Week 7: Looking to the Future for Growth Discussion
Ethics and Social Responsibility (graded)
Customer complaints about Toyota cars suddenly accelerating were initially downplayed by Toyota Motor Sales
in December 2009, which initially stated that it was caused by the driver's side carpeting getting in the way of
the pedal. Toyota's announcements at the beginning of 2010, however, suggested that the real culprit was a
defective gas pedal. This resulted in many calls for an investigation, as the initial claim about the carpeting was
seen as apparent camouflage for a more serious situation, one that is alleged to have resulted in hundreds of
Toyota cars suddenly accelerating and unable to stop, as well as several passengers dying in accidents.
Additional issues have since emerged that suggested other mechanical problems at this major automobile
manufacturer. Within the automobile world, the recalls have affected over eight million Toyota automobiles.
Research this incident online. Share what you see as the responsibilities that a marketer (Toyota) has to the
society in which it markets its goods. Was there an ethical breach by Toyota in not coming forth when the
problem with acceleration was first reported, or was it simply a series of poor business decisions? Or was it
both? Substantiate your response.
Given the current situation, what would you suggest that Toyota do to ensure that its marketing practices are
seen by its publics as ethical and above board? At the same time, how should Toyota market itself to regain
consumer trust that has been shaken by the many deaths that resulted because of the initial gas pedal defect?
Responses
Response
RE: Ethics and
Social
Responsibility
Author
Professor Forbes
Date/Time
10/14/2012 7:49:04 AM
Modified:10/14/2012 7:50 AM
Ethics and Marketing is in!
Lots of issues here and we will touch on a bunch this week- Let us know your
thoughts!
Here are two links you can check out:
"Lawmakers question Toyota USA's chief on why not enough testing was done on
electronics leading to sticky pedal recalls."
http://www.cnn.com/SPECIALS/2010/toyota.recall/
http://content.usatoday.com/communities/driveon/post/2010/12/toyota-to-pay-another-
32-million-in-fines-for-safety-violation/1#.TzvUT7R4Kqw
RE: Ethics
and Social
Bweleka Kasonso
Responsibility
10/17/2012 10:04:45 PM
Truth and Safety before money; I know that this probably sounds unrealistic, naïve and illfitted for today’s business world. Toyota should have heed the warnings and not conveniently
glossed over them just so they could put a product on the market and make money. So much
hype is created before these new versions of cars are brought to market so I think that when
faults are discovered in this hype period, business decision makers may be pressured to
overlook problems just to live up to the hype. And it is at this time that I firmly believe that
decision makers should choose safety over money (and this expands to other products too,
such as groceries).
RE: Ethics
and Social
Yonny Leon
Responsibility
10/16/2012 1:47:41 PM
Modified:10/16/2012 1:49 PM
Over 8 million vehicles have been recalled for three problems—an
aftermarket floor mat that, if not clipped down properly, can interfere with the
gas pedal; a pedal from one supplier that can get "sticky " because a
composite material interacts with moisture over time as it wears; and a
software glitch on the 2010 Prius that can cause less-than-a-second's
hesitation in braking when the antilock braking system is applied. For each of
these problems a specific cause has to be determined—when it occurred,
where, and how. There is no evidence that floor mats were assembled
incorrectly because they are put on by dealers. There is no evidence that the
sticky pedals were assembled wrongly; that issue rather concerns the specific
composite material selected for one part. And in the Prius case, the issue lies
in the software code, not in how the module was assembled at the plant. So
revamping production does not appear to be in order. It seems remarkable that
all the recalls occurred within a six-month period. But in fact the cause was at
least six months old in each case—five or more years in the case of the pedal
design. Thus, the real principle violated here is to uncover problems
immediately and then solve them, one by one. The issues should not have
been allowed to accumulate, so in my view the response to the problems (or
lack of response) is more serious than the problems themselves. We have all
read that this slow response has been characteristic of Toyota for many years.
This is a serious allegation. Some say the unintended-acceleration problem is
electronic and has yet to be fully solved—which, if true, is a broader problem
for all automakers who use so-called drive-by-wire systems. The point is that
I do not know which of these problems is real, or where and why they
occurred. Toyota needs to use its own Toyota Business Practices, or TBP, to
identify and solve its real problems.
RE: Ethics
and Social
Rebecca Aub
Responsibility
10/20/2012 4:21:01 PM
Added to what Yonny stated, with the initial claims of possible failures, a company
typically determines the scope of potential damage, and compares this "cost" to the
cost of a recall and the cost to the company image during determining how to
rectify the problem. It is not always as simple as the immediate diagnosis of a
problem and therefore instant removal from the market.
Take for example the current fatal cases of meningitis. Allegedly traced fairly
quickly back to steroid injections manufactured by a pharmacy in Massachusetts,
the product has immediately been recalled and additional products are being
recalled by association. This is different from an aftermarket product, installed
after the vehicle has left the manufacturer which may interfere with performance;
or a pedal from a supplier that over time may get "sticky".
Toyota took an inordinate amount of time to evaluate, determine and weigh risk.
The trade off was public opinion feeling that the company was not as concerned as
they should be. Any car manufacturer has a legal and ethical responsibility to
produce a vehicle that is safe and performs in accordance with how it has
been marketed.
RE: Ethics
and Social
Christine Moore
Responsibility
10/16/2012 4:54:53 PM
With Toyota being such a large company and especially since they deal with
customer safety I would want to believe that there wasn't an ethical breach
and rather a series of poor business decisions, although after some reading my
feeling is that it was a combination of both. I feel that Toyota was faced with
an issue and wanted to find a solution the fastest, and most cost efficient way.
I do not feel their "ethical breach" was intentional, they probably did have the
customer in mind but were trying to be cautious of their image. Since a more
serious situation came to attention (fatalities) it is almost inevitable that a
company as large as Toyota would be put under scrutiny for their
defects. Toyota made a poor decision by not reporting the more serious gas
pedal issue up front and in turn was exposed as unethical and misleading. As
a consumer, hearing this news that "Toyota failed to report" a defect leaves
me questioning their integrity and resulted in digging themselves a deeper
hole by losing trust in millions of consumers. Rather than practicing a good
"social conscience" and admitting the problem upfront they withheld
information (which was probably in hopes of saving money) which ended up
costing them even more. I would suggest Toyota issue an apology and
explanation for their mistakes, they would then in the future need to go above
and beyond to ensure they can be considered a trustworthy brand. It's no lie
that Toyota would have to spend a good amount of time reorganizing their
marketing plan to address the issue and rebuild themselves.
