1. Module 2: Marketing Ethics
Tuesday
MKTG 102

2. Agenda Foundations of Ethics Foundations of business ethics
Topics
Readings
Foundations of Ethics
Foundations of business ethics
Ethics for marketers
Skills:
Writing a persuasive / position paper
AMA Code of Ethics
The Social Responsibility of Business is to Increase its Profits, Milton Friedman, The New York Times Magazine, September 13, 1970.
View video “Friedman vs Freeman”

3. AMA Code of Ethics (and pork)
Consider the curious case of NZ Pork
Website has been slammed as “sexist, misogynistic and embarrassing”
… but is it ethically wrong?

4. 1. Identify the Background Facts
What kind of background facts would you need to know?
List 3

5. Background Facts
The campaign urges men to "give your wife a night of unforgettable pleasure!" by cooking something from their recipe hub, which includes "Your Big Pork Balls".
Recipe difficulty is measured on a scale from "burping after a beer" to "remembering your missus' birthday“
"We reckon it's time more women got out of the kitchen, and more men started to man them. But we know it ain't easy. So stop scratching your nuts, get your apron on, and let's get cooking"
What exactly is Pork NZ doing?
Why are they doing it?
What is the problem?
Who has the problem?

6. Background: What is being done
Positioning towards men
Website Ad

7. Why are they doing this? Other sections of the industry have
Beef & Lamb have successfully segmented by gender with no problem

8. Why is NZ pork doing this?
% of imported pork climbing (over 52 %)
Kiwi farmers withdrawing from the industry
What happens to industry trade group?
lower #s = lower power
their job is to represent / help pork farmers
NZ pork is trade group – consider their role

9. Why is pork New Zealand doing this?
Regulations that others in world markets don’t have
Animal welfare standards higher in NZ than in North America
Sow stalls banned
Other animal welfare steps such as "free farming" carry an economic cost
~ 60 % NZ pigs are bred outdoors but more feed is wasted compared to in indoor systems, more labour is required & waste treatment is more costly
High costs of production hurts competitiveness
Labour rates
Most imports come from North America, where Mexican farm workers are paid between US$7-8 an hour
Chicken as a substitute
Lower consumption of meat overall
[Take away ]
NZ pork is fulfilling their obligation to farmers who rely on them

10. What is the problem?
Slammed as “sexist, misogynistic and embarrassing”

11. Who has problem?

12. Is the Campaign unethical?
Utilitarianism
Who is hurt?
Who is helped?
Test each perspective:
Utilitarianism
Deontology
Ethical egoism
Cultural relativism

13. Is the Campaign unethical?
Deontology
Any laws or regulations violated?
Test each perspective:
Utilitarianism
Deontology
Ethical egoism
Cultural relativism

14. Is the Campaign unethical?
Ethical egoism
Is this a matter of NZ Pork not caring about effect as long as they bolster their numbers?
Test each perspective:
Utilitarianism
Deontology
Ethical egoism
Cultural relativism

15. Is the Campaign unethical?
Cultural Relativism
Any elements of cultural relativism applicable?
Test each perspective:
Utilitarianism
Deontology
Ethical egoism
Cultural relativism

16. Unethical from a marketing perspective?
5 minutes looking individually
Pair & Share
Pull out AMA Code of Ethics
Does the campaign violate the code?
If so, how?

17. Honesty— to be truthful and forthright in our dealings with customers and stakeholders. 
Responsibility—to accept the consequences of our marketing decisions and strategies.
Fairness—to try to balance justly the needs of the buyer with the interests of the seller.
Respect—to acknowledge the basic human dignity of all stakeholders.
Openness—to create transparency in our marketing operations.
Citizenship—to fulfill the economic, legal, philanthropic and societal responsibilities that serve stakeholders in a strategic manner.
AMA Code of Ethics
General Norms
 Marketers must do no harm. Adhering to all applicable laws and regulations.
 Marketers must foster trust in the marketing system.
Marketers must embrace, communicate and practice the fundamental ethical values that will improve consumer confidence in the integrity of the marketing exchange system. These basic values include honesty, responsibility, fairness, respect, openness and citizenship.

18. AMA Code of Ethics (and pork)
Once you have background facts, start organizing
State a premise
what can we all agree on? What is undisputable?
Make a claim
What might you try to persuade an audience of?
Fit evidence to the claim
Ad has been slammed as “sexist, misogynistic and embarrassing”.
… but was it ethically wrong?
Premise
Claims
Evidence
What types of evidence could you use?

19. One model of marketing NOISE CULTURE CULTURE Message Receiver Marketer
Attitude,
Behaviour
Response
CULTURE
CULTURE