Lecture Marketing (12/e): Chapter 4 – Kerin, Hartley, Rudelius

Chapter 4 - Ethical and social responsibility in marketing. After reading chapter 4, you should be able to: Explain the difference between legal and ethical behavior in marketing, identify factors that influence ethical and unethical marketing decisions, describe the different concepts of social responsibility, recognize unethical and socially irresponsible consumer behavior.

Copyright © 2015 McGraw­Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw­Hill Education LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 4, YOU SHOULD BE ABLE TO: LO 4-1 Explain the difference between legal and ethical behavior in marketing LO 4-2 Identify factors that influence ethical and unethical marketing decisions LO 4-3 Describe the different concepts of social responsibility LO 4-3 Recognize unethical and socially irresponsible consumer behavior 4­2 ANHEUSER-BUSCH: BECOMING THE BEST BEER COMPANY IN A BETTER WORLD  Alcohol Responsibility  Community Support  Environmental Preservation 4­3 LO 4-1 NATURE AND SIGNIFICANCE OF MARKETING ETHICS  Ethics  Ethical/Legal Framework for Marketing   Laws • Ethical-Illegal • Ethical-Legal • Unethical-Illegal • Unethical-Legal Current Perceptions of Ethical Behavior 4­4 FIGURE 4-1 Four ways to classify marketing decisions according to ethical and legal relationships 4­5 FIGURE 4-2 A framework for understanding ethical behavior 4­6 LO 4-2 ETHICAL MARKETING BEHAVIOR SOCIETAL CULTURE AND NORMS  Culture  Societal Values and Attitudes • Are Relative • Affect Ethical and Legal Relationships 4­7 LO 4-2 ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES  Business Culture  Ethics of Exchange • Caveat Emptor • Consumer Bill of Rights (1962): The Right  To Safety  To Choose  To Be Informed  To Be Heard 4­8 LO 4-2  ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES The Right to Safety • Consumer Product Safety Commission  The Right to Be Informed • Federal Trade Commission (FTC) 4­9 LO 4-2  ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES The Right to Choose • Slotting Allowances  The Right to Be Heard • Do Not Call Registry 4­10 LO 4-2  ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES Ethics of Competition • Economic Espionage • Bribes and Kickbacks 4­11 LO 4-2 MAKING RESPONSIBLE DECISIONS Corporate Conscience in the Cola War 4­12 LO 4-2 MARKETING INSITE The Bribe Payers Index 4­13 LO 4-2 ETHICAL MARKETING BEHAVIOR CORPORATE CULTURE AND EXPECTATIONS  Corporate Culture  Code of Ethics  Ethical Behavior of Top Management and Co-Workers • Whistle-Blowers 4­14 FIGURE 4-3 American Marketing Association Statement of Ethics (abridged) 4­15 LO 4-2   ETHICAL MARKETING BEHAVIOR PERSONAL MORAL PHILOSOPHY AND ETHICS Moral Idealism Utilitarianism Nestlé’s Gerber Good Start Infant Formula 4­16 LO 4-3  SOCIAL RESPONSIBILITY IN MARKETING THREE CONCEPTS OF SOCIAL RESPONSIBILITY Social Responsibility • Profit Responsibility • Stakeholder Responsibility • Societal Responsibility 4­17 FIGURE 4-4 Three concepts of social responsibility 4­18 LO 4-3  SOCIAL RESPONSIBILITY IN MARKETING THREE CONCEPTS OF SOCIAL RESPONSIBILITY Social Responsibility HäagenDasz • Triple-Bottom Line • Green Marketing • Cause Marketing 4­19 LO 4-3 MARKETING MATTERS Will Consumers Switch Brands for a Cause? Yes, if … 4­20 LO 4-3 SOCIAL RESPONSIBILITY IN MARKETING THE SOCIAL AUDIT  Social Audit  Sustainable Development 4­21 LO 4-4 SOCIAL RESPONSIBILITY IN MARKETING CONSUMERS ETHICS AND SOCIAL RESPONSIBILITY  Unethical Practices by Consumers  Consumer Motivations for Unethical Behavior  Consumer Behavior Regarding Environmentally Sensitive Products • Greenwashing • FTC Guidelines 4­22 VIDEO CASE TOYOTA: BUILDING CLEANER, GREENER CARS 4­23 ... Behavior 4 4 FIGURE 4- 1 Four ways to classify marketing decisions according to ethical and legal relationships 4 5 FIGURE 4- 2 A framework for understanding ethical behavior 4 6 LO 4- 2 ETHICAL MARKETING. .. Triple-Bottom Line • Green Marketing • Cause Marketing 4 19 LO 4- 3 MARKETING MATTERS Will Consumers Switch Brands for a Cause? Yes, if … 4 20 LO 4- 3 SOCIAL RESPONSIBILITY IN MARKETING THE SOCIAL AUDIT... Management and Co-Workers • Whistle-Blowers 4 14 FIGURE 4- 3 American Marketing Association Statement of Ethics (abridged) 4 15 LO 4- 2   ETHICAL MARKETING BEHAVIOR PERSONAL MORAL PHILOSOPHY