© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
3-2© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
LEARNING OBJECTIVES
MARKETING ETHICS
Why do marketers have to worry about ethics?
What does it take for a firm to be considered socially responsible?
How should a firm make ethically responsible decision?
How can ethics and social responsibility be integrated into a firm’s marketing strategy?
3-3© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Mattel – Product Safety Crisis
Lead paint from
subcontracted
manufacturer in China
3-4© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Firm Goals
3-5© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Scope of Marketing Ethics
Business EthicsBusiness Ethics Marketing EthicsMarketing Ethics
Miller Commercial
3-6© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Attitudes About the Ethical Standards of Various Professions
Why do you feel marketers (advertising practitioners) rank so low on this scale?
What can marketers do to improve their ranking?
3-7© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Citibank Addresses Identity Theft
Why is this a good customer issue to address?
Why are these ads effective?
Citibank Commercial
3-8© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Creating an Ethical Climate in the Workplace
Values– Establish– Share– Understand
Rules– Management
commitment– Employee dedication
Controls– Reward– Punishment
3-9© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
American Marketing Association Code of Ethics
AMA Website
3-10© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Influence of Personal Ethics
3-11© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Why People Act Unethically
Are all the individuals who engage in questionable
behavior just plain immoral or unethical?
Are all the individuals who engage in questionable
behavior just plain immoral or unethical?
What makes people take actions that create so much
harm?
What makes people take actions that create so much
harm?
Decisions often have conflicting outcomes, where both options have positive and negative
consequences
Decisions often have conflicting outcomes, where both options have positive and negative
consequences
3-12© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Competing Outcomes
3-13© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Link Between Ethics and Corporate Social Responsibility
Build-A-Bear Workshop
3-14© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
A Framework for Ethical Decision Making
3-15© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Step One: Identify Issues
Marketing research firm
issuesData
collection methods
Data collection methods
Using results to mislead or even harm the public
Using results to mislead or even harm the public
Hiding the real purpose of the study
Hiding the real purpose of the study
3-16© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Step Two: Gather Information and Identify Stakeholders
3-17© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Stakeholder Analysis Matrix for a Marketing Research Firm
3-18© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Step Three: Brainstorm Alternatives
Halt the market research project?
Make responses anonymous?
Instituting training on the AMA Code of Ethics for all researchers
3-19© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Step Four: Choose a Course of Action
Weigh the alternativesWeigh the alternatives
Take a course of actionTake a course of action
3-20© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Ethical Decision-Making Evaluation Questionnaire
3-21© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Check Yourself
1. According to the American marketing Association Code of Ethics, what are the six ethical values
2. Identify the four stages in the ethical decision making framework
3-22© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Integrating Ethics Into Marketing Strategy
3-23© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Planning Phase
The mission or vision statement sets the overall ethical tone for planning.
Firms often go beyond the mission or vision statement by including a values statement.
3-24© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Donating over $200 million since 1982
Newman’s Own
3-25© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Implementation Stage
Aqua Teen Hunger Force LED display was mistaken
as a bomb
Secret Sparkle Body Spray Sold through retailer that
targets 7-14 year olds although packaging claimed to keep out of reach of children
3-26© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Implementation Phase
Should the firm be targeting this market with this product?
Should the firm be selling its product in this market in this
manner?
Should the firm be relocating production to another country?
3-27© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Control Phase
1. Check successful implementation
2. React to change
1. Check successful implementation
2. React to change
3-28© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Six Tests of Ethical Action
3-29© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Check Yourself
1. Should a marketing manager insist on assessing the ethics of a situation she or he is facing?
2. Identify one ethical issue you might face in each of the three phases of a marketing plan
3-30© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Understanding Ethics Using Scenarios
Scenario 1: R.J. Reynolds: Promotions to YouthScenario 2: Victoria’s Dirty SecretScenario 3: Pregnant Teen TV StarScenario 4: Who Is on the Line?Scenario 5: West Virginia T-Shirts Scenario 6: Giving Credit Where Credit Isn’t DueScenario 7: The Jeweler’s Tarnished ImageScenario 8: No Wonder It’s So GoodScenario 9: Bright Baby’s Bright IdeaScenario 10: Money from Mailing ListsScenario 11: The Blogging CEO
3-31© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Scenario 1: R.J. Reynolds
What are the ethical issues Mailings to young
adults Candy flavored
cigarettes
Is it wrong? Why or why not?
Back to list of scenarios
3-32© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Scenario 2: Victoria’s Dirty Secret
What was Victoria’s Secret doing?
Was it wrong? Unethical How could they fix
this?
Back to list of scenarios
3-33© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Scenario 3: Pregnant Teen TV Star
Should the show be cancelled?
Should the pregnancy be written into the script?
How should Nickelodeon handle this?
Is there any way this could be helpful?
Back to list of scenarios
3-34© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Scenario 4: Who Is on the Line?
What are the ethical issues in this scenario?
Why would a firm use this service?
How do you think consumers will respond to firms who use this service?
Would you advise purchasing this service?
Back to list of scenarios
3-35© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Scenario 5: West Virginia T-Shirts
What are the ethical issues in this scenario?
If you were the retailer how would you have responded?
Does a history of previous inappropriate business practices impact your opinion of the retailer?
Back to list of scenarios
3-36© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Scenario 6: Giving Credit Where Credit Isn’t Due
Is this an inappropriate target market?
Could you argue that the firm provides a valuable service to this market?
Would you advise the cataloger to pursue this new strategy?
Back to list of scenarios
3-37© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Scenario 7: The Jeweler’s Tarnished Image
Is the manufacturer responsible for the acts of independent sales people?
How do you feel the Billing’s should respond?
Back to list of scenarios
3-38© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Scenario 8: No Wonder It’s So Good
Is the legal non disclosure of the alcohol content and ethical issue?
Should the firm be required to disclose the alcohol content?
What would you do if you were Mia?
Relax with Enjoy Cola
Back to list of scenarios
3-39© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Scenario 9: Bright Baby’s Bright Idea
Is the potential for injury enough to merit removal of the product from the market?
Do you feel it is ethical to move the product to a less regulated market?
What would you have advised the CEO?
Back to list of scenarios
3-40© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Scenario 10: Money from Mailing Lists
Should Mangold continue to use the Marketing Metrix mailing list?
Should he tell his new customers how he got their names?
Do customers need to give consent before companies collect information on their online behavior?
Back to list of scenarios
3-41© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Scenario 11: The Blogging CEO
Should Burdick be allowed to praise his company anonymously?
Should he be allowed to attack his competitors?
How would you feel if you knew a blogger had personal interests in the topic?
Back to list of scenarios
3-42© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Glossary
Corporate social responsibility describes the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.
Return to slide