978-1259709074 Chapter 4 Part 1

Chapter 4 – Conscious Marketing, Corporate Social Responsibility, and Ethics Marketing 6th

McGraw-Hill Education.

1

Chapter 4

Conscious Marketing, Corporate Social Responsibility, and Ethics

Tools for Instructors

• Brief Chapter Outline

• Learning Objectives

• Extended Chapter Outline with Teaching Tips

• Answers to End of Chapter Learning Aids

• Chapter Case Study

• Additional Teaching Tips

• Connect Activities

Brief Chapter Outline

Conscious Marketing

Marketing’s Greater Purpose: Corporate Social Responsibility as an Element of Conscious Marketing

The Stakeholders of Conscious Marketing

Integrating Conscious Marketing Throughout the Firm: Leadership and Culture

Marketing Ethics as A Conscious Marketing Principle

End of Chapter Learning Aids

Chapter Case Study: Is There an App for Good Parenting?

Learning Objectives

LO 4-1 Define conscious marketing

Conscious marketing involves a sense of purpose for the firm that is more than simply making a profit by

selling products and services. It consists of four main principles: a greater purpose, consideration of

stakeholders, conscious leadership and culture, and ethics.

LO4-2 Describe what constitutes marketing’s greater purpose.

Marketers must recognize that the purpose of business is more than making profits. The actual purpose

might vary, such as providing necessary products, ensuring employment opportunities, or achieving

LO4-3 Differentiate between conscious marketing and corporate social responsibility.

Although CSR is an important element of conscious marketing, they are different from one another. CSR

implies a focus on the triple bottom-line of good performance according to economic, environmental, and

LO4-4 Describe the ways in which conscious marketing helps various stakeholders.

To describe the ways, we first have to identify the various stakeholders of a company—namely,

Chapter 4 – Conscious Marketing, Corporate Social Responsibility, and Ethics Marketing 6th

McGraw-Hill Education.

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• Customers: When companies exhibit conscious marketing principles, customers know that they can

trust the firms to provide healthy, ethically acceptable products and services. Many customers also

• Employees: A firm committed to conscious marketing treats its employees with decency and

respect. For many employees, working for an irresponsible firm would be antithetical to their own

morals and values.

LO4-5 Explain how conscious leadership can produce a conscious culture in the firm.

Conscious marketing should be integrated into the very foundation of the firm by its leaders, such as in

the firm’s mission statement. Then top management must follow through and commit to supporting CSR,

a strong ethical climate in the organization, and conscious marketing principles. When considering their

LO4-6 Describe how ethics constitute an integral part of a firm’s conscious marketing strategy.

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 and make

multitude of ethical questions and opportunities to handle.

LO4-7 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

Extended Chapter Outline with Teaching Tips

I. Conscious Marketing

1. Recognition of marketing’s greater purpose.

2. Consideration of stakeholders and their interdependence.

3. The presence of conscious leadership, creating a corporate culture.

4. The understanding that decisions are ethically based.

II. Marketing’s Greater Purpose: Corporate Social Responsibility as an Element of Conscious

Marketing

Progress Check: Several questions are offered for students to check their understanding of core

concepts.

Chapter 4 – Conscious Marketing, Corporate Social Responsibility, and Ethics Marketing 6th

McGraw-Hill Education.

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IV. Integrating Conscious Marketing Throughout the Firm: Leadership and Culture

A. Planning Phase

B. Implementation Phase

C. Control Phase

Progress Check: Several questions are offered for students to check their understanding of core

concepts.

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 commitment to

ethics in its mission. In the implementation phase, an ethical issue might be whether the firm

V. Marketing Ethics as a Conscious Marketing Principle

A. The Nature of Ethical and Unethical Marketing Decisions

B. Ethics and Corporate Social Responsibility

C. A Framework for Ethical Decision Making

Progress Check: Several questions are offered for students to check their understanding of core

concepts.

