MARKETING ETHICS • Why do marketers have to worry about ethics? • What does it take for a firm to be considered socially responsible? • How should a firm make ethically responsible decision? • How can ethics and social responsibility be integrated into a firm’s marketing strategy?
Mattel – Product Safety Crisis Lead paint from subcontracted manufacturer in China
The Scope of Marketing Ethics Business Ethics Marketing Ethics Miller Commercial
Attitudes About the Ethical Standards of Various Professions • Why do you feel marketers (advertising practitioners) rank so low on this scale? • What can marketers do to improve their ranking?
Citibank Addresses Identity Theft • Why is this a good customer issue to address? • Why are these ads effective? Citibank Commercial
Creating an Ethical Climate in the Workplace • Values • Establish • Share • Understand • Rules • Management commitment • Employee dedication • Controls • Reward • Punishment
American Marketing Association Code of Ethics AMA Website
Why People Act Unethically What makes people take actions that create so much harm? Are all the individuals who engage in questionable behavior just plain immoral or unethical? Decisions often have conflicting outcomes, where both options have positive and negative consequences
The Link Between Ethics and Corporate Social Responsibility Build-A-Bear Workshop
Step One: Identify Issues Using results to mislead or even harm the public Marketing research firm issues Data collection methods Hiding the real purpose of the study
Step Three: Brainstorm Alternatives • Halt the market research project? • Make responses anonymous? • Instituting training on the AMA Code of Ethics for all researchers
Step Four: Choose a Course of Action Weigh the alternatives Take a course of action
Check Yourself According to the American marketing Association Code of Ethics, what are the six ethical values Identify the four stages in the ethical decision making framework
Planning Phase • The mission or vision statement sets the overall ethical tone for planning. • Firms often go beyond the mission or vision statement by including a values statement.
Newman’s Own Donating over $200 million since 1982
Implementation Stage • Aqua Teen Hunger Force • LED display was mistaken as a bomb • Secret Sparkle Body Spray • Sold through retailer that targets 7-14 year olds although packaging claimed to keep out of reach of children
Implementation Phase Should the firm be relocating production to another country? Should the firm be targeting this market with this product? Should the firm be selling its product in this market in this manner?
Control Phase • Check successful implementation • React to change
Check Yourself Should a marketing manager insist on assessing the ethics of a situation she or he is facing? Identify one ethical issue you might face in each of the three phases of a marketing plan
Understanding Ethics Using Scenarios Scenario 1: R.J. Reynolds: Promotions to Youth Scenario 2: Victoria’s Dirty Secret Scenario 3: Pregnant Teen TV Star Scenario 4: Who Is on the Line? Scenario 5: West Virginia T-Shirts Scenario 6: Giving Credit Where Credit Isn’t Due Scenario 7: The Jeweler’s Tarnished Image Scenario 8: No Wonder It’s So Good Scenario 9: Bright Baby’s Bright Idea Scenario 10: Money from Mailing Lists Scenario 11: The Blogging CEO
Scenario 1: R.J. Reynolds • What are the ethical issues • Mailings to young adults • Candy flavored cigarettes • Is it wrong? Why or why not? Back to list of scenarios
Scenario 2: Victoria’s Dirty Secret • What was Victoria’s Secret doing? • Was it wrong? • Unethical • How could they fix this? Back to list of scenarios
Scenario 3: Pregnant Teen TV Star • Should the show be cancelled? • Should the pregnancy be written into the script? • How should Nickelodeon handle this? • Is there any way this could be helpful? Back to list of scenarios
Scenario 4: Who Is on the Line? • What are the ethical issues in this scenario? • Why would a firm use this service? • How do you think consumers will respond to firms who use this service? • Would you advise purchasing this service? Back to list of scenarios
Scenario 5: West Virginia T-Shirts • What are the ethical issues in this scenario? • If you were the retailer how would you have responded? • Does a history of previous inappropriate business practices impact your opinion of the retailer? Back to list of scenarios
Scenario 6: Giving Credit Where Credit Isn’t Due • Is this an inappropriate target market? • Could you argue that the firm provides a valuable service to this market? • Would you advise the cataloger to pursue this new strategy? Back to list of scenarios
Scenario 7: The Jeweler’s Tarnished Image • Is the manufacturer responsible for the acts of independent sales people? • How do you feel the Billing’s should respond? Back to list of scenarios
Scenario 8: No Wonder It’s So Good • Is the legal non disclosure of the alcohol content and ethical issue? • Should the firm be required to disclose the alcohol content? • What would you do if you were Mia? Relax with Enjoy Cola Back to list of scenarios
Scenario 9: Bright Baby’s Bright Idea • Is the potential for injury enough to merit removal of the product from the market? • Do you feel it is ethical to move the product to a less regulated market? • What would you have advised the CEO? Back to list of scenarios
Scenario 10: Money from Mailing Lists • Should Mangold continue to use the Marketing Metrix mailing list? • Should he tell his new customers how he got their names? • Do customers need to give consent before companies collect information on their online behavior? Back to list of scenarios
Scenario 11: The Blogging CEO • Should Burdick be allowed to praise his company anonymously? • Should he be allowed to attack his competitors? • How would you feel if you knew a blogger had personal interests in the topic? Back to list of scenarios
Corporate social responsibility describes the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders. Glossary Return to slide