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McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

Ethical & Social Responsibility in Marketing 1-2 LEARNING OBJECTIVES (LO) After reading Chapter 4, you should be able to : Explain the differences between legal and ethical behavior in marketing. LO1 Identify factors that influence ethical and unethical marketing decisions. Describe the different concepts of social responsibility. LO3 LO2 Recognize unethical and socially irresponsible consumer behavior. LO4

More Brewing at Asahi than Beer Corporate Social Responsibility at Asahi Opening Story – Asahi Beer 1-3

More Brewing at Asahi than Beer Some of Asahi’s Beer Products Opening Story – Asahi Beer 1-4

Nature & Significance of Marketing Ethics Framework Legal vs. Ethical behaviour in Marketing 1-5 LO1  Ethics Ethics  Laws Laws Ethical-Illegal Unethical-Illegal Ethical-Legal Unethical-Legal  Ethical-Legal Continuum  Current Perceptions of Ethical Behavior

Legal vs. Ethical behaviour in Marketing 1-6 LO1 FIGURE 4-1 FIGURE 4-1 Classifying marketing decisions according to ethical and legal relationships

Ethical Marketing Behaviour Ethics are defined by societal culture & norms Factors that influence ethical/unethical marketing decisions 1-7 LO2  Culture  Societal Moral Standards Are Relative Affect Ethical and Legal Relationships

Factors that influence ethical/unethical marketing decisions 1-8 LO2 FIGURE 4-2 FIGURE 4-2 A framework for understanding ethical behavior

Ethical Marketing Behaviour Business Culture & Industry Practices Factors that influence ethical/unethical marketing decisions 1-9 LO2  Business Cultures  Ethics of Exchange Caveat Emptor Consumer Bill of Rights (1962) U.S. Consumer Product Safety Commission Federal Trade Commission (FTC)

Factors that influence ethical/unethical marketing decisions 1-10 LO2 Ethical Marketing Behaviour Business Culture & Industry Practices  Ethics of Competition Economic Espionage Bribes and Kickbacks Corruption Perceptions Index

Responsible Decisions Corporate conscience in the Cola War Factors that influence ethical/unethical marketing decisions 1-11 LO2

Ethical Marketing Behaviour Corporate Culture & Expectations Factors that influence ethical/unethical marketing decisions 1-12 LO2  Corporate Culture  Code of Ethics Code of Ethics  Ethical Behavior of Top Management and Co-Workers Whistle-Blowers

Ethical Marketing Behaviour Ethics are defined by societal culture & norms Factors that influence ethical/unethical marketing decisions 1-13 LO2  Moral Idealism Moral Idealism  Utilitarianism Utilitarianism

Social Responsibility in Marketing Concepts in CSR Different concepts of Social Responsibility 1-14 LO3  Social Responsibility Social Responsibility  Profit Responsibility  Stakeholder Responsibility

Social Responsibility in Marketing Three Concepts Different concepts of Social Responsibility 1-15 LO3

Social Responsibility in Marketing Concepts in CSR Different concepts of Social Responsibility 1-16 LO3  Societal Responsibility Green Marketing ISO Cause Marketing

Social Responsibility in Marketing Concepts in CSR Different concepts of Social Responsibility 1-17 LO3  Social Audit Social Audit  Sustainable Development Sustainable Development

Social Responsibility in Marketing Concepts in CSR Different concepts of Social Responsibility 1-18 LO3

Social Responsibility in Marketing Consumer ethics & social responsibility Unethical and socially irresponsible consumer behaviour 1-19 LO4  Obligations in the Exchange Process  Use and Disposition of Products  Reasons for Unethical Behavior  Reasons for Socially-Responsible Behavior