Marketing Ethics And Social Responsibility In Strategic Planning Flashcards
What are the different social responsibility issues?
- Consumer movement: protect right of consumers, right to safety, to be informed, choose and to be heard.
- Community relations: community causes, disadvantaged members of society, safety and health and education and general welfare.
- Green marketing: products that do not harm the environment, conservation, water pollution, air and land pollution.
- Diversity: integration and utilization of a diverse workforce, equal opportunity, differences and contribute to success.
Why has marketing ethics and social responsibility increased in importance for marketing strategy?
- grown in importance recently due to firms having problems with their image, reputation and marketing efforts in these areas.
- have become necessities in light of stakeholder demands and changes in federal law
- important to consider in the development of marketing strategy
- improves marketing performance and profit
What is social responsibility?
- relates to an organizations obligation to maximize its positive impact on society while minimizing its negative impact
- it includes the economic responsibility of making a profit to serve shareholders, employees and the community at large
- included legal responsibility of obeying the law and regulations
- ethical responsibility to uphold principles and standards that define acceptable conduct as determined by society
- philanthropic responsibility to increase firms overall positive impact on society, community and the environment
What is marketing ethics?
Principles and standards that define acceptable marketing conduct as determined by the public, government regulators, private interest groups, competitors and the firm itself.
- comes into play any time that an activity causes managers, employees or customers in a target market to feel manipulated or cheated.
What are the dimensions of social responsibility?
- Social responsibility
- Marketing ethics
- Moral philosophies (utilitarianism, ethical formalism)
What some causes for unethical behavior?
- unethical personnel
- problems with the organizations ethical standards
Why should companies do good?
- strengthen brand positioning
- increase sales and market share
- increase ability to attract, motivate and retain employees
- increased appeal to investors and financial analysis
- enhanced corporate image and clout
What does societal marketing need to consider?
- the three p’s: people, planet and profit
What is the ethical continuum?
- it is bounded by legislation of individual countries such as the countries:
- matter of taste and judgement
- sensitive issues, race, gender, religion and culture
- harmful and illegal
What are some examples of ethical product issues?
- product safety: food scares, adverse side effects to small percentage of users.
- product obsolescence: deliberate designed not to last
- deceptive packaging: oversized packaging
- misleading labeling: sin of omission, confusion over country of origin, loose language
- unsuitable products: toys that promote violence
What are some ethical issues of pricing?
- price fixing
- predatory pricing
- deceptive pricing
- price discrimination
What are some ethical promotional issues?
- false misleading advertising (exaggerated claims, concealed facts and deliberate omissions)
- advertising to children
- acceptable levels of decency
- copy cat branding
- miss leading communication
- unfair practice against competition
What are some ethical distribution issues?
- exclusive arrangements
- imbalance of power in the supply chain
- product dumping
What are the challenges of being ethical and socially responsible?
- complex decisions in which correctness may not be apparent (Internet privacy, copyright, intellectual property rights)
- ethical conflict may emerge between personal values and the values held by the members of the work group
- ethical issues can develop into legal issues
What are types of misconduct observed in organizations?
- abusive behavior
- lying to employees and other stakeholders
- Internet abuse
- discrimination
- stealing
- harassment
- misuse of confidential information
- bribes
- safety violations
