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chapter
three
marketing ethics
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Marketing Ethics
LEARNING OBJECTIVES
LO1 Identify the ethical values marketers should
embrace.
LO2 Distinguish between ethics and social responsibility.
LO3 Identify the four steps in ethical decision making.
LO4 Describe how ethics can be integrated into a firm’s
marketing strategy.
LO5 Describe the ways in which corporate social
responsibility programs help various stakeholders.
3-2
The Scope of Marketing Ethics
Business Ethics
Marketing Ethics
Miller Commercial
3-3
Creating an Ethical
Climate in the Workplace
• Values
– Establish
– Share
– Understand
• Rules
– Management
commitment
– Employee dedication
• Controls
– Reward
– Punishment
Stockbyte/Getty Images
3-4
American Marketing Association
Code of Ethics
Generally accepted code in marketing
Flows from general norms of conduct to
specific values
Subareas within marketing have their own
code of ethics to deal with specific issues
AMA Website
3-5
The Influence of Personal Ethics
PhotoDisc/Getty Images
Genetics
©Digital Vision Ltd.
Family
Corbis/Jupiterimages
©Royalty-Free/CORBIS
Religion
Getty Images
Values
3-6
Why People Act Unethically
What makes people take
actions that create so
much harm?
Are all the individuals who
engage in questionable
behavior just plain
immoral or unethical?
Decisions often have conflicting outcomes, where both
options have positive and negative consequences
3-7
Competing Outcomes
Dangerous flaw in
new model
Delay
production
Continue
production
Delayed
revenue
Potential injury
to consumers
Possible
layoffs
Loss of
revenue
Digital Vision/Getty Images
Loss of
bonuses
3-8
The Link Between Ethics and
Corporate Social Responsibility
3-9
A Framework for
Ethical Decision Making
3-10
Step One: Identify Issues
Using results
to mislead or
even harm
the public
Marketing
research
firm issues
Hiding the
real purpose
of the study
Data
collection
methods
3-11
Step Two: Gather Information
and Identify Stakeholders
Identify all ethical issues
and relevant legal
information
Identify all relevant
stakeholders and get
their input on any
identified ethical issues
3-12
Step Three: Brainstorm
and Evaluate Alternatives
• Halt the market
research project?
• Make responses
anonymous?
• Instituting training on
the AMA Code of
Ethics for all
researchers
Ryan McVay/Getty Images
3-13
Step Four: Choose a Course of Action
Weigh the alternatives
Take a course of action
Digital Vision/Getty Images
3-14
Integrating Ethics Into Marketing Strategy
Planning Phase
• The mission or vision
statement sets the
overall ethical tone for
planning.
• Mission statements
can be used as a
means to guide a
firm’s SWOT analysis.
©M Hruby
3-15
Integrating Ethics Into Marketing Strategy
Implementation Phase
Should the firm be relocating
production to another country?
Should the firm be targeting
this market with this product?
Should the firm be selling
its product in this market in
this manner?
3-16
Integrating Ethics Into Marketing Strategy
Control Phase
1. Check successful
implementation
2. React to change
Barbara Penoyar/Getty Images
3-17
Corporate Social Responsibility
3-18