Marketing 130: Ch 3, Gunn

Business ethics vs. Marketing ethics
Bus ethics: considers moral and ethical dilemmas in a business context
Marketing ethics: form of business ethics
3 Marketing misconceptions exist:
1. Marketing encourages the selling of things that people don’t need
2. Marketing supports deception so people buy
3. Marketing insists on selling a product to everyone
Framework for Ethical Decision Making (4 steps)
1. Identify Issues
2. Gather info and identify stakeholders
3. Brainstorm and evaluate alternatives
4. Choose a course of action
Ethical Climate includes…
1. Values
2. Rules
3. Controls
Planning Phase
The mission or vision statement sets the overall ethical tone for planning
Questions in the Planning Phase
1. Does the firm want to include a commitment to ethics in its mission or vision statement?
2. Is the firm prepared to support the development of an ethical climate that would maintain a strong ethical position?
Implementation Phase
Values in mission must be consistent w values of company’s primary target market
Question in the Implementation Phase
1. Should the firm be targeting this market with this product?
2. Should the firm be relocating its production to another country?
3. Should the firm be advertising its product in this market or in this manner?
4. Should the firm be selling its product in this market or in this manner?
Control Phase
Check successful implementation/react to change
Questions in the Control Phase
1. Did any of the firm’s actions have a negative impact on any stakeholders group?
2. Are there any new circumstances that require a change in strategy to avoid an ethical issue?
3. Is the firm prepared in the event of a potential ethical lapse?
What are the 6 tests of ethical action?
1. Publicity Test
2. Moral Mentor Test
3. Admired Observer Test
4. Transparency Test
5. Person in the Mirror Test
6. Golden Rule Test
7. WWJD
Publicity Test
Would I want to see this in the media?
Moral Mentor Test
Would the person i admire the most do this?
Admired Observer Test
Would I want the person I admire the most to SEE me doing this?
Transparency Test
Could I give a clear explanation for the action?
Person in the Mirror Test
Would I be able to look in the mirror and respect myself?
Golden Rule Test
Would I like to be on the receiving end of this action?
WWJD Test
Would Jesus approve of my actions?
What are the 6 AMA ethical values?
Honesty, Responsibility, Fairness, Respect, Transparency, Citizenship
Corporate Social Responsibility (CSR) Inputs
Input:
Consumer (trends: environment, privacy, health)
Company (overall firm strategy)
Cause/Issue (causes & societal issues to be adopted)
CSR Outputs
Consumer (better brand equity and sales)
Company (significant positive word of mouth marketing, increased profits)
Cause/Issue (better awareness of objectives in short run and more resources in long run)
According to the American Marketing Code of Ethics, what are the 6 ethical values?
Honesty, Responsibility, Respect, Citizenship, Fairness, Openness
Identify the 4 stages in the ethical decision making framework
1. Identufy issues
2. Gather info and identify stakeholders
3. Brainstorm alternatives
4. Choose a course of action
How has corporate social responsibility evolved since the turn of the 20th century?
Today, companies are undertaking a wide range of corporate charitable foundations, supporting and associating with existing nonprofit groups, supporting minority activities, and following responsible marketing, sales, and production practices. Social responsibility is even one of the 8 key measures hat Fortune magazine uses to create its list of the most admired companies.
Identify the inputs and outputs of the corporate social responsibility framework.
Consumer, company, cause.