Class Notes (837,484)
Canada (510,274)
Philosophy (737)
PHIL 2600 (22)
Lecture 8

Lecture 8- Chapter 8

5 Pages
100 Views
Unlock Document

Department
Philosophy
Course
PHIL 2600
Professor
Aaron Massecar
Semester
Fall

Description
Lecture 8: Consumers and Business Ethics Consumers as Stakeholders (I)  Commonplace argument that businesses are best served by treaitng their customers well  So why continued ethical abuses of consumers and poor reputation of marketing and sales professions? ◦ Examples of organizations accused of treating customers in a questionnable manner: ▪ Multinational drug companies ▪ Fast foot and soft drink companies ▪ Banks and credit card companies ▪ Mobile phone companies ▪ Technology schools Consumers as Stkeholders (II)  Consumer Rights can be seen as: ◦ Inalienable entitlements to fair treatment when entering into exchnages with sellers. They rest upon the assumption that consumer dignity should be respeced and that sellers have a duty to treat consumers as ends in themselves, and not only as means to the end of the seller ▪ Debate over what constitutes fair treatment ▪ In the past, consumer rights based on caveatem ptor. But caveat emtpor eroded by changing expectations and consumer laws Ethical Issues in Marketing Management – Product Policy  At the most basic level, consumers have a right to products and servcies which are safe, efficacious, and fit for the purpose for which they are intended  Manufacturers ought to exercise due care in establishing that all reasonable steps are taken to ensure that their products are free from defects and safe to use  Consumers right to a safe product is not an unlimited right  Safety also a function of the consumer and their actions and precautions Ethical Issues in Marketing Management – Marketing Communications (I)  Criticisms of advertising broken down into two levels  Individual ◦ Concerned with misleading or decreptive practices that seek to create false beliefs about specific products or companies in the individuals consumers mind  Social ◦ Concerned with the aggregate social and cultural impacts such as promoting materialism Ethical Issues In Marketing Management – Marketing Communications (II)  Misleading and decreptive practices ◦ Marketing communications aimed to: ▪ Inform consumers about goods and services ▪ Persuade consumers to purchase ◦ Deception occurs when a marketing communication either creates, or takes advantage of a false belief that substantiallu interferes with the ability of people to make rational consumers choices ◦ The UK'sAdvertising Standards Authority says ads should be “legal, decent, honest and truthful” Ethical Issues In Marketing Management – Marketing Communications (III) Social and Cultural impact on society  Objections that marketing communications: ◦ Are intrusive and unavoidable ◦ Create artificial wants ◦ Reinforce consumerism and materialism ◦ Create insecurity and perpetual disssatisfaction ◦ Perpetuate social stereotypes  Such criticisms have been common for at least the last 30 years Ethical Issues In Marketing Management – Pricing  Pricing issues are central to the notion of a fair exchange between the two parties, and the right to a fair price – key rights of consumers as stakeholders  Four types of pricing practices where ethical problems may arise: ◦ Excessive pricing ◦ Price Fixing ◦ Predatory pricing ◦ Deceptive pricing Ethical Issues in Marketing Management – Distribution  Concerned with relations between manufacturers and firms, and firms and market  Primary concern is product supply chain ◦ Example: Retailers demanding “slotting fees” free manufacturers in order to stock their product Ethical Issues in Marketing Strategy – Vulnerable Customers  Criticisms when there is a perceived violation of the consumers right to be treated fairly (duty of care): ◦ Targeting vulnerable consumers ◦ Consumers may be vulnerable because: ▪ Lack sufficient education or information ▪ Easily confused or manipulated due to old age and senility ▪ Are in exceptional physical or emotional need ▪ Lack the necessary income ▪ Too young ◦ Perceived harmfulness of the product ▪ Examples: Cigarettes and alcohol ▪ Here, the focus shifts from rights duties to consequences Ethical Issues in Marketing Strategy – Customer Exclusion  Takes variety of forms: ◦ Access exclusion ◦ Condition exclusion ◦ Price exclusion
More Less

Related notes for PHIL 2600

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit