10 terms

Chapter 4: Marketing Ethics

STUDY
PLAY
Business Ethics
To the moral or ethical dilemmas that might arise on a business setting.
Marketing Ethics
Refers to those ethical problems that are specific to the domain of marketing.
Corporate Social Responsibility
Refers to the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.
Ethical Climate
The set of values within a marketing firm, or in the marketing division of any firm, that guide decision making and behavior.
Locational privacy
A person's ability to move normally in public spaces with the expectation that his or her location will not be recorded for subsequent use.
Identify the ethical values marketers should embrace.
It is particularly important to marketers, because they interact most directly with customers and suppliers, which offers multitude of ethical questions and opportunities. AMA's Code of Ethics indicates that the basic ethical values marketers should aspire to are honesty, responsibility, fairness, respect, openness, and citizenship.
Distinguish between ethics and social responsibility.
Individuals and firms can (and should) act ethically, but the outcome of their acts may not affect society in general. An ethical act may only affect the firm's immediate stakeholders, such as its employees, customers, and suppliers. To be socially responsible, a firm also must take actions that benefit the community in a larger sense, such as helping people who have been affected by a natural disaster like a hurricane.
Identify the four steps in ethical decision making.
1. Firms can include ethics and social responsibility in their corporate mission.
2. They should institute policies and procedures to ensure that everyone working for the firm is acting in an ethically responsible manner.
3. Firms can model their ethical policies after a well-established code of ethics like the one provided by the American Marketing Association
4. When making ethically sensitive decisions, firms can utilize a metric such as the ethical decision-making metric.
Describe how ethics can be integrated into a firm's marketing strategy.
Ethical and socially responsible considerations should be integrated into the firm's mission statement, as long as top management follows through and commits to supporting a strong ethical climate within the organization. When considering their marketing strategy, firms should ask not only "can we implement a certain policy?" but also "should we do it?" In control phase, marketers must determine whether they truly have acted in an ethical and socially responsible manner. If not, they should make changes to the marketing strategy.
Describe the ways in which corporate social responsibility programs help various stakeholders.
By identify the various stakeholders of a company, namely, customers, employees, the marketplace, and society. CSR benefits these stakeholders as follows:
-Customers: they can trust the firms to provide healthy, ethically acceptable products and services.
-Employees: treat its employees with decency and respect.
-Marketplace: improves its practices, and avoids scandals, when it ensures that the participating firms act responsibly and appropriately in all areas.
-Society: it can be local, national or global communities.
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