Marketing Chapter 4 Bodkin

What are four possible reasons for the present state of ethical conduct in the United States?

(1) Increased pressure on businesspeople to make decisions in a society with diverse value systems. (2) A growing tendency for business decisions to be judged publicly by groups with different values and interests. (3) The public's expectations of ethical business behavior have increased. (4) Ethical business conduct may have actually declined.

Factors that influence ethical decision making

-Extent of Problems -Top Management Actions -Potential Consequences -Probability of Harm -Number Affected -Time Until Consequences -Social Consensus

Economic espionage includes what kinds of activities?

Economic espionage is the illegal and unethical clandestine collection of trade secrets or proprietary information about a company's competitors. This practice includes trespass- ing, theft, fraud, misrepresentation, wiretapping, searching of competitors' trash, and violations of written and implicit employment agreements with non-compete clauses.

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 behavior.

economic espionage

is the clandestine collection of trade secrets or proprietary information about a company's competitors. This practice is illegal and unethical and carries serious criminal penalties for the offending individual or business. Ex. illegal trespassing, theft, fraud, misrepresentation, wiretapping, the search of a competitor's trash, and violations of written and implicit employment agreements with noncompete clauses.

caveat emptor

is the legal concept of "let the buyer beware" that was pervasive in the American business culture prior to the 1960s.

social audit

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

cause marketing

which occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.

sustainable marketing

which seeks to meet today's (global) economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs

Deceptive Practices have led to legislation

• FTC governs deceptive practices • Use of puffery is legal •Deceptive practices are not sustainable as they harm a firm's business in the long-run

Why they don't report misconducts

● Fear of retaliation from management ● Did not feel the organization would respond ● No anonymous/confidential way of reporting misconduct ● Fear of being considered a troublemaker

Business Ethics

● learned since birth. ● acquired through -Family -Educational -Religious institutions ●Are situation specific and time oriented

code of ethics

A guideline to help marketing managers and other employees make better decisions

What is a social audit?

A social audit is a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility. It consists of five steps: (1) Recognition of a firm's social expectations and the rationale for engaging in social responsibility endeavors. (2) Identification of social responsibility causes or programs consistent with the company's mission. (3) Determination of organizational objectives and priorities for programs and activities it will undertake. (4) Specification of the type and amount of resources necessary to achieve social responsibility objectives. (5) Evaluation of social responsibility programs and activities undertaken and assessment of future involvement.

Ethical Marketing Behavior

Based on societal culture and norms ex. In Europe websites ask consumers to opt-in to receive additional information whereas in the United States we use an opt-out policy Anheuser-Busch acts on what it views as an ethical obligation to its customers and the general public with its Alcohol awareness and education programs

Social Criticisms of Marketing Deceptive Practices

Deceptive pricing • Phony high retail list price Deceptive promotion • Advertising -Misrepresenting features or performance -Bait and switch • Personal Selling -High pressure tactics, salesperson contests Deceptive Product • Shoddy products, harmful • Planned obsolescence • Packaging - Misleading labels Poor Service to disadvantaged customers

Stages in ethical development

PRE-CONVENTIONAL MORALITY -self-centered (It's all about ME!) -measure reward versus punishment CONVENTIONAL MORALITY -loyalty and obedience to organization or society -Is it legal? -How will my decision be viewed by others? - "When in Rome, do as the Romans do." POST-CONVENTIONAL MORALITY -Inner-directed -mature judgment

What is meant by social responsibility?

Social responsibility means that organizations are part of a larger society and are accountable to that society for their actions. It comprises three concepts: (1) profit responsibility— maximizing profits for the organization's owners or shareholders; (2) stakeholder responsibility—focusing on the obligations organizations have to those who can effect the achievement of its objectives; and (3) societal responsibility—focusing on the obligations organizations have to preserve the ecological environment and to the general public.

ethics

The moral principles or values that generally govern the conduct of an individual.

Morals

The rules people develop as a result of cultural values and norms.

laws

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

Whistle blowers

employees who report unethical or illegal actions of their employers.

Marketing efforts to produce, promote, and reclaim environmentally sensitive products are called _____.

green marketing

sustainable development

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

Consumer Bill of Rights

is a law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard.

moral idealism

is a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome. it is the philosophy embodied in the Consumer Bill of Rights and favored by consumer interest groups

green marketing

marketing efforts to produce, promote, and reclaim environ- mentally sensitive products—takes many forms

Social Responsibility

means that organizations are part of a larger society and are accountable to that society for their actions

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.