ISSUES ABOUT ETHICS IN RETAILINGWHAT IS ETHICS?This is a set of rules for human moral behavior. For retailers they can have explicit code of ethics or implicit code of ethics.Explicit code of ethics: Written policy that specifies what is ethical and unethical behavior.Implicit: Unwritten but well understood set of rules/standards of moral responsibilities.

DISCUSSION ON ETHICS IN RETAILING

Misuse of Company Assets

Confidential codes

Employee Theft

LEGAL & ETHICAL BEHAVIOR IN RETAILINGIn view of the competitive nature and dynamic environment within which retail operates, it is important to monitor the legal and ethical constraints affecting the sector (Dunne and Lusch, 1999, pp.176).

LEGAL & ETHICAL BEHAVIOR IN RETAILINGMajor Federal LawsPricing constraintsPromotional constraintsProduct constraintsChannel constraints(see Dunne and Lusch, 1999, pp.177).

LEGAL AND ETHICAL BEHAVIOR IN RETAILINGOther Federal LawsMergers/AcquisitionsTrade AgreementsHuman ResourcesTaxes and SEC (Securities & Exchange Commission) regulationsAmericans with Disabilities

LEGAL AND ETHICAL BEHAVIOR IN RETAILINGState and Local LawsZoningUnfair Trade PracticesBuilding CodesBlue LawsFranchise LawsGreen River OrdinancesState Licences

LEGAL AND ETHICAL BEHAVIOR IN RETAILINGEthical BehaviorBuying MerchandiseSelling MerchandiseRetailer Employee Relationship

PRICING CONSTRAINTSHorizontal price fixingThis occurs when a group of competing retailers (or other channel members, i.e. within the horizontal or vertical distribution levels) establishes a fixed price at which to sell certain offerings.

PRICING CONSTRAINTSVertical price fixingThis occurs when a retailer collaborates with the manufacturer or wholesaler to resell an item at an agreed-on price.

PRICING CONSTRAINTSDeceptive pricingThis occurs when a misleading price is used (usually through direct marketing etc.) to lure customers into the store. Usually there are hidden charges or even an item may not be available.Mr. Edward Heath (former British PM and the incident of winning a lottery).

PRICING CONSTRAINTSPredatory pricingThis occurs when a retail chain charges different prices in different geographic areas (e.g. another state) to eliminate/fight competition in that state.The case of prices of goods in New York and DC (e.g. Sears, Macys etc.).

PROMOTIONAL CONSTRAINTSRetail promotion decisions are constrained by two major pieces of federal legislation (a) the FTC Act and (b) the Wheeler-Lea Amendment. These are meant to prevent unfair trade practices.These refer to deceitful diversion of patronage (falsehoods about other competitors), deceptive advertising, and deceptive sales practices.