RE: Ethics
and Social
Latonya Hughes
Responsibility
10/14/2012 12:44:05 PM
I found this to be pretty tough as I have purchased 2 - 3 Toyota vehicles and
have had a great experience with each of them better than I have with other
manufacturers. The first thing a company is going to do is to try to save face
and their reputation. They do not want to take or admit blame without
knowing all of the facts and if they are exactly the ones at fault. This reminds
me of my insurance company, who told me to never admit that the accident
was my fault even if I hit someone from behind. They state it could turn out
another way as the person in front of me slammed on their brakes, which
caused me to hit them behind and not the fact that I was following too close
to their vehicle. I think they were making good money and the supply was
low and the demand was high. They were trying to get the cars out and meet
the demand of the customers. I think them not coming better was a sense of
bad business decisions. I do not think that it was an ethical breach, but any
time you are aware of a problem with your product and it involves a person's
safety it is a breach of contract by law. So, in this case, I will have to go with
it being both. They were trying to save their reputation and hope that they
could place the blame on someone else (brake manufacturer). If I was Toyota
and trying to regain my customers trust will be to first apologize to its
customers and the public about the situation. I do not believe that this was
done intentionally, so an apology is needed. I would advertise free test drives
and show some kind of proof to the public ensuring them that their future
vehicles are free from the past problems with the brakes. Commercials
demonstrating this would be great. I am sure they can do some commercials
around tracks or something showing that their breaks no longer stick. Some
times advertising from the bad experience work by mentioning it and stating
what you have done to fix and eliminate the problem.
RE: Ethics
and Social
Drew Gallagher
Responsibility
10/15/2012 12:35:26 PM
I was actually shopping for a car when this controversy first hit the
news. The two brands I was considering were Toyota and Honda
which were based on all the ratings and everything I looked at. It
was really upsetting to see the way Toyota was handling the
situation. It just made me think what else would they hide from their
customers in order to maintain the highest profit margin possible. I
couldn't buy a Toyota because I really felt that they did not care
about the safety of their customers so I decided to purchase the
Honda. Even though I haven't heard of any problems since it just
gave me a sense that they were taking shortcuts and I wasn't
interested in the risk. By the time they actually righted the situation I
had already made my purchase and now that I have a honda and I'm
happy with it I doubt I'll ever consider Toyota again.
RE: Ethics
and Social
Professor Forbes
Responsibility
10/17/2012 5:33:56
AM
Does it have to be legal to be ethical? Is what is ethical
always legal? What are some distinctions here?
RE: Ethics
and Social
Daveed Yisrael
Responsibility
10/17/2012 8:33:34
PM
Ethics are code of moral principles and set standards of
“good” and “bad” as opposed to “right” and “wrong. Ethical
behavior is derived from the code of ethics is considered as
what is accepted as good and right in the context of the
governing moral code. An ethical belief is the feeling that a
specific action is right or wrong and even though the law is
founded upon ethical beliefs, some might say that business
management should adopt a mindset of minimum legal
compliance because the definition of ethics can vary from
person to person. Most people will agree however about the
kinds of behavior for which businesses should be held liable.
The vast majority of individuals believe that businesses should
be honest when dealings with the public and be truthful by
living up to their contractual obligations. These beliefs have
been interrupted through laws and regulations governing
business organizations. When management builds an
organizations with ethical beliefs it can have a better chance of
conforming to the law, rather than minimally complying with
the law.
http://lawreview.wustl.edu/commentaries/always-do-the-rightthing-ethical-intuitionism-and-legal-compliance/
RE: Ethics
and Social
Latonya Hughes
Responsibility
10/17/2012
11:58:59 PM
I do not think it has to be legal to be ethical. There
are people that do not tell the truth all the time and
it can be legal, but not the ethical thing to do. Most
of the time they just don't tell the full story or
truth. They usually only tell you part of the story. I
think selling used cars is legal, but in ways is not
ethical. This fits more with years ago when they
were turning the speedometer back on the and will
sell the car to a person, knowing they are not being
truthful about the miles. People do things based on
their values and moral, so what is ethical doesn't
always have to be legal either. It all depends on a
persons beliefs and upbringing. A lot of ethics has
to do with religion, so it is hard to say certain things
are illegal going against a persons moral values. If
it does not break the law or rules of the law, then it
is legal, but may be unethical in another person's
view.
RE: Ethics
and Social
Drew Gallagher
Responsibility
10/17/2012
10:42:02 PM
I guess it would make a difference what ethics
model you were using to make these
assumptions. If you go by Blanchard and Peale
then it does have to be legal to be ethical. Their
model asks three questions to solve an ethical
issue. Is it legal? Is it balanced? How does it make
me feel? If you were to use the front-page-of-thenewspaper-test then there could be situations where
it does not have to be legal to be ethical. I'm sure
there are endless examples but something simply
like a man jaywalks in order to save a man from a
burning car, it could be anything but you get the
picture.
RE: Ethics
and Social
Yonny Leon
Responsibility
10/18/2012 5:47:33
PM
No, I don't think so because there are always
differences of opinion. Capital punishment is legal
but many people think it is unethical. Same can be
said for abortion and numerous other issues. Not
everyone agrees that any law is ethical, so it
depends on who you ask. I try to make the decision
for myself whether something is ethical and don't
rely on the legislature's advice. That does not mean
I think a person's personal opinion of a law negates
the law. It does not give us the authority to break
laws we think are unethical, it gives us the
opportunity to try to change the law.
RE: Ethics
and Social
Jason Ho
Responsibility
10/15/2012 10:06:43 PM
Toyota’s big recall problem just keeps getting worse by the day. The latest blow to the
company, which stopped the sale of eight models that it said are involved in the recall for
sticking accelerator pedal, is that Consumer Reports has suspended its recommendation of
the models involved. Over the years, CR has lavished recommendation on Toyota’s cars and
trucks in large part because they have been very reliable.
I don’t need to tell anyone that quality is the cornerstone of Toyota’s brand in the U.S.
Consumer Reports recommended 27 of Toyota’s 32 models, giving the Japanese carmaker a
great gust of wind at its back when it comes to winning converts. That number is now down
to 15, though the magazine says Toyota can get the recommendations back pending
resolution of the problem.
RE: Ethics
and Social
Julie Hicks
Responsibility
10/16/2012 5:08:44 AM
Yea, I agree Jason. But people still seem to be buying Camry's
because of the incentives and more features offered by the
manufacture."Toyota reported monthly U.S. sales of 171,910
vehicles, up 41.5% from a year earlier."
I was also in the market for a new car at that time. I did not even
look at a Toyota anything. I did purchase VW Passat. I have had no
regrets. It is a great car, great on gas, handling is smooth, and a
sleek design. The only con is it requires 91 or above gas because it
has a Turbo engine.
http://www.latimes.com/business/money/la-fi-mo-autos-septemberauto-sales-20121001,0,1390056.story
RE: Ethics
and Social
Professor Forbes
Responsibility
10/17/2012 5:35:49
AM
Julie, Kristin, Jason, Et.al...
So we discussed value propositions over the course...I was
reading Motor Trend and saw an ad for a spray you use on your
license plate so the traffic cameras can not take your picture and
you could avoid tickets...
Camel cigarettes has a value proposition and it targeted Joe
Camel at teenagers....
Colt 45 Malt Liquor has a value proposition...Highest alcohol
content.... And was targeted at minorities in poor
neighborhoods....
What are your thoughts? Ethical? Why/Why Not....
See anyone else doing this and what are your thoughts?
RE: Ethics
and Social
Julio Rhymer
Responsibility
10/17/2012
10:09:47 PM
When it come to this topic i have mixed feelings.
