Transcript BA 2303 - StudyDaddy

BA 2303
Principles of Marketing - UNBSJ
Ethics and Social
Responsibility in
Marketing
Instructor – Terry Conrod
BA 2303
Learning Objectives
1.Explain the differences between legal and ethical behaviour in
marketing.
2.Identify factors that influence ethical and unethical behaviour in
marketing.
3.Describe the different concepts of social responsibility.
4.Recognize unethical and socially irresponsible consumer
behaviour.
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NATURE AND SIGNIFICANCE OF
MARKETING ETHICS
‣ Ethical/Legal Framework in Marketing
‣ Laws
‣ Current Perceptions of Ethical Behaviour
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Classifying marketing decisions according to ethical and
legal relationships
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Concept Check
What are ethics?
Answer:
The moral principles and values that govern the
actions and decisions of an individual or group.
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Concept Check
What are laws?
Answer:
Society’s values and standards that are
enforceable in the courts.
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A framework for understanding ethical behavior
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UNDERSTANDING ETHICAL MARKETING
BEHAVIOUR
‣ Societal Culture and Norms
‣ Business Culture and Industry Practice
‣ Ethics of Exchange
‣ Caveat emptor
‣ Ethics of Competition
‣ Economic espionage
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UNDERSTANDING ETHICAL MARKETING
BEHAVIOUR
‣ Corporate Culture and Expectations
‣ Codes of Ethics
‣ Ethical behaviour of Top Management
and Co-Workers
‣ Whistleblowers
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Excerpt from the Canadian Marketing Association Code of
Ethics and Standards of Practice and from the American
Marketing Association’s Code of Ethics.
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UNDERSTANDING ETHICAL MARKETING
BEHAVIOUR
‣ Personal Moral Philosophy and Ethical behaviour
‣ Moral Idealism
‣ Utilitarianism
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Concept Check
What is caveat emptor?
Answer:
Caveat emptor means buyer beware. This concept
was pervasive in Canadian business culture prior to
the 1960s.
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Concept Check
What is a code of ethics?
Answer:
The code of ethics is a formal statement of ethical
principles and rules of conduct.
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Concept Check
What is meant by moral idealism?
Answer:
Moral idealism is a personal philosophy that
considers certain individual rights or duties as
universal regardless of the outcome.
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UNDERSTANDING SOCIAL RESPONSIBILITY
IN MARKETING
‣ Concepts of Social Responsibility
‣ Profit Responsibility
‣ Stakeholder Responsibility
‣ Societal Responsibility
‣ Green marketing
‣ ISO 14001
‣ Cause marketing
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Three concepts of
social responsibility
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UNDERSTANDING SOCIAL RESPONSIBILITY
IN MARKETING
‣ The Social Audit: Doing well by Doing Good
‣ Sustainable development
‣ Turning the Table: Consumer Ethics and Social
Responsibility
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Concept Check
What is meant by social responsibility?
Answer:
Social responsibility means that organizations are
part of a larger society and are accountable to
that society for their actions.
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Concept Check
Marketing efforts to produce, promote, and reclaim
environmentally sensitive products are called
_______________.
green marketing
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Concept Check
What is a social audit?
Answer:
A social audit is a systematic assessment of a firm's
objectives, strategies, and performance in the
domain of social responsibility.
BA 2303
© 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
BA 2303
Ethics
‣ Ethics are the moral principles and values that govern
the actions and decisions of an individual or group.
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Laws
‣ Laws are society’s values and standards that are
enforceable in the courts.
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Caveat Emptor
‣ Caveat emptor is a legal concept which means let the
buyer beware.
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Economic Espionage
‣ Economic espionage is the clandestine collection of
trade secrets or proprietary information about a
company’s competitors.
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Code of Ethics
‣ A code of ethics is a formal statement of ethical
principles and rules of conduct.
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Whistle-blowers
‣ Whistle-blowers are employees who report unethical
or illegal actions of their employers.
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Moral Idealism
‣ Moral idealism is a personal moral philosophy that
considers certain individual rights or duties as
universal, regardless of the outcome.
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Utilitarianism
‣ Utilitarianism is a personal moral philosophy that
focuses on “the greatest good for the greatest
number” by assessing the costs and benefits of the
consequences of ethical behaviour.
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ISO 14001
‣ ISO 14001 consists of worldwide standards for
environmental quality and green marketing practices.
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Cause Marketing
‣ Cause marketing occurs when the charitable
contributions of a firm are tied directly to the
customer revenues produced through the promotion
of one of its products.
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Social Audit
‣ A social audit is a systematic assessment of a firm’s
objectives, strategies, and performance in the domain
of social responsibility.
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Sustainable Development
‣ Sustainable development involves conducting business
in a way that protects the natural environment while
making economic progress.
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Greenwashing
‣ Disinformation disseminated by an organization so as
to present an environmentally responsible public
image.
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Profit Responsibility
‣ Idea that companies have a simple duty—to maximize
profits for their owners or shareholders.
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Societal Responsibility
‣ Refers to obligations that organizations have to the
(1) preservation of the ecological environment, and
(2) general public.
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Stakeholder Responsibility
‣ Focuses on the obligations an organization has to
those who can effect achievement of its objectives,
including customers, employees, suppliers, and
distributors.