Exam 2 Ch 4

Front 1

Ethics

Back 1

The moral principles and values that govern the actions and decisions of an individual or a group

Front 2

Laws

Back 2

Society’s standards and values that are enforceable in the courts

Front 3

o Culture

Back 3

The set of values, ideas, and attitudes that are learned and shared among members of a group, dictates what is morally right and just.

Front 4

3 things that influence "Personal moral philosophy and Ethical behavior"

Back 4

1. Societal Culture and Norms
2. Business Culture and Industry practices
3. Corporate Culture & Expectations

Front 5

o Business Cultures

Back 5

Comprise the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealings

Front 6

o Caveat emptor

Back 6

Let the buyer beware

Front 7

o Consumer Bill of Rights

Back 7

Codified the ethics of exchange between buyers & sellers, including rights to 1) safety, 2) to be informed, 3) to choose, and 4) to be heard

Front 8

Two types of Unethical Behavior in Compensation

Back 8

Economic Espionage and Bribery

Front 9

o Economic Espionage

Back 9

The clandestine collection of trade secrets or proprietary info about a company’s competitors.
 Inc: illegal trespassing, theft, fraud, misrepresentation

Front 10

o Bribery

Back 10

Often disguised as gifts, consultant fees, and favors
 Most common in business to business and govt marketing, rather than consumer mkting

Front 11

o Corporate Culture

Back 11

The set of values, ideas, and attitudes that is learned and shared among the members of an organization

Front 12

o Codes of Ethics

Back 12

A formal statement of ethical principles and rules of conduct

Front 13

o 2 Personal Moral Philosophies that have Direct Bearing on Mkting Practice

Back 13

Moral Idealism and Utilitarianism

Front 14

o Moral Idealism

Back 14

A personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome

Front 15

o Utilitarianism

Back 15

A personal moral philosophy that focuses on the “greatest good for the greatest number” by assessing the costs & benefits of the consequences of ethical behavior
 Benefits > costs = ethical

Front 16

Social audit

Back 16

A systematic assessment of a firm’s objectives, strategies, and performance in the domain of social responsibility

Front 17

5 steps of a social audit

Back 17

1. Recognition of a firm’s social expectations and the rationale for engaging in social responsibility endeavors
2. Identification of social responsibility causes or programs consistent with the company’s mission
3. Determination of organizational objectives and priorities for programs and activities it will undertake
4. Specification of the type and amount of resources necessary to achieve social responsibility objectives
5. Evaluation of social responsibility programs and activities undertaken and assessment of future involvement

Front 18

Sustainable development

Back 18

involves conducting business in a way that protects the natural environment while making economic progress.

Front 19

Benefits of Sustanable devo

Back 19

1) benefit from favorable word of mouth among consumers and 2) typically outperform less responsible companies financially

Front 20

Unethical practices by consumers

Back 20

o Filing warranty claims after the claim period
o Misredeeming coupons
o Making fraudulent returns of merchandise
o Providing inaccurate information on credit applications
o Tampering with utility meters
o Tapping cable and TV lines
o Pirating music, movies, and software from the Internet
o Submitting phony insurance claims

Front 21

• Unethical consumer behavior is influenced by

Back 21

o A belief that a consumer can get away with the act and it is worth doing
o The rationalization that the act is justified or driven by forces outside the individual—“everybody does it”

Front 22

• Consumers and ecological issues

Back 22

o May be Unwilling to sacrifice convenience and pay higher prices to protect the environment
o Consumers lack the knowledge to make informed decisions dealing with the purchase, use, and disposition of products.

Front 23

• Greenwashing

Back 23

the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, and technology or company practice