Opportunity and Ethics
conditions that limit barriers to provide rewards
An employee tat acts unethically and is rewarded or suffers no
penalty may repeat such acts as other opportunities arrive
Ethical decision
an identifiable problem, situation or opportunity requiring a choice
among several actions that must be evaluated as right or wrong,
ethical or unethical
Utilitarian philosophy
greatest good for the greatest number
Humanistic philosophy
rights with individuals
Consumer Bill of Rights (1962)
a law that codified the ethics exchange between buyers and sellers
5 Consumer Rights
Right to Safety Right to Redress Right to
Choose Right to a Healthful Environment Right to
Privacy
Right to Safety
The Consumer Product Safety Commission
Right to Redress
The right to be heard - is the right to complain and express
grievances about product failure. Consumer advocacy groups may act on
behalf of the consumer by expressing their grievances and taking legal action
Right to Choose
the right to assured access, whenever possible, to a variety of
products at competitive prices. In those industries in which
competition is not workable, government regulation is substituted to
assure satisfactory quality and service at fair prices
Right to a Healthful Environment
environmental pollution is a growing concern in industrialized nations
Right to Privacy
it is an issue of increasing urgency. The use of database marketing
and concerns about privacy. Four out of five consumers report that
they value their privacy and believe it should be protected by law
Factors that influence Ethical Decision-Making Process
Individual factors
Opportunity
Organizationals relationships
Individual factors and ethics
People learn values and principles through
Socialization by family members Social groups
Religion Formal education
Opportunity and Ethics
Opportunity is conditions that limit barriers to provide rewards
An employee tat acts unethically and is rewarded or suffers no
penalty may repeat such acts as other opportunities arrive
Organization relationships and ethics
-Organizational culture
a set of values, beliefs, goals, norms, and rituals that members of
an organization share. It gives members meaning and suggests rules for
how to behave and deal with problems
Building a moral culture
Leadership by example Codes and statements
recruiting and training reward and disciplinary
system
Materialistic
to measure our self-worth by our external assets and possessions
rather than by intrinsic characteristics
Ethical Marketing
Practices that emphasize transparent, trustworthy, and responsible
personal and/or organizational marketing policies and actions that
exhibit integrity as well as fairness to consumers and other stakeholders
Social Responsibility
the idea that organizations are part of a larger society and are
accountable to that society for their actions
Philanthropic
-Cause-related marketing
the practice of linking products to a particular social cause on an
ongoing or short-term basis
Philanthropic
-Strategic philanthropy
the synergistic use of organizational core competencies and resources
to address key stakeholders' interests and achieve both organizational
and social benefits.
Philanthropic
not required by of a company, but they promote human welfare or goodwill.
Be a good corporate citizen Contribute resources to
the community Improve quality of life
Ethical
Principles and standards defining acceptable conduct in marketing as
determined by various stakeholders including: the public, government
regulators, private-interest groups, consumers, industry, the
organization itself.
Obligations to do what is right, just, and fair
Legal
Marketers are expected to follow all laws and regulations designed to
keep U.S. companies' actions within the range of acceptable conduct
and fair competition. Failure to consider them may mean a marketer is
not around long enough to engage in ethical or philanthropic activities.
Obey the law Play by the rules of the game
Economic
At most basic level all companies have an economic responsibility to
be profitable so they can provide return on investment to their owners
and investors, create jobs for the community, and contribute goods and
services to the economy
Be profitable The foundation upon which all others
rest
The case for social responsibility
Changing public expectations Long-run self
interest Avoidance of government regulation
Business's useful resources
The case against social responsibility
Business's lack of understanding Increase of business
power Dilution of responsibility to shareholders
Creation of a disjointed effort
Sustainable Development
involves conducting business in a way that protects the natural
environment while making economic progress