1. 12 MARKETING STRATEGY O.C. FERRELL • MICHAEL D. HARTLINE
Marketing Ethics and
Social Responsibility

2. The Role of Ethics and Social Responsibility in Marketing Strategy
Dimensions of Social Responsibility
Social responsibility
Marketing ethics
Marketing Ethics and Strategy
The Challenges of Being Ethical and Socially Responsible

3. Marketing Strategy in Action
R.J. Reynolds has been accused by critics of using its “Joe Camel” cartoon character, as shown in this 1988 ad, to target children for cigarette consumption.
How has society acted to protect children from advertising such as this? What obligations do companies have to protect children?

4. The Pyramid of Social Responsibility
Exhibit 12.1

5. Potential Ethical Issues in Marketing
Exhibit 12.2

6. Perceived Values in the Workplace
Exhibit 12.3

7. Discussion Question
Why is marketing ethics a strategic consideration in organizational decisions? Who is most important in managing marketing ethics: the individual or the firm’s leadership? Explain your answer.

8. Deceptive Practices in Marketing
Deceptive Communication and Promotion
False/deceptive statements
Exaggerated claims
Ambiguous statements
Product labeling issues
Fraud
Regulating Deceptive Marketing Practices
Trade associations
Better Business Bureau (BBB)

9. Better Business Bureau

10. Organizational Determinants of Marketing Ethics and Social Responsibility (1 of 2)
Ethical Climate
Codes of Conduct
Six highly desirable core values:
1) Trustworthiness
2) Respect
3) Responsibility
4) Fairness
5) Caring
6) Citizenship

11. Key Considerations in Developing and Implementing a Code of Ethical Conduct
Exhibit 12.4

12. Texas Instruments

13. Discussion Question
Why are we seeing more evidence of widespread ethical marketing dilemmas within firms today? Is it necessary to gain the cooperation of marketing managers to overstate revenue and earnings in a corporation?

14. Organizational Determinants of Marketing Ethics and Social Responsibility (2 of 2)
Marketing Ethics and Leadership
Great leaders:
1) Create a common goal or vision
2) Obtain “buy in”
3) Motivate others to be ethical
4) Use available resources
5) Enjoy their jobs
Ethics training can ensure that everyone:
1) Recognizes ethical decision making situations
2) Understands the culture and values of the firm
3) Is able to evaluate the impact of ethical decisions

15. Ethics, Social Responsibility, and Marketing Performance
Firms that are ethical and socially responsible are rewarded with greater marketing performance.
Having a strong ethical climate:
Increases employee commitment
Is conducive to a strong market orientation
Creates trust among a firm’s stakeholders
Increases customer loyalty

16. Discussion Question
What is the relationship between marketing ethics and organizational performance? What are the elements of a strong compliance program to support responsible marketing and a successful marketing strategy?

17. Incorporating Ethics and Social Responsibility Into Strategic Planning
AMA Code of Ethics
Federal Sentencing Guidelines for Organizations (FSGO)
Marketing strategy and implementation plans should reflect an understanding of:
1) The ethical and social consequences of
strategic choices
2) The values of organizational members and
stakeholders

18. AMA Code of Ethics for the Internet
Exhibit 12.6

19. Frequency of Misconduct and Penalties Under the FSGO
Exhibit 12.7