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C H A P T E R

Marketing

Ethics

4

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L E A R N I N G O B J E C T I V E S

Identify the ethical values marketers shouldembrace.

Distinguish between ethics and social

responsibility.Identify the four steps in ethical decision making.

Describe how ethics can be integrated into afirms marketing strategy.

Describe the ways in which corporate socialresponsibility programs help variousstakeholders.

Marketing Ethics

LO1

LO2

LO3

LO4

LO5

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Firm Goals

Greed and short

term profit seeking

Serious long term

consequences

Creating valueover the long run

Long termsuccess

Javier Pierini/Getty Images

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The Scope of Marketing Ethics

Business Ethics Marketing Ethics

Miller Commercial

http://www.youtube.com/watch?v=mLlKHjYeQ7Ihttp://www.youtube.com/watch?v=mLlKHjYeQ7I

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Attitudes About the

Ethical Standards of Various Professions

Why do you feel

marketers

(advertising

practitioners &

salespeople) rank so

low on this scale?

What can marketers

do to improve their

ranking?

Jeffrey M. Jones, Nurses Top Honesty and Ethics List for 11th Year, Gallup, November 1921, 2010, http://www.gallup.com/poll-145043/nurses-top-honesty-ethicslist-11-year.aspx

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Creating an Ethical Climate

in the Workplace

Values

Establish

Share

UnderstandRules

Management commitment

Employee dedication

Controls

Reward

Punishment

Stockbyte/Getty Images

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American Marketing Association

Code of Ethics

Generally accepted code in marketing

Flows from general normsof conduct to specific values

Subareas within marketing have their own code ofethics to deal with specific issues

AMA Website

http://www.marketingpower.com/AboutAMA/Pages/Statement%20of%20Ethics.aspx

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The Influence of Personal Ethics

Genetics Family

Religion Values

Corbis/Jupiter images

Photo Disc/Getty Images Digital Vision Ltd.

Royalty-Free/CORBIS Getty Images

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The Link Between Ethics and

Corporate Social Responsibility

Socially Responsible Socially Irresponsible

Ethical

Unethical

Both ethical and

socially

responsible

Neither ethical nor

socially responsible

Questionable firm

practices, yet donates a

lot to the community

Ethical firm not involved

with the larger

community

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A Framework for

Ethical Decision Making

Step 1

IdentifyIssues

Step 2

Gatherinformationand identifystakeholders

Step 3

Brainstormand evaluatealternatives

Step 4

Choose acourse ofaction

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Step One: Identify Issues

Marketingresearch

firm issues

Usingresults tomislead oreven harmthe public

Datacollectionmethods

Hiding thereal

purpose ofthe study

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Step Two: Gather Information

and Identify Stakeholders

Identify all ethical issuesand relevant legalinformation

Identify all relevantstakeholders and get

their input on anyidentified ethical issues

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Step Three: Brainstorm

and Evaluate Alternatives

Halt the marketresearch project?

Make responses

anonymous? Instituting training on

the AMA Code of

Ethics for all

researchers

Ryan McVay/Getty Images

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Step Four: Choose a Course of Action

Weigh the alternatives

Take a course of action

Digital Vision/Getty Images

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CHECK YOURSELF

1. Identify the stages in the ethical decision-

making framework.

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Integrating Ethics Into

Marketing Strategy

Planning Phase

Implementation Phase

Control Phase

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Planning Phase

The mission or visionstatement sets the

overall ethical tone for

planning.

Mission statements

can be used as a

means to guide a

firms SWOT analysis.

M Hruby

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Newmans OwnDonating over $200 mil l ion s ince 1982

Newmans Own, Inc.

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Implementation Phase

Should the firm be targeting

this market with this product?

Should the firm be sellingits product in this market

in this manner?

Should the firm be relocating

production to another country?

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Control Phase

1. Checksuccessful

implementation

2. React to change

Barbara Penoyar/Getty Images

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CHECK YOURSELF

1. What ethical questions should a marketing

manager consider at each stage of themarketing plan?

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Corporate Social Responsibility

Employees Their families

Employees

Currentcustomers

Potentialcustomers

Customers

Community

Environment

Society

Partners

Competitors

Marketplace

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CHECK YOURSELF

1. How has corporate social responsibility

evolved since the turn of the twenty-first

century?2. Provide examples of each of the

stakeholders that firms should consider in

their corporate social responsibility efforts.