Business Ethics Liz Haman EMKT 6120
Objectives • Define Ethics and learn how to make the right ethical choices. • Learn about corporate values and ethical choices. • Understand values and ethics in International Business. • Relate ethics to the marketing field.
Definition of Ethics • Ethics are the rules that direct your conduct and moral judgments. • Help translate your values into appropriate and effective behaviors in your day-to-day life. • Determine how you do business and with whom. • Ethical issues can become cloudy. • Where will you draw the line between right and wrong?
How to Make the Right Ethical Choices • Learn to distinguish between right and wrong. • There is no free lunch • Never work for just money or power. • Be honest. Act with integrity • Sell the shadow for the substance.
How to Make the Right Ethical Choices • Make certain your values are in harmony with those of your employer. • Shared values provide a strong bond for employees and their organization. • Don’t let your life be driven by the desire for immediate gratification. • Will prevent you from taking shortcuts.
Corporate Crime is a problem. Honda: 18 former executives and bribery of $50 million Organizations attempting to improve ethics. Harley Davidson Tell the truth Be fair. Keep your promises. Respect the individual. Encourage intellectual curiosity. Corporate Values and Ethical Choices
Corporate Values and Ethical Choices • Help Prevent Corporate Crime • Honor ethics codes. • Seek honorable coworkers. • Participate in ethics training. • Support whistle-blowing. • Revealing wrongdoing within an organization to the public or to those in positions of authority.
Values and Ethics in International Business • Examples: • Bribery used to secure foreign contracts. 1977 Foreign Corrupt Practices Act • Human rights violations: child labor, low wages, and long hours. • Lack of sensitivity to foreign customs.
Governmental Regulatory Agencies • Serve as watchdogs to monitor for potential violations of the law: • Food and Drug Administration (FDA) • Federal Communications Commission (FCC) • TV, Radio, and Telephone Industry • U.S. Postal Service (USPS) • Mail-type marketing materials • Bureau of Alcohol, Tobacco and Firearms (BATF) • Federal Trade Commission (FTC) • Deceptive or misleading marketing tactics
Marketing and Ethics • 3 Questions marketers ask: • Is the practice right, fair, and honest? • What would happen if the product were marketed differently? • What practice will result in the greatest good for the greatest number of people? • Product recalls • Cars • Tylenol
Marketing and Ethics • Code of Ethics for American Marketing Association • Consumerism (1900s) • Societal effort to protect consumer rights by putting legal, moral, and economic pressure on business.
Review • Ethics are the rules that direct your conduct and moral judgments • Follow the 3 steps to making ethical choices. • Help Prevent Corporate Crime • Support whistle blowing! • Ethics and values range across international borders. • Marketers follow a code of ethics.