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8/9/2019 Marketing Management Chapter 04
http://slidepdf.com/reader/full/marketing-management-chapter-04 1/11
© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi4-1
Ethical and Social Issues in Marketing
Marketing Management Text and Cases
Excel Books4-1
Ethical and
Social Issues inMarketing
4Chapter
8/9/2019 Marketing Management Chapter 04
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© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi4-2
Ethical and Social Issues in Marketing
Ethical Behaviour Ethics are moral principles and values that govern the actions and decisions
of an individual or group. In the marketing context, ethics is the moral
evaluation of marketing activities and decisions as right or wrong.
8/9/2019 Marketing Management Chapter 04
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© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi4-3
Ethical and Social Issues in Marketing
Individual Factors
Or ganisational Factors
Perceived Opportunity
Understanding Ethical Conduct
Understanding Ethical Behaviour in Marketing Decisions
Individual
Factors
Perceived
Opportunity
Organisational
Factors
Resulting Ethical or
Unethical Behaviour
8/9/2019 Marketing Management Chapter 04
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© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi4-4
Ethical and Social Issues in Marketing
When marketing managers face ethically challenging situations and are unable to
resolve them all alone, they experience ethical conflict, though they make
decisions in their everyday lives based on their personal concepts of right or
wrong.The two major concepts relevant to marketing situations are utilitarianism and
ethical formalism.
Individual Factors
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© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi4-5
Ethical and Social Issues in Marketing
Organisational Factors
Corporate culture refers to a set of values, beliefs, goals, norms, etc., shared by
its members and expressed in every day working through work habits, and other
activities.
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© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi4-6
Ethical and Social Issues in Marketing
Perceived Opportunity
Opportunity refers to a set of conditions perceived as favourable that limit
barriers or provide rewar ds. Most managers in marketing do not deliberately
take advantage of every opportunity for unethical conduct in their companies.
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© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi4-7
Ethical and Social Issues in Marketing
Marketing Related Ethical IssuesEthical issue refers to some situation, problem, or opportunity that can be
recognised and requires a person or or ganisation to select from among
different actions that must be evaluated as right or wrong, or ethical or
unethical.
8/9/2019 Marketing Management Chapter 04
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© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi4-8
Ethical and Social Issues in Marketing
Social Responsibility
Social responsibility of business refers to the obligation of a business to make
deliberate efforts to maximise its positive contributions and minimise the
negative impact on society as a whole and on various groups of individuals
within the society.
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© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi4-9
Ethical and Social Issues in Marketing
Pyramid of Corporate Social Responsibility
Philanthropic
(be a good
corporate citizen)
Contribute to improve the
quality of community life.
Ethical Conduct
(do the right thing, avoid harm)
Obligation to do what is right,
just, and fair, and avoid harm.
Legal
(obey the laws)Play by the rules of game.
Economic
(ear n profits)
Make profitable use of resources.
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© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi4-10
Ethical and Social Issues in Marketing
Social Responsibility Issues
Consumer Movement (Consumerism)
Ecological Concer ns
Green Marketing
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© SHH Kazmi, 2007
Excel BooksMarketing Management Text and Cases, S H H Kazmi4-11
Ethical and Social Issues in Marketing
Social Responsibility Issues ± Indian Scene
Consumer Protection Act, 1986
Consumer Forums
Competition Policy
Corporate Responsibility Issues