The purpose of businesses is to create products and
services and make money for themselves and
investors. But at the same time there must be a
balance of what is right and wrong. In the case of
promoting cigarettes to teens and making it cool
presents some problems but parents must educate
teens on the dangers of alcohol and tobacco usage.
Therefore i feel there is some obligation of the
company to act ethically by providing warning their
products such as cigarettes but its also up the
individuals to be aware of the risk and take
responsibility for their own actions.
RE: Ethics
and Social
Ryan Phillips
Responsibility
10/17/2012
10:35:13 PM
Well ethics often times won’t pay the bills when it
comes to business. Even though I don't support
such things as these companies, from a business
stand point they are not doing anything illegal
which is what matters most to many
businesses. Unfortunately we live in a world where
making a buck is more important that empowering
and giving folks better opportunities. I guess it's no
different with all of these check cashing places or
loan places. Yes it sounds good to be to get 200500 dollars on the spot when you need it but the
back in 200% which is ridiculous. Of course these
types of businesses focus on minority
neighborhoods and or people who are desperate and
can easily be taken advantage of . Is this unethical,
yes but again not illegal.
RE: Ethics
and Social
Michael Soo
Responsibility
10/17/2012
10:43:23 AM
The license plate spray, Camel, and Colt 45 Legal? Yes. Ethical? Probably not depending on
which philosopher you follow.
Our job as business professionals is to push the
envelope and maximize profits for the business. In
some instances, it's going to come off a little
unsavory to some people. We aren't here to tip toe
around what some people like and don't like. We're
here to make money. Tell me if you disagree, but I
think that ethical standards have increased
significantly from the days of, say, the 1950's where
advertisements showed men as dominant and
women in the kitchen.
Take a look at the ads from this website, and tell me
if you think ethics have declined since then.
http://www.businesspundit.com/10-most-sexistprint-ads-from-the-1950s/
RE: Ethics
and Social
Jason Ho
Responsibility
10/17/2012
9:57:27 PM
Yeah, you got a point there Micheal. Most of these
big companies are using Corporate Social
Responsibility (CSR) as their tactics. CSR has been
defined as an evolving concept that has come to
include companies' economic, legal, ethical, and
philanthropic responsibilities to society in addition
to the company's fiduciary responsibility to
shareholders. They portray CSR as primarily a
public relations strategy designed to achieve
“innocence by association” as corporations align
themselves with good causes to burnish their public
image and protect their core business.
RE: Ethics
and Social
Professor Forbes
Responsibility
10/21/2012
6:29:04 PM
Thanks All- Great insights- There
can certainly be a lot of gray areas
here- even among us!
RE: Ethics
and Social
Kristin Muchowski
Responsibility
10/16/2012 3:15:54 PM
I have a Toyota that I love, and has never given me a single problem
(*knock on wood*) and it is nearing 150,000 miles! I think with
extremely large companies things are bound to go wrong eventually,
and being such a large company with so many cars, everyone is
going to hear about it. They are truly reliable cars I believe for the
most part, and seem to out run others by 100,000 miles!
RE: Ethics
and Social
Ira Hughes
Responsibility
10/16/2012 10:34:01 PM
Any company and especially large companies are going to do everything within
their power to save face. Unfortunately large companies can run and hide for a
long time before they have to face fault. The shocking part about this situation was
that Toyota was so highly thought of in customer service circles. These incidents
in the beginning were very shocking almost to the point of believing that maybe
these incidents were freak accidents or maybe the customers were at
fault. However after much media intervention and research the large company in
this case Toyota had to admit fault. At this point the only things that Toyota could
do was admit fault, offer to fix the problem, pay the victims, and promise as well
as keep their promise to fix the problems and build better vehicles and parts.
RE: Ethics
and Social
Rose Neal
Responsibility
10/16/2012 4:40:22 AM
I bought my first Toyota in 2009 and shortly after I bought it was when the
complaints started coming in. I remember when they came out and said that
it was the carpeting causing the acceleration and I thought "really? Surely
someone can come up with a better excuse than that one" I never had any
problems with my carpet getting anywhere near the gas pedal, but like
everyone else I got one of those letters and brought it to Toyota for them to
install the clip to keep the carpet from moving. A few months later I got
another letter stating that they had discovered a problem with the gas pedal
and that there was a fix for it also. Once again, I called to make
the appointment only to be told that the part wasn't available yet. Several
weeks later I got a call that the part was available and that I could come down
to get the repair done.
Having never bought a Toyota before, I was really skeptical about my car
now. Sure it got great gas mileage and other than the recalled items I never
had a problem with it but now it seemed like every month there was
something else being recalled on the car and I almost took it back. I truly
think that it was the gas pedal all along and the carpet was an instant fix to get
the public and press off their backs. When the head of Toyota went to Capital
Hill to testify I watched intently because I wanted to see what he was going to
say. His testimony was what I and millions had already been suspecting; cut
some corners and make a larger profit; only this time it backfired on
them. Are they the first to do this? Absolutely not, but they made headlines
because their bottom line got in the way of their commitment to safety.
RE: Ethics
and Social
Timothy Rinard
Responsibility
10/21/2012 9:18:06 PM
As in an industry their are a set of standards that have to be followed,
especially when it invoved consumer safety, as it can be a very costly mistake
as we are shown here by toyota.
Ethics and
Social
Responsibility
Professor Forbes
10/16/2012 5:14:11 AM
Let's keep this rolling...
Let us know your thoughts...and..
Where were the lapses in ethics and good business practices from Toyota
here? What could (should) Toyota have done differently?
What can they do now to “save face”?
I note some of your points here- Carry On!
RE: Ethics
and Social
Jason Ho
Responsibility
10/16/2012 9:48:14 PM
In this Toyota recall incident, I believe the company was too slow to react. When public
safety is involved, it's imperative to come clean, come clean fast, come clean as openly as
you can. No matter what it is, having a very immediate response and being very open and
very public about your response is very important, but when public safety is involved, it's
even more important. The way Toyota Corp. was handling the incident in the past led me to
believe that they were trying to cover something up. As long as you leave people with a
feeling like you are trying to hide something, then they are going to believe you are trying to
hide something. That's an easy thing to believe about a corporation because we are kind of
conditioned to think, perhaps they are hiding something. However, I believe that Toyota's
brand is strong enough to withstand the mistakes associated with the recalls.
RE: Ethics
and Social
Julio Rhymer
Responsibility
10/16/2012 7:18:36 PM
In the case of Toyota ethically when Toyota discovered the problem, the
company was supposed to inform the public regarding the problem instead of
trying to make the issue seem like a minor problem. What this can do to save
face is to continue to inform the public regarding the improved safety of its
cars and to provide the evidence regarding the safety.
RE: Ethics
and Social
Rose Neal
Responsibility
10/18/2012 5:15:42 PM
Honesty is always the best policy and I think that if Toyota would have just
been straightforward in the first place the fall out may not have been as big as
it was. One of the worst things for the Japanese culture is to "lose face" and
in this case that is just what happened. When they ignored their social and
moral responsibility to their customers to ensure their safety they lost more
than just a few current customers...they lost a lot of respect and potential new
customers. A consumer is more likely to forgive a company if they are
honest with them and show good faith in making the wrong right
again. Toyota did not do this and thus opened themselves up to years
of potential lost business.
