McGraw Hill Marketing 4

ethics
moral principles and values that govern the actions and decisions of an individual or group
laws
society’s values and standards that are enforceable in the courts
what are the 4 possible reasons for the present state of ethical conduct in the US?
1) pressure on business people to make decisions in a diverse society 2) growing tendency for business decisions to be judged publicly 3) public’s expectations of ethical business behavior has increased 4)ethical business conduct may have declined
moral standards are relative to
particular societies
the annual worldwide lost sales from the theft of intellectual property
$12.5 billion in music
$18.2 billion in movies
$53 billion in software
business culture
comprise the rules of the game, boundaries between competitive and unethical behavior, and codes of conduct in business dealings
ethical exchanges between buyers and sellers should result in
both parties being better off after the transaction
caveat emptor
let the buyer beware. legal concept before the 1960’s
consumer bill of rights
1962. codified the ethics of exchange between buyers and sellers
which rights are listed in the CB of R
the right to safety, to be informed, to choose and be heard
do not call registry
2003. consumers who do not want to receive unsolicited telemarketing calls
2 of the most common unethical behavior practices
economic espionage and bribery
economic espionage
the stealthy collection of trade secrets or proprietary information about a company’s competitors
economic espionage is most prominent in which industry
high-tech industries
worldwide bribery is monitored by
transparency international
corporate culture
the set of values, ideas, and attitudes that is learned and shared among the members of an organization
code of ethics
a formal statement of ethical principles and rules of conduct
lack of specificity
a major reason for the violation of ethics codes
whistle-blowers
employees who report unethical or illegal actions of their employers
2 prominent moral philosophies that have a direct influence on market practice
moral idealism and utilitarianism
moral idealism
personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome
utilitarianism
personal moral philosophy that focuses on the creates good for the creates number
societal responsibility
an org is a part of a larger society and is accountable to that society for its actions
3 concepts of social responsibility
profit responsibility, stakeholder responsibility, societal responsibility
profit responsibility
maximize profits for owners and stakeholder
stakeholder responsibility
obligations an org has to those who can affect its achievement
2 aspects of societal responsibility
obligations to preserve the ecological environment and the general public
triple-bottom line
the need for an org to improve the state of people, profit and planet simultaneously to achieve long term sustainable growth
green marketing
efforts to produce, promote and reclaim environmentally sensitive products
ISO 14000
worldwide standards for environment quality and green marketing
cause marketing
the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products
social audit
a systematic assessment of a firm’s objectives, strategies and performance in terms of social responsibility
5 steps of social audit
recognition of expectations, identification of causes, determination of objectives, specification of resources, evaluation
sustainable development
conducting a business in a way that protects the natural environment while making economic progress
benefits of societal responsibility
positive buzz, better performance
barriers to sustainable consumer behavior
unwillingness to sacrifice convenience and pay a higher price and lack of knowledge to make informed decisions
greenwashing
making a misleading claim about the environmental benefits of a product