Ethics and Social Responsibility in

Marketing
I. Ethics and Laws

A. What are ethics?

Moral principles and values that govern the
actions of an individual or group.
B. What are laws?
Laws reflect society’s values and standards
and are enforceable in the courts.
C. Situations where judgment plays a role
II. Factors Influencing Ethical
Marketing Behavior

A. Societal Culture
The set of values, ideas, and attitudes that are
learned and shared among members of a group.

 Western culture: Judeo-Christian values

 Values and standards: reflected in laws

Example – protection of property
 MARKETING NEWSNET
Internet Piracy and Campus Pirates

Slide 4-11
II. Factors (cont.)
B. Business Culture
1. Ethics of Exchange
*Prior to 1960’s: caveat emptor
*Consumer Bill of Rights (changed business culture)
Safety
Be informed
Choose
Be heard

2. Ethics of Competition
*Economic espionage – collecting competitor trade
secrets and proprietary information.
*Economic espionage differs from competitive analysis
II. Factors (cont.)

C. Corporate Culture
• Management tries to communicate ethical
standards through the corporate code of ethics.
• Code of Ethics- a formal written statement of
ethical principles and rules of conduct to guide
employee decision making.
• What does it address?
• Will it ensure ethical behavior within the
organization?
FIGURE 4-3 American Marketing Association Code of Ethics

Click on the icon for the

AMA Code of Ethics

Slide 4-17
III. Social Responsibility
 The idea that organizations are part of a
larger society and are accountable to that
society for their actions.
 Concepts of Social Responsibility
– Profit responsibility
– Stakeholder responsibility
– Societal responsibility
 Green marketing – the marketing of products that are
presumed to be environmentally safe
Social Responsibility

 Companies that show societal responsibility

have been rewarded.

1. Benefits from favorable word of mouth

2. Typically outperform less responsible
companies on financial performance