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Chapter 4 - Conscious Marketing, Corporate Social Responsibility, and Ethics Marketing 6th
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
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
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
2
• 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
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
4
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
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
5
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
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
6
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.
