Our lady of Fatima School of Villaverde

Villaverde, Nueva Vizcaya

Finals

SHS LEARNING ACTIVITY

NAME OF TEACHER: _____________________________________

MRS. DIANA R. CALAGUI Activity No.: 1-3
SUBJECT: _________________________ Grade & Section:_____________
BUSINESS ETHICS AND SOCIAL RRSPONSIBILITY

DATE: _____________________ Highest Possible Score :

____________

CURRICULUM GUIDE CODE: ABM_ESR12- IVi-l-3.4

CONTENT STANDARD: The learners demonstrate an understanding of the responsibilities and
accountabilities of entrepreneurs and accountabilities of entrepreneurs toward the employees,
government, creditors, suppliers, consumers, general public, and other stakeholders; major
ethical issues in entrepreneurship (basic fairness, personnel and customer relations distribution
dilemmas, fraud, unfair competition, unfair communication, no respect of agreements,
environmental degradation, etc.) 2. models and frameworks of social responsibility in the practice
of sound business
PERFORMANCE STANDARD: The learners shall be able identify responsibilities to the business
organization he/she belongs to 2. explain the different models and frameworks of social
responsibility
ACTIVITY TITLE: CASE STUDY
LEARNING TARGET: At the end of the lesson, the learners are expected to:
✓ cite examples of companies that practice social responsibility in the conduct of their business
✓ identify ethical issues in marketing
✓ understand green marketing
TYPE OF ACTIVITY: (Check or choose from below)
CONCEPT NOTES LABORATORY FORMAL THEME OTHERS:
REPORT
SKILLS: ILLUSTRATION INFORMAL THEME
EXERCISE/DRILL

REFERENCES: (Book/s, Author/s, Page/s)

Business Ethics and Social Responsibility by Jonalyn C. Baquillas/
Business Ethics and Social Responsibility by Victoria Garalde – Orjalo and Solita A. Frias/
_________________________________________________________________________________________

CONTENT/LESSON
ETHICS AND MARKETING
Knowing the Basic
What is Marketing?
- An organizational function and a set of processes for creating, communicating, and
delivering value to customers and for managing customer relationship in ways that
benefit the organization and its stakeholders.
HOW DO MARKETING ETHICS WORKS?
- Marketing ethics therefore examines the responsibilities associated with bringing a
product to the market, promoting it to buyers, and exchanging it with them
Marketing: An Ethical Framework
This framework will assist the decision maker in arriving at an ethical decision, but it will
not Definitively prove the “correct” decision as much as it will help reach a rationally responsible
decision
The framework identifies
Rights Causes
Responsibilities Consequences
Duties and obligations
Three Concerns in any Ethical Issue in Marketing
1. The Right-based Ethical
2. Tradition The Utilitarian Tradition
 3. Every Ethical Tradition
Contractual Standards for Product Safety
The Caveat Emptor Approach The caveat emptor approach adopts a simple model of a
contractual exchange between a buyer and seller.
Implied Warranty of Merchantability
A business implicitly offers assurances that the product is reasonably suitable for its purpose.
Even without an explicit verbal or written promise or contract, the law holds that business has a
duty to ensure that its products will accomplish their purpose
Tort Standards for Product Safety
A concept from the area of law known as torts, provides a second avenue for consumers to
hold producers responsible for their products. Negligence
Strict Product Liability
The negligence standard of tort law focuses on the sense of responsibility that involves
someone being at fault. But there are also cases in which consumers can be injured by a product in
which no negligence was involved. In such cases where no one was at fault. The legal doctrine of
strict product liability holds manufacturers accountable in such cases and it raises unique ethical
questions.
Ethical Debates on Product Liability
Liability without fault [strict products liability] on the part of the producer is the sole means
of adequately solving the problem, peculiar to our age of increasing technicality, of a fair
apportionment of the risks inherent in modern technological production
Responsibility for Advertising and Sales
A major element of marketing is sales promotion. Target marketing and marketing
research are two important elements of product placement
Ethically Influencing Others
Ethically Ways
Persuading Informing
Asking Advising
Unethically Ways
Threats Manipulation
Coercion Lying
Deception
*Sales and advertising practices often employ deceptive or manipulative to influence people
Manipulate guide or direct someone’s behavior
Manipulating people implies working behind the scenes, guiding their behavior without
their explicit consent or conscious under standing
Deception
One of the ways in which we can manipulate someone is through deception, one form of
which is an outright lie.
Motivators to Manipulate Someone’s Behavior
 Guilt  Fear
 Low Self- esteem  Pity
 A Desire To Please  Pride
 Conformity  Anxiety
Ethical Issue in Advertising
The general ethical defense of advertising, such as
The Principle-based Tradition
Not allowing any manipulations
The Utilitarian Tradition
Offer a more conditional critique of manipulation, depending on the consequences.:
A particularly egregious form of manipulation occurs when vulnerable people are targeted
for abuse
Ex. Cigarette advertising aimed at children is one example that has received major criticism
The Guidelines
1. Marketing practices are ethically legitimate if the practice seeks to find which consumers
tend to buy a product
 2. Marketing practices that seek to identify populations that can be easily influenced and
manipulated are ethically questionable
3. Marketing research seeks to learn something about the psychology of potential customers.
Marketing Ethics and Consumer Anatomy
Defenders of advertising argue that despite cases of deceptive practices, overall advertising
contributes much to the economy.
From Marketing People Know About :
The benefit from business’s marketing of its products
Learn about products consumers may need or want
Consumers get information that helps them make responsible choices
John Kenneth Galbraith in his book The Affluent Society claimed that advertising and
marketing were creating the very consumer demand that production then aimed to satisfy. Dubbed
the “dependence effect” this assertion held that consumer demand depended on what producers
had to sell
Psychologist claim that advertising can control consumer behavior by controlling their
choices. But rather than controlling behavior, advertising creates the desires which will affect how
the consumers act.
Why People Go Shopping?
After certain basic needs are met, there is a real question of why people consume the way they do.
People buy things for many reasons
The desire to appear fashionable
For status
To feel good
Because everyone else is buying something
And many more
Marketing to Vulnerable Populations
A vulnerable consumer is someone who, due to their personal circumstances, is especially
susceptible to detriment, particularly when a firm is not acting with appropriate levels of care.

