1. Marketing Principles CHAPTER 6 SECTION 2

2.  Corporate scandals and unethical behavior have a negative effect on consumer confidence and the image of the company.  Many businesses today recognize their employees’ needs outside the workplace and try to accommodate these needs. 1.Flextime – allows workers to choose their work schedule

3. 2. Telecommuting – involves working from home, usually on a computer 3. Extended Family Leave – some companies offer leave with pay in addition to the time required by the Family and Medical Leave Act 4. On-Site Childcare – grown in popularity with the increase in two-income families

4. 5. Health Care Insurance – paid for by employers is a major benefit 6. Time Off With Pay – vacations, sick days, and personal days  Any form of the benefit tends to reduce employee absenteeism and employee turnover.

5.  Ad Council – nonprofit organization that helps produce public service advertising campaigns for gov’t agencies and other qualifying groups  FCC – Federal Communications Commission – establishes standards for broadcasting  Socially responsible companies look for ways to respond to consumers’ concerns.

6.  Socially responsible companies are concerned about our environment.  Green marketing – companies engage in the production and promotion of environmentally safe products  Green products are not always more expensive.

7.  A major aspect of social responsibility is business ethics.  Ethics – guidelines for good behavior  Ethical behavior – knowing the difference between right and wrong and doing what is right

8.  All consumers have four basic rights: 1.To be informed and protected against fraud, deceit, and misleading statements, and to be educated in the wise use of financial resources. 2.To be protected from unsafe products. 3.To have a choice of goods and services. 4.To have a voice in product and marketing decisions made by a government and business.

9.  Ethical companies are proactive.  BBB – Better Business Bureau – nonprofit organization that promotes self-regulation among businesses  Ethical companies subscribe to the American Marketing Association (AMA) Code of Ethics.

10.  Price Gouging – pricing products unreasonably high when the need is great or consumers do not have other choices  Industries that keep computer data bases have a responsibility to keep that information private.  Unethical selling practices – high-pressure selling tactics and failing to follow through on promises made to close a sale

11.  Management ultimately makes the decisions about major ethical issues that confront a business.  Management must be a role model for ethical behavior in a firm.  Whistle-blowing – reporting an illegal action of one’s employer  Sarbanes-Oxley Act – gives whistle-blowers protection

12.  Companies with an interest in ethical business behavior develop guidelines to help employees make ethical decisions.  To make the right choices, employees should follow these steps: 1.Get the facts 2.Identify all parties concerned 3.Think of all alternatives

13. 4. Evaluate the alternatives by asking yourself:  Is it legal or illegal?  Does it go against company policy?  How des it affect everyone involved?  Is it right, fair, and honest?  Will it build good will for the company?  Am I comfortable with it?  How will it hold up to public scrutiny?