LO 4-3 - McGraw Hill Higher Education

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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.
4-2
ANHEUSER-BUSCH: BECOMING THE BEST
BEER COMPANY IN A BETTER WORLD

Alcohol
Responsibility

Community
Support

Environmental
Preservation
4-3
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
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 BEHAVIOR
SOCIETAL CULTURE AND NORMS

Culture

Societal Values and Attitudes
• Are Relative
• Affect Ethical and Legal Relationships
4-7
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
4-8
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)
4-9
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
4-10
LO 4-2
ETHICAL MARKETING BEHAVIOR
BUSINESS CULTURE AND INDUSTRY PRACTICES

Ethics of Competition
• Economic Espionage
• Bribes and Kickbacks
4-11
LO 4-2
MAKING RESPONSIBLE DECISIONS
Corporate Conscience in the Cola War
4-12
LO 4-2
MARKETING INSITE
The Bribe Payers Index
4-13
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
4-14
FIGURE 4-3 American Marketing Association
Statement of Ethics (abridged)
4-15
LO 4-2
ETHICAL MARKETING BEHAVIOR
PERSONAL MORAL PHILOSOPHY AND ETHICS


Moral Idealism
Utilitarianism
Nestlé’s Gerber
Good Start
Infant Formula
4-16
LO 4-3
SOCIAL RESPONSIBILITY IN MARKETING
THREE CONCEPTS OF SOCIAL RESPONSIBILITY

Social Responsibility
• Profit Responsibility
• Stakeholder Responsibility
• Societal Responsibility
4-17
FIGURE 4-4 Three concepts of social
responsibility
4-18
LO 4-3
SOCIAL RESPONSIBILITY IN MARKETING
THREE CONCEPTS OF SOCIAL RESPONSIBILITY

Social Responsibility
HäagenDasz
• Triple-Bottom Line
• Green Marketing
• Cause Marketing
4-19
MARKETING MATTERS
LO 4-3
Will Consumers Switch Brands for a Cause?
Yes, if …
4-20
LO 4-3
SOCIAL RESPONSIBILITY IN MARKETING
THE SOCIAL AUDIT

Social Audit

Sustainable
Development
4-21
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
4-22
VIDEO CASE 4
TOYOTA: BUILDING CLEANER,
GREENER CARS
4-23