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 ...

1. 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

2. 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:

3. 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

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 peers by focusing on the world’s social problems and
viewing them as opportunities to build profits and help the
world at the same time.
3-5
3-5a
Growth of Social Responsibility
The social responsibility of businesses is growing around the
world.
3-5b
Green Making

5. The development and marketing of products designed to
minimize negative effects on the physical environment or to
improve the environment.
3-5C
CAUSE-RELATED MARKETING
The cooperative marketing efforts between a for-profit firm and
a nonprofit organization. A sometimes-controversial
subset of social responsibility is cause-related marketing.
3-6