“Is there anything to the claim that elderly women living alone are more “vulnerable” than younger
women and that this vulnerability creates greater responsibility for marketers?? Are older people
living alone particularly vulnerable?
The answer to this depends on what we mean by particularly vulnerable.
The First Sense of Vulnerability
*a person is vulnerable as a consumer by being unable in some way to participate as a fully
informed and voluntary participant in the market exchange.
*What we can call consumer vulnerability occurs when a person has an impaired ability to make
an informed consent to the market exchange.
Valid market exchanges make several assumptions about the participants:
● They understand what they are doing
● They have considered their choice
● They are free to decide
● And so on.
The Second Sense of Vulnerability
*There is a second sense of vulnerability in which the harm is other than the financial harm of an
unsatisfactory market exchange
*What we can call general vulnerability occurs when someone is susceptible to some specific
physical, psychological, or financial harm.
Some marketing practices might target those consumers who are likely to be uninformed
and vulnerable as consumers. Other marketing practices might target populations that are
vulnerable in the general sense. The marketing that is targeted at those individuals who are
vulnerable as consumers is unethical. People can be vulnerable as consumers because they are
vulnerable to other harms in other cases, people become vulnerable to other harms because they
are vulnerable as consumers.
Stealth Or Undercover Marketing
 - campaigns that are based on environments or activities where the subject is not aware that
she or he is the target of a marketing campaign; those situations where one is subject to directed
commercial activity without knowledge or consent.
Supply Chain Responsibility
In creating a product, promoting it, and bringing it to market, the business marketing
function involves various relationships with other commercial entities, including Supply Chain
Responsibility.

ACTIVITY 1
1. As a consumer, what are the advantage and this advantage of strict compliance with the
ENHANCE COMMUNITY QUARANTINE (ECQ)BECAUSE OF COVID - 19 in relation to
marketing like buying goods and service?
2. Recall and name some ads that personally offended you during Covid-19 ECQ? What are
those ads about? Why do you think those ads were offensive?
3. Why do you think ethics and marketing helps you to survive the Covid-19 ECQ?

ACTIVITY 2
1. How can companies cope up with this Covid-19 issue?
2. What are some of the ethical issues in advertising?
3. You as a student how can you purchase your necessity in this time of ECQ?

ACTIVITY 3
1. Does your family support green practices during ECQ? For example, when you go to the
supermarket, do you bring your own bag? What other actions does your family practice in
order to be a green family?