Chapter 2: Consumer Ethics, The Marketplace and The Planet Flashcards
Define business ethics
Business ethics are rules of conduct that guide actions in the marketplace. However there are cultural differences in what is considered ethical
What is a PESTLE analysis
Studies the key external factors that influence an organization (political, economic, sociological, technological legal and environment)
What are the aspects of the political environment
Consumer activism: where consumers band together to attack what they view as unsafe or otherwise harmful
Slacktivism: a small and relatively meaningless expression of support for important causes. Such as liking a charity on social media rather than making a donation over volunteering.
Cultural jamming: a strategy to disrupt efforts by the corporate world to dominate our cultural landscape
Corporate activism: when companies take a deliberate stand on a controversial issue (for example, black lives matter, voting rights)
What are the aspects of the economic environment
Disabled consumers: disabled people rely on catalogues and the internet to purchase products
Consumed consumers: people who are used or exploited, willingly or not, for commercial gain in the marketplace
Food deserts: there is limited access to healthy choices. A census tract where 33 percent of the population or 500 people live more than a mile from a grocery store in an urban area or more than 10 miles away in a rural area
What are the aspects of the social environment
Cancel culture: the phenomenon of the public calling out companies for missteps and recommending that consumers boycott the guilty brands.
Cause marketing: a popular strategy that aligns a company or brand with a cause to generate business and societal benefits.
Corporate social responsibility (CSR): processes that encourage the organization to make a positive impact on the stakeholders in its community.
Benevolent halo effect:
The shoe company TOMS is well-known for its promise to give a child in need a pair of shoes for every pair it sells
What are the aspects of the technological environment
Data privacy: requires websites to provide visible notice regarding private information they collect through cookies and to give consumers the choice to disagree to such tracking.
Data accuracy: fake news can influence consumer behaviour, for example, conspiracy theories such as COVID-19 vaccinations had chips in them
Identity theft: phishing scams
Artificial intelligence: creating new opportunities and challenges for consumers and consumer protection.
Consumer addiction: a psychological dependency on products or services
Cyberbullying: the “willful and repeated harm inflicted through the use of computer, cell phones, and other electronic devices
What are the aspects of the legal environment
- Governmental regulations and agencies
- Consumers behaving badly
- Consumer theft and fraud
- Unauthorised knock-offs
What are the aspects of the environmental environment
Sustainability: based on a simple principle: everything that we need for our survival and wellbeing depends, either directly or indirectly, on our natural environment
Green marketing: a strategy that involves the development and promotion of environmentally friendly products and a focus on this attribute when the manufacturer communicates with customers
Greenwashing: companies make false or exaggerated claims about how environmentally friendly their products are
*Differentiate between the different kinds of literacy
Media literacy - describes the extent to which a consumer can critically evaluate the message they received from the web.
Financial literacy - is the degree to which a person understands key financial concept and possesses the ability and confidence to manage personal finances .
Functional literacy - a person who’s reading skills are able to carry out every day tasks such as reading the newspaper or the instructions on a pill bottle