RE: Ethics
and Social
Professor Forbes
Responsibility
10/19/2012 6:43:15 AM
Right! Remember that was the key mistake Ford made- Denial rarely
works! Why is that so much more true today as opposed to in the
past?
RE: Ethics
and Social
Rebecca Aub
Responsibility
10/19/2012 10:05:49
PM
In some cases however the company makes a calculated decision from a
financial standpoint, they will cover up evidence of wrong doing because
tort cases may be less than the actual cost of recall. This is not an ethical
strategy.
Other instances are sheer greed and an attempt to limit negative fall -out.
For example Wal mart in Mexico where the company deliberately bribed
numerous officials for permits to build new stores and gain market share.
Neither ethical nor legal.
http://www.nytimes.com/2012/04/22/business/at-wal-mart-in-mexico-abribe-inquiry-silenced.html?pagewanted=all&_r=0
RE: Ethics
and Social
Bweleka Kasonso
Responsibility
10/20/2012 10:49:20 PM
The lapse in ethics and good business practice that Toyota allowed was,
ignoring warning reports that indicated that there was something wrong with
the accelarator just so they could reveal there lateest version of cars as
marketed. If there wasn't so much hype and contracts with dealers attached to
the release date, I think that Toyota would have tried to get the problem fixed
beforere leasing fautly cars to market.
RE: Ethics
and Social
Professor Forbes
Responsibility
10/21/2012 6:29:51 PM
All- Great insights- Absolutely we live in a new age of transparency
if you will and it is harder and harder to hide unethical acts! How
does this impact ethics and social responsibilities of companies?
RE: Ethics
and Social
Yonny Leon
Responsibility
10/20/2012 11:57:33 AM
Reputation can be easily lost, and Toyota’s reputation is indeed threatened,
but it’s highly unlikely the company will collapse completely. And that may
be one of the one of the biggest lessons for other companies as they study
how Toyota emerges from this recall crisis. The reality is that Toyota is
positioned for recovery about as well as it could be owing, in large measure,
to the reputation for quality products and corporate responsibility it has
developed over the last two decades. That reputation is a valuable asset, and
one that Toyota will undoubtedly be citing and calling upon, in the years
ahead.
Toyota
Daveed Yisrael
10/16/2012 9:00:01 PM
Toyota should be willing to support behavior change and have courage to display
social responsibility. The company must depend on it’s marketing department to help
promote communicate and show the public that social issues are their main concerns
through following and creating new ethical standard also Toyota should own up to
their responsibility of selling cars with defective gas pedals. I believe the there was a
series of poor decisions and a bunch of ethical breaches. I also feel the Toyota
company should donate a percentage of their revenues to accidents relating to faulty
break pedals based. I think the focus should stay on safety and manufacturing quality.
Ethics and
Social
Responsibility
Professor Forbes
10/17/2012 5:33:30 AM
So given this case..............
......If your CEO asked you how to minimize the risk of a such an event happening at your
company....What would you recommend? Issues of social responsibility? How would you handle the
potential ethics issues?
And...............Ethics and Business should go hand in hand: Why? Why should a company care? Does
the customer care? Why? Do you see a company (or marketer) having social responsibilities?
RE: Ethics
and Social
Kristin Muchowski
Responsibility
10/18/2012 7:02:03 AM
I think when you are such a large and profitable company you have to show
the consumer how much you value their business and you always have them
(not a price tag) in mind. Admit a mistake, recall the product, fix and make
them happy and move on. I think when you get in to trouble is when you
have a slow reaction time and bad things start to happen. If you allow more
people to get hurt because you "dont care" you will more than likely get
media scrutiny and that is the last thing you want. Media seems to control
how consumers view a product, stay ahead of the game, care about your
consumer, and the company should always come out on top even when a
mistake is made.
RE: Ethics
and Social
Ira Hughes
Responsibility
10/18/2012 5:04:13 PM
Ethics and business go hand in hand. Contrary to some beliefs the biggest and best
companies don't cheat and lie their way to the top. Actually they create market and capitalize
on it. If only it were that simple. Although successful companies have a market their
constantly trying to improve what it is that they do for their customers. It may consist of
negotiating better pricing on gas for their truck fleet or staying open and extra hour during the
Christmas season. Often we hear of the horror stories of a company such as
Enrom. However, the true measure of a company is one that gets steady returns and pleases
its' customers. This is done by doing right by the customers and the employees.
Below is the story regarding the fate of unethical companies.
http://www.huffingtonpost.com/2010/01/28/the-least-ethical-compani_n_440073.html
RE: Ethics
and Social
Connie Brooks
Responsibility
10/19/2012 6:44:09 AM
I would recommend designating an ombudsperson in charge of handling
employees’ informal concerns pertaining to workplace ethics. I would also
suggest establishing an ethics hotline that is a confidential service that
employees may contact whenever they encounter workplace dilemmas that
put them into uncomfortable or threatening positions. Confidential hotlines
are an effective way to assure employees’ anonymity, which is a concern for
employees whose alerts are considered “whistleblowing” actions.
RE: Ethics
and Social
Julie Hicks
Responsibility
10/18/2012 8:06:07 AM
Because companies are finding more and more ways to incorporate ethics and
business to increase their net income substantially. Being ethical is good
business! These rule have guided many businesses into success.
Leading by example: Show your employees and partners that you have
integrity.
Reward good employees for performing well and being honest.
Business decisions should not only impact your operating statement but your
community as well.
Incorporate a balance of work and family time for employees.
http://www.businessburrito.com/business-and-ethics.html
RE: Ethics
and Social
Jennifer Magana
Responsibility
10/17/2012 11:33:52 PM
I would recommend full disclosure to customers as soon as a problem arises
that could harm them in any way. It was absolutely irresponsible and
unethical for Toyota to mislead their customers and not tell them that the
pedal was defective when they first discovered it. I would handle the
potential ethics issues by apologizing to the public for putting them in danger
and offer some type of compensation for the mistake made by Toyota. A
company should care about ethics because it shows the customer that the
company cares about the public in general and will do the right thing in most
situations. I think it is important to have good ethics because it encourages
the customer to be able to trust the company. A customer will be most likely
to make repeat purchases and try new products from a trustworthy company.
The article below explains how Toyota's bad decision to lie to the public
about the pedal backfired and caused more issues for the company.
http://usatoday30.usatoday.com/money/autos/2010-01-21-toyota-recall-gaspedal_N.htm
RE: Ethics
and Social
Professor Forbes
Responsibility
10/21/2012 6:31:21 PM
All.....
So where is the downside? How many of the Wall Street people who
melted down our economy really were punished? Do we need a penalty to
hurt those who are unethical? What else can we do?
