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34 Cards in this Set
- Front
- Back
ethics
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-are the moral principles and values that govern the actions and decisions of an individual or group
-serve as guidelines on how to act rightly and justly when faced with moral dilemmas |
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Four ways to classify marketing decisions according to ethical and legal relationships
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Ethical Ethical
but and illegal Legal __________________________ Unethical Unethical and but Illegal Legal |
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laws
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are society's values and standards that are enforceable in the courts
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Four possible reasons the state of perceived ethical business conduct is at its present level
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-first, there is an increased pressure on businesspeople to make decisions in a scoiety characterized by diverse value systems
-second, there is a growing tendency for business decisions to be judged publicly by groups with different values and interests -third, the public's expectations of ethical business behavior has increased -finally, and most disturbing, ethical business conduct may have declined |
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business cultures
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comprises the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealings
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caveat emptor
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let the buyer beware
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Consumer Bill of Rights
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that codified the ethics of exchange between buyers and sellers
-these were the right 1)to safety, 2)to be informed, 3)to choose, 4)to be heard |
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the right to safety
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manifests itself in industry and federal safety standards for most products sold in the US
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the right to be informed
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means that marketers have an obligation to give consumers complete and accurate information about products and services
-also applies to the solicitation of personal information over the internet and its subsequent use by marketers |
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the right to choose
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today many supermarket chains demand "slotting allowances" from manufacturers, in the form of cash or free goods, to stock new products
-this practice could limit the number of new products available to consumers and interfere with their right to choose |
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the right to be heard
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means that consumers should have access to public-policy makers rearding complaints about products and services
-this right is illustrated in limitations put on telemarketing pratices -consumer complaints about late night and repeated calls resulted in the Telephone Consumer Protection Act of 1991 |
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business culture
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also affects ethical behavior in competition
-two kinds of unethical behavior are most common: 1)economic espionage and 2)bribery |
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economic espionage
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-is the clandestine collection of trade secrets or proprietary information about a company's competitors
-this practice is illegal and unethical and carries serious criminal penalties -espionage activities include illegal trespassing, theft, fraud, misrepresentation, wiretapping, the search of a competitors trash, and violations of written and implicit employment agreements with noncompete clauses -most prevalent in high technology industries |
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giving and receiving bribes and kickbacks
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-are often disguised as gifts, consultant fees, and favors
-bribery is most evident in industries experiencing intense competition and in countries in the earlier stages of economic development |
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corporate culture
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is the set of values, ideas, and attitudes that is learned and shared among the members of an organization
-demonstrates itself in the dress (we don't wear ties), sayings (the IBM way), and manner of work (team efforts) of employees -also apparent in the expectations for ethical behavior present in formal codes of ethics and the ethnical actions of top management and coworkers |
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code of ethics
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is a formal statement of ethical principles and rules of conduct
-lack of specificity is a major reason for the violation of ethics codes -American Marketing Association has addressed this issue by providing a detailed statement of ethics, which all members agree to follow |
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ethical behavior of top management and co-workers
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-a second reason for violating ethics codes rests in the perceived behavior of top management and coworkers
-ethical dilemmas often bring personal and professional conflict |
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whistle-blowers
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employees who report unethical or illegal actions of their employers
-somefirms have appointed ethics officers responsible for safeguarding these individuals from recrimination |
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Personal Moral Philosophy
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-ethical choices are based on the personal moral philosophy of the decision maker
-is learned through the process of socialization with friends and family and by formal education -it is also influenced by the societal, business, and corporate culture -two prominent personal moral philosophies have direct bearing on marketing practice: 1)moral idealism and 2)utilitarianism |
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moral idealism
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-is a personal moral philosophy that considers certain individual rights or duties as universial, regardless of the outcome
-also applies to ethial duties-to do no harm |
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utilitarianism
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which is a personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior
-if benefits exceed costs, than the behavior is ethical -if not, than the behavior is unethical |
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social responsibility
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means that organizations are part of a larger society and are accountable to that society for their actions
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3 concepts of social responsibility
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1) profit responsibility
2) stakeholder responsibility 3) societal responsibility |
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3 concepts of social responsibility
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1) profit responsibility
2) stakeholder responsibility 3) societal responsibility |
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profit responsibility
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-holds that companies have a simple duty: to maximize profits for their owners or stockholders
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stakeholder responsibility
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focuses on the obligations an organization has to those who can affect achievement of its objectives
-these constituencies include consumers, employees, suppliers, and distributors -failure to consider a company's broader constituencies can have a negative consequences-bridgestone/firestone tires |
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societal responsibility
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refers to obligations that organizations have 1) to the preservation of the ecological environment and 2) to the general public
-concernc about the environment and public welfare are represented by interest and advocacy groups such as Greenpeace |
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green marketing
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marketing efforts to produce, promote, and reclaim environmentally sensitive products
-voluntary responses to environmental issues have been implemented with little or no additional cost to consumer and resulted in cost savings to companies |
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ISO 14000
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-a global undertaking to further green marketing efforts is the ISO 14000 initiative developed by the International Standards Organization (ISO) in Geneva Switzerland
-consists of worldwide standards for envirnmental quality and green marketing practices |
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cause marketing
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which occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products
-can enhance corporate sales and profits |
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social audit
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which is a systematic assessment of a firms objectives, strategies, and performance in terms of social responsibility
-used to convert ideas into actions |
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sustainable development
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involves conducting business in a way that protects the natural environment while making
economic progress -ex: green marketing and working conditions at offshore manufacturing sites |
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companies that have societal responsibility
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companies have been rewarded for their efforts by companies 1) benefit from favorable word of mouth among consumers and 2)typically outperform less responsible companies on financial performance
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consumer ethics
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research on unethical consumer behavior indicates that these acts are rarely motivated by economic need
-this behavior appears to be influenced by 1)a belief that a consumer can get away with the act and it is worth doing and 2) the rationalization that the act is justified or driven by forces outside the individual |