Transcript MAR_6930_Lecture_12_Morals_and_Ethics_Notes

Introduction to morals and ethics
December 1, 2010
Overview
• What are morals? What are ethics?
• What are some ways to think about morality?
• What are some unique features of moral
reasoning?
• How much do morals and ethics overlap? How
do we encourage more moral behavior?
Morals vs. ethics
• “Morality concerns the basic principles by
which we justify our decisions to each other.
Ethics concerns more limited, culture-specific
codes that play a similar role. Ethics is
ultimately justified by morality, but it also take
into account the facts about institutions and
their function in a given society.”
Baron, 1994
Are you a…
Deontologist?
• Focus on duties
• Are actions right or wrong,
independent of their
consequences?
• Act consistently and
rationally such that rules
governing your actions
could also govern others’
Consequentialist?
• Focus on ends, not means
• Are consequences of
actions right or wrong,
independency of what they
are?
• Act in such a way as to bring
out the greatest total good
What would you do?
What would you do?
Moral dumbfounding
• Morals are not entirely logical rules for what
to do and not to do
• They are also driven by emotions and intuition
• This means that sometimes we reason
backwards from our reaction to the situation
to make judgments
• Also means that sometimes we have no
reason
– “It just feels wrong!”
Moral politics
Moral emotions
– Others:
• Contempt  Violations of hierarchy
• Anger  Violations of autonomy
• Disgust  Violations of purity
– Self:
• Embarrassment  Violations of social convention
• Guilt  One’s action has caused distress to another
• Shame  One’s self has caused distress to another
Universal Moral Principles
•
•
•
•
•
Do no harm
Make things better
Respect others
Be fair
Be loving
• Do you agree?
Universal Ethical Values (for
businesses)
• Do no harm
• Make things better (for shareholders and
hopefully customers too)
• Respect others
• Fairness—give me/my company the same
opportunities that everyone else gets
• Do you agree?
Universal Ethical Values (for
consumers)
• Do no harm
• Treat me and my money fairly
• Make things better for me (and for others, if
possible)
• Respect me as a consumer
• Be kind
• Do you agree?
Chevy’s New Campaign
• http://www.chevycarbonreduction.com/
Reasons for and against CSR
Against
• Management does not have
right to decide how stockholder
money is used
• Restricts free market goal of
profit maximization
• Dilutes primary aim of business
• Limits ability to compete in
global marketplace
• Social issues are not concern of
business
• Managers do not have expertise
to make social decisions
• Businesses already have enough
power
For
• Addresses social issues caused
by businesses
• Allows business to be part of
solution
• Protects business self-interest
• Payback to societal institutions
that support businesses
• Limits future government
intervention
• Addresses issues by using
business resources and
expertise
• Addresses issues by being
proactive
Milton Friedman 1962
• “Few trends could so thoroughly undermine
the very foundation of our free society as the
acceptance by corporate officials of a social
responsibility other than to make as much
money for their stockholders as possible.”
Summary
• Morals and ethics are related but different
• There are many types of moral outlooks, but they
share many of the same precepts and features
• Moral reasoning is not necessarily rational
– Emotions drive much of our moral reactions
• Moral and ethics for businesses and consumers
may not be based on the same ideas
– It’s important to think about how to increase the
overlap
AMA Code of Ethics
• As marketers we must:
• 1. Do no harm
– Consciously avoid acts or omissions by embodying
high ethical standards and adhering to all laws and
regulations
• 2. Foster trust in the marketing system
– Strive for good faith and fair dealing to contribute to
the efficacy of the exchange system
• 3. Embrace ethical values
– Affirm core values: honesty, responsibility, fairness,
respect, transparency, and citizenship
Ethical values
• Honesty: to be forthright in dealings with
customers and stakeholders. To that end, we will:
– Strive to be truthful in all situations and at all times
– Offer products of value that do what we claim in our
communications
– Stand behind our products if they fail to deliver their
promised benefits
– Honor our explicit and implicit commitments and
promises
Ethical values
• Responsibility: to accept the consequences of our
marketing decisions and strategies. To that end, we
will:
– Strive to serve the needs of customers
– Avoid using coercion with all stakeholders
– Acknowledge the social obligations to stakeholders that
come with increased marketing and economic power
– Recognize our special commitments to vulnerable market
segments such as children, seniors, the economically
impoverished, market illiterates who may be substantially
disadvantaged
– Consider environmental stewardship in our decisionmaking
Ethical values
• Fairness: to balance justly the needs of the buyer with
the interests of the seller. To that end, we will:
– Represent products in a clear way in selling, advertising,
and other forms of communication; this includes the
avoidance of false, misleading and deceptive promotion
– Reject manipulations and sales tactics that harm customer
trust. Refuse to engage in price fixing, predatory pricing,
price gouging, or “bait and switch” tactics
– Avoid knowing participation in conflicts of interest. Seek to
protect the private information of customers, employees,
and partners
Ethical values
• Respect: to acknowledge the basic human dignity of all
stakeholders. To that end, we will:
– Value individual differences and avoid stereotyping customers
or depicting demographic groups (e.g., gender, race, sexual
orientation) in a negative or dehumanizing way
– Listen to the needs of customers and make all reasonable
efforts to monitor and improve their satisfaction on an ongoing
basis
– Make every effort to understand and respectfully treat buyers,
suppliers, intermediaries and distributors from all cultures
– Acknowledge the contributions of others, such as consultants,
employees, and coworkers, to marketing efforts
– Treat everyone, including our competitors, as we would wish to
be treated
Ethical values
• Transparency: to create a spirit of openness in
marketing operations. To that end, we will:
– Strive to communicate clearly with all constituencies
– Accept constructive criticism from customers and
other stakeholders
– Explain and take appropriate action regarding
significant product or service risks, component
substitutions, or other foreseeable eventualities that
could affect customers and their perception of the
purchase decision
– Disclose list prices and terms of financing as well as
available price deals and adjustments
Ethical values
• Citizenship: to fulfill the economic, legal,
philanthropic, and societal responsibilities that
serve stakeholders. To that end, we will:
– Strive to protect the ecological environment in the
execution of marketing campaigns
– Give back to the community through volunteerism
and charitable donations. Contribute to the overall
betterment of marketing and its reputation
– Urge supply chain members to ensure that trade is
fair for all participants, including producers in
developing countries