Ethics, Social Marketing, Corporate Social Responsibility Flashcards
Ethics
People’s moral standards; what you believe is right or wrong (completely different than legality)
What are the different components that influences a business’ ethical behaviour?
- Societal culture and norms
- Business culture and industry practices
- Corporate culture and expectations
Societal Culture and Norms
Includes family, friends, and education
Business Culture and Industry Practices
What the business community believes is right and wrong
Corporate Culture and Expectations
What a company believes is right and wrong
Give an example of something that is ethical but illegal
Whistleblowing (reporting wrongdoing) after signing an NDA
Give an example of something that is ethical and legal
Healthcare
Give an example of something that is unethical and illegal
Selling a contaminated product knowing the product is contaminated
Give an example of something that is unethical but legal
Paying employees minimum wage without any raise over time
What are some common criticisms of marketing?
It has a negative impact on consumer welfare:
- Materialistic/acquisition based society (creates needs and emphasizes existing needs)
- Unfair practices
- Self-esteem threats
- Discriminatory actions
Social Marketing
The systematic application of marketing and other concepts or techniques to achieve specific behavioural goals for a social good (prioritize benefits to society and others)
What are some common social marketing topics?
- Health and safety causes
- environmental causes
- social activism
Corporate Social Responsibility
Companies “doing well by doing good” (company benefits from generous actions). The company places themselves first; any benefits to others are secondary.
Why do companies engage in corporate social responsibility?
People want to buy from morally good companies since they feel the company is more likely to pass on the benefits of your purchase to others.
Fast Fashion
Cheap, low quality clothing that is not meant to last
Planned Obsolescence
Designing products that break quickly or become obsolete in the short to medium-term
False Advertising
ILLEGAL. Untrue or misleading information shared to consumers to persuade them to buy a product.
Bait and Switch
ILLEGAL. Company advertises a great deal to generate interest from consumers, claim they are out of stock, then propose a more expensive alternative
Predatory Pricing
ILLEGAL. Price low to put competitors out of business, then raise prices.
Price Discrimination
ILLEGAL. Different prices are charged to different groups when there is no additional cost to the company and no additional benefit to consumers. Note that this is not the same as segmented pricing (see Ch. 9)
Price Fixing
ILLEGAL. Multiple companies agree to raise their prices and hold them constant to force consumers to pay a higher price increasing profit for all companies involved
What is the benefit of companies collecting data on consumers from a consumer perspective?
Consumers receive more personalized recommendations from the company
