int to mktng ch3

Copyright ©2009 by Cengage Learning Inc. All rights reserved 1

Prepared by

Amit Shah

Frostburg State University

CHAPTER

3

Designed by

Eric Brengle

B-books, Ltd.

MarketingLamb, Hair, McDaniel

10

Ethics and Social

Responsibility

Copyright ©2009 by Cengage Learning Inc. All rights reserved

Learning Learning Learning Learning OutcomesOutcomesOutcomesOutcomes

2

LOI

LO2

LO3

Explain the determinants of a civil society

Explain the concept of ethical behavior

Describe ethical behavior in business


Learning Learning Learning Learning Outcomes Outcomes Outcomes Outcomes

3

Discuss corporate social responsibility

Describe the arguments for and against social responsibility

Explain cause-related marketing

LO5

LO6

LO4


Civil Society

4

Explain the determinantsof a civil society

LOI


Civil Society

5

LO1

Six Modes of Social Control

Ethics

Laws

Formal and Informal Groups

Self Regulation

The Media

Active Civil Society


REVIEW LEARNING OUTCOME

6

LOI

Explain the determinants of a civil society


Ethical Behavior

7


LO2


Ethical Behavior

8

LO2

EthicsEthics

The moral principles or values

that generally govern the

conduct of an individual.


Ethical Theories

9

LO2

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

•Deontology

•Utilitarianism•Casuist

•Moral Relativists•Virtue Ethics



10

LO2



Ethical Behavior in Business

11

Describe ethical behaviorin business

LO3


Ethical Behavior in Business

12

LO3

MoralsMorals

The rules people develop as a result of cultural values and norms.


Ethical Development Levels

13

LO3

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

LO3

Influential Factors

Extent of Problems

Top Management Actions

Potential Consequences

Social Consensus

Probability of Harm

Time UntilConsequences

Number Affected


Code of Ethics

15

LO3

Code of EthicsCode of Ethics A guideline to help marketing

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

16

LO3


Ethical Guidelines and Training

17

LO3

Exhibit 3.3



18

LO3

Describe the role of ethics and ethical decisions in business


Corporate Social Responsibility

19

Discuss corporate social responsibility

LO4



20

SustainabilitySustainability

LO4

The idea that socially

responsible companies will

outperform their peers by

focusing on the world’s social

problems and viewing them as

opportunities to build profits

and help the world at the same

time.



21

LO4

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

24

LO5


Arguments for Social Responsibility

• 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

25

LO5



26

LO5

Arguments for and against social responsibility


Cause-Related Marketing

27


LO6



28

LO6

Cause-RelatedMarketing

Cause-RelatedMarketing

The cooperative efforts of a

“for-profit” firm and a

‘nonprofit” organization for

mutual benefit.



29

LO6

“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


int to mktng ch3

Technology

cengage learning

learning outcomeslo4

learning outcomesloi

rights reserved3

rights reserved5

rights reserved12

rights reserved15

rights reserved19