BUS 365 Chapter 4, Marketing Ethics

Business Ethics
Moral or ethical problems that may arise in a business setting
Marketing Ethics
Ethical problems that are specific to marketing
ex) False Advertising
Ethical Climate
Set of values within a marketing firm that guide decision making and behavior
Corporate Social Responsibility
Voluntary actions taken by a company to address ethical, social and environmental impacts of its business and the concern of the stakeholders
Locational Privacy
Person’s ability to move normally in public spaces with the expectation that his/her location will not be recorded for subsequent use
What do firms need to embrace when it comes to ethical values?
Firms need to have a strong ethical climate, rules for governing transactions and a system of reward and punishment
Implementation phase
Making sure the target market is ethical
CSR and the marketplace
Encourages competitors to adapt to change or they will fall behind
CSR
Corporate Social Responsibility
CSR and Society
Society expects firms to take on public responsibility
Golden Rule Test
Treat others how you want to be treated
(could i be on the receiving end?)
CSR and Employees
Safe working environments, equality in treatment
Results in improved employee performance
Key CSR stakeholders
1. Employees
2. Customers
3. Market place
4. Society
Ethical Decision-Making Framework
1. Identify issues
2. Gather info and identify stakeholders
3. Brainstorm and evaluate alternatives
4. Choose a course of action
The person in the mirror test
Could I look in the mirror and respect the person I see?
Control Phase
Making sure there are back up plans for emergencies
The publicity Test
Do I want to see myself on a newspaper?
CSR and Customers
increases consumer awareness
Long run: better brand equity and sales
The moral Mentor Test
Would the person i admire engage in this activity?
Ethics vs. Social Responsibility
They are related; being socially responsible entails being ethical–> Socially responsible means going above and beyond the norms of corporate ethical behavior.
The admired Observer Test
Do i want the person I admire to see me doing this?
One-Off Stakeholders
Stakeholders that might not be directly impacted
The Transparency Test
Could I give reason for my actions in front of a fair judge?
Planning Phase
Defines CSR initiatives
Root of ethical conduct
Competing values of individuals or unclear values
Example of companies and CSR
Apple: working to reduce carbon footprint
Google: funds for pro-profit companies in Africa
Walmart: Green strategy to reduce packaging
Mcdonalds: Nutrition/ Sustainable supply chain/ Environmental responsibility/ Community