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MARKETING ETHICS
LEARNING OBJECTIVES
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Why do marketers have to worry about ethics?

What does it take for a firm to be considered
socially responsible?

How should a firm make ethically responsible
decision?

How can ethics and social responsibility be
integrated into a firm’s marketing strategy?
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Mattel – Product Safety Crisis
Lead paint
from
subcontracted
manufacturer
in China
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Firm Goals
Greed and short
term profit seeking
Serious long term
consequences
Creating value
over the long run
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Long term
success
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The Scope of Marketing Ethics
Business Ethics
Marketing Ethics
Miller Commercial
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Attitudes About the Ethical
Standards of Various Professions

Why do you feel
marketers (advertising
practitioners) rank so
low on this scale?

What can marketers do
to improve their
ranking?
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Citibank Addresses Identity Theft

Why is this a good customer issue to address?

Why are these ads effective?
Citibank Commercial
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Creating an Ethical Climate in the
Workplace

Values
–
–
–

Rules
–
–

Management
commitment
Employee dedication
Controls
–
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Establish
Share
Understand
Reward
Punishment
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American Marketing Association
Code of Ethics
Generally accepted code in marketing
Flows from general norms of conduct to
specific values
Subareas within marketing have their own
code of ethics to deal with specific issues
AMA Website
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The Influence of Personal Ethics
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Genetics
Family
Religion
Values
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Why People Act Unethically
What makes people take
actions that create so
much harm?
Are all the individuals
who engage in
questionable behavior
just plain immoral or
unethical?
Decisions often have conflicting outcomes, where both
options have positive and negative consequences
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Competing Outcomes
Dangerous flaw in
new model
Delay
production
Continue
production
Delayed
revenue
Potential injury
to consumers
Possible
layoffs
Loss of revenue
Loss of
bonuses
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The Link Between Ethics and
Corporate Social Responsibility
Firms should
implement programs
that are socially
responsible
Employees should act
in an ethically
responsible manner
Build-A-Bear Workshop
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A Framework for Ethical Decision
Making
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Step One: Identify Issues
Using results to
mislead or even
harm the public
Data collection
methods
Marketing
research firm
issues
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Hiding the real
purpose of the
study
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Step Two: Gather Information and
Identify Stakeholders
Identify all ethical issues
and relevant legal
information
Identify all relevant
stakeholders and get
their input on any
identified ethical issues
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Stakeholder Analysis Matrix for a
Marketing Research Firm
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Step Three: Brainstorm Alternatives
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Halt the market
research project?

Make responses
anonymous?

Instituting training on
the AMA Code of
Ethics for all
researchers
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Step Four: Choose a Course of
Action
Weigh the alternatives
Take a course of action
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Ethical Decision-Making Evaluation
Questionnaire
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Check Yourself
1.
According to the American marketing
Association Code of Ethics, what are the
six ethical values
2.
Identify the four stages in the ethical
decision making framework
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Integrating Ethics Into Marketing Strategy
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Planning Phase

The mission or vision
statement sets the
overall ethical tone for
planning.

Firms often go beyond
the mission or vision
statement by including
a values statement.
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Newman’s Own
Donating over $200 million since 1982
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Implementation Stage

Aqua Teen Hunger Force


LED display was mistaken as
a bomb
Secret Sparkle Body Spray

Sold through retailer that
targets 7-14 year olds
although packaging claimed
to keep out of reach of
children
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Implementation Phase
Should the firm be relocating
production to another country?
Should the firm be targeting
this market with this product?
Should the firm be selling its
product in this market in
this manner?
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Control Phase
1.
Check successful
implementation
2.
React to change
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The Six Tests of Ethical Action
The Publicity Test
• Would I want to see this in the media?
The Moral Mentor Test
• Would the person I admire the most do this?
The Admired Observer
Test
• Would I want the person I admire the most to SEE me doing
this?
The Transparency Test
• Could I give a clear explanation for the action
The Person in the
Mirror Test
The Golden Rule Test
• Would I be able to look in the mirror and respect myself
• Would I like to be on the receiving end of this action?
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Check Yourself
1.
Should a marketing manager insist on
assessing the ethics of a situation she or
he is facing?
2.
Identify one ethical issue you might face
in each of the three phases of a marketing
plan
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Understanding Ethics Using
Scenarios
Scenario 1: R.J. Reynolds: Promotions to Youth
Scenario 2: Victoria’s Dirty Secret
Scenario 3: Pregnant Teen TV Star
Scenario 4: Who Is on the Line?
Scenario 5: West Virginia T-Shirts
Scenario 6: Giving Credit Where Credit Isn’t Due
Scenario 7: The Jeweler’s Tarnished Image
Scenario 8: No Wonder It’s So Good
Scenario 9: Bright Baby’s Bright Idea
Scenario 10: Money from Mailing Lists
Scenario 11: The Blogging CEO
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Scenario 1: R.J. Reynolds
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What are the ethical
issues

Mailings to young
adults

Candy flavored
cigarettes
Is it wrong? Why or
why not?
Back to list of scenarios
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Scenario 2: Victoria’s Dirty Secret

What was Victoria’s
Secret doing?

Was it wrong?

Unethical
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How could they fix
this?
Back to list of scenarios
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Scenario 3: Pregnant Teen TV Star
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Should the show be
cancelled?
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Should the pregnancy be
written into the script?

How should Nickelodeon
handle this?

Is there any way this could
be helpful?
Back to list of scenarios
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Scenario 4: Who Is on the Line?

What are the ethical issues
in this scenario?
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Why would a firm use this
service?

How do you think
consumers will respond to
firms who use this service?

Would you advise
purchasing this service?
Back to list of scenarios
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Scenario 5: West Virginia T-Shirts

What are the ethical issues
in this scenario?
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If you were the retailer
how would you have
responded?

Does a history of previous
inappropriate business
practices impact your
opinion of the retailer?
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Scenario 6: Giving Credit Where
Credit Isn’t Due
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Is this an inappropriate
target market?

Could you argue that
the firm provides a
valuable service to this
market?

Would you advise the
cataloger to pursue
this new strategy?
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Scenario 7: The Jeweler’s
Tarnished Image

Is the manufacturer
responsible for the
acts of independent
sales people?

How do you feel the
Billing’s should
respond?
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Scenario 8: No Wonder It’s So Good
Relax with
Enjoy Cola
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Is the legal non
disclosure of the
alcohol content and
ethical issue?

Should the firm be
required to disclose
the alcohol content?

What would you do if
you were Mia?
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Scenario 9: Bright Baby’s Bright Idea

Is the potential for injury
enough to merit removal
of the product from the
market?

Do you feel it is ethical to
move the product to a less
regulated market?

What would you have
advised the CEO?
Back to list of scenarios
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Scenario 10: Money from Mailing
Lists

Should Mangold continue
to use the Marketing
Metrix mailing list?

Should he tell his new
customers how he got
their names?

Do customers need to give
consent before companies
collect information on
their online behavior?
Back to list of scenarios
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Scenario 11: The Blogging CEO

Should Burdick be allowed
to praise his company
anonymously?

Should he be allowed to
attack his competitors?

How would you feel if you
knew a blogger had
personal interests in the
topic?
Back to list of scenarios
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Glossary
Corporate social responsibility describes the
voluntary actions taken by a company to address
the ethical, social, and environmental impacts of
its business operations and the concerns of its
stakeholders.
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