This document outlines a chapter on marketing ethics. It discusses identifying ethical values for marketers, distinguishing ethics from social responsibility, and identifying the four steps in ethical decision making. It also describes how ethics can be integrated into a firm's marketing strategy and how corporate social responsibility programs help stakeholders. Learning objectives are listed for identifying key concepts around marketing ethics.

1. 4-1
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CHAPTER
Marketing
Ethics
4
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

2. 4-2
L E A R N I N G O B J E C T I V E S
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Identify the ethical values marketers should
embrace.
Distinguish between ethics and social
responsibility.
Identify the four steps in ethical decision making.
Describe how ethics can be integrated into a
firm’s marketing strategy.
Describe the ways in which corporate social
responsibility programs help various
stakeholders.
Marketing Ethics
LO1
LO2
LO3
LO4
LO5

3. 4-3
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Firm Goals
Greed and short
term profit seeking
Serious long term
consequences
Creating value
over the long run
Long term
success
Javier Pierini/Getty Images

4. 4-4
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The Scope of Marketing Ethics
Business Ethics Marketing Ethics
Miller Commercial

5. 4-5
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Attitudes About the
Ethical Standards of Various Professions
 Why do you feel
marketers
(advertising
practitioners &
salespeople) rank so
low on this scale?
 What can marketers
do to improve their
ranking?
Jeffrey M. Jones, “Nurses Top Honesty and Ethics List for 11th Year,” Gallup, November 19–21, 2010, http://www.gallup.com/poll-145043/nurses-top-honesty-ethicslist-11-year.aspx

6. 4-6
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Creating an Ethical Climate
in the Workplace
Values
• Establish
• Share
• Understand
Rules
• Management commitment
• Employee dedication
Controls
• Reward
• Punishment
Stockbyte/Getty Images

7. 4-7
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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

8. 4-8
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The Influence of Personal Ethics
Genetics Family
Religion Values
Corbis/Jupiter images
Photo Disc/Getty Images ©Digital Vision Ltd.
©Royalty-Free/CORBIS Getty Images

9. 4-9
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Why People Act Unethically
Are all the individuals who
engage in questionable
behavior just plain immoral or
unethical?
What makes people take
actions that create so much
harm?
Decisions often have conflicting outcomes, where both options
have positive and negative consequences

10. 4-10
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Competing Outcomes
Dangerous flaw in
new model
Delay
production
Delayed
revenue
Possible
layoffs
Loss of
bonuses
Continue
production
Potential
injury to
consumers
Loss of
revenue
Digital Vision/Getty Images

11. 4-11
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
The Link Between Ethics and
Corporate Social Responsibility
Socially Responsible Socially Irresponsible
EthicalUnethical
Both ethical and
socially
responsible
Neither ethical nor
socially responsible
Questionable firm
practices, yet donates a
lot to the community
Ethical firm not involved
with the larger
community

12. 4-12
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
A Framework for
Ethical Decision Making
Step 1
• Identify
Issues
Step 2
• Gather
information
and identify
stakeholders
Step 3
• Brainstorm
and evaluate
alternatives
Step 4
• Choose a
course of
action

13. 4-13
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Step One: Identify Issues
Marketing
research
firm issues
Using
results to
mislead or
even harm
the public
Data
collection
methods
Hiding the
real
purpose of
the study

14. 4-14
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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

15. 4-15
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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

16. 4-16
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Step Four: Choose a Course of Action
Weigh the alternatives
Take a course of action
Digital Vision/Getty Images

17. 4-17
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CHECK YOURSELF
1. Identify the stages in the ethical decision-
making framework.

18. 4-18
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Integrating Ethics Into
Marketing Strategy
Planning Phase
Implementation Phase
Control Phase

19. 4-19
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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
firm’s SWOT analysis.
©M Hruby

20. 4-20
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Newman’s Own
Donating over $200 million since 1982
©Newman’s Own, Inc.

21. 4-21
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Implementation Phase
Should the firm be targeting
this market with this product?
Should the firm be selling
its product in this market
in this manner?
Should the firm be relocating
production to another country?

22. 4-22
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Control Phase
1. Check
successful
implementation
2. React to change
Barbara Penoyar/Getty Images

23. 4-23
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CHECK YOURSELF
1. What ethical questions should a marketing
manager consider at each stage of the
marketing plan?

24. 4-24
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Corporate Social Responsibility
• Employees
• Their families
Employees
• Current
customers
• Potential
customers
Customers
• Community
• Environment
Society
• Partners
• Competitors
Marketplace

25. 4-25
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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.

26. 4-26
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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Corporate social responsibility describes 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.
Glossary