Marketing Ch 4

Front 1

ethics

Back 1

-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

Front 2

Four ways to classify marketing decisions according to ethical and legal relationships

Back 2

Ethical Ethical
but and
illegal Legal
__________________________
Unethical Unethical
and but
Illegal Legal

Front 3

laws

Back 3

are society's values and standards that are enforceable in the courts

Front 4

Four possible reasons the state of perceived ethical business conduct is at its present level

Back 4

-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

Front 5

business cultures

Back 5

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

Front 6

caveat emptor

Back 6

let the buyer beware

Front 7

Consumer Bill of Rights

Back 7

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

Front 8

the right to safety

Back 8

manifests itself in industry and federal safety standards for most products sold in the US

Front 9

the right to be informed

Back 9

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

Front 10

the right to choose

Back 10

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

Front 11

the right to be heard

Back 11

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

Front 12

business culture

Back 12

also affects ethical behavior in competition
-two kinds of unethical behavior are most common: 1)economic espionage and 2)bribery

Front 13

economic espionage

Back 13

-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

Front 14

giving and receiving bribes and kickbacks

Back 14

-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

Front 15

corporate culture

Back 15

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

Front 16

code of ethics

Back 16

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

Front 17

ethical behavior of top management and co-workers

Back 17

-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

Front 18

whistle-blowers

Back 18

employees who report unethical or illegal actions of their employers
-somefirms have appointed ethics officers responsible for safeguarding these individuals from recrimination

Front 19

Personal Moral Philosophy

Back 19

-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

Front 20

moral idealism

Back 20

-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

Front 21

utilitarianism

Back 21

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

Front 22

social responsibility

Back 22

means that organizations are part of a larger society and are accountable to that society for their actions

Front 23

3 concepts of social responsibility

Back 23

1) profit responsibility
2) stakeholder responsibility
3) societal responsibility

Front 24

3 concepts of social responsibility

Back 24

1) profit responsibility
2) stakeholder responsibility
3) societal responsibility

Front 25

profit responsibility

Back 25

-holds that companies have a simple duty: to maximize profits for their owners or stockholders

Front 26

stakeholder responsibility

Back 26

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

Front 27

societal responsibility

Back 27

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

Front 28

green marketing

Back 28

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

Front 29

ISO 14000

Back 29

-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

Front 30

cause marketing

Back 30

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

Front 31

social audit

Back 31

which is a systematic assessment of a firms objectives, strategies, and performance in terms of social responsibility
-used to convert ideas into actions

Front 32

sustainable development

Back 32

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

Front 33

companies that have societal responsibility

Back 33

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

Front 34

consumer ethics

Back 34

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