Ethics, Social Marketing, Corporate Social Responsibility

Question 1

Ethics

Answer 1

People’s moral standards; what you believe is right or wrong (completely different than legality)

Question 2

What are the different components that influences a business’ ethical behaviour?

Answer 2

• Societal culture and norms
• Business culture and industry practices
• Corporate culture and expectations

Question 3

Societal Culture and Norms

Answer 3

Includes family, friends, and education

Question 4

Business Culture and Industry Practices

Answer 4

What the business community believes is right and wrong

Question 5

Corporate Culture and Expectations

Answer 5

What a company believes is right and wrong

Question 6

Give an example of something that is ethical but illegal

Answer 6

Whistleblowing (reporting wrongdoing) after signing an NDA

Question 7

Give an example of something that is ethical and legal

Answer 7

Healthcare

Question 8

Give an example of something that is unethical and illegal

Answer 8

Selling a contaminated product knowing the product is contaminated

Question 9

Give an example of something that is unethical but legal

Answer 9

Paying employees minimum wage without any raise over time

Question 10

What are some common criticisms of marketing?

Answer 10

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

Question 11

Social Marketing

Answer 11

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)

Question 12

What are some common social marketing topics?

Answer 12

• Health and safety causes
• environmental causes
• social activism

Question 13

Corporate Social Responsibility

Answer 13

Companies “doing well by doing good” (company benefits from generous actions). The company places themselves first; any benefits to others are secondary.

Question 14

Why do companies engage in corporate social responsibility?

Answer 14

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.

Question 15

Fast Fashion

Answer 15

Cheap, low quality clothing that is not meant to last

Question 16

Planned Obsolescence

Answer 16

Designing products that break quickly or become obsolete in the short to medium-term

Question 17

False Advertising

Answer 17

ILLEGAL. Untrue or misleading information shared to consumers to persuade them to buy a product.

Question 18

Bait and Switch

Answer 18

ILLEGAL. Company advertises a great deal to generate interest from consumers, claim they are out of stock, then propose a more expensive alternative

Question 19

Predatory Pricing

Answer 19

ILLEGAL. Price low to put competitors out of business, then raise prices.

Question 20

Price Discrimination

Answer 20

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)

Question 21

Price Fixing

Answer 21

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

Question 22

What is the benefit of companies collecting data on consumers from a consumer perspective?

Answer 22

Consumers receive more personalized recommendations from the company