Download - Int To Mktng Ch3
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Copyright ©2009 by Cengage Learning Inc. All rights reserved 1
Prepared by
Amit Shah
Frostburg State University
CHAPTER
3
Designed by
Eric Brengle
B-books, Ltd.
MarketingLamb, Hair, McDaniel
10
Ethics and Social
Responsibility
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Learning Learning Learning Learning OutcomesOutcomesOutcomesOutcomes
2
LOI
LO2
LO3
Explain the determinants of a civil society
Explain the concept of ethical behavior
Describe ethical behavior in business
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Learning Learning Learning Learning Outcomes Outcomes Outcomes Outcomes
3
Discuss corporate social responsibility
Describe the arguments for and against social responsibility
Explain cause-related marketing
LO5
LO6
LO4
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Civil Society
4
Explain the determinantsof a civil society
LOI
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Civil Society
5
LO1
Six Modes of Social Control
Ethics
Laws
Formal and Informal Groups
Self Regulation
The Media
Active Civil Society
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REVIEW LEARNING OUTCOME
6
LOI
Explain the determinants of a civil society
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Ethical Behavior
7
Explain the concept of ethical behavior
LO2
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Ethical Behavior
8
LO2
EthicsEthics
The moral principles or values
that generally govern the
conduct of an individual.
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Ethical Theories
9
LO2
People usually base their individual choice of ethical theory on their life experiences
•Deontology
•Utilitarianism•Casuist
•Moral Relativists•Virtue Ethics
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REVIEW LEARNING OUTCOME
10
LO2
Explain the concept of ethical behavior
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Ethical Behavior in Business
11
Describe ethical behaviorin business
LO3
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Ethical Behavior in Business
12
LO3
MoralsMorals
The rules people develop as a result of cultural values and norms.
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Ethical Development Levels
13
LO3
PreconventionalMorality
ConventionalMorality
PostconventionalMorality
MoreMature
MoreChildlike
• Based on what will be
punished or rewarded • Self-centered, calculating,
selfish
• Moves toward the
expectations of society• Concerned over legality and
the opinion of others
• Concern about how they
judge themselves• Concern if it is right in
the long run
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Ethical Decision Making
14
LO3
Influential Factors
Extent of Problems
Top Management Actions
Potential Consequences
Social Consensus
Probability of Harm
Time UntilConsequences
Number Affected
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Code of Ethics
15
LO3
Code of EthicsCode of Ethics A guideline to help marketing
managers and other employees
make better decisions.
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Creating Ethical Guidelines
• Helps identify acceptable business practices
• Helps control behavior internally
• Avoids confusion in decision making
• Facilitates discussion about right and wrong
16
LO3
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Ethical Guidelines and Training
17
LO3
Exhibit 3.3
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REVIEW LEARNING OUTCOME
18
LO3
Describe the role of ethics and ethical decisions in business
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Corporate Social Responsibility
19
Discuss corporate social responsibility
LO4
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Corporate Social Responsibility
20
SustainabilitySustainability
LO4
The idea that socially
responsible companies will
outperform their peers by
focusing on the world’s social
problems and viewing them as
opportunities to build profits
and help the world at the same
time.
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Corporate Social Responsibility
21
LO4
Stakeholders
Employees
Management
Customers
Local Community
Suppliers
Owners
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REVIEW LEARNING OUTCOME
22
LO4
Discuss Corporate Social Responsibility
EthicalEthicalDo what is right.Do what is right.
LegalLegalObey the Law.Obey the Law.
EconomicEconomicBe profitable.Be profitable.
PhilanthropicPhilanthropicBe a good citizen.Be a good citizen.
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Arguments Against and For Corporate Social Responsibility
23
Describe the arguments for and against social responsibility
LO5
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Arguments Against Social Responsibility
• Businesses should focus on making a profit and leave social and environmental concerns to nonprofits
• Businesses don’t have the expertise to deal with social issues and doing so may interfere with the primary goals of their firms
• The expense of social responsibility may damage the country in the global marketplace
24
LO5
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Arguments for Social Responsibility
• The right thing to do
• Business should police itself to avoid government intervention
• Small companies can prosper and build shareholder value as they tackle social problems
25
LO5
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REVIEW LEARNING OUTCOME
26
LO5
Arguments for and against social responsibility
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Cause-Related Marketing
27
Explain cause-related marketing
LO6
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Cause-Related Marketing
28
LO6
Cause-RelatedMarketing
Cause-RelatedMarketing
The cooperative efforts of a
“for-profit” firm and a
‘nonprofit” organization for
mutual benefit.
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Cause-Related Marketing
29
LO6
“Five Questions to Ask Before Participating in a Cause-Related Marketing Program”
•Is this company committed?
•How is the program structured?
•Who does the program benefit?
•How will the organization that benefits use my money?
•Is the program meaningful to me?
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REVIEW LEARNING OUTCOME
30
LO6
Explain cause-related marketing