RE: Ethics
and Social
Indisha Mussington
Responsibility
10/17/2012 9:36:30 PM
If my CEO asked how to minimize the risk from something like this at our
company I would tell them that we would need to have a company
environment that focuses on honesty and transparency. I'm sure there was a
technician with the Toyota family that was aware of the gas pedal failure but
was afraid to speak up or spoke up and the issue was swept under the rug. In
a company, this can not happen because the results can cost lives. Therefore,
as a company I would recommend that we have internal forums where
associates can raise awareness to issues and then we have a committee that
addresses these concerns. As a company if you know of defects within your
products it is unethical and socially irresponsible to market the product and
not say a word. This can cause repetitional risk that as a company you can't
recover from. Therefore, if you address and acknowledge issues head-on then
as a company you are doing what is not only right for the company but right
for the consumers.
RE: Ethics
and Social
Anish Varghese
Responsibility
10/17/2012 4:30:31 PM
Ethics and business go hand-in-hand. Why? Because the better
you understand ethics, what constitutes a moral problem and
how to make ethical decisions, the more of a success your
business will be. This may not necessarily get translated
immediately into higher profits or a more efficient outcome,
but it will enhance your customers overall satisfaction and
make your business a better one.
RE: Ethics
and Social
Rebecca Aub
Responsibility
10/19/2012 10:17:51 PM
A focus on ethical and legal business practices is also part of how the consumer
views the brand. As previously discussed earlier in the course, the brand is an
actual tangible value. Along with providing socially responsible products,
contributing to the community, manufacturing products that don't hurt the
environment etc, these behavioral practices can actually be factored into the price
of some commodities. In cases where they cannot be, the overall image of the
company is one of a responsible and ethical one.
Many consumers would prefer products that they feel good about - good because
the product is healthy; good because the manufacturing process did not damage the
environment; good that the product was not cruelly treated ( chicken farm, force
fed geese etc ). I do feel that both companies and marketers have an obligation to
be socially responsible.
RE: Ethics
and Social
Connie Brooks
Responsibility
10/17/2012 6:48:16 PM
The employment of ethical business practices can enhance overall corporate
health in three important areas. The first area is productivity. The employees
of a corporation are stakeholders who are affected by management practices.
When management considers ethics in its actions toward stakeholders,
employees can be positively affected. A second area in which ethical
management practices can enhance corporate health is by positively affecting
"outside" stakeholders, such as suppliers and customers. A positive public
image can attract customers. The third area in which ethical management
practices can enhance corporate health is in minimizing regulation from
government agencies. Where companies are believed to be acting unethically,
the public is more likely to put pressure on legislators and other government
officials to regulate those businesses or to enforce existing regulations.
Toyota
Cary Mitchell
10/17/2012 10:24:53 AM
Toyota responsibilities is the consumer for no harm to come to the public.Toyota for
many years has had a reliable product. I think Toyota should have tested the
electronic pedals longer, They should have came straight out and said we made a
faulty pedal the public could have made that decision to buy the product or not. But
actually they did not want lose customer loyalty so blaming the rug was a no brainier.
Now they have lost some support and they look like they do not care about the safety
of their automobiles. With a new marketing approach I would suggest showing the
public how we test our vehicles for safety and how other customers are happy with the
product with this we show we are ethical and take on the responsibility of the past
and how we are moving forward. Over the next five years as a company they need to
reinvent the safety they stood for and limit the amount of recalls on cars and come up
with a customer centric detailing of customer care.
RE:
Toyota Semyya Cunningham
10/17/2012 4:17:04 PM
Cary, I agree with your synopsis of how Toyota dealt with their brake
issue. They should have just been honest and stated they were concerned
for general safety and I wouldn't have lost respect, I would have thought,
Wow, now there's a stand-up company that cares about its' reputation
and its customers.
Ethics and
Social
Responsibility
Professor Forbes
10/18/2012 7:53:53 AM
Let's keep this topic going on the CEO....
You all hit some great points!
So.......... should we have a written code of ethics? Just write it up- is that enough?
What is the role of upper management on what is published? How should employees
be plugged in?
RE: Ethics
and Social
Bweleka Kasonso
Responsibility
10/21/2012 6:00:09 PM
A code of ethics sets the standards on how people in a group such as a
business or association. It is a guideline on proper behavior, values and ethics
of the organization. Many people don’t take the time to study and understand
the code of ethics and thus find themselves behaving unethically. Many
aspects of the codes of ethics are rooted in the laws of the land so to disregard
them may lead one to inadvertently break the law.
RE: Ethics
and Social
Anish Varghese
Responsibility
10/21/2012 1:03:38 PM
Yes, every business should have a written code of ethics. And
no, just writing it up is not enough. The upper management
should be responsible to take the necessary steps for the
entire company to follow these guide lines. A Code of Conduct
defines the business’s values and principles, and summarizes
the most significant rules and policies that impact the
business’s culture. It can promote ethical behavior, reinforce
legal compliance, and enhance corporate reputation.
RE: Ethics
and Social
Connie Brooks
Responsibility
10/21/2012 3:51:48 PM
Not only does having a written code of ethics portray your company as being
positive and proactive, it also specifically tells customers and employees
which behavior are appropriate and accepted and which are not. Just as a
football game needs rules in order for people to understand who is winning
and losing, a business is the same - people need to understand the limits for
what is ethical and what is not.
RE: Ethics
and Social
Daveed Yisrael
Responsibility
10/18/2012 8:49:18 PM
In order to accomplish an overall acceptance to a written code of ethics, business managers
should understand the various sources of ethical standards. Positive law, or codified law,
establishes the standard for ethical behavior, but compliance with positive law is not always
ethical. The Federal Sentencing Commission determined that factors such as the following
items could help organizations with setting an ethical tone of the company. A code of ethics,
training for employees in the code and in ethics, a means for employees to report misconduct
anonymously, follow-up on reports employees make on misconduct, action by the board,
including follow-up and monitoring, on complaints and reports made by employees, selfreporting and investigation of legal and ethical issues, sanctions and terminations for those
within the company who violate the law and company rules, including officers, a highranking officer, with the ability to communicate with the CEO and board, who is responsible
for the code of ethics and ethics training in the company. The guidelines for company
practices are critical to setting an ethical culture in around an organization. Both employees
and firms should decide up front what types of conduct they would never engage in and be
certain that the rules are in writing, that everyone understands the rules, and that the rules will
be enforced uniformly. A strategic pyramid can help in understanding how to implement an
ethical culture. At the base of the pyramid are the facial trappings of ethics codes.
Jennings. Business: Its Legal, Ethical, and Global Environment, 8th Edition. South Western
Educational Publishing, 01/2008. <vbk:9781133614166#outline(2.11.3.1)>.
RE: Ethics
and Social
Jason Ho
Responsibility
10/18/2012 9:35:49 PM
I'm sure it will come as no surprise to learn that the code of ethics is an integral part of the
way we work every day and in every corner of the world. The code doesn't change the basic
nature of the business we undertake, but instead it articulates the way we strive to conduct
ourselves. It is clearly the responsibility of each and every person in a company to follow the
code and policies consistently and appropriately, and help others to do the same. A key part
of the code has been to ensure that all personnel understand and comply with the code.
