Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
23 Cards in this Set
- Front
- Back
Ethics
|
The moral principles and values that govern the actions and decisions of an individual or a group
|
|
Laws
|
Society’s standards and values that are enforceable in the courts
|
|
o Culture
|
The set of values, ideas, and attitudes that are learned and shared among members of a group, dictates what is morally right and just.
|
|
3 things that influence "Personal moral philosophy and Ethical behavior"
|
1. Societal Culture and Norms
2. Business Culture and Industry practices 3. Corporate Culture & Expectations |
|
o Business Cultures
|
Comprise the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealings
|
|
o Caveat emptor
|
Let the buyer beware
|
|
o Consumer Bill of Rights
|
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
|
|
Two types of Unethical Behavior in Compensation
|
Economic Espionage and Bribery
|
|
o Economic Espionage
|
The clandestine collection of trade secrets or proprietary info about a company’s competitors.
Inc: illegal trespassing, theft, fraud, misrepresentation |
|
o Bribery
|
Often disguised as gifts, consultant fees, and favors
Most common in business to business and govt marketing, rather than consumer mkting |
|
o Corporate Culture
|
The set of values, ideas, and attitudes that is learned and shared among the members of an organization
|
|
o Codes of Ethics
|
A formal statement of ethical principles and rules of conduct
|
|
o 2 Personal Moral Philosophies that have Direct Bearing on Mkting Practice
|
Moral Idealism and Utilitarianism
|
|
o Moral Idealism
|
A personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome
|
|
o Utilitarianism
|
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 |
|
Social audit
|
A systematic assessment of a firm’s objectives, strategies, and performance in the domain of social responsibility
|
|
5 steps of a social audit
|
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 |
|
Sustainable development
|
involves conducting business in a way that protects the natural environment while making economic progress.
|
|
Benefits of Sustanable devo
|
1) benefit from favorable word of mouth among consumers and 2) typically outperform less responsible companies financially
|
|
Unethical practices by consumers
|
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 |
|
• Unethical consumer behavior is influenced by
|
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” |
|
• Consumers and ecological issues
|
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. |
|
• Greenwashing
|
the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, and technology or company practice
|