This document discusses marketing ethics and social responsibility. It covers dimensions of social responsibility, challenges of being ethical, potential ethical issues, and organizational determinants of ethics. This includes developing codes of conduct, leadership's role in promoting ethics, and incorporating ethics into strategic planning. The relationship between ethics, social responsibility, and marketing performance is also examined. Firms with strong ethics programs are rewarded with better performance through increased employee commitment, trust, and customer loyalty.

1. MARKETING STRATEGY
O.C. FERRELL • MICHAEL D. HARTLINE
12Marketing Ethics and
Social Responsibility

2. 12-2
The Role of Ethics and Social
Responsibility in Marketing Strategy
• Dimensions of Social Responsibility
– Social responsibility
– Marketing ethics
• Marketing Ethics and Strategy
• The Challenges of Being Ethical and
Socially Responsible

3. 12-3
• R.J. Reynolds has been
accused by critics of using its
“Joe Camel” cartoon
character, as shown in this
1988 ad, to target children for
cigarette consumption.
• How has society acted to
protect children from
advertising such as this?
What obligations do
companies have to protect
children?
Marketing Strategy in Action

4. 12-4
The Pyramid of Social Responsibility
Exhibit 12.1

5. 12-5
Potential Ethical Issues in Marketing
Exhibit 12.2

6. 12-6
Perceived Values in the Workplace
Exhibit 12.3

7. 12-7
• Why is marketing ethics a strategic
consideration in organizational decisions?
Who is most important in managing
marketing ethics: the individual or the
firm’s leadership? Explain your answer.
Discussion Question

8. 12-8
Deceptive Practices in Marketing
• Deceptive Communication and Promotion
– False/deceptive statements
– Exaggerated claims
– Ambiguous statements
– Product labeling issues
– Fraud
• Regulating Deceptive Marketing Practices
– Trade associations
– Better Business Bureau (BBB)

9. 12-9
Better Business Bureau

10. 12-10
Organizational Determinants of Marketing
Ethics and Social Responsibility (1 of 2)
• Ethical Climate
• Codes of Conduct
– Six highly desirable core values:
• 1) Trustworthiness
• 2) Respect
• 3) Responsibility
• 4) Fairness
• 5) Caring
• 6) Citizenship

11. 12-11
Key Considerations in Developing and
Implementing a Code of Ethical Conduct
Exhibit 12.4

12. 12-12
Texas Instruments

13. 12-13
• Why are we seeing more evidence of
widespread ethical marketing dilemmas
within firms today? Is it necessary to gain
the cooperation of marketing managers to
overstate revenue and earnings in a
corporation?
Discussion Question

14. 12-14
Organizational Determinants of Marketing
Ethics and Social Responsibility (2 of 2)
• Marketing Ethics and Leadership
– Great leaders:
• 1) Create a common goal or vision
• 2) Obtain “buy in”
• 3) Motivate others to be ethical
• 4) Use available resources
• 5) Enjoy their jobs
– Ethics training can ensure that everyone:
• 1) Recognizes ethical decision making situations
• 2) Understands the culture and values of the firm
• 3) Is able to evaluate the impact of ethical decisions

15. 12-15
Ethics, Social Responsibility,
and Marketing Performance
• Firms that are ethical and socially
responsible are rewarded with greater
marketing performance.
• Having a strong ethical climate:
– Increases employee commitment
– Is conducive to a strong market orientation
– Creates trust among a firm’s stakeholders
– Increases customer loyalty

16. 12-16
• What is the relationship between marketing
ethics and organizational performance?
What are the elements of a strong
compliance program to support responsible
marketing and a successful marketing
strategy?
Discussion Question

17. 12-17
Incorporating Ethics and Social
Responsibility Into Strategic Planning
• AMA Code of Ethics
• Federal Sentencing Guidelines for
Organizations (FSGO)
• Marketing strategy and implementation plans
should reflect an understanding of:
– 1) The ethical and social consequences of
strategic choices
– 2) The values of organizational members and
stakeholders

18. 12-18
AMA Code of Ethics for the Internet
Exhibit 12.6

19. 12-19
Frequency of Misconduct and
Penalties Under the FSGO
Exhibit 12.7