1. Identify the stages in the ethical decision-making framework.

Answer: The four stages in the ethical decision-making framework are: identify issues; gather

Appendix 4a

Extended Chapter Outline

I. Understanding Ethics Using Scenarios

A. Scenario 1: R.J. Reynolds: Promotions to the Youth Market

B. Scenario 2: Car Manufacturer Gives Bribes for Contracts

C. Scenario 3: Retailers Lack Ethical Guidelines

Chapter 4 – Conscious Marketing, Corporate Social Responsibility, and Ethics Marketing 6th

McGraw-Hill Education.

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D. Scenario 4: Giving Credit Where Credit Isn’t Due

E. Scenario 5: The Jeweler’s Tarnished Image

F. Scenario 6: No Wonder It’s So Good

G. Scenario 7: Bright Baby’s Bright Idea

H. Scenario 8: Money from Mailing Lists

I. Scenario 9: The Blogging CEO

Answers to End of Chapter Learning Aids

Marketing Digitally

1 Perhaps no subdiscipline of marketing receives more scrutiny regarding ethical compliance

than direct marketing, a form of nonstore retailing in which customers are exposed to and

purchase merchandise or services through an impersonal medium such as telephone, mail, or

the Internet. Ethical issues in direct marketing cover a broad spectrum because this means of

selling is conducted through all forms of communication. The Direct Marketing Association

(DMA) takes ethics very seriously and has numerous programs to ensure its member

organizations comply with its Code of Ethics. Go to the website for the DMA (http://www. the-

dma.org/). Click on “Advocacy.” List the different ways that the DMA is involved in assisting

consumers and the industry to create a more ethical marketplace.

Although student responses will vary, it should be clear from everyone’s search results that the DMA

publishes its ethical standards and reports on whether member companies follow those standards. By

publicizing such standards and reports of violations, the DMA hopes to address the general public’s

2 An increasing number of firms are stating their strong commitment to corporate social

responsibility initiatives. The Corporate Social Responsibility Newswire Service keeps track of

these various initiatives and posts stories on its website about what various corporations are

doing. Go to http://www.csrwire.com/ and choose one story. Write a description of the

corporation and the initiative.

The CSR Newswire contains many stories, so each student should be able to pick one and provide a brief

description. The site is a good source of such news and goes a long way toward showing that many such

Chapter 4 – Conscious Marketing, Corporate Social Responsibility, and Ethics Marketing 6th

McGraw-Hill Education.

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Marketing Applications

1 Distinguish among conscious marketing, CSR, and marketing ethics.

Conscious marketing is an approach to marketing that acknowledges four key principles: a higher

purpose, stakeholders, conscious leadership, and a conscious culture. Corporate social responsibility

2 Develop an argument for why a cosmetics manufacturer should build and maintain an ethical

climate.

Answers will vary but should include maintaining long-term customer loyalty, social responsibility, and the

3 A clothing company gives generously to charities and sponsors donation drives to help lower–

income teen girls get reasonably priced prom dresses. It also locates its manufacturing plants

in countries with few labor laws, such that it does not know whether children are working in

its factories, and works to prevent union activity among its employees in the United States.

Evaluate this company from an ethical and social responsibility perspective.

4 Based on the evaluation you developed for Question 3, provide responses to the ethical

decision-making metric from Exhibit 4.6. Provide a rationale for your score for each question.

question #3. Students should provide justification for their scores.

5 A company that makes vitamin-infused drinks and other “healthy” snacks has the following

mission statement: “Our goal is to profitably sell good-tasting, healthy products and to better

society.” Although its products are organic, they also are relatively high in sugar and calories.

The company gives a small portion of its profits to the United Way. Evaluate its mission

statement in terms of the four principles of conscious marketing.

Recognition of marketing’s greater purpose: the company’s marketing function recognizes that the

purpose of business should be more than just making profits.

Consideration of stakeholders and their interdependence: The company considers how its actions will

affect the expansive range of potential stakeholders, including customers.

6 Choose a company that you believe is particularly adept at conscious marketing that is not

discussed in this chapter. How do you justify your choice? What counterarguments might

someone make to suggest that your chosen company is not responsible? Consider all key

stakeholders in developing both sides of the argument.