1. Chapter 1 An Overview of Marketing
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2. Learning Outcomes Explain the determinants of a civil society
Explain the concept of ethical behavior
Describe ethical behavior in business
Discuss corporate social responsibility
Describe the arguments for and against society responsibility
Explain cause-related marketing

3. Modes of Social Control
Chapter 3 Ethics and Social Responsibility
LO 1
Ethics
Laws
Formal and informal groups
Self-regulation
Media
Active civil society
Ethics
These are the moral principles or values that generally govern the conduct of an individual or a group.
Laws
Often, ethical rules and guidelines are codified into law. Laws created by governments are then enforced by governmental authority.
Formal and informal groups
Businesses, professional organizations, and clubs all have codes of conduct. Codes prescribe acceptable and desired behaviors of their members.
Self-regulation
It involves the voluntary acceptance of standards established by nongovernmental entities.
The Media
In an open, democratic society, the media play a key role in informing the public about the actions of individuals and organizations—both good and bad.
Active civil society
An informed and engaged society can help mold individual and corporate behavior.

4. Viewed as the standard of behavior by which conduct is judged
Ethics
Chapter 3 Ethics and Social Responsibility
LO 2
Viewed as the standard of behavior by which conduct is judged
Consists of personal moral principles
Consists of unwritten rules that people have developed from their interactions
Ethical questions range from practical, narrowly defined issues, such as a businessperson’s obligation to be honest with customers, to broader socials and philosophical questions, such as whether a company is responsible for preserving the environment and protecting employee rights.

5. Ethical Theories
LO 2
Deontological theory: States that people should adhere to their obligations and duties when analyzing ethical dilemmas
Utilitarian ethical theory: Founded on the ability to predict the consequences of an action
Types
Act utilitarianism
Rule utilitarianism

6. Ethical Theories (continued)
LO 2
Casuist ethical theory: Compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes
Moral relativism: Belief in time-and-place ethics; that is, the belief that ethical truths depend on the individuals and groups holding them
Virtue: Character trait valued as being good

7. Ethical Development Levels
Chapter 3 Ethics and Social Responsibility
LO 3
Based on what will be punished or rewarded
Self-centered, calculating, and selfish
Preconventional morality
Moves toward the expectations of society
Concerned about the legality and the opinion of others
Conventional morality
Represents the morality of the mature adult
Concerned if it works in the long run
Postconventional morality
Ethical development consists of three levels.

8. Foreign Corrupt Practices Act (FCPA)
Code of Ethics and FCPA
Chapter 3 Ethics and Social Responsibility
LO 3
Code of ethics: Guideline to help marketing managers and other employees make better decisions
Foreign Corrupt Practices Act (FCPA)
Prohibits U.S. corporations from making illegal payments to public officials of foreign governments
Has been criticized for putting U.S. businesses at a competitive disadvantage
Has encouraged some countries to implement their own anti-bribery laws
Businesses must be careful not to make their code of ethics too vague or too detailed.
In order to maintain ethical practices overseas, companies must comply with the Foreign Corrupt Practices Act (FCPA).

9. Corporate Social Responsibility
Chapter 3 Ethics and Social Responsibility
LO 4
Business’s concern for society’s welfare
Stakeholder theory
Ethical theory stating that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm’s operation

10. 3.3 The Pyramid of Corporate Social Responsibility
Chapter 3 Ethics and Social Responsibility
LO 4
The Pyramid of Corporate Social Responsibility
The pyramid of corporate social responsibility portrays economic performance as the foundation for the other three responsibilities

11. Arguments for and against Corporate Social Responsibility
Chapter 3 Ethics and Social Responsibility
LO 5
For
It is the right thing to do
Businesses have the resources to devote to fixing social problems
Helps prevent government regulation and potential fines
It can be profitable
Against
Takes focus away from making profits
Management spends the shareholder money on environmental initiatives

12. Sustainability
Chapter 3 Ethics and Social Responsibility
LO 5
Idea that socially responsible companies will outperform their peers by focusing on the world’s problems and viewing them as opportunities
Green marketing: Development and marketing of products designed to minimize negative effects on the environment or to improve the environment
Discussion Question/Team Activity
Have students come up with examples of products using green marketing and then have them research the legitimacy of those claims.

13. Leaders in Social Responsibility
LO 6
Dow chemicals - Created an advanced purification process that converts human sewage into portable water
Unilever - Lifebuoy brand launched “Global Hand Washing Day”
M-Kopa Solar - Sells solar power to people with incomes of less than $2 a day

14. Cause-Related Marketing
Chapter 3 Ethics and Social Responsibility
LO 7
Cooperative marketing efforts between a for-profit firm and a nonprofit organization
Examples
Clothing retailers H&M ran a promotion during 2014 back-to-school sales period.
Starbucks launched “suspended coffee.”
Philanthropy or charitable donations are different from cause-related marketing.

15. Key Terms Social control Behavioral norms Ethics Deontological theory
Utilitarianism ethical theory
Casuist ethical theory
Moral relativism
Virtue
Morals
Code of ethics
Foreign Corrupt Practices Act(FCPA)
Corporate social responsibility(CSR)
Stakeholder theory

16. Key Terms (continued) Pyramid of corporate social responsibility
Sustainability
Green marketing
Cause- related marketing

17. Summary
Modes of social control include ethics, laws, self-regulation, etc.
Corporate social responsibility is a business’s concern for society’s welfare
Cause-related marketing creates good public relations for a firm and stimulates sales of the brand