RE: Ethics
and Social
Jennifer Magana
Responsibility
10/18/2012 11:16:03 PM
Yes, I do believe that it is a good idea to have a written code of ethics. I do
not think that it should end there, the code of ethics should be seen by
employees on a regular basis. The CEO and all other upper level
management should set an example for all employees by behaving ethical and
expressing the expectation for the employees to follow suit. The article
below explains that there should be three segments in a workplace code of
ethics. The code of ethics will outline the companies expectations in regards
to ethics in legal matters, morals and professional behavior.
http://smallbusiness.chron.com/code-ethics-work-place-2735.html
RE: Ethics
and Social
Latonya Hughes
Responsibility
10/20/2012 1:45:32 PM
Jennifer - I agree with you completely that a company should have a
code of ethics policy and that employees should be aware of it when
they are employed as well as on a regular basis. I believe companies
should consistently practice according to their ethics policy and make
sure that their employees are doing so as well. It is not a bad idea to
have the employees take a quarterly or yearly survey reminding them
of the ethics policy. I would have thought many companies learned
from the Enron situation. Whistle blowing I believe has changed a
lot of companies and the way they handle their financial records at
the least from the Sarbanes Oxley Law that was enacted in 2002
requiring audits of organizations financial records and businesses
relationships with different financial institutions. Companies should
have a code of ethics if nothing but to protect themselves.I think a
code of ethics is important to set the tone, culture, ethical
expectations, behavior, and environment. Code of Ethics usually
encourages the organization and its employees to work according to
the rules and policies of the organization morally.
RE: Ethics
and Social
Professor Forbes
Responsibility
10/21/2012 6:28:00
PM
Nice Sidebar- what do you do when you are in a company
with unethical practices? How does one balance the risks of
stepping up when it might compromise your position (or get
you dismissed). There were a few people on Wall street that
tried to step up to the real estate meltdown and blow the
whistle- sadly many were fired by their companies for
speaking up!
RE: Ethics
and Social
Connie Brooks
Responsibility
10/19/2012 6:36:56 AM
The Enron situation has caused all of us to look closely at business structures
and at the ethics of business. Consumers have high expectations for the
ethical standards and practices of financial institutions. A written code of
ethics sets the tone from the top of the company's culture. An effective Code
of Ethics establishes the ethical expectations for employees and management
alike, and sets forth the mechanisms for enforcement and consequences of
noncompliance. When the Code is perceived as an integral component of the
organization's culture, is understood, followed and enforced, it can provide
protection for the organization from the actions of a rogue employee under
the Federal Sentencing Guidelines.
RE: Ethics
and Social
Deiny Moretta
Responsibility
10/18/2012 11:53:59 AM
Managers in every industry must understand their company’s policies and guidelines, as well
as its mission, and how they are expected to go about accomplishing their goals. They also
need to know and follow the laws of the government, particularly as they pertain to business.
Mostly, effective managers must be honest about aspects such as production and profit at all
times. While being dishonest isn’t always a federal offense, it can result in numerous issues
for a company.
RE: Ethics
and Social
Indisha Mussington
Responsibility
10/18/2012 2:55:23 PM
Agreed. My current employer has a written code of ethics
document. In addition, every year each associate takes a web based
training course that goes over the company's code of ethics and
relevant government rules. The purpose is to make sure that every
employee from the top to the bottom knows that acting ethically is a
requirement for all employees not just a select few. The
responsibility of upper management is to lead from the front when it
comes to acting ethically. You can't say one thing and do another
because your associates learn from you. Therefore, the best
approach is to keep employees engaged and aware of possible actual
and implied ethics violations.
RE: Ethics
and Social
Kristin Muchowski
Responsibility
10/19/2012 8:54:33
AM
We have something similar at the company I work for, an
electronic ethics test that gets sent out probably once a
quarter (and yes, it never fails that a new employee thinks
they have done something wrong when they get their first
one :) I know personally when I recieve these you are
forced to watch a video and then answer questions after
each. They are very simple questions and really if you have
common sense you do not have to watch the video in order
to know the answer. These take approx. 30 minutes each,
and during a busy work day it is the last thing you want to
sit and do. I wish it was something that was more
meaningful, something that caught interest of the employee!
RE: Ethics
and Social
Julie Hicks
Responsibility
10/21/2012 10:55:54 PM
I totally agree, Deiny! All employees should be all to call and give
information to the ethics adviser to possibly incites an
investigation. The company should have a practices in place that
will allow all managers to want to be loyal and
honest. Loyalty comes from wanting the company to resolves it
issues as effectively and quickly and as possible.
RE: Ethics
and Social
Michael Soo
Responsibility
10/18/2012 11:54:06 AM
I think that's part of the problem with ethics. At no point will 100% of the
population be satisfied. A written code of ethics is a good guideline, but won't
cover all circumstances. As such, the role of upper management is simply to
minimize and put out the small fires that do happen. Additionally, upper
management would be wise to keep employees in tune with the ethical
position of the company. This just helps with presenting a unified front when
encountering the press or anyone outside the office.
Ethics and
Social
Responsibility
Professor Forbes
10/19/2012 6:42:17 AM
Nice......
A code of ethics is a start– this is clearly the first step so employees know
expectations-but also indoctrination of new employees and training people reinforcing
it continuously - walking the talk and standing by it and leading by example- senior
management must continually reinforce and live by this and also be measured and
judged by it- and add in the audits and reviews many of you pointed too- this is a big
formal piece.
People not only have to know what it is but how it effects there practices- what
constitutes good business practices- how does it get applied on a daily basis…Have I
missed anything?
Sadly I have been at companies that would publish one of these codes of ethics and
that was the end of it…To add to that the senior management team was only measured
and compensated on new sales…….See some issues there? Got a horror story of your
own?
RE: Ethics
and Social
Ira Hughes
Responsibility
10/20/2012 2:16:15 PM
Fortunately each company that exist will proudly show you their Code of Ethics Statements
much like they would be willing to show their Mission Statement. However, the problem is
this. Is senior management holding themselves accountable or just those that work under
them. Much like parenting where children are watching what their parents are doing,
employees pay attention to the actions of management. Although parents and shave the
power to punish and fire the true test will you hold yourselves to an even HIGHER
STANDARD. The really good ones do. The article below shows what happens when
management does not.
http://www.washingtonpost.com/wp-dyn/articles/A13173-2005Mar7.html
RE: Ethics
and Social
Ryan Phillips
Responsibility
10/20/2012 1:28:54 PM
I certainly understand this situation. I've worked for a skill
nursing facility before and they preached ethical behavior all
day long but unfortunately they did not practice what they
preached. One of the most memorable scenarios was during
the hiring process. Most managers would hire their own staff
which is not big deal but every employee should have a
background check run on them before working. Well this
particular company would allow workers on the floor without
the proper checks which is against policy. All of a sudden the
director would find out about it and make a big fuss but they
were the one that kept allowing their manager to fill this
positions knowing the proper checks and balances weren't
done.
RE: Ethics
and Social
Christine Moore
Responsibility
10/19/2012 10:37:37 AM
In my opinion good business practices are those that follow the code of ethics
by ALL employees, and senior management should set the example.
