Marketing ethics

Question 1

Ethics

Answer 1

a theory or system of moral principles
The golden rule: treat others as you want to be treated

Question 2

American Marketing Associations ethical norms

Answer 2

1. Do no harm: avoid harmful actions or omissions by embodying high ethical standards + adhering to all laws
2. Foster trust in the marketing system - strive for good faith and fair dealing, avoiding deception
3. Embrace ethical values: honesty, responsibility, fairness, respect, transparency and citizenship

Question 3

3 influences on ethical behaviour

Answer 3

1. Societal culture and norms
2. Business culture and industry practices
   -Kennedy’s Consumer Bill of Rights
   – Buyers have a right 1) to safety, 2) to be informed, 3) to choose, and 4)
   to be heard
3. Corporate culture and expectations
   -Dress codes, work space, compensation, codes of ethics

Question 4

Two philosophies on ethical decision-making

Answer 4

1. Moral idealism (Kant)
2. Utilitarianism (Bentham)

Question 5

Moral idealism (Kant)

Answer 5

– There is a right thing to do, no matter what the cost
– Stick to one ideal, or principle (e.g., you should never
steal, never lie)
– Favored by religious and consumer groups

Question 6

Utilitarianism (Bentham)

Answer 6

– Considers costs and benefits – the right thing to do is what hurts the fewest people
– Act in the best interest of the most people in a situation
– Favored by business executives and the military

Question 7

Ethics

Answer 7

-Rules of conduct recognized in
respect to a particular class of
human actions or culture
-Social system – external (law,
regulation, professional codes)
-Because society says it is the right
thing to do.
-Dependent on others for definition;
consistent within a given context,
but can vary between contexts
-Governed my professional and legal guidelines within a particular place and time

Question 8

Morals

Answer 8

-Personal compass of what’s right
and wrong
-Individual – internal (religion,
opinions, values)
-Because we believe in something
being right or wrong.
-Usually consistent, but can change
if an individual’s beliefs change
-Transcends cultural norms