2. The Concept of Ethical Behavior (LO 3-2, PPT Slide 7, DISC: Strategy)
a. Ethics can be viewed as the standard of behavior by which conduct is judged.
Standards that are legal may not always be ethical, and vice versa. Laws are the
values and standards enforceable by the courts. Ethics consists of those unwritten
rules we have developed for our interactions with one another.
Example: The concept of ethics can be explained by using line-cutting as an
b. Many ethical dilemmas develop from conflicts between the differing interests of
company owners and their workers, customers, and the surrounding community.
Managers must produce a reasonable profit for the company’s shareholders while
maintaining honesty in business practices and concern for environmental and
social issues. While the boundaries of what is legal and what is not are often fairly
clear (e.g., do not run a red light, do not steal money from a bank, and do not kill
anyone), the boundaries of ethical decision making are predicated on which
ethical theory one is following.
c. Ethical Theories: There are several ethical theories that apply to marketing.
• Deontological theory states that people should adhere to their obligations