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2011.2.03 Marketing

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2011.2.03 Marketing

  1. 1. Lamb, Hair, McDaniel CHAPTER 3 Ethics and Social Responsibility 2010-2011
  2. 2. LO 1 Explain the concept of ethical behavior LO 2 Describe ethical behavior in business LO 3 Discuss corporate social responsibility Learning Outcomes
  3. 3. The Concept of Ethical Behavior Explain the concept of ethical behavior LO 1
  4. 4. Ethical Behavior <ul><li>Unwritten rules governing interactions </li></ul><ul><ul><ul><li>sharing resources </li></ul></ul></ul><ul><ul><ul><li>honoring contracts </li></ul></ul></ul><ul><ul><ul><li>waiting in line </li></ul></ul></ul>LO 1
  5. 5. Ethical Behavior in Business Describe ethical behavior in business LO 2
  6. 6. Ethical Behavior in Business Morals involve “good” and “bad” as well as “deviant” behaviors LO 2 Ethics Morals The moral principles or values that generally govern the conduct of an individual. The rules people develop as a result of cultural values and norms.
  7. 7. Ethical Development Levels LO 2 Preconventional Morality Conventional Morality Postconventional Morality More Mature More Childlike <ul><li>Based on what will be punished or rewarded </li></ul><ul><li>Self-centered, calculating, selfish </li></ul><ul><li>Moves toward the expectations of society </li></ul><ul><li>Concerned over legality and the opinion of others </li></ul><ul><li>Concern about how they judge themselves </li></ul><ul><li>Concern if it is right in the long run </li></ul>
  8. 8. Ethical Decision Making Influential Factors LO 2 Extent of Problems Top Management Actions Potential Consequences Social Consensus Probability of Harm Time Until Consequences Number Affected
  9. 9. Creating Ethical Guidelines <ul><li>Helps identify acceptable business practices </li></ul><ul><li>Helps control behavior internally </li></ul><ul><li>Avoids confusion in decision making </li></ul><ul><li>Facilitates discussion about right and wrong </li></ul>LO 2
  10. 10. Ethical Guidelines and Training Exhibit 3.3 LO 2
  11. 11. Corporate Social Responsibility Discuss corporate social responsibility LO 3
  12. 12. Sustainability <ul><li>Socially responsible companies will outperform their peers </li></ul><ul><li>It is in business’s best interest to find ways to attack society’s ills </li></ul>LO 3
  13. 13. Discuss Corporate Social Responsibility LO 3 Ethical Do what is right. Legal Obey the Law. Economic Be profitable. Philanthropic Be a good citizen.
  14. 14. Arguments Against Social Responsibility <ul><li>Businesses should focus on making a profit and leave social and environmental concerns to nonprofits </li></ul><ul><li>Businesses don’t have the expertise to deal with social issues and doing so may interfere with the primary goals of their firms </li></ul><ul><li>The expense of social responsibility may damage the country in the global marketplace </li></ul>LO 3
  15. 15. Arguments for Social Responsibility <ul><li>The right thing to do </li></ul><ul><li>Business should police itself to avoid government intervention </li></ul><ul><li>Small companies can prosper and build shareholder value as they tackle social problems </li></ul>LO 3
  16. 16. Cost of Ignoring Social Responsibilities <ul><li>Treating key stakeholders poorly can cost companies significant fines and loss of respect </li></ul>LO 3
  17. 17. Green Marketing <ul><li>More prevalent with increase in environmental awareness </li></ul><ul><ul><li>Environmentally aware customers pay more for products </li></ul></ul><ul><ul><li>Companies must to educate customers of environmental benefits </li></ul></ul>LO 3
  18. 18. Environmentally Aware Advertising <ul><li>The Blog Oddee has gathered some of this year’s most creative environmentally aware campaigns: www.oddee.com </li></ul><ul><li>Denver Water Authority’s campaign gets the conservation word out in creative ways: </li></ul><ul><li>http://www.useonlywhatyouneed.org/Bandwagon/CampaignTrain/ </li></ul>LO 3

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