978-0077729028 Chapter 4 Lecture Note

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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.