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LO 4-3 LO 4-2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 4, YOU SHOULD BE ABLE TO: LO 4-1 Explain the difference between legal and ethical behavior in marketing. LO 4-3 Identify factors that influence ethical and unethical marketing decisions. Describe the different concepts of social responsibility. Recognize unethical and socially irresponsible consumer behavior. 4-2

ANHEUSER-BUSCH: BECOMING THE BEST BEER COMPANY IN A BETTER WORLD  Environmental Preservation  Alcohol Responsibility  Community Support 4-3

NATURE AND SIGNIFICANCE OF MARKETING ETHICS LO 4-1 Ethical-Illegal Unethical-Illegal Ethical-Legal Unethical-Legal  Ethics  Laws  Ethical/Legal Framework for Marketing  Current Perceptions of Ethical Behavior 4-4

FIGURE 4-1 FIGURE 4-1 Four ways to classify marketing decisions according to ethical and legal relationships 4-5

FIGURE 4-2 FIGURE 4-2 A framework for understanding ethical behavior 4-6

ETHICAL MARKETING BEHAVIOR SOCIETAL CULTURE AND NORMS LO 4-2 Are Relative Affect Ethical and Legal Relationships  Culture  Societal Values and Attitudes 4-7

ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES LO 4-2  Business Culture  Ethics of Exchange Caveat Emptor Consumer Bill of Rights (1962): The Right  To Safety  To Be Informed  To Choose  To Be Heard 4-8

ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES LO 4-2  The Right to Safety Consumer Product Safety Commission  The Right to Be Informed Federal Trade Commission (FTC) 4-9

ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES LO 4-2  The Right to Choose  The Right to Be Heard Slotting Allowances Do Not Call Registry 4-10

ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES LO 4-2  Ethics of Competition Economic Espionage Bribes and Kickbacks 4-11

MAKING RESPONSIBLE DECISIONS Corporate Conscience in the Cola War LO

MARKETING INSITE The Bribe Payers Index LO

ETHICAL MARKETING BEHAVIOR CORPORATE CULTURE AND EXPECTATIONS LO 4-2  Corporate Culture  Code of Ethics  Ethical Behavior of Top Management and Co-Workers Whistle-Blowers 4-14

FIGURE 4-3 FIGURE 4-3 American Marketing Association Statement of Ethics (abridged) 4-15

ETHICAL MARKETING BEHAVIOR PERSONAL MORAL PHILOSOPHY AND ETHICS LO 4-2  Moral Idealism  Utilitarianism Nestlé’s Gerber Good Start Infant Formula 4-16

SOCIAL RESPONSIBILITY IN MARKETING THREE CONCEPTS OF SOCIAL RESPONSIBILITY LO 4-3  Social Responsibility Stakeholder Responsibility Societal Responsibility Profit Responsibility 4-17

FIGURE 4-4 FIGURE 4-4 Three concepts of social responsibility 4-18

SOCIAL RESPONSIBILITY IN MARKETING THREE CONCEPTS OF SOCIAL RESPONSIBILITY LO 4-3  Social Responsibility Green Marketing Cause Marketing Triple-Bottom Line Häagen- Dasz 4-19

MARKETING MATTERS Will Consumers Switch Brands for a Cause? Yes, if … LO

SOCIAL RESPONSIBILITY IN MARKETING THE SOCIAL AUDIT LO 4-3  Social Audit  Sustainable Development 4-21

SOCIAL RESPONSIBILITY IN MARKETING CONSUMERS ETHICS AND SOCIAL RESPONSIBILITY LO 4-4 Greenwashing FTC Guidelines  Unethical Practices by Consumers  Consumer Behavior Regarding Environmentally Sensitive Products  Consumer Motivations for Unethical Behavior 4-22

TOYOTA: BUILDING CLEANER, GREENER CARS VIDEO CASE