MARKETING STRATEGYO.C. FERRELL MICHAEL D. HARTLINE12Marketing Ethics andSocial Responsibility

The Role of Ethics and SocialResponsibility in Marketing StrategyDimensions of Social ResponsibilitySocial responsibilityMarketing ethicsMarketing Ethics and StrategyThe Challenges of Being Ethical and Socially Responsible

Marketing Strategy in ActionR.J. Reynolds has been accused by critics of using its Joe Camel cartoon character, as shown in this 1988 ad, to target children for cigarette consumption.How has society acted to protect children from advertising such as this? What obligations do companies have to protect children?

The Pyramid of Social ResponsibilityExhibit 12.1

Potential Ethical Issues in MarketingExhibit 12.2

Perceived Values in the WorkplaceExhibit 12.3

Discussion QuestionWhy is marketing ethics a strategic consideration in organizational decisions? Who is most important in managing marketing ethics: the individual or the firms leadership? Explain your answer.

Deceptive Practices in MarketingDeceptive Communication and PromotionFalse/deceptive statementsExaggerated claimsAmbiguous statementsProduct labeling issuesFraudRegulating Deceptive Marketing PracticesTrade associationsBetter Business Bureau (BBB)

Better Business Bureau

Organizational Determinants of Marketing Ethics and Social Responsibility (1 of 2)Ethical ClimateCodes of ConductSix highly desirable core values:1) Trustworthiness2) Respect3) Responsibility 4) Fairness5) Caring 6) Citizenship

Key Considerations in Developing and Implementing a Code of Ethical ConductExhibit 12.4

Texas Instruments

Discussion QuestionWhy are we seeing more evidence of widespread ethical marketing dilemmas within firms today? Is it necessary to gain the cooperation of marketing managers to overstate revenue and earnings in a corporation?

Organizational Determinants of Marketing Ethics and Social Responsibility (2 of 2)Marketing Ethics and LeadershipGreat leaders:1) Create a common goal or vision2) Obtain buy in3) Motivate others to be ethical4) Use available resources5) Enjoy their jobsEthics training can ensure that everyone:1) Recognizes ethical decision making situations2) Understands the culture and values of the firm3) Is able to evaluate the impact of ethical decisions

Ethics, Social Responsibility,and Marketing PerformanceFirms that are ethical and socially responsible are rewarded with greater marketing performance.Having a strong ethical climate:Increases employee commitmentIs conducive to a strong market orientationCreates trust among a firms stakeholdersIncreases customer loyalty

Discussion QuestionWhat is the relationship between marketing ethics and organizational performance? What are the elements of a strong compliance program to support responsible marketing and a successful marketing strategy?

Incorporating Ethics and Social Responsibility Into Strategic PlanningAMA Code of EthicsFederal Sentencing Guidelines for Organizations (FSGO)Marketing strategy and implementation plans should reflect an understanding of:1) The ethical and social consequences of strategic choices2) The values of organizational members and stakeholders

AMA Code of Ethics for the InternetExhibit 12.6

Frequency of Misconduct andPenalties Under the FSGOExhibit 12.7