Chapter 3: Ethics

StudyBlue printing of Chapter 3: Ethics html, body, div, span, applet, object, iframe, h1, h2, h3, h4, h5, h6, p, blockquote, pre, a, abbr, acronym, address, big, cite, code, del, dfn, em, font, img, ins, kbd, q, s, samp, small, strike, strong, sub, sup, tt, var, b, u, i, center, fieldset, form, label, legend, table, caption, tbody, tfoot, thead, tr, th, td { margin: 0; padding: 0; border: 0; outline: 0; font-size: 100%; background: transparent; } body { line-height: 1; } blockquote, q { quotes: none; } blockquote:before, blockquote:after, q:before, q:after { content: ''; content: none; } /* remember to define focus styles! */ :focus { outline: 0; } /* remember to highlight inserts somehow! */ ins { text-decoration: none; } del { text-decoration: line-through; } /* tables still need 'cellspacing="0"' in the markup */ table { border-collapse: collapse; border-spacing: 0; } /* end RESET */ .header { min-width:800px; } .logo { padding:6px 20px 2px 20px; margin:0; font-size:25px; font-weight:bold; color:#808285; position:relative; border-bottom: 1px solid #c5c5c5; } .logo-blue { color:#70adc4; } .logo-desc { font-weight:normal; font-size:19px; color:#cccccc; margin-top:50px; position:absolute; display: none; } .back-button { position:absolute; top:20px; right:20px; font-size:13px; line-height:25px; color:rgb(0,175,225); font-weight:normal; } .back-button a { color:rgb(0,175,225); } .instructions { padding:0; margin:0; width:100%; position:relative; color:rgb(100,100,100); } .step-holder { border-left:1px solid #ededed; margin-left:20px; } .steps { padding:15px 0; float:left; width:24%; border-right:1px solid #ededed; text-align:center; } .steps-01 { } .steps-02 { } .steps-03 { } .steps-04 { } .label { padding:5px 10px; } .print-button { } .print-button a { background-color:rgb(0,175,225); color:white; line-height: 19px; padding:9px 8px 5px 30px; font-size:14px; text-decoration:none; background-image: url(images/printer.png); background-repeat: no-repeat; background-position: 7px 50%; -moz-border-radius: 5px; -webkit-border-radius: 5px; } .print-button a:hover { background-color:black; } .theNote .content { width: 8.0in !important; margin: 5px auto; padding:20px; background-color:white; } .theNote .header { border-bottom: 1px dashed #C8C8C8; font-size: 17px; padding: 0 0 10px; line-height: 19px; color: #00ADE1; min-width:500px; } .theNote .body { font-size: 14px; line-height: 19px; padding: 10px 0; } .theNote{ padding:6px 0; clear:both; background-color: rgb(200,200,200); } .theNote h3{ color: rgb(100,100,100); } .theNote h1, .theNote h3{ background-color:white; padding:2px 20px; width:8.0in !important; margin: 0 auto; font-size: 15px; } .theNote h1{ padding-top: 10px; font-size: 15px; } .theNote h1:first-child{ font-size: 20px; } .theNote h3 { font-size: 14px; font-weight: normal; } #options { border: 3px double #ccc; padding: 5px 12px; margin: 10px 50px 10px 20px; float: left; } #info { border-top: 1px solid #ccc; padding-top: 5px; font-style: italic; } li { margin: 5px 10px 5px 25px; } ul li { list-style: disc; } ol li { list-style: decimal; } img { border: 0; } table { clear: both; width: 100%; border: 1px solid #c5c5c5; border-width: 1px 0; margin: 0; page-break-after: always; } table#page { page-break-after: auto; } td { text-align: center; font-size: 12px; border-bottom: 1px dashed #c5c5c5; height: 1.75in; width: 50%; padding-left: 15px; } .leftside { border-right: 1px solid #cccccc; padding: 0 15px 0 0; } .bottom td { border-bottom: none; } .clearfix { clear:both; line-height:1px; height:1px; } img { max-width:80%; max-height:150px; margin:20px; } @media print {.header { display: none; } .content .header{ display:inherit; } table { border: 1px dashed #bbb; border-width: 1px 0; } .theNote{ background-color:white; } } Marketing Ethics Creating an Ethical Climate in the workplace: -includes having a set of values that guides decision making and behavior. -everyone must have the same understanding of its ethical values 7 how they translate into the business activities of the firm and must share a consistent language to discuss them. -then firms must develop explicit rules and implicit understandings that govern all the firm's transactions - Top management must commit to establishing an ethical climate - Once the rules are in place, there must be a system of controls that helps resolve such dilemmas and rewards appropriate behavior and punishes inappropriate behavior. Reasons why people make unethical decisions: -every individual is a product of his/her culture, upbringing, genes, and various other influences. -many unethical behaviors are decisions made on the basis of expendiency. -managers usually face decision: do the right thing for the firm & themselves in the short run or doing what is right for the firm and society in the long run. -short term goals of employees should be aligned with the long-term goals of the company. Common unethical behaviors in marketing: -high pressure, misleading, or deceptive sales tactics -misrepresenting company earnings, sales, and/or revenues -withholding or destroying information that could hurt company sales or image -false or misleading advertising Corporate Social Responsibility: -firms that only focus on the affects of their actions on their closest stakeholders (customers, employees, and stockholders) are not considered socially responsible. - establishing corporate charitable foundations, supporting and associating with existing nonprofit groups, supporting minority activities, and following responsible marketing, sales, and production practices. -more prevalent. Framework for Ethical Decision Making: Step One: Identify Issues Step Two: Gather Information and Identify Stakeholders Including all relevant legal info, identify all the individuals & groups that have a stake in how the issue is resolved. Step Three: Brainstorm & Evaluate Alternatives all parties relevant to the decision should come together to brainstorm any alternative courses of action Step Four: Choose a course of action: choose a course of action that generates the best solution for the stakeholders using ethical practices. (investigate any legal issues & reject any illegal activity). Ethical Decision Making Model Questions: Have I/We thought broadly about any ethical issues associated with the decision that must be made? Have we involved as many people as possible who have a right to offer input or have actual involvement in making this decision and action plan? Does this decision respect the rights and dignity of the stakeholders? Does this decision produce the most good and the least harm to the relevant stakeholders? Does this decision uphold relevant conventional moral rules? Can we/I live with this decision alternative? Integrating Ethics into Marketing Strategy: Planning Phase: marketers introduce ethics @ beg. of planning stage by including ethical statements in mission statement. - ethical mission statements can take on another role as a means to guide a firm's SWOT analysis Implementation Phase: Sometimes a firm's choice of a target market and how the firm pursues it can lead to charges of unethical behavior - Self-policing allows companies to avoid painful public revelations Control Phase: managers must be evaluated on their actions from an ethical perspective. Systems must be in place to check whether each potential ethical issue raised in the planning process was actually successfully addressed. Systems used in the control phase must also react to change. Many firms have emergency response plans.