Professional Documents
Culture Documents
Marketing Ethicks Ferrell Hartline
Marketing Ethicks Ferrell Hartline
marketing strategy
strategy
O.
O.C.
C.Ferrell
Ferrell Michael
MichaelD.
D.Hartline
Hartline
Marketing Ethics
and Social
Responsibility in
Strategic Planning
The Auto Industry Tries to Go Green
• Car manufacturers have gone to great lengths to promote
hybrid cars.
3-3
Discussion Question
3-4
Dimensions of
Social Responsibility
• Social Responsibility
– A broad concept that relates to an organization’s obligation
to maximize its positive impacts on society while
minimizing its negative impacts
• 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
3-5
Marketing Strategy in Action
• R.J. Reynolds has been accused by critics of using its
“Joe Camel” cartoon character, to target children for
cigarette consumption.
3-6
The Pyramid of
Corporate Social Responsibility
3-8
Marketing Ethics and Strategy
• Requires that organizations and individuals accept
responsibility
• Can lead to violations of public trust
• Involves complex and detailed decisions in gray areas
• Deals with experiences and decisions made at work
• Comes into play anytime individuals feel manipulated or
cheated
3-9
Potential Ethical Issues in Marketing
• Overall Issues
• Product Issues
• Pricing Issues
• Distribution Issues
• Promotion Issues
3-12
Types of Misconduct
Observed in Organizations
3-14
Deceptive Practices in Marketing
3-15
Organizational Determinants of
Marketing Ethics & Social Responsibility
• Ethical Decision Making
– Determined by an individual’s background and business
colleagues
– Affected by personal values, opportunity for unethical
behavior, and exposure to others
– Intricately tied to the firm’s culture and ethical climate
– Can only be improved by planning and structure
– Likely to occur when modeled by a strong leader
3-16
Ethical Climate
• Part of a corporate culture that relates to an
organization’s expectations about appropriate conduct
– The character component of an organization
– Sets the tone for ethical decisions
– Determines whether or not an individual perceives an issue to
be an ethical issue
3-17
Codes of Conduct (1 of 2)
• Codes of Conduct (Codes of Ethics)
– Formal statement that describes what an organization expects
of its employees
– Not an effective means of controlling ethical behavior unless
integrated into daily decision making
– Not effective unless the code has support of top management
3-18
Codes of Conduct (2 of 2)
• Codes must reflect management’s desire for
compliance with values, rules, and policies
• Codes should have six core values:
1. Trustworthiness
2. Respect
3. Responsibility
4. Fairness
5. Caring
6. Citizenship
• Codes will not resolve every issue encountered in daily
operations
• Codes can help managers deal with ethical dilemmas
3-19
Key Considerations in Developing and
Implementing a Code of Ethical Conduct
3-21
Market Orientation
• Market Orientation
– The development of an organizational culture that effectively
and efficiently promotes the necessary behaviors for the
creation of superior value for buyers and, thus, continuous
superior performance of the firm.
– Strongly tied to ethics and social responsibility
– Means fostering a sense of cooperation and information
exchange
3-22
Stakeholder Orientation
• Stakeholder Orientation
– The degree to which a firm understands and addresses
stakeholder demands
– Strongly tied to ethics and social responsibility
– Comprised of three activities:
1. Generation of stakeholder groups data and assessment
of firm effects on these groups
2. Distribution of this information throughout the firm
3. Responsiveness as a whole to this intelligence
3-23
Connecting Ethics & Social Responsibility
to Marketing Performance
3-24
The Connection Between
Ethics and Strategic Planning
• Typically done through ethical compliance programs or
integrity initiatives
• Vested in the marketing plan ethics a strategic
Why is marketing
consideration in organizational decisions?
• Based on an understanding of:
Who is most important in managing
marketing ethics: the individual or the
– 1) Risks associated with misconduct
firm’s leadership? Explain your answer.
– 2) Ethical and social consequences of strategy
– 3) Values of organizational members and stakeholders
• Manifested through actions … not just words
3-25
Discussion Question (1)
3-26
Discussion Question (2)
3-27
Discussion Question (3)
3-28