Marketing chapter 4a ethical and social responsibility in marketing

 Business CulturesETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES LO2  Ethics of Exchange • Caveat Emptor • Consumer Bill of Rights 1962 • U.S.. ETHICAL MARKETING BE

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Explain the differences between legal and ethical behavior in marketing.

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 4, YOU SHOULD BE ABLE TO:

Recognize unethical and socially irresponsible consumer behavior.

LO3

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ETHICAL BEHAVIOR IN MARKETING

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/ethical dilemmas.

ETHICS DEFINITION

 Ethics

NATURE AND SIGNIFICANCE

OF MARKETING ETHICS

FRAMEWORK LO1

FIGURE 4-1 Four ways to classify marketing

decisions according to ethical and legal

relationships

FIGURE 4-2 A framework for understanding

ethical behavior

4-7

 Business Cultures

ETHICAL MARKETING BEHAVIOR

BUSINESS CULTURE AND INDUSTRY PRACTICES

LO2

 Ethics of Exchange

• Caveat Emptor

• Consumer Bill of Rights (1962)

• U.S Consumer Product Safety Commission

• Federal Trade Commission (FTC)

ETHICAL MARKETING BEHAVIOR

BUSINESS CULTURE AND INDUSTRY PRACTICES

MAKING RESPONSIBLE DECISIONS

Corporate Conscience in the Cola War

ETHICAL MARKETING BEHAVIOR

CORPORATE CULTURE AND EXPECTATIONS

ETHICAL MARKETING BEHAVIOR

PERSONAL MORAL PHILOSOPHY AND ETHICS

LO2

 Moral Idealism

 Individual rights or duties are

universal regardless of the outcome

 Utilitarianism

number

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SOCIAL RESPONSIBILITY

IN MARKETING

FIGURE 4-4 Three concepts of social

responsibility

SOCIAL RESPONSIBILITY IN MARKETING

CONCEPTS OF SOCIAL RESPONSIBILITY LO3

 Social Responsibility

 Profit Responsibility

 Stakeholder Responsibility

4-15

SOCIAL RESPONSIBILITY IN MARKETING

CONCEPTS OF SOCIAL RESPONSIBILITY LO3

 Societal Responsibility

• Green Marketing

• ISO 14000

• Cause Marketing

SOCIAL RESPONSIBILITY IN MARKETING

THE SOCIAL AUDIT LO3

 Social Audit

 Sustainable Development

 Protecting natural environment

while making economic progress

4-17

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

4-19

Caveat Emptor

Caveat emptor is the legal

concept of “let the buyer beware”

that was pervasive in the

American business culture prior

to the 1960s

Consumer Bill of Rights (1962)

The Consumer Bill of Rights

(1962) is a law that codified the

ethics of exchange between

buyers and sellers, including the

rights to safety, to be informed,

to choose, and to be heard

4-21

Economic Espionage

Economic espionage is the

clandestine collection of trade

secrets or proprietary information

about a company’s competitors

Code of Ethics

A code of ethics is a formal

statement of ethical principles

and rules of conduct

4-23

Whistle-blowers are employees

who report unethical or illegal

actions of their employers

Moral Idealism

Moral idealism is a personal

moral philosophy that considers

certain individual rights or duties

as universal, regardless of the

outcome

4-25

Utilitarianism is a personal moral

philosophy that focuses on the

“greatest good for the greatest

number,” by assessing the costs

and benefits of the consequences

of ethical behavior

Social Responsibility

Social responsibility is the idea

that organizations are part of a

larger society and are accountable

to that society for their actions

4-27

Green Marketing

Green marketing consists of

marketing efforts to produce,

promote, and reclaim

environmentally sensitive

products

ISO 14000

ISO 14000 consists of worldwide

standards for environmental

quality and green marketing

practices developed by the

International Standards

Organization (ISO)

4-29

Cause Marketing

Cause 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

Social Audit

A social audit consists of a

systematic assessment of a firm’s objectives, strategies, and

performance in terms of social

responsibility

4-31

Sustainable Development

Sustainable development

involves conducting business in

a way that protects the natural

environment while making

economic progress