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Lecture

Marketing- Ch 3.docx

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Department
Business
Course
BU352
Professor
Shelley Mc Gill
Semester
Fall

Description
Chapter 3: Ethics and Socially Responsible Marketing - When customers can’t trust a company or believe that it is not acting responsibly, it will not support it by buying its products or investing in stocks Business Ethics: Refers to a branch of ethical study that examines ethical rules and principles within a commercial context, the various moral or ethical problems that might arise in a business setting, and any special duties or obligations that apply to persons engaged in commerce Marketing Ethics: Refers to those ethical problems that are specific to the domain of marketing - Issues: societal (products that damage environment), global (sweatshops), individual (deceptive advertising, marketing dangerous products) Ethical Issues Associated with Marketing Decisions - Many people do not trust marketing, but marketing has many opportunities to interact with outsiders so people can see if acting ethically - Want to act ethically as marketing is about building trust Creating an Ethical Climate in the Workplace Ethical Climate: The set of values within a marketing firm, or in the marketing division of any firm, that guides decision making and behaviour - Want a strong ethical climate and strong set of values - Everyone must understand these values and how they translate into business activities - To make ethical climate: o Everyone must understand values o Firm must develop set of explicit rules and implicit understandings that govern all the firm’s transactions o Top management must commit to establishing ethical culture o Employees must be dedicated, avoid competing personal unethical values o System of Controls:  Rewards for appropriate behaviour  Punishments for bad behaviour - Have code of ethics that the profession agrees to follow - Generally accepted code in marketing by the Canadian Marketing Association for ethics Personal Ethics Influencing the Ethical Climate - Every individual has their own needs and desires which may lead them to behave unethically Why People Act Unethically - Every individual is affected by their: o Culture, upbringing, genes, other various influences - We all have a different understanding of ethics, which is why we view situations differently - People must choose between 2 conflicting outcomes - Marketing managers dilemma is usually: o Between doing what is beneficial for them and the firm in the short run and what is right and beneficial for the firm and society in the long run - To avoid ethical consequences: o Long term goals of the firm must be aligned with the short term goals of each individual in the firm o Align personal and corporate goals o Strong ethical climate o Explicit rules about transactions o Code of ethics o Rewarding and punishing behaviour Ethics and Corporate Social Responsibility - Ethics and social responsibility are different, but ethical firms tend to be more responsible Corporate Social Responsibility: Refers to the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders - For a company to act socially responsible: o Employees must have high ethical standards o Employees realize individual decisions are collective decisions for the firm o Tend to have a Stronger ethical climate o Implement socially responsible programs Ethics vs. Social Responsibility Socially Responsible Socially Irresponsible Ethical Both ethical and socially Ethical firm but not involved responsible with the larger community Unethical Questionable Firm practices, Neither ethical nor socially yet donates a lot to the responsible community Ex. Suzy Shier is viewed as a socially responsible company but was fined for questionable business practices for meeting sale and regular requirements - Consumers and investors want to give to firms that act socially responsible and ethically - Companies get both tangible and intangible benefits from behaving socially responsible - - Ex of good corporate citizen: Tim Hortons, Day Camp - Being socially responsible does not mean ethical - Being socially responsible means that firm is committing time and resources to projects in the community Framework for Ethical Decision Making (4 steps) 1. Identify Issues 2. Gather Information and Identify Stakeholders - Gathering fac
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