Marketing- Chapter 3
Ethical Issues Associated with Marketing Decisions :Unlike other business functions such
as finance or accounting, people in marketing interact directly with the public. Marketing and sales
professionals often rank poorly in ratings of the most trusted professionals. More than 2/3 of Canadians
pay attention to issues related to corporate ethics and social responsibility and that 2/4 of Canadian
firms are actively engaged in key CSR activities.
Creating an Ethical Climate in the Workplace: The process of creating strong ethical climate
within a firm includes having a set of values that guide decision making and behaviour.
o Everyone within the firm must share the same understanding of these values and how
they translate into the business activities of the firm
o Must develop set of explicit rules and implicit understandings that govern all
o Top management must commit to establishing ethical climate.
o Marketers abide by a code developed by Canadian Marketing Association (CMA)-
specific values which marketers should aspire towards.
Influence of Personal Ethics: Every individual is a product of his or her own culture, upbringing,
genes and various other influences. All of us vary in the way we view various situations,
depending on our own level of understanding of ethical dilemmas.
o In many cases people must choose between conflicting outcomes.
o The roots of ethical conflict often are the competing value of individuals
o Managers are often faced with the dilemma between doing what is beneficial for them
and possibly the firm in the short run, and doing what is right and beneficial for the firm
and society in the long-run
o To avoid these ethical consequences, the long-term goals of the firm must be aligned
with the short-term goals of each individual within the firm. (Ie compensation packages
that don’t pose possibility for conflict)
Link between Ethics and Corporate Social Responsibility: CSR describes the voluntary
actions taken by a company to address the ethical, social, and environmental impacts of it’s
business operations and the concerns of it’s stakeholders.
o Companies employees must also maintain high ethical standards and recognize how
their individual decisions lead to collective actions of the firm
Socially responsible Socially Irresponsible
Ethical Both Ethical and Socially Responsible: Firms Ethical Firm not involved with the larger
implement programs that are socially community: employees conduct
responsible and employees act in an ethically themselves in an ethical manner but not
responsible manner considered socially responsible because
they have little or no impact on anyone
Unethical Questionable Firm Practices , yet donates al otNeither Ethical or Responsible:
to community: perceived as socially Employees do not act ethically and the
responsible because it makes generous company takes no steps to be socially
donations but is simultaneously involved in responsible.
questionable sales practices . o Consumers and investors increasingly appear to want to purchase products and services
from and invest in socially responsible companies.
o Companies receive both tangible and intangible reward for acting socially responsible it
is thus just good business practice to do so.
A Framework for Ethical Decision Making: By using an ethical Framework, decision makers
will include the relevant ethical issues, evaluate the alternatives, and choose a course of action that will
help them avoid serious ethical lapses.
Step 1- Identify Issues: The first step