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Chapter 4
Marketing Ethics
1.1.1.1.1.1.1.1 Tools For Instructors
Brief Chapter Outline
Learning Objectives
Chapter Overview (“Summing Up”)
Extended Chapter Outline with Teaching Tips
PowerPoint Slides with Teaching Notes
Answers to End of Chapter Learning Aids
Chapter Case Study
Additional Teaching Tips
1.1.1.1.1.1.1.2 Brief Chapter Outline
The Scope of Marketing Ethics
Ethical Issues Associated with Marketing Decisions
Integrating Ethics into Marketing Strategy
Corporate Social Responsibility
Summing Up
End of Chapter Learning Aids
Chapter Case Study: Is There an App for Good Parenting?
1.1.1.1.1.1.1.3 LEARNING OBJECTIVES
LO1 Identify the ethical values marketers should embrace.
LO2 Distinguish between ethics and social responsibility.
LO3 Identify the four steps in ethical decision making.
LO4 Describe how ethics can be integrated into a firm’s marketing strategy.
LO5 Describe the ways in which corporate social responsibility programs help various
stakeholders.
1.1.1.1.1.1.1.4 CHAPTER OVERVIEW (“SUMMING UP”)
LO1 Identify the ethical values marketers should embrace.
Being a part of an ethically responsible firm should be important to every employee, but it is
particularly important to marketers, because they interact most directly with customers and
suppliers, which offers a multitude of ethical questions and opportunities. AMA’s Code of Ethics
indicates that the basic ethical values marketers should aspire to are honesty, responsibility,
fairness, respect, openness, and citizenship.
LO2 Distinguish between ethics and social responsibility.
Individuals and firms can (and should) act ethically, but the outcome of their acts may not affect
society in general. An ethical act may only affect the firm’s immediate stakeholders, such as its
employees, customers, and suppliers. To be socially responsible, a firm also must take actions
that benefit the community in a larger sense, such as helping people who have been affected by a
natural disaster like a hurricane.
LO3 Identify the four steps in ethical decision making.
First, firms can include ethics and social responsibility in their corporate mission. Second, they
should institute policies and procedures to ¬ensure that everyone working for the firm is acting
in an ethically responsible manner. Third, firms can model their ethical policies after a
well-established code of ethics like the one provided by the American Marketing Association.
Fourth, when making ethically sensitive decisions, firms can utilize a metric such as the ethical
decision-making metric shown in Exhibit 4.4.
LO4 Describe how ethics can be integrated into a firm’s marketing strategy.
Ethical and socially responsible considerations should be integrated into the firm’s mission
statement, as long as top management follows through and commits to supporting a strong
ethical climate within the organization. When considering their marketing strategy, firms should
ask not only “can we implement a ¬certain policy?” but also “should we do it?” ¬Finally, in the
control phase, marketers must determine whether they truly have acted in an ethical and socially
responsible manner. If not, they should make changes to the marketing strategy.
LO5 Describe the ways in which corporate social responsibility programs help various
stakeholders.
To answer this question, we first have to identify the various stakeholders of a company, namely,
customers, employees, the marketplace, and ¬society. CSR benefits these stakeholders as
follows:
Customers: When companies adopt CSR, customers know that they can trust the firms to
provide healthy, ethically acceptable products and services. Many customers also feel
better about buying from a company that en-gages in responsible practices, which
provides them with the additional value of feeling good about buying from that company.
Employees: A firm committed to CSR likely treats its employees with decency and
respect. For many employees (especially members of generation Y), working for an
irresponsible firm would be antithetical to their own morals and values.
Marketplace: An industry improves its practices, and avoids scandals, when it ensures
that the participating firms act responsibly and appropriately in all areas.
Society: This stakeholder is local, national, or global communities. The benefits of CSR
in all cases are numerous—cleaner air and water, aid to the underprivileged, and healthier
product options all can result from CSR by companies.
1.1.1.1.1.1.1.5 EXTENDED CHAPTER OUTLINE WITH TEACHING TIPS
2 The Scope Of Marketing Ethics (PPT slide 4-5)
2.1Marketing ethics examines those ethical problems that are specific to the
domain of marketing.
2.2Attitudes About the Ethical Standards of Various Professions. (PPT slide
4-6)
3 Ethical Issues Associated With Marketing Decisions
3.1Creating an Ethical Climate in the Workplace (PPT slide 4-8)
3.2The Influence of Personal Ethics (PPT slide 4-10)
3.2.1 Why People Act Unethically (PPT slide 4-11)
3.3The Link between Ethics and Corporate Social Responsibility
3.3.1 Corporate Social Responsibility (PPT slide 4-14)
3.4A Framework for Ethical Decision Making (PPT slide 4-15)
3.4.1 Step 1: Identify Issues (PPT slide 4-16)
3.4.2 Step 2: Gather Information and Identify Stakeholders (PPT slide 4-17)
3.4.3 Step 3: Brainstorm Alternatives (PPT slide 4-18)
3.4.4 Step 4: Choose a Course of Action (PPT slide 4-19)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 4-20)
1. Identify the stages in the ethical decision making framework.
Answer: The four stages in the ethical decision-making framework are: identify issues;
4 Integrating Ethics Into Marketing Strategy (PPT slide 4-21)
4.1Planning Phase (PPT slide 4-22)
4.2Implementation Phase (PPT slide 4-24)
4.3Control Phase (PPT slide 4-25)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 4-27)
1. What ethical questions should a marketing manager consider at each stage of the
marketing plan?
Answer: In the planning phase, an ethical issue might be whether to include a
5 Corporate Social Responsibility (PPT slide 4-28)
5.1Employees
5.2Customers
5.3Marketplace
5.4Society
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 4-30)
1. How has corporate social responsibility evolved since the turn of the twentieth-first
century??
Answer: Today, companies are undertaking a wide range of corporate social
2. Provide examples of each of the stakeholders that firms should consider in their
corporate social responsibility efforts.
Appendix 4a
Extended Chapter Outline With Teaching Tips
Understanding Ethics Using Scenarios (PPT slide 4-31)
5.5Scenario 1: R.J. Reynolds: Promotions to the Youth Market (PPT slide
4-32)
5.6Scenario 2: Car Manufacturer Gives Bribes for Contracts (PPT slide 4-33)
5.7Scenario 3: Retailers Lack Ethical Guidelines (PPT slide 4-34)
5.8Scenario 4: Giving Credit Where Credit Isn’t Due (PPT slide 4-35)
5.9Scenario 5: The Jeweler’s Tarnished Image (PPT slide 4-36)
5.10 Scenario 6: No Wonder It’s So Good (PPT slide 4-37)
5.11 Scenario 7: Bright Baby’s Bright Idea (PPT slide 4-38)
5.12 Scenario 8: Money from Mailing Lists (PPT slide 4-39)
5.13 Scenario 9: The Blogging CEO (PPT slide 4-40)
