Marketing Ethics and Social Responsibility

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MARKETING ETHICS AND

SOCIAL RESPONSIBILITY
WHAT IS ETHICS?

Ethics are the moral principles and values that govern


the actions and decisions of an individual or group.
They serve as guidelines on how to act rightly and
justly when faced with moral dilemmas.

Right ? Wrong ?
DEFINITION OF MARKETING
ETHICS

Marketing ethics is the area of applied ethics which deals with the moral

principles behind the operation and regulation of marketing. Some areas of

marketing ethics (ethics of advertising and promotion) overlap with media

ethics.
MARKETING
ETHICS

Distributor
Relations

Product Advertising
Development Corporate Standards
Marketing
Ethics
Customer
Pricing Policies
Service

General
Code
ISSUES IN MARKETING ETHICS
Product Pricing
Issues Issues

Customers

Promotion Distribution
Issues Issues

+ Employee Theft
FACTORS INFLUENCING ETHICAL
MARKETING BEHAVIOR
RELATIONSHIP BETWEEN MARKETING
AND ETHICS

 a reasonable practice leading to positive relationships.


 that rules are not necessarily contractual.
 allows buyers and sellers to work together.
 disadvantage: requires time to develop a list of expected
conduct or “rules of behavior.”
THREE CONCEPTS
OF SOCIAL
RESPONSIBILITY
SOCIAL CRITICISMS OF MARKETING
SOCIAL CRITICISMS OF MARKETING

High
Prices

Poor Deceptive
Service Practices
Marketing’s
Impact on
Individual High
Planned Consumers Pressure
Obsolescence Selling
Shoddy or
Unsafe
Products
False Wants and Too Few
Too Social
Much Materialism Goods

Too Much Cultural


Political Pollution
Power
Marketing’s Impact on Other Businesses
Critics Charge that a Company’s Marketing Practices Can Harm Other Companies and
Reduce Competition Through:
CASE STUDY
NIKE

• Nike has been criticized • Nike took the charges seriously and
lately about NOT being commissioned a study of Nike
socially responsible factories abroad
• Accusations of overseas • Nike donates more than $30
sweatshops, child labor, and million in cash and products to
exploiting lower income U.S. sports programs and 3% of
families earnings to charity
• CEO Knight – “not sure how we
measure good performance in
corporate responsibility”
VIDEO

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