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Unit 2 Business Ethics


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Sports and Entertainment Marketing Unit 2 PowerPoint

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Unit 2 Business Ethics

  1. 1. Sports and Entertainment Means Business Unit 2
  2. 2. Risk Management <ul><li>Why do sports and entertainment marketers need to identify different types of risk? </li></ul><ul><li>How does the different types of risk affect marketing efforts? </li></ul><ul><li>How can risk be managed or avoided in sports and entertainment marketing? </li></ul>
  3. 3. What is Risk? <ul><li>Risk </li></ul><ul><ul><li>The possibility of financial gain or loss or personal injury. </li></ul></ul><ul><ul><li>Three categories of risk: </li></ul></ul><ul><ul><ul><li>Natural Risk </li></ul></ul></ul><ul><ul><ul><li>Human Risk </li></ul></ul></ul><ul><ul><ul><li>Economic Risk </li></ul></ul></ul>
  4. 4. Categories of Risk <ul><li>Natural Risk </li></ul><ul><ul><li>Weather conditions that cannot be avoided and have major impacts on consumers and businesses. </li></ul></ul><ul><ul><ul><li>Examples: Tornadoes, blizzards, hurricanes, floods, droughts, and ice storms. </li></ul></ul></ul>
  5. 5. Categories of Risk Con’t <ul><li>Economic Risk </li></ul><ul><ul><li>Effects on a business due to changes in the business environment. </li></ul></ul><ul><ul><ul><li>Examples: Economy </li></ul></ul></ul>
  6. 6. Categories of Risk Con’t <ul><li>Human Risk </li></ul><ul><ul><li>Human actions that are difficult to avoid and have major impacts on consumers and businesses. </li></ul></ul><ul><ul><ul><li>Examples: customer dishonesty, employee theft, employee incompetence, shoplifting, credit card fraud, or bad checks. </li></ul></ul></ul>
  7. 7. Speculative Risk <ul><li>A situation where the outcome is not known and the outcome could result in either a gain or a loss. </li></ul><ul><ul><li>Pure Risk </li></ul></ul><ul><ul><ul><li>If an event could only result in a loss. </li></ul></ul></ul><ul><ul><ul><ul><li>Examples: flood on a golf course, loss of business. </li></ul></ul></ul></ul>
  8. 8. Insurable Risk <ul><li>Pure risk for which the chances of loss are predictable and the amount of the loss can be estimated. </li></ul><ul><ul><li>Example: Fire </li></ul></ul><ul><li>Uninsurable Risk </li></ul><ul><ul><li>There is a chance that a loss could occur but the amount of the loss can not be estimated. </li></ul></ul><ul><ul><ul><li>Example: Losing season for a sports team </li></ul></ul></ul>
  9. 9. Controllable Risk <ul><li>If a loss can be prevented or the likelihood of its occurrence can be reduced. </li></ul><ul><ul><li>Examples: Having trained employees, fire exits, sprinklers, etc. </li></ul></ul><ul><li>Uncontrollable Risk </li></ul><ul><ul><li>A situation where nothing can be done to prevent the loss. </li></ul></ul><ul><ul><ul><li>Examples: Tornado </li></ul></ul></ul>
  10. 10. Risk Management <ul><li>Preventing, reducing, or lessening the negative impacts of risk by using the strategies of risk avoidance, risk insurance, risk transfer, and/or risk retention. </li></ul>
  11. 11. Liable <ul><li>The business is legally responsible for damages and might have to pay for the medical costs and other losses suffered by an injured person. </li></ul>
  12. 12. Business Ethics <ul><li>How does ethics affect marketing of sports and entertainment? </li></ul><ul><li>Which principals are important for sports and entertainment individuals to possess? </li></ul><ul><li>3. Why would a marketer want to work with an individual who is known for unethical behavior? </li></ul>
  13. 13. Ethics? <ul><li>A system of deciding what is right or wrong in a reasoned and impartial manner. </li></ul>
  14. 14. Complete Internet Activity In groups of two choose a case. Read through the case and think of the question that has been provided. We will review all cases and answers. You have 15 minutes. GO!
  15. 15. Principles <ul><li>The high standards of rules and guidelines in both business and personal life. </li></ul><ul><li>Ethical Behavior is based upon Principles. </li></ul>
  16. 16. Ethical Behavior <ul><li>Do poor examples of ethical behavior receive more attention then examples of good ethical behavior? </li></ul><ul><li>Are more instances of unethical instances being reported upon today? </li></ul>
  17. 17. Gaining a Profit, Unethical? <ul><li>Example: </li></ul><ul><ul><li>Athletes whom take steroids </li></ul></ul><ul><li>Others recognize that those whom are cheating, are rewarded with higher salary or recognition. </li></ul><ul><li>Leagues assign fines to control bad behavior. </li></ul><ul><li>Fans have control over athletes behavior. </li></ul>