Lamb, Hair, McDaniel 2012-2013 CHAPTER 3 Ethics and Social Responsibility DAETERMINANTS OF A CIVIL SOCIETY 1 DETERMINANTS OF CIVIL SOCIETY Social Control Factors keep people and organizations from running amok and harm also create order in a society like ours. 3-1 Model of social control Ethics. Law. Formal and Informal Groups. Self-regulation. The Media. An Active Civil Society. The Concept Of Ethical Behavior It has been said that ethics is something everyone likes to talk about but nobody can define. Ethical Theories: the ethical theories that apply to marketing :- DEONTOLOGY UTILITARIANISM CASUIST MORAL RELATIVISM VIRTUE ETHICS 3-2 ETHICAL BEHAVIOR IN BUSINESS. Depending upon which, if any, ethical theory a businessperson has accepted and uses in his or her daily conduct, the action taken may vary. Morality and Business Ethics. Today’s business ethics actually consist of a subset of major life values learned since birth. Ethical Development is thought to consist of three levels:- Preconventional morality, the most basic level, is childlike. Conventional morality moves from an egocentric viewpoint toward the expectations of society. Postconventional morality represents the morality of the mature adult. 3-3 3-3a Ethical Decision Making The following factors tent to influence ethical decision making and judgments: Extent of ethical problems within the organization. Top management’s actions on ethics. Potential magnitude of the consequence. Social consensus. Probability of a harmful outcome. Length of time between the decision and the onset of consquences. Number of people to be affected. 3-3b Ethical Guidelines and Training Creating ethics guidelines has several advantages; A code of ethics helps employees identify what their firm recognizes as acceptable business practices. A code of ethics can be an effective internal control of behavior. A written code helps eployees avoid confusion when determining whether their decisions are ethical. The process of formulating the code of ethics facilitates discussion among employees about what is right and wrong and ultimately leads to better decisions. 3-3c CORPORATE SOCIAL RESPONSIBILITY (CSR) is a business’s concern for society’s welfare. Stakeholders and social responsibility: Stakeholder Theory ethical theory stating that social responsibility is paying attention to the interest or every affected stakeholder in every aspect of a firm’s operation. 3-4 3-4a Pyramid of corporate social responsibility A model that suggests corporate social responsibility is composed of economic, legal, Ethics, and philanthropic responsibilities and that the firm’s economic performance supports the entire structure. 3-4b ARGUMENTS FOR AND AGAINST SOCIAL RESPONSIBILITY Sustainability The idea that socially responsibility companies will outperform their p ...