1. Ethics

2. Ethics
The moral principles and values that govern the actions and decisions of an individual or group
Serve as guidelines on how to act rightly and justly when faced with moral dilemmas

3. Ethics vs. Legality
Ethics deal with personal moral principles and values
Laws are society’s values and standards that are enforceable in court

4. Is It Legal? Ethical?
Tobacco companies targeting African-Americans even though they have high occurrences of lung disease
Calvin Klein advertising with “kids”
A U.S. company selling products overseas that they cannot sell in the U.S. because of safety restrictions

5. Is It Legal? Ethical?

6. Marketing Behavior and Ethics Societal Culture and Norms
Culture is the set of values, ideas, and attitudes that are learned and shared among members of a group
Can dictate what is morally right and wrong, so different cultures can think different acts are right and wrong
How can this create problems in marketing activities?

7. Marketing Behavior and Ethics Business Culture & Industry Practices
Business cultures “compromise the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealing.”

8. Marketing Behavior and Ethics Business Culture & Industry Practices
Ethics of Exchange
Buyers and sellers are both better off after a transaction
Consumer Bill of Rights – In 1962, President John F. Kennedy outlines ethics of exchange
Right to safety
Right to be informed
Right to choose
Right to be heard

9. Marketing Behavior and Ethics Business Culture & Industry Practices
Ethics of Competition
Economic espionage is the collection of trade secrets or proprietary information about a company’s competitors
Illegal and unethical
Trespassing, theft, searching trash
Mainly in hi-tech companies
Bribery and kickbacks
Gifts, consultant fees, favors
Usually in business to business, government marketing, not consumer marketing

10. Marketing Behavior and Ethics Corporate Culture and Expectations
Corporate culture is a set of values, ideas, and attitudes that is learned and shared among members of an organization

11. Marketing Behavior and Ethics Corporate Culture and Expectations
Code of Ethics
Formal statement of principles and rules of conduct
If people think top managers are not being ethical, morale will decrease and they may become unethical
Whistleblowers are employees that report unethical or illegal actions of employers

12. Marketing Behavior and Ethics Personal Moral Philosophy & Ethical Behavior
Moral Idealism
Personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome
“Do no harm”
Utilitarianism
Personal moral philosophy that focuses on “the greatest good for the greatest number”
Compares costs and benefits of behavior; if costs are more it’s unethical, if benefits are more, it’s ethical

13. Social Responsibility
Idea that organizations are part of a larger society and are accountable to that society for their actions

14. Social Responsibility
Societal Responsibility
Preserving ecological environment and general public
Green marketing is efforts to produce, promote, and reclaim environmentally sensitive products

15. Social Responsibility
Societal Responsibility
Cause marketing is when the charitable contributions of customer revenues are tied directly to the customer revenues produced through the promotion of one of its products
Does not include donations
May begin to associate a company with its charitable cause
“Win-Win” situation? What could be a negative consequence of cause marketing?

17. Consumer Ethics
How can consumers be unethical?