Chp 18: Ethics & Socially Responsible Marketing

Question 1

define business ethics

Answer 1

refers to the moral or ethical dilemmas that might arise in a business setting

Question 2

define marketing ethics

Answer 2

ethical problems specific to marketing

Question 3

define locational privacy

Answer 3

person’s ability to move about in public spaces with the expectation that the location will not be recorded for future use

Question 4

why do marketers need to be concerned about ethics?

Answer 4

Unethical marketing practices may mean consumers can no longer trust a brand

Question 5

lecture: 3 levels of marketing responsibility

Answer 5

1) legal
2) ethical
3) socially responsible

Question 6

LO1: what good opportunity does marketing give?

Answer 6

Marketing functions interact with entities outside the firm regularly, it is a good opportunity to build the public’s trust

Question 7

LO1: creating ethical climate in workplace: define ethical climate

Answer 7

set of values within marketing firm/division that guides decision making and behaviour

Question 8

LO1: creating ethical climate in workplace: what must firm do - 3 points

Answer 8

1) Everyone within the firm must share the same understanding of values and how they translate into business activities
2) Firms must develop rules that govern firm’s transactions
3) There must be a system of controls to reward behaviour consistent with firm’s values.

Question 9

LO1: influence of personal ethics: how does personal ethics come into workplace?

Answer 9

Each firm is made up of individuals each with his own needs/desires

Question 10

LO1: influence of personal ethics: why do we act unethically and an example

Answer 10

1) All of us vary in the way we view situations depending on our own level of understanding about ethical behaviours
2) Example: A child may not know that hitting is wrong

Question 11

LO1: influence of personal ethics: how to avoid employees acting unethically and example

Answer 11

1) short term goals of each employee must be aligned with the long term goals of the firm
2) example: Managers short term goal of receiving a bonus cannot conflict with long term firm’s goal of providing safe products

Question 12

LO1: influence of personal ethics: how to align personal and corporate goals

Answer 12

firms need to have strong ethical climate, explicit rules governing transactions including a code of ethics and a system for rewarding/punishing behaviour

Question 13

LO2: define corporate social responsibility (CSR)

Answer 13

voluntary activities undertaken by a company to operate in an economically, socially, and environmentally sustainable manner

Question 14

LO2: what should firm do to act in socially responsible manner?

Answer 14

1) the employees must also maintain high ethical standards and understand how individual decisions lead to collective actions of firms.
2) Firms must implement programs that are socially responsible

Question 15

LO2: high ethics, high social responsibility

Answer 15

both ethical and socially responsible

Question 16

LO2: high ethics, low social responsibility

Answer 16

ethical firm not involved with larger community

Question 17

LO2: low ethics, high social responsibility

Answer 17

questionable firm practices but donates a lot to community

Question 18

LO2: low ethics, low social responsibility

Answer 18

neither ethical nor socially responsible

Question 19

LO2: what does being socially responsible mean?

Answer 19

going above and beyond norms of corporate ethical behaviour

Question 20

LO2: example of socially responsible but low ethics firm

Answer 20

a company can have deceptive advertising so it is not ethical but donates a lot to charities so it is socially responsible

Question 21

LO2: who is affected by firm’s social responsibility?

Answer 21

A firm’s social responsibility influences how consumers make their purchase decisions and how investors make investing decisions

Question 22

LO3: 4 ways to implement social responsibility initiatives?

Answer 22

1) charitable donations
2) diversity
3) fuel conservation
4) volunteerism

Question 23

LO3: 5 stakeholders impacted by CSR

Answer 23

1) shareholders
2) employees
3) consumers
4) marketplace
5) society

Question 24

LO3: explain CSR for employees - 3 points

Answer 24

1) ensure safe working environment, equality of treatment and fairness in compensation
2) By doing so, they increase reputation as a good place to work and increase the talent pool of people who apply there
3) The happy employee also provides better service to consumers.

Question 25

LO3: explain CSR for customers - 2 points

Answer 25

1) Firms must consider effect on current and future customers
2) includes respecting and protecting customers digital privacy, health effects of products

Question 26

LO3: explain CSR for marketplace

Answer 26

When firm leads CSR efforts, partners and competitors have to follow or run the risk of falling behind and getting a bad reputation

Question 27

LO3: explain CSR for society

Answer 27

Firms should expend time and energy engaging in activities to improve community and physical environment otherwise this can damage reputation and profits

Question 28

LO3: how do consumers foster socially responsibly and ethical decision making?

