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1. Ethics and Social Responsibility CHAPTER 3 Marketing 10 Designed by Lamb, Hair, McDaniel Prepared by Eric Brengle Amit Shah B-books, Ltd. Frostburg State University…
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  • 1. Ethics and Social Responsibility CHAPTER 3 Marketing 10 Designed by Lamb, Hair, McDaniel Prepared by Eric Brengle Amit Shah B-books, Ltd. Frostburg State University Copyright ©2009 by Cengage Learning Inc. All rights reserved 1
  • 2. Learning Outcomes LOI Explain the determinants of a civil society LO2 Explain the concept of ethical behavior LO3 Describe ethical behavior in business Copyright ©2009 by Cengage Learning Inc. All rights reserved 2
  • 3. Learning Outcomes LO4 Discuss corporate social responsibility LO5 Describe the arguments for and against social responsibility LO6 Explain cause-related marketing Copyright ©2009 by Cengage Learning Inc. All rights reserved 3
  • 4. LOI Civil Society Explain the determinants of a civil society Copyright ©2009 by Cengage Learning Inc. All rights reserved 4
  • 5. LO1 Civil Society Six Modes of Social Control Ethics The Media Laws Active Civil Society Formal and Informal Groups Self Regulation Copyright ©2009 by Cengage Learning Inc. All rights reserved 5
  • 6. LOI REVIEW LEARNING OUTCOME Explain the determinants of a civil society Copyright ©2009 by Cengage Learning Inc. All rights reserved 6
  • 7. LO2 Ethical Behavior Explain the concept of ethical behavior Copyright ©2009 by Cengage Learning Inc. All rights reserved 7
  • 8. LO2 Ethical Behavior The moral principles or values that generally govern the Ethics Ethics conduct of an individual. Copyright ©2009 by Cengage Learning Inc. All rights reserved 8
  • 9. LO2 Ethical Theories People usually base their individual choice of ethical theory on their life experiences •Deontology •Utilitarianism •Casuist •Moral Relativists •Virtue Ethics Copyright ©2009 by Cengage Learning Inc. All rights reserved 9
  • 10. LO2 REVIEW LEARNING OUTCOME Explain the concept of ethical behavior Copyright ©2009 by Cengage Learning Inc. All rights reserved 10
  • 11. LO3 Ethical Behavior in Business Describe ethical behavior in business Copyright ©2009 by Cengage Learning Inc. All rights reserved 11
  • 12. LO3 Ethical Behavior in Business The rules people develop as a result of cultural values and Morals Morals norms. Copyright ©2009 by Cengage Learning Inc. All rights reserved 12
  • 13. LO3 Ethical Development Levels More • Based on what will be Childlike Preconventional punished or rewarded Morality • Self-centered, calculating, selfish Conventional • Moves toward the expectations of society Morality • Concerned over legality and the opinion of others More Postconventional • Concern about how they Morality judge themselves Mature • Concern if it is right in the long run Copyright ©2009 by Cengage Learning Inc. All rights reserved 13
  • 14. LO3 Ethical Decision Making Influential Factors Extent of Problems Probability of Harm Top Management Time Until Actions Consequences Potential Consequences Number Affected Social Consensus Copyright ©2009 by Cengage Learning Inc. All rights reserved 14
  • 15. LO3 Code of Ethics Code of Ethics A guideline to help marketing Code of Ethics managers and other employees make better decisions. Copyright ©2009 by Cengage Learning Inc. All rights reserved 15
  • 16. LO3 Creating Ethical Guidelines • Helps identify acceptable business practices • Helps control behavior internally • Avoids confusion in decision making • Facilitates discussion about right and wrong 16 Copyright ©2009 by Cengage Learning Inc. All rights reserved
  • 17. LO3 Ethical Guidelines and Training Exhibit 3.3 Copyright ©2009 by Cengage Learning Inc. All rights reserved 17
  • 18. LO3 REVIEW LEARNING OUTCOME Describe the role of ethics and ethical decisions in business Copyright ©2009 by Cengage Learning Inc. All rights reserved 18
  • 19. LO4 Corporate Social Responsibility Discuss corporate social responsibility Copyright ©2009 by Cengage Learning Inc. All rights reserved 19
  • 20. LO4 Corporate Social Responsibility The idea that socially Sustainability Sustainability responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities to build profits and help the world at the same time. Copyright ©2009 by Cengage Learning Inc. All rights reserved 20
  • 21. LO4 Corporate Social Responsibility Stakeholders Employees Suppliers Management Owners Customers Local Community Copyright ©2009 by Cengage Learning Inc. All rights reserved 21
  • 22. LO4 REVIEW LEARNING OUTCOME Discuss Corporate Social Responsibility Philanthropic Be a good citizen. Ethical Do what is right. Legal Obey the Law. Economic Be profitable. Copyright ©2009 by Cengage Learning Inc. All rights reserved 22
  • 23. Arguments Against and For Corporate LO5 Social Responsibility Describe the arguments for and against social responsibility Copyright ©2009 by Cengage Learning Inc. All rights reserved 23
  • 24. LO5 Arguments Against Social Responsibility • Businesses should focus on making a profit and leave social and environmental concerns to nonprofits • Businesses don’t have the expertise to deal with social issues and doing so may interfere with the primary goals of their firms • The expense of social responsibility may damage the country in the global marketplace 24 Copyright ©2009 by Cengage Learning Inc. All rights reserved
  • 25. LO5 Arguments for Social Responsibility • The right thing to do • Business should police itself to avoid government intervention • Small companies can prosper and build shareholder value as they tackle social problems 25 Copyright ©2009 by Cengage Learning Inc. All rights reserved
  • 26. LO5 REVIEW LEARNING OUTCOME Arguments for and against social responsibility Copyright ©2009 by Cengage Learning Inc. All rights reserved 26
  • 27. LO6 Cause-Related Marketing Explain cause-related marketing Copyright ©2009 by Cengage Learning Inc. All rights reserved 27
  • 28. LO6 Cause-Related Marketing The cooperative efforts of a Cause-Related Cause-Related “for-profit” firm and a Marketing Marketing ‘nonprofit” organization for mutual benefit. Copyright ©2009 by Cengage Learning Inc. All rights reserved 28
  • 29. LO6 Cause-Related Marketing “Five Questions to Ask Before Participating in a Cause-Related Marketing Program” •Is this company committed? •How is the program structured? •Who does the program benefit? •How will the organization that benefits use my money? •Is the program meaningful to me? Copyright ©2009 by Cengage Learning Inc. All rights reserved 29
  • 30. LO6 REVIEW LEARNING OUTCOME Explain cause-related marketing Copyright ©2009 by Cengage Learning Inc. All rights reserved 30
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