Marketing Ethics: Embracing Ethical Values and Integrating Ethics into a Firm's Marketing Strategy

Slide1chaptermarketing  ethics three         Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Slide2LEARNING OBJECTIVESLO1 Identify the ethical values marketers should embrace. LO2 Distinguish between ethics and social responsibility. LO3 Identify the four steps in ethical decision making. LO4 Describe how ethics can be integrated into a firm’s marketing strategy. LO5 Describe the ways in which corporate social responsibility programs help various stakeholders. Marketing Ethics 3-2

Slide3The Scope of Marketing EthicsBusiness Ethics Business Ethics Marketing Ethics Marketing Ethics Miller Commercial 3-3

Slide4Creating an EthicalClimate in the Workplace • Values – Establish – Share – Understand • Rules – Management commitment – Employee dedication • Controls – Reward – Punishment Stockbyte/Getty Images 3-4

Slide5American Marketing AssociationCode of Ethics Generally accepted code in marketing Flows from general norms of conduct to specific values Subareas within marketing have their own code of ethics to deal with specific issues AMA Website 3-5

Slide6The Influence of Personal EthicsGenetics Family Religion Values Corbis/Jupiterimages PhotoDisc/Getty Images ©Digital Vision Ltd. ©Royalty-Free/CORBIS Getty Images 3-6

Slide7Why People Act UnethicallyAre all the individuals who engage in questionable behavior just plain immoral or unethical? Are all the individuals who engage in questionable behavior just plain immoral or unethical? What makes people take actions that create so much harm? What makes people take actions that create so much harm? Decisions often have conflicting outcomes, where both options have positive and negative consequences Decisions often have conflicting outcomes, where both options have positive and negative consequences 3-7

Slide8Competing OutcomesDangerous flaw in new model Delay production Delayed revenue Possible layoffs Loss of bonuses Continue production Potential injury to consumers Loss of revenue Digital Vision/Getty Images 3-8

Slide9The Link Between Ethics andCorporate Social Responsibility 3-9

Slide10A Framework forEthical Decision Making 3-10

Slide11Step One: Identify IssuesMarketing research firm issues Using results to mislead or even harm the public Data collection methods Hiding the real purpose of the study 3-11

Slide12Step Two: Gather Informationand Identify Stakeholders Identify all ethical issues and relevant legal information Identify all relevant stakeholders and get their input on any identified ethical issues 3-12

Slide13Step Three: Brainstormand Evaluate Alternatives • Halt the market research project? • Make responses anonymous? • Instituting training on the AMA Code of Ethics for all researchers Ryan McVay/Getty Images 3-13

Slide14Step Four: Choose a Course of ActionWeigh the alternatives Weigh the alternatives Take a course of action Take a course of action Digital Vision/Getty Images 3-14

Slide15Integrating Ethics Into Marketing StrategyPlanning Phase • The mission or vision statement sets the overall ethical tone for planning. • Mission statements can be used as a means to guide a firm’s SWOT analysis. ©M Hruby 3-15

Slide16Integrating Ethics Into Marketing StrategyImplementation Phase Should the firm be targeting this market with this product? Should the firm be selling its product in this market in this manner? Should the firm be relocating production to another country? 3-16

Slide17Integrating Ethics Into Marketing StrategyControl Phase 1. Check successful implementation 2. React to change 1. Check successful implementation 2. React to change Barbara Penoyar/Getty Images 3-17

Slide18Corporate Social Responsibility3-18

Slide19Return to slideReturn to slide Corporate social responsibility  describes the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders. Glossary 3-19