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2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CHAPTER
Marketing
Ethics
4
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2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
L EARNI NG OBJ ECT I VES
Identify the ethical values marketers should
embrace.
Distinguish between ethics and social
responsibility.
Identify the four steps in ethical decision making.
Describe how ethics can be integrated into a
firms marketing strategy.
Describe the ways in which corporate social
responsibility programs help various
stakeholders.
Marketing Ethics
LO1
LO2
LO3
LO4
LO5
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Firm Goals
Greed and short
term profit seeking
Serious long term
consequences
Creating value
over the long run
Long term
success
Javier Pierini/Getty Images
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The Scope of Marketing Ethics
Business Ethics Marketing Ethics
Miller Commercial
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Attitudes About the
Ethical Standards of Various Professions
Why do you feel
marketers
(advertising
practitioners &
salespeople) rank so
low on this scale?
What can marketers
do to improve their
ranking?
Jeffrey M. Jones, Nurses Top Honesty and Ethics List for 11th Year, Gallup, November 1921, 2010, http://www.gallup.com/poll-145043/nurses-top-honesty-ethicslist-11-year.aspx
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Creating an Ethical Climate
in the Workplace
Values
Establish
Share
Understand
Rules
Management commitment
Employee dedication
Controls
Reward
Punishment
Stockbyte/Getty Images
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2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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
4-8
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The Influence of Personal Ethics


Genetics Family
Religion Values
Corbis/Jupiter images
Photo Disc/Getty Images Digital Vision Ltd.
Royalty-Free/CORBIS Getty Images
4-9
2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The Link Between Ethics and
Corporate Social Responsibility
Socially Responsible Socially Irresponsible
E
t
h
i
c
a
l

U
n
e
t
h
i
c
a
l

Both ethical and
socially
responsible
Neither ethical nor
socially responsible
Questionable firm
practices, yet donates a
lot to the community
Ethical firm not involved
with the larger
community
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2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
A Framework for
Ethical Decision Making
Step 1
Identify
Issues
Step 2
Gather
information
and identify
stakeholders
Step 3
Brainstorm
and evaluate
alternatives
Step 4
Choose a
course of
action
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2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Step One: Identify Issues
Marketing
research
firm issues
Using
results to
mislead or
even harm
the public
Data
collection
methods
Hiding the
real
purpose of
the study
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Step Three: Brainstorm
and Evaluate Alternatives
Halt the market
research project?
Make responses
anonymous?
Instituting training on
the AMA Code of
Ethics for all
researchers

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2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Step Four: Choose a Course of Action
Weigh the alternatives
Take a course of action
Digital Vision/Getty Images
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CHECK YOURSELF
1. Identify the stages in the ethical decision-
making framework.
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Integrating Ethics Into
Marketing Strategy
Planning Phase
Implementation Phase
Control Phase
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Planning Phase
The mission or vision
statement sets the
overall ethical tone for
planning.
Mission statements
can be used as a
means to guide a
firms SWOT analysis.
M Hruby
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Newmans Own
Donating over $200 million since 1982
Newmans Own, Inc.
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Implementation Phase
Should the firm be targeting
this market with this product?
Should the firm be selling
its product in this market
in this manner?
Should the firm be relocating
production to another country?
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Control Phase
1. Check
successful
implementation
2. React to change
Barbara Penoyar/Getty Images
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CHECK YOURSELF
1. What ethical questions should a marketing
manager consider at each stage of the
marketing plan?
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Corporate Social Responsibility
Employees
Their families
Employees
Current
customers
Potential
customers
Customers
Community
Environment
Society
Partners
Competitors
Marketplace
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CHECK YOURSELF
1. How has corporate social responsibility
evolved since the turn of the twenty-first
century?
2. Provide examples of each of the
stakeholders that firms should consider in
their corporate social responsibility efforts.