Answer 28

Consumers can place pressures on businesses to practice ethical and socially responsible behaviour in a number of ways: protect, boycott, generating negative publicity

Question 29

LO3: define consumerism

Answer 29

a social movement aimed at protecting consumers from business practices that infringe upon their rights

Question 30

LO4: 4 steps in ethical decision making

Answer 30

1) identify issues
2) gather info and identify stakeholders
3) brainstorm and evaluate alternatives
4) choose course of action

Question 31

LO4: example for step 1) identify issues

Answer 31

issues in how consumer data is collected and stored to ensure privacy

Question 32

LO4: what happens in step 2) gather info and identify stakeholders - 2 points

Answer 32

1) gather facts important to ethical issue and all relevant legal info
2) Firm must identify and have discussions with individuals and groups that have a stake in how issue is resolved

Question 33

LO4: explain and example of step 3) brainstorm and evaluate alternatives to digital privacy example for consumers

Answer 33

1) making responses anonymous, giving employees ethics training
2) bring together all stakeholders impacted and brainstorm and evaluate alternatives

Question 34

LO4: step 4) choosing course of action - 3 things

Answer 34

1) Choose course of action that generates the best solution for stakeholders by using ethical practices
2) List advantages/disadvantages and legal issues associated with each alternative
3) To ensure firm has applied all relevant decision making criteria, they can use an ethical decision making metric

Question 35

LO4: 6 tests in ethical decision making metric

Answer 35

1) publicity test
2) moral mentor test
3) admired observer test
4) transparency test
5) person in mirror test
6) golden rule test

Question 36

LO4: explain publicity test

Answer 36

would i want to see the action described on national newspaper

Question 37

LO4: explain moral mentor test

Answer 37

would person i admire most do this action

Question 38

LO4: explain admired observer test

Answer 38

would i want person i admire most to see me do this

Question 39

LO4: explain transparency test

Answer 39

can i give a clear explanation for the action that would satisfy a fair and dispassionate moral judge

Question 40

LO4: explain person in mirror test

Answer 40

would i be able to respect myself doing this

Question 41

LO4: explain golden rule test

Answer 41

would i like to be on receiving end of action and its consequences?

Question 42

LO5: how ethics/CSR can be implemented in planning phase of marketing strategy

Answer 42

Can introduce ethics by including ethical statements in firm’s mission statement or providing a statement of values that defines priority of org

Question 43

LO5: how ethics/CSR can be implemented in implementation phase of marketing strategy - 4 points

Answer 43

1) Sometimes a firms choice of target market and how it pursues it can lead to charges of unethical behaviour (ie targeting alcohol to high school students)
2) Implement ethics in identifying potential markets and ways to deliver the 4 Ps to them
3) Example: sourcing decisions, whether a company wants to source from slave labour in asia or ethically in north america
4) Develop safe products, price products fairly, promote products truthfully, distribute products without undue discrimination

Question 44

LO5: how ethics/CSR can be implemented in control phase of marketing strategy - 2 points

Answer 44

1) Marketers must determine whether firm has acted in ethical and socially responsible manner, if not, they should correct the situation quickly
2) Systems should determine whether ethical issue raised in planning process was successfully implemented and systems should be able to react to changes in ethics in society (Example: competitor has been found to not handling customer data properly, so you need to make sure you look good)

Question 45

Lecture: Example: ethics/CSR implication for market research

Answer 45

The info social media gathers, Example: apps track personal data

Question 46

Lecture: Example: ethics/CSR implication for consumer targeting

Answer 46

Predatory lending

Question 47

Lecture: Example: ethics/CSR implication for implications for product design

Answer 47

Example: heart attack grill. A food place that is about being as unhealthy as possible.

Question 48

Lecture: Example: ethics/CSR implication for implications for pricing

Answer 48

Pricing at big box stores - sales to price hikes. Before they put items on sale, they hike the regular prices of the products so the sale price brings the price of the item down to regular price.

Question 49

Lecture: Example: ethics/CSR implication for implications for distribution

Answer 49

Underpaying workers from sweatshops that they get their supply of clothes from

Question 50

Lecture: Example: ethics/CSR implication for implications for selling

Answer 50

Firms are trying to sell you more products (example: apple selling warranty with products)

Question 51

LO4: what does high score mean in ethical decision making metric

Answer 51

means answered no for a lot of question - situation is ethically troubling