect Consumers

• Child Protection Act of 1966
• Fair packaging and Labeling Act of 1967
• Consumer Credit Protection Act of 1968
• National Environmental Policy Act of 1970
• Consumer Product Safety Act of 1972
• National Labeling and Education Act of 1990
• Americans With Disabilities Act of 1991
• Brady Law of 1993

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Laws that Encourage Competition

• Sherman Anti-Trust Act of 1890
• Clayton Act of 1914
• Federal Trade Commission Act of 1914
• Robinson-Patman Act of 1936
• Miller-Tydings Resale Price Maintenance Act of
  1937
• Wheeler-Lea Act of 1938
• Celler-Kefauver Antimerger Act of 1950
• American Automobile Labeling Act of 1990
• NAFTA 1993

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OK, YOU SHOULD BE ABLE . . .

• To Define and Describe the Importance of
  Marketing Ethics
• To Discuss Ways to Improve Ethical Decisions in
  Marketing
• List some of the laws that have impacted
  marketing and advertising of products

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