1. Ethical, Regulatory and Environmental Issues in MarComs and Promotional Practice
Week 1
Lecture 2
Chapter 3

2. Ethics
Moral principles and values which guide thinking, decision making and action.

3. Ethical Concerns Misleading or false advertising
Targeting to children and teenagers
Targeting Economically Disadvantaged People
Shocking, tasteless or indecent material
High pressure sales techniques
Intrusion on personal privacy (telesales)
Payment of bribes to win business
Reward schemes for selling
Hospitality to clients
Vulnerable clients

4. Is it Justifiable?
To target poorer segments with cigarettes and alcohol
Use of stereotypes in advertising
Women, men, families, ethnic minorities.
Is branding fraudulent

5. Basic Consumer Rights The right to safety The right to be informed
The right to choose
The right to be heard

6. Ethical Decision-Making Models
Smith’s Three Questions
Consumer capability
Is the target market vulnerable in ways that limit consumer decision making?
Information
Are consumer expectations at purchase likely to be realised? Do consumers have sufficient information to judge?
Choice
Can consumers go elsewhere? Would they incur substantial costs or inconvenience in transferring their loyalty? (Smith, 1995)

7. Ethical Decision Making Models
The golden rule
Act in a way that you would expect others to act towards you
The professional ethic
take only actions which would be viewed as proper by a panel of your profession.
The TV test
would I feel comfortable explaining this action to the general public on the TV?

8. Regulatory Aspects Voluntary Codes of Practise Statutory Laws
Honest, Legal and Decent
Protect vulnerable groups – children

9. Social Responsibility
Focuses on the responsibilities of the organisation towards the general public – not only its customers and other connected stakeholders.

10. Environmental Issues
Not encouraging abuse of the environment. – waste, excess behaviour
Triple bottom line
People
Planet
Profit
Corporate Social Responsibility

11. Corporate Respnsibility
Three driving forces
Increased awareness of how production and consumption of resources affect the environment and the organisation is part of the cycle
Recognition and acceptance that organisations need to cooperate and collaborate with other orgs. in order to have a strategic advantage
Consumers are having increasing influence in terms of their rights and views of business

12. Corporate Responsibility
Three concepts
Profit responsibility
Maximise profits while sticking to the rules
Stakeholder responsibility
Meeting obligations to those who can affect the achievement of the organisation’s objectives
Societal responsibility
Making a positive impact on society

13. Corporate Responsibility
The TRIPLE BOTTOM LINE
PROFIT
PEOPLE
PLANET