1. Ethics & Social Responsibility
CHAPTER 3
Ethics & Social Responsibility

2. 3-1 Determinants of a Civil Society
Ethics
Laws
Formal & Informal Groups
Self-Regulation
Media
Active Civil Society

3. 3-2 The Concept of Ethical Behavior
Ethics are the unwritten rules that guide interactions
Balance between a business’s need to produce profit against its desire to operate honestly

4. Ethical Theories Deontology Utilitarianism Casuist Moral Relativism
Virtue Ethics
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5. Deontology duty to follow one’s obligation to an individual or society
consistent decisions
flaw: conflicting obligations= unclear ethically correct solution
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6. Utilitarianism greatest good, for the greatest amount of people
use point system
two types:
act utilitarianism: adheres to the exact definition
rule utilitarianism: considers the law and fairness; values justice and doing good simultaneously
flaw: we are not able to predict the future, inability to compare everything on the same scale
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7. Casuist
uses current ethical dilemmas and their outcomes as a reference
uses others’ experience
finds other extreme situations to find a compromise
flaw: may not be a current situation to compare to
Ethics can be seen as the standard of behavior by which conduct is judged; they are the unwritten rules that guide our behavior. Five ethical theories that apply to marketing are deonotology, utilitarianism, casuist, moral relativism, and virtue ethics. It is with these five theories that can be used in making decisions in ethical dilemmas. They each have their strengths, along with their weaknesses.
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8. Moral Relativism no absolute rules must weigh the consequences
find the lesser evil
circumstances can justify actions
flaws: there is no absolute rule
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9. Virtue Ethics Aristotle and Plato
training required to solve ethical dilemmas
virtues used as tools
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10. 3-3 Ethical Behavior in Business
Morals: The rules people develop as a result of cultural values and norms
moral standards may also reflect the laws and regulations that affect social and economic behavior
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11. How do you develop a personal set of ethics?
Examine the consequences
Stress the importance of rules
Develop a moral character
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12. Three Different developments of Moral Character
Preconventional Morality
Conventional Morality
Postconventional Morality
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13. What factors influence Ethical Decision Making?
Extent of ethical problems within the organization
Top managements actions on ethics
Potential Magnitude of the Consequences
Social Consensus
Probability of a harmful outcome
Length of time between the decision and the onset of the consequences
Number of people to be affected
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14. Code of ethics A guideline to help marketing managers
and other employees
make better decisions
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15. Ethics in Other Countries
Foreign Corrupt Practices Act: a law
that prohibits U.S corporations from
making illegal payments to public
officials of foreign governments to
obtain business rights or to enhance
their business dealings in those
countries
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16. 3.4 Corporate Social Responsibility
Corporate Social Responsibility is a business’s concern for society’s welfare
Managers that consider long-range interests of the company and the company’s relationship to society
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17. 3.4a Stakeholders and Social Responsibility
The Stakeholder Theory: says that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of the firm’s operation.
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18. 3.4a Stakeholders and Social Responsibility
Pyramid of Corporate Social Responsibility
CSR 4 components:
1. Economic
2. Legal
3. Ethical
4. Philanthropic
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19. 3.4a Stakeholders in a Typical Corporation
Employees
Management
Customers
Local Community
Suppliers
Owners
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20. 3-5 Corporate Social Responsibility (CSR)
Divisive issue
Increasing number of supporters
Business don’t act responsible, new regulations and fines
Profitable
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21. Sustainability Social Responsibility
Focus: acting with long term consequences in mind & managing its business
Required: product & service innovation and building customer loyalty
Integrate long-term:
economic, environmental & social factors
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22. Growth of Social Responsibility
Growing worldwide
Demanding more socially responsible
UNGC impact
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23. Green Marketing Definition Help the bottom line Ben & Jerry’s
Toms Shoes
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24. 3.6 Cause-Related Marketing
Cause-related Marketing (Cause Marketing): The cooperative marketing efforts between a for profit firm and a non profit organization
· Efforts for social or other charitable causes
· Not based on a straight donation.
· Good public relations and stimulates sales of the brand
· Huge growth can lead to consumer cause fatigue
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25. 3.6 Cause-Related Marketing
Example of Cause-Related Marketing:
· Whirlpool donated a range and refrigerator to every home built by Habitat for Humanity for a year.
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