4 MARKETING ETHICS

Marketing Ethics Identify the ethical values marketers should embrace. Distinguish between ethics and social responsibility. Identify the four steps in ethical decision making. Describe how ethics can be integrated into a firm’s marketing strategy. Describe the ways in which corporate social responsibility programs help various stakeholders. LO1 LO2 LO3 LO4 LO5

Firm Goals Creating value over the long run Long term success Greed and short term profit seeking Serious long term consequences Javier Pierini/Getty Images Creating value over the long run Long term success

The Scope of Marketing Ethics Business Ethics Marketing Ethics http://www.youtube.com/watch?v=mLlKHjYeQ7I

Creating an Ethical Climate in the Workplace Values Establish Share Understand Rules Management commitment Employee dedication Controls Reward Punishment Stockbyte/Getty Images

American Marketing Association Code of Ethics Generally accepted code in marketing Flows from general norms of conduct to specific values Subareas within marketing have their own code of ethics to deal with specific issues AMA Website

The Influence of Personal Ethics Genetics Family Religion Values Photo Disc/Getty Images ©Digital Vision Ltd. Corbis/Jupiter images ©Royalty-Free/CORBIS Getty Images

Why People Act Unethically What makes people take actions that create so much harm? Are all the individuals who engage in questionable behavior just plain immoral or unethical? Decisions often have conflicting outcomes, where both options have positive and negative consequences

Competing Outcomes Dangerous flaw in new model Delay production Delayed revenue Possible layoffs Loss of bonuses Continue production Potential injury to consumers Loss of revenue Digital Vision/Getty Images

The Link Between Ethics and Corporate Social Responsibility Socially Responsible Socially Irresponsible Ethical Unethical Both ethical and socially responsible Ethical firm not involved with the larger community Questionable firm practices, yet donates a lot to the community Neither ethical nor socially responsible

A Framework for Ethical Decision Making Step 1 Identify Issues Step 2 Gather information and identify stakeholders Step 3 Brainstorm and evaluate alternatives Step 4 Choose a course of action

Step One: Identify Issues Marketing research firm issues Using results to mislead or even harm the public Data collection methods Hiding the real purpose of the study

Step Two: Gather Information and Identify Stakeholders Identify all ethical issues and relevant legal information Identify all relevant stakeholders and get their input on any identified ethical issues

Step Three: Brainstorm and Evaluate Alternatives Halt the market research project? Make responses anonymous? Instituting training on the AMA Code of Ethics for all researchers Ryan McVay/Getty Images

Step Four: Choose a Course of Action Weigh the alternatives Take a course of action Digital Vision/Getty Images

CHECK YOURSELF Identify the stages in the ethical decision- making framework.

Integrating Ethics Into Marketing Strategy Planning Phase Implementation Phase Control Phase

Planning Phase The mission or vision statement sets the overall ethical tone for planning. Mission statements can be used as a means to guide a firm’s SWOT analysis. ©M Hruby

Implementation Phase Should the firm be relocating production to another country? Should the firm be targeting this market with this product? Should the firm be selling its product in this market in this manner?

Control Phase Check successful implementation React to change Barbara Penoyar/Getty Images

CHECK YOURSELF What ethical questions should a marketing manager consider at each stage of the marketing plan?

Corporate Social Responsibility Employees Their families Current customers Potential customers Customers Partners Competitors Marketplace Community Environment Society

CHECK YOURSELF How has corporate social responsibility evolved since the turn of the twenty-first century? Provide examples of each of the stakeholders that firms should consider in their corporate social responsibility efforts.

Glossary Corporate social responsibility describes 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.