Intro to Marketing Assignment
Ethical and Social Responsibility for Sustainable Marketing
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LEARNING OBJECTIVES (LO) 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.
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NATURE AND SIGNIFICANCE OF MARKETING ETHICS (1 of 2)
Ethical/Legal Framework for Marketing
Ethical-Legal
Ethical-Illegal
Unethical-Illegal
Unethical-Legal
Current Perceptions of Ethical Behavior
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Four ways to classify marketing decisions according to ethical and legal relationships
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FIGURE 4-2 A framework for understanding ethical behavior
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ETHICAL MARKETING BEHAVIOR SOCIETAL CULTURE AND NORMS
Culture
Values, Ideas, and Attitudes That Are Learned and Shared
Societal Values and Attitudes
Are Relative
Affect Ethical and Legal Relationships
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ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES (1 of 4)
Business Culture
Ethics of Exchange
Consumer Bill of Rights (1962)
The Right:
To Safety
To Choose
To Be Informed
To Be Heard
©Lisa F. Young/iStock/Getty Images
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ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES (2 of 4)
The Right to Safety
Consumer Product Safety Commission
The Right to Be Informed
Federal Trade Commission (FTC)
Consumer Product
Safety Commission
Federal Trade Commission
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ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES (3 of 4)
The Right to Choose
Slotting Allowances (to stock new products)
The Right to Be Heard
Do Not Call Registry
Do Not Call Registry
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ETHICAL MARKETING BEHAVIOR BUSINESS CULTURE AND INDUSTRY PRACTICES (4 of 4)
Ethics of Competition
Most Common Unethical Behavior:
Corruption
Bribes
Kickbacks
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American Marketing Association Statement of Ethics (Abridged)
General Norms
Marketers should do no harm.
Marketers must foster trust in the marketing system.
Marketers must embrace, communicate and practice the fundamental ethical values.
Ethical Values
Honesty – to be truthful and forthright in our dealings with customers and stakeholders.
Responsibility – to accept the consequences of our marketing decisions and strategies.
Fairness – to try to balance justly the needs of the buyer with the interests of the seller.
Respect – to acknowledge the basic human dignity of all stakeholders.
Openness – to create transparency in our marketing operations.
Citizenship – to fulfill the economic, legal, philanthropic and societal responsibilities that serve stakeholders in a strategic manner.
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ETHICAL MARKETING BEHAVIOR PERSONAL MORAL PHILOSOPHY AND ETHICS
Example: 3M’s Scotchgard
Example: Nestlé’s Gerber Good Start Infant Formula
©McGraw-Hill Education/Mike Hruby, photographer
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SOCIAL RESPONSIBILITY IN MARKETING THREE CONCEPTS OF SOCIAL RESPONSIBILITY (1 of 2)
Profit Responsibility:
Maximize Profits for Stockholders
Stakeholder Responsibility:
Obligations to Those Who Can Affect Achievement of Company Objectives
Societal Responsibility:
Obligations to the Environment and Public
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Three concepts of social responsibility
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SOCIAL RESPONSIBILITY IN MARKETING THREE CONCEPTS OF SOCIAL RESPONSIBILITY (2 of 2)
Social Responsibility
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MARKETING MATTERS Will Consumers Switch Brands for a Cause? Yes, if …
Cause Marketing Benefits Companies as well as Causes
Estimated $12 Billion Raised in Cause Marketing in 2016
85% of U.S. Consumers Have More Favorable Opinion of Companies that Support Causes
80% of Consumers will Switch to Brand that Supports a Cause
Cause Marketing
Forum
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SOCIAL RESPONSIBILITY IN MARKETING THE SOCIAL AUDIT
Recognition of Firm’s Social Expectations
Identify Causes Consistent with Mission
Determine Objectives and Priorities
Specify Resources
Evaluate Programs
Häagen- Dasz
©Michael Holahan/ZUMA Press/Newscom
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SOCIAL RESPONSIBILITY IN MARKETING CONSUMER ETHICS AND SOCIAL RESPONSIBILITY
Unethical Practices by Consumers
Consumer Motivations
Environmentally Sensitive Products
FTC Guidelines
Corporate
Greenwashing Video
Source: National Intellectual Property Rights Coordination Center
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VIDEO CASE 4 TOYOTA: BUILDING CLEANER, GREENER CARS
©Jacob Kepler/Bloomberg via Getty Images
Toyota Video Case
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VIDEO CASE 4 Toyota (1 of 4)
How does Toyota’s approach to social responsibility relate to the three concepts of social responsibility described in the text (profit responsibility, stakeholder responsibility, and societal responsibility?)
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VIDEO CASE 4 Toyota (3 of 4)
Has Toyota’s National Parks project been a success? What indicators suggest that the project has had an impact?
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VIDEO CASE 4 Toyota (4 of 4)
What future activities would you suggest for Toyota as it strives to improve its reputation?
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WHAT YOU LEARNED FROM CHAPTER 4
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.
©McGraw-Hill Education.