GB 350 Chapter 3

-When organizational operations benefit society and the bottom line -Based on the belief that business and social stakes are increasingly intertwined

"shared value"

____% of consumers want to easily find information about company values and socially responsible efforts

60%

Making efforts to educate employees about regulatory compliance can reduce fines by up to _____%.

95%

What are the 4 regulatory bodies charged with ensuring legal marketing tactics?

CPSC, FDA, FCC, FTC

_____ is "Good for Business"

Corporate Social Responsibility (CSR)

-Prohibits U.S. Corporations from making illegal payments to public officials of foreign governments -Beyond money, and includes "items of value" -Applies to foreign subsidiaries of U.S. companies

Foreign Corrupt Practices Act (FCPA)

Expands the obligations of boards, requiring them to consider environmental and social factors, as well as the financial interests of shareholders. This gives directors and officers the legal protection to pursue a mission and consider the impact their business has on society and the environment.

benefit corporations

For-profit entities seeking a mission to balance economic goals with environmental and/or social goals

benefit corporations

-Reviews mergers and acquisitions -Challenges anti-competitive conduct and promotes competition -Provides information and holds conferences and workshops on competition issues

bureau of competition

What are the 3 bureaus of the FTC?

bureau of competition, bureau of economics, bureau of consumer protection

-Enforces federal laws that protect consumers -Empowers consumers with information -Communicates with consumers

bureau of consumer protection

Provides economic analysis and support to antitrust and consumer protection investigations

bureau of economics

Cooperative marketing efforts between a for-profit firm and a non-profit organization

cause-relate marketing

Who is the most protected segment?

children

-Helps employees identify acceptable business practices -Helps control behavior internally -Avoids confusion in decision making -Facilitates discussion among employees about right and wrong

code of ethics

Guidelines to help marketing managers and other employees make better decisions

code of ethics

"the invisible set of rules which guides behavior inside a company, and therefore it's the foundation which business results rest on"

company culture

Protects the health and safety of consumers in and around their homes

consumer product safety commission (CPSC)

Situation-specific and time-oriented; should be expressed and available to all organizational members

ethics

What are 6 modes of social control?

ethics, law, formal/informal groups, self-regulation, media, active consumers

Who is not exempt from ethics training and resources?

executive management

Regulates interstate and international communication by radio, wire, television, satellite, and cable

federal communication commission

Prevents persons or corporations from using unfair methods of competition in commerce

federal trade commission (FTC)

Enforces regulations against selling and distribution adulterated, misbranded, or hazardous food and drug products

food and drug administration (FDA)

What are 2 motivations for self-regulation?

foster consumer trust and confidence and avoid future legal intervention

Ethics training and resources are often too _______ or _________ for employees to reasonably follow

generic or lengthy

"posits that people and organizations exist within larger institutional environments with taken-for-granted social, cultural, and symbolic meaning systems that define their social reality"

industrial theory

Rules as to what is good or bad; developed as a result of cultural values and norms; considered a foundation of ethical behavior; enduring across situations

morals

What are the 5 norms the FTC has identified for the ethical use of consumer information?

notice, consent, access, security, enforcement

What type of companies are Americans much more likely to buy from?

purpose-driven companies

What has the FCPA been criticized for?

putting U.S. businesses at a competitive disadvantage

Any means used to maintain behavioral norms (standards of proper or acceptable behavior) and regulate conflict

social control

Businesses that engage in socially responsible business practices tend to outperform their competitors

sustainability theory

What is cause-related marketing's (CRM) distinguishing characteristic?

the cooperation between a for-profit firm and a non-profit organization

What are 6 factors influencing tendencies to behave unethically?

-extent of ethical problems with the organization -top management's actions on ethics -potential magnitude of the consequences -number of people to be affected -social consensus -probability of harmful outcome

What are 2 benefits of CRM?

-for-profit gets image boost -non-profit gets awareness and resources

What 4 things does effective CSR do to overcome skepticism that the organization is just trying to make a profit?

-having a real impact -being authentic -telling a relevant story -aligning with the company's business