Week 11 Flashcards
What are ethics
Study of morality of what’s right or wrong
What is business ethics
Studies morality based on business practices and values
Where do conventional moral rules apply
In all areas of life especially stakeholders
What are stakeholders
Parties that affect or are affected by what organizations do
What are stakeholders types
Consumers, employees, investors, shareholders, vendors, local community, larger society, government, countries
What are ethical principles
General rules guiding moral actions and decisions in ethical dilemmas
What are the 8 ethical principles
- Fiduciary
- Property
- Reliability
- Transparency
- Dignity
- Fairness
- Citizenship
- Responsiveness
What are the consequences for marketers acting unethically
Loss of profits, legal charges, fines, public relations disasters, ruined image, reduced investments, drop in stock prices, distrust, demotivation, boycotting
What are consumer cynicism
Related to suspicion, mistrust, skepticism and distrust of an agent’s or organizations motives
What can unethical behaviour lead to
Immoral leadership, miscalculation of risk, loss of touch, heavy focus on immediate returns
What are the rules of ethics surrounding the 4Ps
- Products must be safe and functional
- Prices are base don costs or marketing forces
- Promotions will be honest and be fair to competition
- Places treat consumers with respect
What are other ways marketers can restring value creation for consumers
- Market research
- Segmentation
- Targeting of vulnerable consumer groups
- Privacy violations
When was business ethics exist
1970s
What made business ethics so prominent
- Economic, social, environmental adoption
- Improved capacities of production
- Fiercier competition
- Increased consumer choice
- Need for differentiations
What is activism
Any activities or efforts that draw attention to an issue to achieve positive change in society
What are different forms of activism
- Movements
- Marches
- Protest demonstrations
- Ralliees
- Strikes
- Boycotts
- Whistle blowing
- Government lobbying
- Fundraising
- Canvassing
- Watch dogs
- Internet activism
What are consumer sovereignty
Freedom that people could have through consumption
What did the 1970s saw
- Development of a more active consumer with increasing concern for the right to safety when buying products or receiving services
- Consumer protection became an issue to companies and governments
What is quiet activism
Social changes are made by small or gentle actions
What is youth quake
Rising influence of young people in political, cultural and social change
What are slacktivism
People passively participating in activism by showing small tokens of support
What are moral licensing effect
When people feel good about themselves after making a moral choice and feelings can carry over to subsequent immoral choices
What is attitude behaviour gap
Consumers express one attitude about an activity or product but then behave in the opposite way
What are cognitive consistency theories
When contradictions make people uncomfortable unless they find a way to provide a justifiable explanation
What does government regulation do
Reflects society’s concerns and act as countervailing power to business self interest and exploitation
What else does the government care about
Economic growth, regulating competition, trade, intellectual property rights
What is self regulation
Voluntary and imposed by the industry or corporation itself and not by the government or market forces
What is a common criticism of self regulatory organizations
When the standards are violated, non governmental regulators have limited power to remediate and penalize the offenders
What are examples of governmental and industry regulators
- Federal organizations
- Industry self regulation
- Specific product associations
- Consumer advocacy
What can organizations do to avoid dark behaviors
Establish codes of ethics, credos and mission statements for all employees to follow
What are consumer ethics scale
- Can be used to connect consumers perceptions of ethical consumer behaviors in the marketplace to their demographics
- Looks at what different demographic groups find acceptable
What are consumer misbehavior
Behavioral acts that violate the accepted norms of conduct and disrupt the consumption order
What is included in consumer misbehavior
- Deviant consumers
- Jay customers
- Dysfunctional consumers
What are consumer problem behaviors
Over reliance on or over use of certain products
What is self control
Self control is another factor that distinguishes problem behaviors from consumer misbehavior
How do you categorize dark consumer behaviour
- Illegal misbehaviour
- Problem behaviour
- Dysfunctional behaviors
What is deviant acquisition behaviour
Consumer misbehavior and problem misbehavior in acquiring goods
What are three forms of misbehavior
- Consumer agression
- Consumer theft
- Problem behaviour of compulsive shopping
What is consumer theft
Stealing as a way of acquiring goods
What are the reasons for stealing
Addiction to items, poverty, unfortunate circumstances
How can consumers justify theft
- Justify by environment encouraging it and company somehow deserves it
- Victimless
- Stealing is not wrong
How do marketers discourage shoplifting
Making access to expensive goods difficult or making frequently stolen items available behind a counter, under a panel or secured with metal cables, security tags
What is compulsive buying
Unusual obsession with shopping that affects the person
What is impulsive buying
Making an unplanned purchase in the spur of the moment
What are the negative consequences of compulsive buying
Financial, serious psychological, personal
Why is contemporary consumer culture a problem
- Emphasize materialism
- Encourage lower self esteem
What is deindiviation
Disengagement from self identity and personal moral code when part of a group or crowd
What are other problematic behaviors
- Skipping payments
- Late payments
- Breaking rental agreements
- Aggressive behaviour towards staff or customers
What are different examples of excessive consumption
- Obesity Crisis
- Excessive alcohol consumption
What are wicked problems
Complex social issues that have many possible explanations, aspects and dimensions
How do you solve wicked problems
Involving stakeholders work together
What can complexity of wicked problems lead to
Victim blaming
What is victim blaming
When sufferers are criticized for behaving in a way that brings a problem onto themselves
What can focusing on individual themselves and not others lead to
Stigma and discrimination
What are ways to brighten the market place
- Changing status quo
- Corporate social responsibility
What is corporate social responsibility
Taking good care of the financial side of the business for the shareholders
What are the benefits of CSR
- Supporting a business objective to make profits instead of distracting from it
- Allows the company to better manage resources
- Apply core competencies
- Differentiate itself from competitors
- Communicate values
- Carve out a nice
- Attract like minded consumers
What is sustainability
Ability to be maintained at a given level indefinitely
What is the triple bottom line accounting
Profit, peopled Planet
What is climate change an example of
Super wicked problem
What is a super wicked problem
Problems that gets worn every time and there’s no single body of authority capable of solving it
What does sustainability mean to marketers
- Sustainable operations
- Practices
- Production
- Sourcing
- Water disposal
What is emergence of the voluntary simplicity movement
Simpler way of living
What is voluntary simplicity
Lifestyle choice where people opt to limit material consumption and free up resources
How to dispose to make a smaller environmental footprint
- Give unwanted items to friends and family
- Giveaway unwanted items
- Donate to charity
- Dispose directly to general garbage
- Dispose in a recycling bin
- Exchange unwanted items
- Sell unwanted items
What is the biggest problems of modern consumerism
Environmental impact of waste
