ETHICS AND SOCIAL RESPONSIBILITY IN MARKETING

Transcription

1 C H A P T E R F O U R ETHICS AND SOCIAL RESPONSIBILITY IN MARKETING 4-1 Irwin/McGraw-Hill

2 AFTER READING CHAPTER 4 YOU SHOULD BE ABLE TO: Appreciate the nature and significance of ethics in marketing. Understand the differences between legal and ethical behaviour in marketing. Identify factors that influence ethical and unethical marketing decisions. Distinguish among the different concepts of ethics and social responsibility. Recognize the importance of ethical and socially responsible consumer behaviour. 4-2

3 Molson Breweries Responsible Drinking Campaign and Protection of the Environment Molson s acts on an ethical obligation to its customers with its Take Care campaign for responsible drinking Molson is a strong advocate and sponsor of numerous efforts to protect the environment; 98% of its bottles and 75% of its cans are returned for reuse or recycling. 4-3

4 Definition of Ethics Ethics are the moral principals and values that govern the actions and decisions of an individual or group. They serve as guidelines on how to act rightly and justly when faced with moral dilemmas.

5 PP4-1 Classifying marketing decisions according to ethical and legal relationships Ethicality Ethical Unethical Ethical but illegal Unethical and illegal Ethical and legal Unethical but legal 4-5 Illegal Legality Legal

6 Concept Check 1. What are ethics? 2. What are laws? 4-6

7 Understanding Ethical Marketing Behaviour Consider the use of another s ideas: In Canada copyrights, trademarks and patents are considered intellectual property, and unauthorized use is illegal and unethical. Outside Canada, sometimes due to the culture of a country, unauthorized use of copyrights, patents, and trademarks is not considered unethical or illegal. Such is the case in countries like China, Mexico, and Korea. 4-7

8 PP4-2 A Framework for Understanding Ethical Behaviour Societal culture and norms Business culture and industry practices Personal moral philosophy and ethical behaviour Corporate culture and expectations 4-8

9 MNN International comparison of the percent of U.S. software package sales that are illegal copies China Taiwan Iberia Switzerland Percentage Korea Italy Japan Benelux Germany Benelux 4-9

10 Two Kinds of Unethical Behaviour 1. Industrial Espionage is the clandestine collection of trade secrets or proprietary information about a company s competitors. Industrial espionage is most prevalent in hightechnology industries, such as electronics, specialty chemicals, industrial equipment, aerospace, and pharmaceuticals, where technical know-how and trade secrets separate industry leaders from followers. 4-10

11 Two Kinds of Unethical Behaviour 2. The giving and receiving of bribes and kickbacks is the second form of unethical competitive behaviour. Bribes and kickbacks are often disguised as gifts, consultant fees and favours. They are more common in business-to-business and government marketing than in consumer marketing. 4-11

12 Code of Ethics A code of ethics is.... the formal statement of ethical principals and rules of conduct. 4-12

13 PP4-3 American Marketing Association Code of Ethics Members of the American Marketing Association have joined together in subscribing to its code of ethics embracing the following topics: 1. Responsibilities of the Marketer 2. Rights and Duties of Parties in the Marketing Exchange Process 3. Organizational Relationships 4-13

14 Personal Moral Philosophies MORAL IDEALISM Considers certain individual rights or duties universal regardless of of the outcome UTILITARIANISM Considers the greatest good for the greatest number by assessing the costs and benefits of of the consequences 4-14

15 Concept Check 1. What is caveat emptor? 2. What is a code of ethics? 3. What is meant by moral idealism? 4-15

16 PP4-4 Three Concepts of Social Responsibility Societal Societal responsibility Stakeholder responsibility General public Customers Profit responsibility Owners/ Stockholders Employees Ecological environment Suppliers/Distributors Public Public interest interest groups groups 4-16

17 Elements of a Social Audit Recognition Identification Determination Specification Evaluation Of Of social expectations and rationale for engaging in in social responsibility endeavors Of Of causes or or programs consistent with the company s mission Of Of objectives and priorities for programs and activities to to be be undertaken Of Of the type and amount of of resources necessary to to achieve objectives Of Of programs and activities and assessment of of future involvement 4-17

18 Sustainable Development Sustainable Development... involves conducting business in a way that protects the natural environment while also making economic progress. 4-18

19 Concept Check 1. What is meant by social responsibility? 2. Marketing efforts to produce, promote, and reclaim environmentally sensitive products are called. 3. What is a social audit? 4-19