Following procedure with emphasis on good ethics and communication
would be ideal, in order to escape the possibility of being exposed. It has been
found that superior performance over time depended on flawless execution, a
company culture based on aiming high, a structure that is flexible responsive
and a strategy that is clear and focused. By ensuring a company stays close to
the code of ethics as possible on a daily basis would most likely result in
success, as long as it is applicable and reasonable. I feel that sometimes the
code of ethics does get lost. It is always something that is introduced when
you first start a job and then might fade into the distance. Constant visitation
of the goals, policies and procedures and holding employees accountable for
not maintaining these standards are crucial, if not you run the risk of losing
control. In regards to senior management not having to apply to the code of
ethics, I find this to be disturbing. I feel that in order for a company to be
successful you must practice what you preach. If you are asking your
employees to keep a standard, senior management should be the one's setting
the example. Anything less than that would have me question authority and
possibly even lose respect for the upper level management. I have had an
issue where management set rules and then never followed his own rules. Our
department got so out of control because many employees lost respect (if
there ever was any) and somewhat even rebelled, needless to say eventually
he was let go.
RE: Ethics
and Social
Deiny Moretta
Responsibility
10/19/2012 2:17:48 PM
Maintaining high ethical standards, particularly in a bottom-line driven
business, is challenging. However, keeping these standards is important to
help manage risks and to a company's reputation.
RE: Ethics
and Social
Cary Mitchell
Responsibility
10/19/2012 8:16:07 PM
I have story about ethics, Me and my wife bought a dryer from K-Mart and
when we got it home it look like it was hit by forklifts. They told me that I
could not get another dryer for the same price and that sears would not honor
it either. Will we called all over town, no other store had any. We ended up at
sears and talked to a manager and she honored the K-mart price. After the
first manager said they wouldn't we did not take her answer and had to search
the truth. So the ethics behind the other manager was that she did not want to
do her job by finding another dryer at sears she did want to take the time.
RE: Ethics
and Social
Julio Rhymer
Responsibility
10/20/2012 9:03:55 PM
Well previously i work in an organization where the code of ethics was
strictly enforced by management. But the irony was that the CEO never
followed the code of ethics. The CEO constantly violated many policies and
procedures that create many issues for the other executives that were charged
with enforcing policies. For example staff was expected to follow safety
regulation of the organization and many times these safety rules were violated
by the CEO on a daily basis.
RE: Ethics
and Social
Semyya Cunningham
Responsibility
10/20/2012 9:35:41 PM
Oh my Professor...do you have time for all of my horror stories
regarding organizations (healthcare companies) with senior execs that
behave as if the code of ethics only is a guideline for "others" and not
themselves? I believe I have seen and heard it all. Cover-ups...Whistleblowing...Nepotism...Sexual harassment...Hospitals go broke when
there's no code of ethics being followed. There has to be a culture of
ethical responsibility to the people being provided a service, to the
organization and to each other.
Ethics and
Social
Responsibility
Professor Forbes
10/20/2012 9:18:10 AM
All......
Great points- Companies can do many things to ensure their business practices are
"Above board” and need to evaluate whether they are truly practicing ethical and
social responsible marketing. Companies should ensure that they not only have a
written Code of Ethics, but that it is reviewed, employees are tested, and senior
management continually reinforces the message that "ethical behaviors and ethical
marketing is the standard!" Senior management must "walk the talk." Their continual
reinforcement of the message of "ethics" must be be heard. Employees should not
only be trained on what constitutes good ethical business practices, they should be
tested on their ability to apply the Code of Ethics to day-to-day scenarios that could
occur within their organization.
As a tool, some companies will employ not only their "Code of Ethics" to ensure that
all employees are aware of what constitutes appropriate ethical business practices,
they will also use an "ethical audit" within their marketing area to minimize the risk of
potentially questionable marketing practices...How does this help?
RE: Ethics
and Social
Cary Mitchell
Responsibility
10/20/2012 3:10:39 PM
This helps companies ensure that they will have returning customers and that
their managers know how to take care of the customer. Word of mouth travels
fast and companies want to put a stop to it, so they go out of their way to
make sure that the public is and their name is taken care of. Also by watching
how the employees do refunds and give change, businesses have a idea of
how the client was taken care of and by completing score cards this help
show how the public sees the company.
RE: Ethics
and Social
Rose Neal
Responsibility
10/20/2012 9:00:36 PM
Word of mouth can be a great marketing tool since many of our
customers will turn to social media to tell everyone they know their
experience; the good, the bad, and the ugly. We utilize customer
surveys to gauge how we are doing and where we need to
improve. We also use feedback from our social pages to review our
processes and make changes if necessary. Since social media is an
instant review of a performance it is important to learn from past
mistakes and to listen to your customers.
RE: Ethics
and Social
Drew Gallagher
Responsibility
10/21/2012 3:58:58
PM
Word of mouth can be also be a huge problem for
companies but it almost seems like in some industries are
protected from it. My example is in the airline
industry. I've been screwed over by Air Tran because I was
waiting for a connecting flight in the airport and my seat was
given away because I showed up at the gate 5 minutes
before the flight was leaving instead of the 10 minutes that it
said in tiny print on the back of ticket. I swore I would
never use them again and tell everyone I knew about the
injustice. However, everyone has their own horror stories
and other airlines they won't use because of unethical
practices. It almost seems like if everyone is doing it, then
everyone is immune to the effects of unethical
practices. The same could be said about financial firms
actions prior to our mortgage meltdown. If everyone is
unethical what's the difference then.
RE: Ethics
and Social
Michael Soo
Responsibility
10/21/2012 8:33:43
PM
I think that this word of mouth that is described
with the flights is similar to that of Apple and the
iPhones. With each iPhone, there has been some
sore of "issue" that has come up that people have
come up with. With the iPhone 4, it was the antenna
dropping calls, and with the iPhone 5, it's been the
issue of the Maps software. While I haven't
experienced any of these issues with my own
iPhones, I do have to think about this when
recommending my phone to other people. The true
responsibility falls on the person who is buying the
phone, or in a general sense, falls on the person who
is purchasing the product or service. I think it is
highly unfortunately that people will simply take
another person's word for what a product or service
is worth, rather than testing things out for
themselves.
Does anyone else feel the same way about this?
That words from other should be taken with a grain
of salt?
RE: Ethics
and Social
Rebecca Aub
Responsibility
10/20/2012 4:52:12 PM
Modified:10/20/2012 4:57 PM
An ethical audit - the practice of regular review comparing behavior with actual company
practices - is a great way to find out the depth of divide if any; to remind employees across
the board about the expected overall corporate behavior; and also to review current
expectations and improve upon them if necessary based upon the constantly changing
societal expectations and landscape.
The results of an audit should be invaluable to the differing departments within an
organization. From a marketing standpoint, if the position of a company is that they do not
use child labor, or products not responsibly harvested ( or only organically grown for
example ), the review of supplier behavior, sourcing and procurement during an audit should
reveal this. If it does not, then the decision to be made it to either change the suppliers or
convince them to comply.The decision must be made regarding how wide the audit is to be.
