Marketing Ethics/ Chapter 5 Flashcards
what is ethics?
moral principles and values that govern the actions and decisions of an individual or group
what is business ethics?
moral principles and values that guide a firms behaviour
what is marketing ethics?
moral principles and values that guide behaviour within the field of marketing and cover issues such as product safety, truthfulness when advertising
what ethical issues are there in marketing?
political issues
marketing mix effects on consumers
societal issues - e.g. very high sugar/fat damaging society
environmental issues - may lose customers
what responses are there to ethical issues in marketing?
legal and regulatory European and national laws and regulatory bodies sociatial consumerism environmentalism business corporate social responsibility
what is corporate social responsibility?
the ethical principle that an organisation should be accountable for how its behaviour might affect society and the environment
what are the typical key stakeholders for a company?
suppliers shareholders customers employees communities associated with company
what is the order of the pyramid of social responsibility?
from bottom
economic responsibility - maintaining strong competitive position -high efficiency and effectiveness
legal responsibility - drive to make profits can conflict with the law
ethical responsibility - perform in manner consistent with values of society- not breaking ethical norms to meet rcoporate objectives
Philanthropic responsibilities - corporate actions that meet societies expectations that businesses be good corporate citizens (desired by society but not required)
what are the arguments for Corporate social responsbility
CSR leads to enhanced brand/ corporate imagine and reputation
CSR provides marketing opportunities
CSR can reduce operating costs
CSR increases organisations ability to attract and retain employees
what are the arguments against Corporate social responsibility
CSR is misguided
CSR is too costly
CSR does not improve profitability
how do you market in non-profit organisations?
identify target markets
develop marketing mix
internal marketing
what are legal and regulatory responses to ethical issues in marketing
EU competition laws and regulatory bodies
EU laws and regulatory bodies that aim to protect the rights of consumers
National laws covering consumer rights and protection
Voluntary bodies set up by industries to create and enforce codes of practice
what are the societal response to ethical issues in marketing
consumerism- organised action against business practises that are not interested in consumers
environmentalism - organised movement of groups and organisations to protect and improve the physical environment
ethical consumption - occurs when individual consumers, when making purchasing decisions take into account not only personal interests but also societal and environmental interests e.g. non-animal tested products.
what are the dimensions of corporate social responsibility?
physical evidence - pollution, recycling, non wastage packaging, environmental friendly
social- support for local and wider community
consumer -key issues are honesty in communication, respecting privacy, product safety
supply chain - fair trade standard
employee relations - fair pay, equal opportunities, training opportunities.
