chapt

er

four
marketing
ethics

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Marketing Ethics
LO 4-1 Identify the ethical values marketers
should embrace.
LO 4-2 Distinguish between ethics and social
responsibility.
LO 4-3 Identify the four steps in ethical decision
making.
LO 4-4 Describe how ethics can be integrated
into a firms marketing strategy.
LO 4-5 Describe the ways in which corporate
social responsibility programs help various
stakeholders.
4-2

Firm Goals

Greed and short

term profit
seeking

Serious long
term
consequences
Javier Pierini/Getty Images

Creating value
over the long
run

Long term
success

4-3

The Scope of Marketing Ethics

Business Ethics

Marketing Ethics

Miller TV Commercial
from Slang Music Group
4-4

Creating an Ethical Climate

in the Workplace
Values
Establish
Share
Understand

Rules
Management
commitment
Employee dedication

Controls

Stockbyte/Getty Images

Reward
Punishment
4-5

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
4-6

The Influence of Personal Ethics

Photo Disc/Getty Images

Genetics

Digital Vision Ltd.

Family

Corbis/Jupiter images
Royalty-Free/CORBIS

Religion

Getty Images

Values
4-7

Why People Act Unethically

What makes people take

actions that create so
much harm?

Are all the individuals who

engage in questionable
behavior just plain immoral
or unethical?

Decisions often have conflicting outcomes, where both

options have positive and negative consequences

4-8

Competing Outcomes
Dangerous flaw
in new model
Delay
production

Continue
production

Delayed
revenue

Potential
injury to
consumers

Possible
layoffs

Loss of
revenue

Digital Vision/Getty Images

Loss of
bonuses

4-9

Socially Responsible

Socially Irresponsible

Ethical

Both ethical and

socially
responsible

Ethical firm not

involved
with the larger
community

Unethical

The Link Between Ethics and

Corporate Social Responsibility

Questionable firm
practices, yet
donates a
lot to the
community

Neither ethical nor

socially responsible

4-10

A Framework for
Ethical Decision Making

Step 1
Identify
Issues

Step 2
Gather
information
and identify
stakeholder
s

Step 3
Brainstorm
and
evaluate
alternatives

Step 4
Choose a
course of
action

4-11

Step One: Identify Issues

Using
results to
mislead or
even harm
the public

Marketin
g
research
firm
issues
Hiding the
real
purpose of
the study

Data
collection
methods

4-12

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

4-13

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
Ryan McVay/Getty Images

4-14

Step Four: Choose a Course of

Action
Weigh the alternatives
Take a course of action

Digital Vision/Getty Images

4-15

check yourself

1.Identify the stages in the ethical

decision-making framework.

4-16

Integrating Ethics Into

Marketing Strategy

4-17

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

4-18

Implementation Phase

Should the firm be relocating

production to another country?

Should the firm be targeting

this market with this product?

Should the firm be

selling its product in
this market in this
manner?

4-19

Control Phase

1. Check successful
1. Check successful
implementation
implementation
2. React to change
2. React to change

Barbara Penoyar/Getty Images

4-20

check yourself

1.What ethical questions should a

marketing manager consider at each
stage of the marketing plan?

4-21

Corporate Social Responsibility

Employees
Their families

Partners
Competitors

Current
customers
Potential
customers

Employees

Customers

Marketplace

Society

Community
Environment

4-22

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.

4-23