18 terms

Chapter 3 Marketing Ethics

STUDY
PLAY
Business Ethics
The moral or social dilemmas that might arise in a business setting. (pg 84)
Marketing Ethics
Examines those ethical problems that are specific to the domain in marketing. Especially because the marketing if often singled out as being the root of ethical lapses (considering its in the public eye) . Therefore, marketers have to carefully consider the potential affects of their products on both the external and internal environment. (social issues, global issues, individual consumer issues, dangerous products etc.)
Aka a firm tries to apply sound ethical principles that are a part of a continuous and dynamic social mission.
Ethical Climate
1) Includes having a set of values that guides decisions making and behavior. (ie an outline of the firm's commitments and responsibilities.)
2) Establish of system of rules and controls that reward/ punish certain behaviors. (The AMA is a great start for new companies- include sub area specific ones)

Companies that foster good ethical climates tend to have different business practices than that of goal orientated firms. (especially the top management)
Personal Ethics
Culture
Genes
Family
Religion
Laws
Etc.
As we progress throughout our lives, so does the perception of what is moral/immoral.
Often a choice of short term profits versus long term benefits to society.
Corporate Social Responsibility
Entails voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.

Aka short term profit vs long term consequences; usually seen as going above and beyond the norms of corporate ethical behavior.
Recent trend of consumers to focus on the firm's impacts.
How to make an Ethical Decision
1.) Identify Issues:
2.)Gather information and Identify Stakeholders: facts about the situation ( including legal) & find those who have a say in the matter( Employees, suppliers, government, customers, stockholders, and members of the community,industry, global community)
3.) Brainstorming and Evaluating alternatives
4.) Choose a course of action: Make a list of the best, and its alternatives.
Ethics in the Planning phase
Including ethics in the mission statement/ vision. (ex Johnson & Johnson) Usually promoted by top management. Also incorporated into the Strengths Weakness Opportunities and Threats of the business. (For example an opportunity to run a sales promotion but we have to pay a 2% bribe to do so.)
Implementation Phase
When a firm Identifies a potential target market(s) and how to successfully deliver a mix of the 4 p's to them. (ex beer company launched a campaign to try to identify the top party school, but consequently increased under-aged drinking Another example includes child labor, sweatshops and whether to keep the social norms of a parent company or abide by the host countries morals.)
Control Phase
During this phase, a Manager's actions must be evaluated to see whether they are ethical or not. Therefore there should be an established system to find problems, solve them, and react to change. (ie emergency response plans in place of an ethical dilemma)
Inputs
Consumer, Company and Cause/Issue are the 3 inputs in a company.
Consumer
Environmental changes affect firms and consumers alike; ex the more diverse demographics lead to different marketing strategies, corporate responsibilities , and how they interact with society. (recent trends include the environment, privacy in the electronic world, an ensuring healthy products.)
Company
Firms must consider problems and causes that work well with both the firm and the industry(and the rest of the stakeholders) .
Cause/Issue
Picking and diversifying in causes that provide the most benefit to society, a vision of a CEO or other stakeholder, or something the target market believes in.
Developing a CSR program
Uses all potential inputs in creating the ideal program for that company; especially with issues in their own industries.
Outputs
Firms realize that doing good for society also significantly helps the bottom line of their profits.. (because of increased value of their products, happier employees/ greater efficiency)
Consumer
CSR companies enjoy increased awareness amongst consumers in the short run, and increased sales in the long run.
Company
Results in positive word of mouth for the company, employees become impassioned because they also believe in the cause ( this has an enormous impact on customers), and increased profits.
Cause/Issue
Appropriate links between nonprofit organization increase awareness for both parties, and more resources that can be devoted to the cause in the future...
YOU MIGHT ALSO LIKE...