Marketing Ethics and Social Responsibility

1
MARKETING STRATEGYO.C. FERRELL MICHAEL D.
HARTLINE
12
Marketing Ethics and Social Responsibility
2
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

3
The Pyramid of Social Responsibility
Exhibit 12.1
4
Potential Ethical Issues in Marketing
Exhibit 12.2
5
Perceived Values in the Workplace
Exhibit 12.3
6
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)

7
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

8
Key Considerations in Developing and Implementing
a Code of Ethical Conduct
Exhibit 12.4
9
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

10
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

11
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

12
AMA Code of Ethics for the Internet
Exhibit 12.6