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Principles of Marketing - UNBSJ

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1 Principles of Marketing - UNBSJ
BA 2303 Principles of Marketing - UNBSJ Ethics and Social Responsibility in Marketing Instructor – Terry Conrod

2 Learning Objectives BA 2303
Explain the differences between legal and ethical behaviour in marketing. Identify factors that influence ethical and unethical behaviour in marketing. Describe the different concepts of social responsibility. Recognize unethical and socially irresponsible consumer behaviour.

3 NATURE AND SIGNIFICANCE OF
BA 2303 NATURE AND SIGNIFICANCE OF MARKETING ETHICS Ethical/Legal Framework in Marketing Laws Current Perceptions of Ethical Behaviour

4 BA 2303 Classifying marketing decisions according to ethical and legal relationships

5 Concept Check What are ethics? Answer:
BA 2303 Concept Check What are ethics? Answer: The moral principles and values that govern the actions and decisions of an individual or group.

6 Society’s values and standards that are enforceable in the courts.
BA 2303 Concept Check What are laws? Answer: Society’s values and standards that are enforceable in the courts.

7 A framework for understanding ethical behavior
BA 2303

8 UNDERSTANDING ETHICAL MARKETING BEHAVIOUR
BA 2303 UNDERSTANDING ETHICAL MARKETING BEHAVIOUR Societal Culture and Norms Business Culture and Industry Practice Ethics of Exchange Caveat emptor Ethics of Competition Economic espionage

9 UNDERSTANDING ETHICAL MARKETING BEHAVIOUR
BA 2303 UNDERSTANDING ETHICAL MARKETING BEHAVIOUR Corporate Culture and Expectations Codes of Ethics Ethical behaviour of Top Management and Co-Workers Whistleblowers

10 BA 2303 Excerpt from the Canadian Marketing Association Code of Ethics and Standards of Practice and from the American Marketing Association’s Code of Ethics.

11 UNDERSTANDING ETHICAL MARKETING BEHAVIOUR
BA 2303 UNDERSTANDING ETHICAL MARKETING BEHAVIOUR Personal Moral Philosophy and Ethical behaviour Moral Idealism Utilitarianism

12 Concept Check What is caveat emptor? Answer:
BA 2303 Concept Check What is caveat emptor? Answer: Caveat emptor means buyer beware. This concept was pervasive in Canadian business culture prior to the 1960s.

13 Concept Check What is a code of ethics? Answer:
BA 2303 Concept Check What is a code of ethics? Answer: The code of ethics is a formal statement of ethical principles and rules of conduct.

14 What is meant by moral idealism?
BA 2303 Concept Check What is meant by moral idealism? Answer: Moral idealism is a personal philosophy that considers certain individual rights or duties as universal regardless of the outcome.

15 UNDERSTANDING SOCIAL RESPONSIBILITY IN MARKETING
BA 2303 UNDERSTANDING SOCIAL RESPONSIBILITY IN MARKETING Concepts of Social Responsibility Profit Responsibility Stakeholder Responsibility Societal Responsibility Green marketing ISO 14001 Cause marketing

16 Three concepts of social responsibility
BA 2303

17 UNDERSTANDING SOCIAL RESPONSIBILITY IN MARKETING
BA 2303 UNDERSTANDING SOCIAL RESPONSIBILITY IN MARKETING The Social Audit: Doing well by Doing Good Sustainable development Turning the Table: Consumer Ethics and Social Responsibility

18 What is meant by social responsibility?
BA 2303 Concept Check What is meant by social responsibility? Answer: Social responsibility means that organizations are part of a larger society and are accountable to that society for their actions.

19 BA 2303 Concept Check Marketing efforts to produce, promote, and reclaim environmentally sensitive products are called _______________. green marketing

20 Concept Check What is a social audit? Answer:
BA 2303 Concept Check What is a social audit? Answer: A social audit is a systematic assessment of a firm's objectives, strategies, and performance in the domain of social responsibility.

21 © 2008 McGraw-Hill Ryerson Ltd. All rights reserved.
BA 2303 © 2008 McGraw-Hill Ryerson Ltd. All rights reserved.

22 BA 2303 Ethics Ethics are the moral principles and values that govern the actions and decisions of an individual or group.

23 BA 2303 Laws Laws are society’s values and standards that are enforceable in the courts.

24 BA 2303 Caveat Emptor Caveat emptor is a legal concept which means let the buyer beware.

25 BA 2303 Economic Espionage Economic espionage is the clandestine collection of trade secrets or proprietary information about a company’s competitors.

26 BA 2303 Code of Ethics A code of ethics is a formal statement of ethical principles and rules of conduct.

27 BA 2303 Whistle-blowers Whistle-blowers are employees who report unethical or illegal actions of their employers.

28 BA 2303 Moral Idealism Moral idealism is a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome.

29 BA 2303 Utilitarianism Utilitarianism is a personal moral philosophy that focuses on “the greatest good for the greatest number” by assessing the costs and benefits of the consequences of ethical behaviour.

30 BA 2303 ISO 14001 ISO consists of worldwide standards for environmental quality and green marketing practices.

31 BA 2303 Cause Marketing Cause marketing occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.

32 BA 2303 Social Audit A social audit is a systematic assessment of a firm’s objectives, strategies, and performance in the domain of social responsibility.

33 Sustainable Development
BA 2303 Sustainable Development Sustainable development involves conducting business in a way that protects the natural environment while making economic progress.

34 BA 2303 Greenwashing Disinformation disseminated by an organization so as to present an environmentally responsible public image.

35 Profit Responsibility
BA 2303 Profit Responsibility Idea that companies have a simple duty—to maximize profits for their owners or shareholders.

36 Societal Responsibility
BA 2303 Societal Responsibility Refers to obligations that organizations have to the (1) preservation of the ecological environment, and (2) general public.

37 Stakeholder Responsibility
BA 2303 Stakeholder Responsibility Focuses on the obligations an organization has to those who can effect achievement of its objectives, including customers, employees, suppliers, and distributors.


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