Download MARKETING ETHICS - International Business courses

CHAPTER 4
MARKETING
ETHICS
4-1
Marketing Ethics
LEARNING OBJECTIVES
LO1
LO2
LO3
LO4
LO5
Identify the ethical values marketers should
embrace.
Distinguish between ethics and social
responsibility.
Identify the four steps in ethical decision making.
Describe how ethics can be integrated into a
firm’s marketing strategy.
Describe the ways in which corporate social
responsibility programs help various
stakeholders.
4-2
Firm Goals
Greed and short
term profit seeking
Serious long term
consequences
Javier Pierini/Getty Images
Creating value
over the long run
Long term
success
4-3
The Scope of Marketing Ethics
Business
Ethics
Marketing
Ethics
http://www.youtube.com/watch?v=mLlKHjYeQ7I
4-4
Creating an Ethical Climate
in the Workplace
Values
• Establish
• Share
• Understand
Rules
• Management commitment
• Employee dedication
Controls
Stockbyte/Getty Images
• Reward
• Punishment
4-5
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
4-6
The Influence of Personal Ethics
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Genetics
©Digital Vision Ltd.
Family
Corbis/Jupiter images
©Royalty-Free/CORBIS
Religion
Getty Images
Values
4-7
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
4-8
Competing Outcomes
Dangerous flaw in
new model
Delay
production
Continue
production
Delayed
revenue
Potential
injury to
consumers
Possible
layoffs
Loss of
revenue
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Loss of
bonuses
4-9
Socially Responsible
Socially Irresponsible
Ethical
Both ethical and
socially
responsible
Ethical firm not involved
with the larger
community
Unethical
The Link Between Ethics and
Corporate Social Responsibility
Questionable firm
practices, yet donates a
lot to the community
Neither ethical nor
socially responsible
4-10
A Framework for
Ethical Decision Making
Step 1
• Identify
Issues
Step 2
• Gather
information
and identify
stakeholders
Step 3
• Brainstorm
and evaluate
alternatives
Step 4
• Choose a
course of
action
4-11
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
4-12
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
4-13
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
4-14
Step Four: Choose a Course of Action
Weigh the alternatives
Take a course of action
Digital Vision/Getty Images
4-15
CHECK YOURSELF
1. Identify the stages in the ethical decisionmaking framework.
4-16
Integrating Ethics Into
Marketing Strategy
Planning Phase
Implementation Phase
Control Phase
4-17
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
4-18
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?
4-19
Control Phase
1. Check
successful
implementation
2. React to change
Barbara Penoyar/Getty Images
4-20
CHECK YOURSELF
1. What ethical questions should a marketing
manager consider at each stage of the
marketing plan?
4-21
Corporate Social Responsibility
• Employees
• Their families
• Partners
• Competitors
• Current
customers
• Potential
customers
Employees
Customers
Marketplace
Society
• Community
• Environment
4-22
CHECK YOURSELF
1. How has corporate social responsibility evolved
since the turn of the twenty-first century?
2. Provide examples of each of the stakeholders
that firms should consider in their corporate
social responsibility efforts.
4-23