Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill 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. 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