COMMERCIAL BRIBERY THE ACT OF INFLUENCING OR ATTEMPTING TO INFLUENCE THE ACTIONS OF AN EMPLOYEE SUCH AS A PURCHASING AGENT OR BUYER BY GIVING THE EMPLOYEE A GIFT OF SOME SORT WITHOUT KNOWLEDGE OF THE EMPLOYER No general Federal statute  Unfair method of competition (FTC)  Generally controlled by state law  Federal employees, employees of Federal contractors  Conspiracy, Tax Evasion

LEGAL AND ETHICAL ASPECTS OF MARKETING Marketers are governed by the same laws s all others Variety of Jurisdictions  Geographical Jurisdictions International Laws National Laws Regional /State Laws Local Laws  Functional Jurisdictions  result in a variety of laws and regulations Both “thou shalt” and “thou shalt not” laws Benson P. Shapiro, 1984

LEGAL AND ETHICAL ASPECTS OF MARKETING Penalties: Civil, Criminal, or both Can involve “per se violations” (act itself illegal) & “rule of reason” violation (proof of damage to competition or customer) While laws and regulations are developed to protect customers or the competitive environment, they can protect and enhance the competing companies

LEGAL AND ETHICAL ASPECTS OF MARKETING PRICING DISTRIBUTION COMMUNICATION PRODUCT POLICY MERGERS AND ACQUISITIONS

LEGAL AND ETHICAL ASPECTS OF MARKETING TYPICAL DILEMMAS Problems: due to ignorance & conflict (1) IGNORANCE “when in doubt, ask a lawyer” (2) CONFLICT Trade-off: Risk vs. Opportunity Differing amounts of goodness ETHICAL CONCERNS Power implies responsibility There are rights and wrongs in business Important not to compromise standards

SIX SUGGESTIONS Have low personal fixed costs; retain freedom to leave job if necessary Choose your associates well Avoid the (appearance and reality) of ethical compromise (or people of integrity may avoid you) Set basic standards; don’t compromise even in relatively small ways Keep a sense of humor and perspective Have fun and enjoy the process of personal development