MGT
MGT 2022 | Management as a Liberal Art
2022 | Management as a Liberal Art
Module MGT 2022 | Management as a Liberal Art
Toward a Better Society
(2021-2022 Semester 2)
Lecture
10
BUSINESS ETHICS AND MLA
MGT
2022 | Management as a Liberal Art
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MGT
2022 | Management as a Liberal Art
Business ethics and MLA
✓
MLA from utilitarian and deontic perspectives
✓
Marketing ethics and marketing mix
✓
Big data ethics and society
MGT
2022 | Management as a Liberal Art
Factors That Determine Ethical & Unethical Behavior
1. Individual characteristics
2. Values - basic convictions : about what is right and wrong.
Two basic moral convictions
➡
Utilitarianism 功利主義
➡
Deontology 道義論
MGT
2022 | Management as a Liberal Art
Ethical Dilemma - Trolley Problem
➡
A trolley is running out of control down a
track.
➡
In its path (Track A) are five people who have
been tied to the track by a mad man.
➡
Fortunately, you could flip a switch, which
will lead the trolley down a different track to
safety, but there is one single person tied to
that track (Track B).
➡
You
B
A
Should you flip the switch or do nothing?
MGT
2022 | Management as a Liberal Art
Ethical Dilemma - Trolley Problem …
➡
You’re now standing on a bridge beside a
stranger, watching the trolley roll towards five
people.
➡
The only way to stop the train is by pushing the
stranger off the bridge and into its path.
➡
Will you push the stranger off the bridge?
➡
What if he/she is not a stranger, but someone
that you know, or someone close to you?
You
MGT
2022 | Management as a Liberal Art
Factors That Determine Ethical and Unethical
Behavior
1. Individual characteristic
Value
▪ basic convictions about what is right and wrong
▪ Two basic moral conviction
1. Utilitarianism 功利主義
2. Deontology 道義論
Source : By courtesy and inspired by Peter F. Drucker and Joseph A. Maciariello (2008).
Management (Revised Edition). New York: HarperCollins.
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HSU MGT 2022 Management as a Liberal Art- Toward a Better Society
VM0809 Consultants; Jan.,2021
Two Moral Convictions
Mills’ Utilitarianism
John Stuart Mill (1806 – 1873)
Principle of Utility (Greatest Happiness
Principle)
An action is right to the extent that
it increases the total happiness of
the affected parties.
❖ Decreases the total happiness of
the affected parties is thus Wrong.
❖ Happiness may have many
definitions : advantage, benefit,
good, pleasure…
Kantian Deontology
Immanuel Kant (1724 – 1804)
Deontology is a matter of duty.
❖
Whether something is right or
wrong doesn’t depend on its
consequences. Actions are right
or wrong in themselves.
❖
General duties towards anyone.
Special duties resulting from
personal relationships.
❖
We each have duties regarding
our own actions.
❖
MGT
2022 | Management as a Liberal Art
Deontic Utilitarian
: is it possible??
MARKETING ETHICS AND MLA
MGT
2022 | Management as a Liberal Art
MARKETING ETHICS
MGT
2022 | Management as a Liberal Art
MARKETING ETHICS
❖
Marketing process: an ever-going business process that evolve with the dynamic market.
Ethical principles guide the conduct and operation of the business.
❖
They direct the purpose, vision, and mission of companies and make them socially responsible.
❖
The principles of ethical marketing imply that the content, context, and purpose of marketing
should comply with the values of honesty and integrity.
❖
Companies should not promise what they cannot uphold. The marketing strategies should not
deceive the customer into attracting them to the products or services.
❖
A company's responsibility is to uphold the interest of all stakeholders (employees, board
members, shareholders, customers and society).
MGT
2022 | Management as a Liberal Art
Ethical Marketing Process
MGT
2022 | Management as a Liberal Art
1: What is ethical
1. A company's objectives and goals should be in line with moral or ethical values.
2. All parties involved should possess suf cient knowledge of the difference between
proper and improper business practices.
3. In all commercial operations, unethical or anti-competitive marketing strategies should
be avoided.
2: Decide what the firm will subscribe to
1. Ethics includes four branches (descriptive, normative, meta, and applied ethics).
2. A company should think over the branch of ethics to adapt the suitable approach to
promoting the brand.
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3. Applied ethics involves the practical application of moral considerations to solve real
business problems.
MGT 2022 | Management as a Liberal Art
Step 3: Decide how to implement
Implementation of ethical principles in marketing, requires the business to operate and
regulate advertising and promotional activities.
It directs the business activities to disclose the truth and real information but not deceive
the customers or viewers to gain undue bene t.
Step 4: Which operations will ethical marketing be implemented
Ethical principles include the core values of honesty, integrity, transparency, virtue, and
commitment to excellence.
Companies should prioritize adherence to these values in all business operations.
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MGT
2022 | Management as a Liberal Art
Step 5: Complete cost/benefit analysis for your ethical marketing strategy
Cost-bene t analysis is very crucial for any business.
To avoid the nancial burden, businesses should determine the entire cost of adhering to
ethical marketing guidelines.
Remember, ethical compliances can be costly in the short term, they bene t the
company's image and reputation in the long run.
Cost-bene t analysis is a tool to assist businesses in evaluating input and output while
maintaining moral standards.
Market leader
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fi
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Sustainability
MGT
2022 | Management as a Liberal Art
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Ethical leader
Unethical Marketing Strategies
Planned obsolescence - The deliberate process of ensuring that
a product's current version becomes obsolete within a period.
Vendor lock-in - A situation where a consumer utilizing a product or service cannot
readily switch to a competitor's product or service without incurring signi cant fees.
Anti-competitive business practices, deceptive advertisements, irresponsible behavior
towards customers, and activities that are targeted to defame competitors to gain undue
advantage are considered unfair marketing tactics.
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MGT
2022 | Management as a Liberal Art
Factors That Determine Ethical and Unethical Behavior
3. Structure variables
▪ Organization structure
✤ Ambiguity of the chain of comment and accountability
▪ Formal rules and regulation
▪ Performance appraisal system
✤ Goal-setting and unethical behavior
▪ Reward allocation
MGT
2022 | Management as a Liberal Art
Difference of ethical value across 10 countries
Great Britain
1.70
U.S.
1.49
France
1.66
China
1.46
Average of 10 countries = 1.67
?
Australia
1.44
Source: The survey behaviors were taken from T Jackson, Cultural values and management ethics: A 10-nation study, Human Relations, 2001, 1287-1288.
MGT
2022 | Management as a Liberal Art
Factors That Determine Ethical and Unethical Behavior
4. Issue Intensity
MGT
2022 | Management as a Liberal Art
MGT
2022 | Management as a Liberal Art