Marketing Ch 3

ethics

the moral principal or values that generally govern the conduct of an individual or group

morals

the rules people develop as a result of cultural value and norms

pyramid of corporate social responsibility order

1. (top) philanthropic- be a good corporation citizen, contribute to resources and community 2. ethical responsibilities- be ethical, do what is right 3. legal responsibilities- obey the law, play by the rules of the game 4. (bottom, base) economic responsibilities- be profitable, this is the foundation on which all other responsibilities rest

three levels of ethical development

1. preconventional morality- childlike. calculating, self centered, selfish, based on what is immediately punished or rewarded 2. conventional morality- moves towards expectations of society. loyalty and obedience to the organization become paramount 3. postconventional morality- mature adult, people are less concerned about how others might see them and more concerned about how they see and judge themselves over the long run

corporate social responsibility (CSR)

a business's concern for society's welfare. concerned with the companys relationship with society and how it operates

virtue

a character trait valued as being good

code of ethics

a guideline to help marketing managers and other employees make better decisions -what is acceptable business practice? -effective internal control of behavior -written code helps employees avoid confusion -deciding what is right and what is wrong leads to better decisions

pyramid of corporate social responsibility

a model that suggests corporate social responsibility is composed of economic, legal, ethical and philanthropic responsibilities and that the firms economic performance supports the entire structure

sustainability

the idea that socially responsible companies will outperform their peers by focusing on the worlds social and environmental problems and viewing them as opportunities to build profits and help the world at the same time