Whether to include suppliers, third parties, vendors etc. The results of the audit can be used
as a marketing tool to re-iterate the fact that the company stands firmly behind their promises
and commitment to their customer.
RE: Ethics
and Social
Jennifer Magana
Responsibility
10/20/2012 5:40:53 PM
The ethical audit can be helpful because it can help to identify any need for
change to the current "Code of Ethics." It will help the marketers identify any
ethical problems before a detrimental event takes place. The article below
explains that ethical audits are very different from other types of audits
because they are dealing with something that is qualitative versus something
quantitative. In order to have a successful ethical audit, multiple perspectives
on ethical issues must be researched.
http://smallbusiness.chron.com/conduct-ethical-audit-16101.html
RE: Ethics
and Social
Indisha Mussington
Responsibility
10/21/2012 6:38:20 PM
I enjoyed the 3 step process outlined in your link Jennifer. However,
in step 2 it mentioned instances where the company may try to hide
information or not mention specific events to the auditors and these
may trigger red flags. When I read that section I immediately
thought about Enron. There were many red flags uncovered in their
audits that were over looked. Therefore, I think that an ethical audit
needs to have more than one external auditor because what may
trigger a red flag for one may not trigger a red flag for another. This
will hopefull ensure that companies are in compliance with company
and government ethical standards.
RE: Ethics
and Social
Anish Varghese
Responsibility
10/20/2012 5:55:51 PM
Modified:10/20/2012 5:59 PM
"Marketing ethics is the systematic study of how moral standards are applied
to marketing decisions, behaviors, and institutions." Because marketing is a
process inbuilt to most organizations, marketing ethics should be viewed as a
subset of business ethics and much of what is written about business ethics
applies to marketing ethics as well. One tool for doing this is the usage of a
periodic marketing ethics audit to systematically check business compliance
with ethics policies and procedures. When ethical violations
occur, appropriate punishment must be given out. Similarly, when
organizational managers perform in an ethically correct fashion, appropriate
rewards also should be provided. This step testifies to do something beyond
financial results leading to recognition in the organization.
http://ethicalbusiness.nd.edu/pdf/Marketing_Ethics_Millennium.pdf
RE: Ethics
and Social
Kristin Muchowski
Responsibility
10/21/2012 7:50:59 AM
I found a great article that helps explain ethical auditing a little further
(https://umdrive.memphis.edu/jturner1/www/ACCT7241/Articles/Ethics2.pdf)
Basically I think these are used to make sure that a company is heading down
the correct path. If you take precaution within your company ona regular
basis, to fix problems before they happen, this will allow you to focus on the
business instead of other things that could have been prevented in the first
place.
RE: Ethics
and Social
Semyya Cunningham
Responsibility
10/21/2012 12:27:34 PM
An ethical audit helps to expose departments and individuals who may
be considered a "weak link" when it comes to implementing the Code of
Ethics. I liken it to when the Joint Commission pays our hospital a visit
for a survey. The organization has already gone above and beyond to at
least ensure we all have the appropriate verbiage; even, if we're not
really consistently walking the walk every day. If a JC surveyor
approaches your dept and anyone doesn't have the right responses; the
organization is fined and it can be pinpointed to the dept. and the
individual who caused the fine. Needless to say, no employee or manager
wants this to happen to them. We never know exactly when the JC is
going to show up. They usually do in the middle of the night, and we have
to let them in. We usually have a few weeks heads-up, and this is when
we start aggressively cleaning house for our expected inspection and
practicing prepared responses. Managers will go around and do what
they call "mock surveys" or an ethical audit to make sure everyone
knows the answers prior to a situation where the information is really
needed.
RE: Ethics
and Social
Andreana Collins
Responsibility
10/21/2012 5:07:42 PM
A code of ethics serves as a company's guidelines for the ethical behavior of
its employees. They detail the way how business practices should be
conducted at all times. But because we do not live in a perfect world, a code
of ethics is not always observed. This oversight is why an ethical audit needs
to occur. Ethical audits will make sure that all representatives within a
company are following the procedures outlined in the code of ethics. Also,
the difference between ethical and unethical is not always black and
white. There are many times when a behavior seen as ethical to some will be
considered unethical to others. An ethical audit will clear up any confusion
on whether a line has been crossed within a company's stated code of
conduct.
RE: Ethics
and Social
Ryan Phillips
Responsibility
10/21/2012 5:46:58 PM
Well implementing ethical audits simply keeps companies in
compliance. Take for instance the organization I work for. Currently I work
for a rehab/nursing facility in which we house employee mostly nurses and
nurse aides. Each employee has to take a minimum of 12 required hours of
ethics training. We actually have state auditors come in and review our
training logs to make sure our staff has taken the required courses in order to
keep their license but also to keep our doors open for business. This is
certainly a good practice for companies who look to be compliant.
RE: Ethics
and Social
Christine Moore
Responsibility
10/21/2012 6:42:21 PM
An ethical audit is a neutral third party verifiable process used to help
understand, measure and improve an organizations social and environmental
performance. Many organizations suffer from ethical problems so sometimes
an ethics audit needs to be done. An ethical audit helps an organization to be
better informed about where its operations may contain ethical vulnerabilities.
The audit is part of an assurance process based on an organization's
assessment of risk. This provides feedback on how well the organization is
performing.
http://www.conductbecoming.com/ethical_auditing.htm
Ethics and
Social
Responsibility
Andreana Collins
10/21/2012 4:58:01 PM
Everyone has heard about the issues Toyota has had with its cars. Starting in 2009,
Toyota owners began reporting complaints about the accelerator pedals in their cars
malfunctioning. Some of these malfunctions even led to deaths. I think Toyota, and
any other company, has a social responsibility to accept blame when problems such as
this arise. When Toyota initially passed the equipment failures off as driver side
carpeting interfering with the gas pedal, it made them look untrustworthy. And when
you purchase a large item like a car you want to do so from a trustworthy company,
no? Toyota’s handling of the recall did something that a lot of companies don’t
recover from; it damaged their reputation. If Toyota would have been truthful from
the beginning people would have still been upset, but at least they would know their
car manufacturer owns up to its mistakes. I would suggest that Toyota launch a full
blown image repair campaign. They should feature real-life Toyota owners who are
fully satisfied and protected when driving their vehicle. This type of every day appeal
hits home with consumers. No fancy voice-over laden commercials, just simple
satisfied user testimonials that will help rebuild people’s confidence in Toyota. I
found a website that has a list of press releases from Toyota organized by date. If you
follow the timeline, you can clearly see where they tried to cover up the equipment
failure, only to eventually accept responsibility later when pressed.
Here's the website: Sticking Accelerator Pedal Recall
Ethics and
Social
Responsibility
Professor Forbes
10/21/2012 6:27:09 PM
Ethics and Marketing is in!
This is a great thread as we touch not just the reasons why it pays to be an ethical marketer
but how companies can go about creating an ethical environment. Make note of the process
of establishing and enforcing a code of ethics- Thanks for all the hard work here!