Ethics

Ethics The moral principles and values that govern the actions and decisions of an individual or group Serve as guidelines on how to act rightly and justly when faced with moral dilemmas

Ethics vs. Legality Ethics deal with personal moral principles and values Laws are society’s values and standards that are enforceable in court

Is It Legal? Ethical? Tobacco companies targeting African-Americans even though they have high occurrences of lung disease Calvin Klein advertising with “kids” A U.S. company selling products overseas that they cannot sell in the U.S. because of safety restrictions

Is It Legal? Ethical?

Marketing Behavior and Ethics Societal Culture and Norms Culture is the set of values, ideas, and attitudes that are learned and shared among members of a group Can dictate what is morally right and wrong, so different cultures can think different acts are right and wrong How can this create problems in marketing activities?

Marketing Behavior and Ethics Business Culture & Industry Practices Business cultures “compromise the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealing.”

Marketing Behavior and Ethics Business Culture & Industry Practices Ethics of Exchange Buyers and sellers are both better off after a transaction Consumer Bill of Rights – In 1962, President John F. Kennedy outlines ethics of exchange Right to safety Right to be informed Right to choose Right to be heard

Marketing Behavior and Ethics Business Culture & Industry Practices Ethics of Competition Economic espionage is the collection of trade secrets or proprietary information about a company’s competitors Illegal and unethical Trespassing, theft, searching trash Mainly in hi-tech companies Bribery and kickbacks Gifts, consultant fees, favors Usually in business to business, government marketing, not consumer marketing

Marketing Behavior and Ethics Corporate Culture and Expectations Corporate culture is a set of values, ideas, and attitudes that is learned and shared among members of an organization

Marketing Behavior and Ethics Corporate Culture and Expectations Code of Ethics Formal statement of principles and rules of conduct If people think top managers are not being ethical, morale will decrease and they may become unethical Whistleblowers are employees that report unethical or illegal actions of employers

Marketing Behavior and Ethics Personal Moral Philosophy & Ethical Behavior Moral Idealism Personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome “Do no harm” Utilitarianism Personal moral philosophy that focuses on “the greatest good for the greatest number” Compares costs and benefits of behavior; if costs are more it’s unethical, if benefits are more, it’s ethical

Social Responsibility Idea that organizations are part of a larger society and are accountable to that society for their actions

Social Responsibility Societal Responsibility Preserving ecological environment and general public Green marketing is efforts to produce, promote, and reclaim environmentally sensitive products

Social Responsibility Societal Responsibility Cause marketing is when the charitable contributions of customer revenues are tied directly to the customer revenues produced through the promotion of one of its products Does not include donations May begin to associate a company with its charitable cause “Win-Win” situation? What could be a negative consequence of cause marketing?

Consumer Ethics How can consumers be unethical?