Ethics and the Marketing Environment
Corporate Social
Responsibility (CSR)
 Sustainability
 Must have a healthy society to sustain business.
 Pyramid of CSR
 Economic

Be profitable. Must survive.
 Legal

Obey the law.
 Ethical


Do what is right, just and fair.
Avoid harm.
 Philanthropic


Good corporate citizen.
Contribute resources to community.
3.18
10
Corporate Social Responsibility
http://www.equalexchange.com
http://www.crest.com
Philanthropic
Be a good citizen.
Ethical
Do what is right.
Legal
Obey the Law.
Economic
Be profitable.
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Chapter 3 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
Marketing Ethics I
 Definition ???
3.15
Marketing Ethics II
 Definition
 Moral principles or values that generally govern the
conduct of an individual or group.
 The standard of behavior by which conduct is
judged.
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Marketing Ethics III
 Morals
 Rules that people develop as a result of cultural
values and norms.
 A foundation of ethical behavior.
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Marketing Ethics IV
 Developing a personal set of ethics
 Consequence based



Who is helped/hurt?
How long will consequences last?
Greatest good for greatest number of people.
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Marketing Ethics V
 Developing a personal set of ethics
 Rules based




Customs
Laws
Professional standards
Common sense
 Do unto others…
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Marketing Ethics VI
 Developing a personal set of ethics
 Moral character development



Pre-conventional Morality: Will I be punished or
rewarded? (Most primitive.)
Conventional Morality: How does society view my
behavior?
Post-conventional Morality: Regardless of what others
think, what is right and wrong?
3.15
Braylon Edwards & The NY Jets
Should He Play?
Marketing Ethics VII
 Why worry about ethics?
 Difficulties with ethics
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Ethical Guidelines
 Code of Ethics
 More than “Stay out of jail.”
 Can set standard, control behavior and decisions,
minimize confusion.
 Must train employees.
 Must live up to code.

Enron had a 65 page code of ethics.
3.16
What’s the Difference
Joe Camel
Fuel vs. Food
 Biofuel raises global dilemmas.doc
NESTLÉ Powdered Milk
Nike Sweatshops
Enron Scandal
Martha Stewart
The Ford Pinto
Firestone Tires and Ford
BP and The Gulf Coast
The Jungle