Chapter 4: Social Responsibility and Ethics in Marketing

Product Issue

covering up defects that could cause harm to a consumer

Social Responsibility and Ethics Improve Marketing Performance

evidence shows there are long-term financial benefits to being ethical and socially responsible

Which of the following is often a better predictor of unethical activities than are personal values?

opportunity

The practice of linking products to a particular social cause on an ongoing or short-term basis is known as

cause-related marketing

Ethics relates to individual and group decisions whereas social responsibility _______.

deals with the total effect of marketing decisions on society

The Challenge of Ethical and Socially Responsible Behavior

Marketers must monitor trends and changes in society's values and desires (organizations must attempt to predict the long-term effects of their decisions pertaining to those wants), costs always associated with society's demands (firms can never please all parties, they must seek balance in addressing customer needs and wants)

The Dimensions of Social Responsibility

Marketing Citizenship, Marketing Ethics, and Philanthropic Responsibilities

Which of the following is the potential for the long-term well-being of the natural environment, including all biological, as well as the interaction among nature and individuals, organizations, and business strategies?

Sustainability

Social Responsibility Issues

Sustainability, Consumerism, and Community Relations

When an ethical issue arises in the supply chain, which of the following is most likely to be held accountable for misconduct?

The channel member managing the product

Which of the following promises consumers fair treatment when they complain to marketers about products?

The right to be heard

Which of the following do codes of ethics NOT do?

They take every situation into account.

Green Marketing

a strategic process involving stakeholders assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment

If other organizational members approve of the activity and it is legal and customary within the industry, chances are that the activity is _______ from both an ethical and a social responsibility perspective.

acceptable

Ethical Issues

an identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong

Ethical Issues

an identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical

Social Responsibility

an organization's obligation to maximize its negative impact on society (being a good corporate citizen can result in greater consumer trust and loyalty, can generate positive publicity, promotes goodwill, indirect longterm benefits)

Ethics Officers

are usually responsible for creating and distributing the code of conduct, enforcing the code and meeting with organizational members to discuss or provide advice about ethical issues

All companies have a responsibility to ______ so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy.

be profitable

Implementing Ethical/Legal Compliance Programs

codifying ethical standards and implementing compliance programs and codes of conduct that incorporate both legal and ethical concerns is the best approach to preventing violations

Organizational Relationships

conditions that limit barriers or provide rewards

Distribution Issue

counterfeit products are widespread (ie computer software)

Promotion Issue

deceptive advertising

Protect and Preserve the Environment

eliminate the concept of waste, reinvent the concept of a product, make prices reflect the true cost, and make environmentalism profitable

According to your text, a well-implemented _______ and a strong _______ result in the greatest decrease in ethical risks for an organization.

ethics program; corporate culture

Codes of Conduct

formalized rules and standards that describe what a company expects of its employees

Research into marketing ethics suggests that the _______ associated with an issue, the more likely it will be recognized as an ethics issue and the more important it will be in making an ethical decision.

greater the consequences

An ethical issue in the area of promotion is _______, which occurs when products are promoted as being more environmentally friendly than they really are.

greenwashing

Opportunity

in an organization setting, people rely on organizational values for ethical decision making

Individual Factors

in daily life, people base ethical decisions on personal principles and values

Pricing Issue

indicating that an advertised sales price is a reduction below the regular price when in fact that is not the case

Ethical choices in marketing are most often made _______.

jointly

Community Relations

marketers play a role as community members, corporate philanthropy is on the rise, firms can positively influence their communities (employment opportunities, economic development, financial contributions to educational, health, cultural, and other causes

ACME Corp. is adopting a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities that its stakeholders expect of it. This best describes _______.

marketing citizenship

The term ____ refers to the principles and standards that define acceptable conduct in marketing as determined by various stakeholders

marketing ethics

In the absence of ethics and compliance programs, employees will generally make decisions based primarily on their _______.

observations of how coworkers and superiors behave

ACME Corp. is striving to foster a set of ethical values, beliefs, goals, norms, and rituals that members of an organization share. This is best described as _______.

organizational culture

Employees, customers, communities, and investors are all considered ______ in relation to marketing.

stakeholders

________ refers to the potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies

sustainability

Marketing Citizenship

the adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders

Consumerism

the efforts of independent individuals, groups, and organizations to protect the rights of consumers

Sustainability

the potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies

Cause-Related Marketing

the practice of linking products to particular social cause on an ongoing or short-term basis

Marketing Ethics

the principles and standards that define acceptable conduct in marketing as determined by various stakeholders, the most basic of these standards have been codified into laws

Strategic Philanthropy

the synergistic use of organization core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits