Ethics and Social Responsibility
The Marketing Case
Definition of Ethics
the moral principals and values that
govern the actions and decisions of an
individual or group. They serve as
guidelines on how to act rightly and
justly when faced with moral dilemmas.
Two Kinds of Unethical
Behaviour
1.
Industrial Espionage is the clandestine
collection of trade secrets or proprietary
information about a company’s competitors.
Industrial espionage is most prevalent in
high-technology industries, such as
electronics,specialty chemicals, industrial
equipment, aerospace, and pharmaceuticals,
where technical know-how and trade secrets
separate industry leaders from followers.
Two Kinds of Unethical
Behaviour
2.
The giving and receiving of bribes and
kickbacks is the second form of unethical
competitive behaviour.
Bribes and kickbacks are often disguised
as gifts, consultant fees and favours. They
are more common in business-to-business
and government marketing than in consumer
marketing.
Code of Ethics
the formal statement of ethical
principals and rules of conduct.
Social Responsibility in
Marketing
 Social responsibility means that
organizations are part of a larger society and
that they are accountable to society for their
actions.
 Two marketing practices reflect socially
responsible behaviour:
Social Responsibility in
Marketing
 Green Marketing.
Represents marketing
efforts to produce,
promote, and reclaim
environmentally
sensitive products.
 ISO 14000
 Cause-Related
Marketing. CRM exists
when the charitable
contributions of a firm
are tied directly to
customer revenues
produced through the
promotion of one of its
products or services.
Consumer Bill of Rights
Safety
Be informed
Right to
Choose
Be heard
Sustainable Development
involves conducting business in a way
that protects the natural environment
while also making economic progress.