chapter 3: ethics and social responsibility prepared by david ferrell, b-books, ltd. designed by...

Chapter 3: Ethics and Social Responsibility

Prepared by David Ferrell, B-books, Ltd.

Designed by Eric Brengle, B-books, Ltd.

Copyright 2012 by Cengage Learning Inc. All Rights Reserved 1

Learning Outcomes

2

LO1

LO2

LO3

Explain the determinants of a civil society

Explain the concept of ethical behavior

Describe ethical behavior in business

Copyright 2012 by Cengage Learning Inc. All Rights Reserved

Learning Outcomes

3

Discuss corporate social responsibility

LO5

LO6

LO4


Describe the arguments for and against social responsibility

Explain cause-related marketing

Civil Society

4

Explain the determinants of a civil society.

LO1


Civil Society

5

Six Modes of Social Control

Ethics

Laws

Formal and Informal Groups

Self Regulation

The Media

Active Civil Society


Review Learning Outcome

6

Explain the Determinants of a Civil Society

LO1


Ethical Behavior

7

Explain the concept of ethical behavior.

LO2


Ethical Behavior

8

EthicsEthics

The moral principles or values

that generally govern the

conduct of an individual.


Ethical Theories

9

People usually base their individual choice of ethical theory on their life experiences

•Deontology

•Utilitarianism

•Casuist

•Moral Relativists

•Virtue Ethics



10

LO2

Explain the Concept of Ethical Behavior


Ethical Behavior in Business

11

Describe ethical behavior in business.

LO3


Ethical Behavior in Business

12

Morals – The rules people develop as a

result of cultural values and norms.


Ethical Development Levels

13

PreconventionalMorality

ConventionalMorality

PostconventionalMorality

MoreMature

MoreChildlike

• Based on what will be punished or rewarded

• Self-centered, calculating, selfish

• Moves toward the expectations of society

• Concerned over legality and the opinion of others

• Concern about how they judge themselves

• Concern if it is right in the long run


Ethical Decision Making

14

Influential Factors

Extent of Problems

Top Management Actions

Potential Consequences

Social Consensus

Probability of Harm

Time UntilConsequences

Number Affected


Code of Ethics

15

Code of Ethics- A guideline to helpmarketing managers and other

employees make better decisions.


Creating Ethical Guidelines

• Helps identify acceptable business practices

• Helps control behavior internally

• Avoids confusion in decision making

• Facilitates discussion about right and wrong

16Copyright 2012 by Cengage Learning Inc. All Rights Reserved

Ethical Guidelines and Training

17

Exhibit 3.3



18

Describe the Role of Ethics and Ethical Decisions in Business

LO3


Corporate Social Responsibility

19

Discuss corporate social responsibility.

LO4


Sustainability

20

The idea that socially responsible companies will

outperform their peers by focusing on the world’s social

problems and reviewing them as opportunities to build

profits and help the world at the same time.


Corporate Social Responsibility

21

Stakeholders

Employees

Management

Customers

Local Community

Suppliers

Owners



22

LO4

Discuss Corporate Social Responsibility

EthicalEthicalDo what is right.Do what is right.

LegalLegalObey the Law.Obey the Law.

EconomicEconomicBe profitable.Be profitable.

PhilanthropicPhilanthropicBe a good citizen.Be a good citizen.


Arguments Against and For Corporate Social Responsibility

23

Describe the arguments for and against social responsibility.

LO5


Arguments Against Social Responsibility

• Businesses should focus on making a profit and leave social and environmental concerns to nonprofits

• Businesses don’t have the expertise to deal with social issues and doing so may interfere with the primary goals of their firms

• The expense of social responsibility may damage the country in the global marketplace


Arguments for Social Responsibility

• It is the right thing to do

• Business should police itself to avoid government intervention

• Small companies can prosper and build shareholder value as they tackle social problems



26

LO5

Arguments for and Against Social Responsibility


Cause-Related Marketing

27

Explain cause-related marketing.

LO6



28

The cooperative efforts of a

“for-profit” firm and a

“non-profit” organization

for mutual benefit.



29

“Five Questions to Ask Before Participating in a Cause-Related Marketing Program”

•Is this company committed?

•How is the program structured?

•Who does the program benefit?

•How will the organization that benefits use my money?

•Is the program meaningful to me?



30

LO6

Explain Cause-Related Marketing


chapter 3: ethics and social responsibility prepared by david ferrell, b-books, ltd. designed by...

Documents

cengage learning

rights reserved sustainability

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ethical decisions

ethical guidelineshelps

ethical theories

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ethical decision making