Ethics and Social Responsibility in Marketing

I. Ethics and Laws

What are ethics? Moral principles and values that govern the actions of an individual or group. B. What are laws? Laws reflect societys values and standards and are enforceable in the courts. C. Situations where judgment plays a role
A.

II.

Factors Influencing Ethical Marketing Behavior

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

A.

MARKETING NEWSNET
Internet Piracy and Campus Pirates

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II. Factors (cont.)

B. Business Culture 1. Ethics of Exchange *Prior to 1960s: 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 4-

Click on the icon for the AMA Code of Ethics

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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