Transcript Chapter 3
Chapter 3 – Ethics and
Social Responsibility
Is it okay to get around the law if you
don’t actually break the law?
What are ethics?
The moral principles
or values that
generally govern the
conduct of an
individual.
How is that different
from morals?
The rules people
develop as a result
of cultural values and
norms.
Moral Idealism
Utilitarianism
Understanding Ethical Marketing Behavior
Societal Culture and Norms
Business/Industry Practices
Ethics of Exchange
Ethics of Competition
Corporate Culture
Code of Ethics
A guideline to help
managers and other
employees make good
decisions
Ethical Developmental Levels
More
Childlike
More
Mature
Preconventional
Morality
• Based on what will be
punished or rewarded
• Self-centered, calculating,
selfish
Conventional
Morality
• Moves toward the
expectations of society
• Concerned over legality and
the opinion of others
Postconventional
Morality
• Concern about how they judge
themselves
• Concern if it is right in
the long run
Ethical Decision Making
Influential Factors
Extent of Problems
Probability of Harm
Top Management
Actions
Time Until
Consequences
Potential Consequences
Number Affected
Social Consensus
Corporate Social
Responsibility
Requires that the company:
Be philanthropic
“Give back”
Be a good citizen
Be ethical
Do what is right
Operate legally
Obey laws
Be economically responsible
Make a profit
Sustainability
Socially responsible firms will outperform
competitors by focusing on the world’s problems
and viewing them as opportunities to build profits
AND help the world.
Companies cannot thrive in a world where billions
of people are suffering and desperately poor
Cause Marketing
Tying the charitable
contributions of a firm
directly to sales
produced through the
promotion of one of its
products