Social Responsibility and Green Marketing

8/2/2019 Social Responsibility and Green Marketing

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Copyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 4-1

ETHICS AND

SOCIALRESPONSIBILITY

IN MARKETING

CHAPTER


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AFTER READING THIS CHAPTER

YOU SHOULD BE ABLE TO:

1. Explain the differences between legal

and ethical behavior in marketing.

2. Identify factors that influence ethicaland unethical marketing decisions.

3. Describe the different concepts of social

responsibility.

4. Recognize unethical and socially

irresponsible consumer behavior.


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THERE IS MORE BREWING AT

ANHEUSER-BUSCH THAN BEER
http://www.anheuser-busch.com/


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NATURE AND SIGNIFICANCE OF

MARKETING ETHICS

Ethics

Laws

Ethical/Legal Framework in Marketing

Current Perceptions of Ethical Behavior


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Concept Check

1. What are ethics?

A: Ethics are the moral principles and

values that govern the actions anddecisions of an individual or group.

They serve as guidelines on how to

act rightly and justly when faced withmoral dilemmas.


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Concept Check

2. What are three possible reasons for thepresent state of ethical conduct in the

United States?

A: (1) Pressure on businesspeople to make decisionsin a society with diverse value systems. (2)

Business decisions being judged publicly bygroups with different values and interests. (3)

Ethical business conduct may have declined.


7/47Copyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Slide 4-7

UNDERSTANDING ETHICAL

MARKETING BEHAVIOR

Societal Culture and Norms

Culture



FIGURE 4-1FIGURE 4-1 A framework for understanding

ethical behavior




MARKETING BEHAVIOR

Business Culture and Industry Practices

Business Cultures

Ethics of Exchange

Caveat Emptor

Consumer Bill of Rights

U.S. Consumer Product Safety Commission

Federal Trade Commission (FTC)



Federal Trade CommissionIs your online privacy protected?
http://www.ftc.gov/infosecurity




MARKETING BEHAVIOR

Ethics of Competition

Economic Espionage

Bribes

Kickbacks




MARKETING BEHAVIOR

Corporate Culture and Expectations

Corporate Culture

Whistle-blowers

Code of Ethics

Ethical Behavior of Top Management and

Co-workers




MARKETING BEHAVIOR

Moral Idealism

Utilitarianism

Personal Moral Philosophy andEthical Behavior



FIGURE 4-AFIGURE 4-A Personal moral philosophies



3M ScotchgardWhich moral philosophy did 3M use and why?
http://www.3m.com/us/home_leisure/scotchgard/



Concept Check

1. What rights are included in theConsumer Bill of Rights?

A: The rights to safety, to be informed, tochoose, and to be heard.



Concept Check

2. What is meant by moral idealism?

A: Moral idealism is a personal moral

philosophy that considers certainindividual rights or duties as

universal, regardless of the outcome.



UNDERSTANDING SOCIAL

RESPONSIBILITY IN MARKETING

Concepts ofSocial Responsibility

Profit Responsibility

Green Marketing

Stakeholder Responsibility

Societal Responsibility

Cause Marketing

Profiteering



FIGURE 4-2FIGURE 4-2 Three concepts of social

responsibility



AvonWhy do companies engage in cause marketing?
http://www.avoncompany.com/women/avoncrusade/index.html


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UNDERSTANDING SOCIAL

RESPONSIBILITY IN MARKETING

Social Audit

Sustainable Development

The Social Audit: Doing Well by DoingGood

Turning the Table: Consumer Ethicsand Social Responsibility


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Ronald McDonald HouseHow do companies do well by doing good?
http://www.rmhc.org/


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ReebokWhy is sustainable development important?
http://www.reebok.com/


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Concept Check

1. What is meant by socialresponsibility?

A: Social responsibility means that

organizations are a part of a larger

society and are accountable to that

society for their actions.


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Concept Check

2. Marketing efforts to produce,promote, and reclaim environmentally

sensitive products are called

_____________.green marketing


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Concept Check

3. What is a social audit?

A: A social audit is a systematic

assessment of a firms objectives,strategies, and performance in the

domain of social responsibility.


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DOING WELL BYDOING GOOD

GOING ONLINE


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1. Visit the BSR website. Can you

update at least one example in the text

related to your chosen topic?

Going Online
http://www.bsr.org/


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STARBUCKS CORPORATION:

SERVING MORE THAN

COFFEE

VIDEO CASE 4


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VIDEO CASE 4Starbucks
http://www.starbucks.com/


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FIGURE 1FIGURE 1 Starbucks Mission Statement and

Guiding Principles


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1. How does Starbucks approach to

social responsibility relate to the three

concepts of social responsibilitydescribed in the text?



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2.What role does sustainable

development play in Starbucks

approach to social responsibility?



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THE FIVE MOST COMMON

KINDS OF ECONOMIC

ESPIONAGE

SUPPLEMENTALLECTURE NOTE 4-1


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THE ETHICS OF

COMPETITIVE

INTELLIGENCE

IN-CLASS ACTIVITY 4-1


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Fuld & Company Brochure
http://www.fuld.com/


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Ethics

Ethics are the moral principles and values

that govern the actions and decisions of

an individual or group.


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Laws

Laws are societys values and standards

that are enforceable in the courts.


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Consumer Bill of Rights (1962)

The Consumer Bill of Rights (1962)

is a law that codified the ethics of

exchange between buyers and sellers,

including the rights (1) to safety,

(2) to be informed, (3) to choose, and

(4) to be heard.


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Code of Ethics

A code of ethics is a formal statement of

ethical principles and rules of conduct.


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Whistle-blowers

Whistle-blowers are employees who

report unethical or illegal actions of their

employers.


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Moral Idealism

Moral idealism is a personal moral

philosophy that considers certain

individual rights or duties as universal,

regardless of the outcome.


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Utilitarianism is a personal moral

philosophy that focuses on the greatest

good for the greatest number, by

assessing the costs and benefits of the

consequences of ethical behavior.

Utilitarianism


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Social responsibility means that

organizations are a part of a larger society

and are accountable to that society for

their actions.

Social Responsibility


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Green marketing consists of marketing

efforts to produce, promote, and reclaim

environmentally sensitive products.

Green Marketing


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Cause marketing occurs when the

charitable contributions of a firm are tied

directly to the customer revenues

produced through the promotion of one of

its products.

Cause Marketing


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A social audit is a systematic assessment

of a firms objectives, strategies, and

performance in terms of social

responsibility.

Social Audit

Social Responsibility and Green Marketing

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