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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