1. ETHICS AND SOCIAL RESPONSIBILITY

2. Some Ethical Issues Misleading advertisements and marketing in general
Taking advantage of consumer ignorance
Marketing of harmful products
Physically dangerous
Over-consumption; marketing to people living above their means
Marketing of products banned or not marketed in the U.S. to other countries NO

3. One Approach to Evaluating Ethics of Marketing Activities
IS THE ACT DECEPTIVE, MANIPULATIVE OR MISLEADING?
IS THERE A SUFFICIENTLY REDEEMING PURPOSE?
YES
Yes
YES NO NO No No
MORE LIKELY TO BE ETHICALLY PROBLEMATIC
LESS LIKELY TO BE ETHICALLY PROBLEMATIC
DOES THE ACT PREY ON PERSONAL INSECURITIES?
YES
Yes No
YES
Yes No
IS A HARMFUL OR DANGEROUS PRODUCT INVOLVED?
DO BENEFITS APPEAR TO OUTWEIGH COSTS TO THE USER? NO
YES
Yes NO No

4. “Win-Win” Deals and Social Responsibility
By pooling resources, different organizations may each get more than what they put in
Firms may be able to contribute not only cash but also relevant expertise
Favorable publicity may be worth more than the same amount spent on advertising
Charitable groups may provide access to potential customers

5. Promotional Events
A large retail chain might sponsor a concert series by paying all expenses in return for considerable publicity
Triple “win-win-win” deal:
The charity receives the proceeds without having to pay costs
The sponsor receives publicity. Tickets are bought in the store or on its web site.
An aging artist—whose fans are now in their prime earning years—gets an opportunity to revive a career or promote a new venture (e.g., movie role)

6. INFLUENCES ON THE FIRM AND ITS CHOICES
CULTURE
DEMOGRAPHICS
ENVIRONMENT
SOCIAL
RESOURCES
ECONOMIC
TECHNOLOGY
LEGAL/POLITICAL
PROFIT
PRESSURE
FIRM
OPPORTUNITIES
SOCIAL RESPONSIBILITY