mktg ch 4

laws

are society's values and standards that are enforceable in the courts

ethics

are the moral principles and values that govern the actions and decisions of an individual or group.2 They serve as guidelines on how to act rightly and justly when faced with moral dilemmas.

stakeholder responsibility

focuses on the obligations an organization has to those who can affect achievement of its objectives. These constituencies include consumers, employees, suppliers, and distributors.

code of ethics

is a formal statement of ethical principles and rules of conduct.

moral idealism

is a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome.

economic espionage

is the clandestine collection of trade secrets or proprietary information about a company's competitors

caveat emptor

let the buyer beware

triple-bottom line

recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth

utilitarianism

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 behavior.

consumer bill of rights

codified the ethics of exchange between buyers and sellers. These were the right (1) to safety, (2) to be informed, (3) to choose, and (4) to be heard. Consumers expect and often demand that these rights be protected, as have American businesses.

whistle blowers

employees who report unethical or illegal actions of their employers.

profit responsibility

holds that companies have a simple duty: to maximize profits for their owners or stockholders.

sustainability

involves conducting business in a way that protects the natural environment while making economic progress.

green marketing

marketing efforts to produce, promote, and reclaim environmentally sensitive products

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

social responsibility

organizations are part of a larger society and are accountable to that society for their actions there are three concepts of social responsibility: (1) profit responsibility, (2) stakeholder responsibility, and (3) societal responsibility.

social audit

which is a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility.