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