MGKT 3010 - Chapter 3 PDF

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ETHICS & SOCIAL RESPONSIBILITY DETERMINANTS OF A CIVIL SOCIETY 

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SOCIAL CONTROL : any means used to maintain behavioral norms and regulate conflict o part of your life at every level, from your family to your local community, to the nation, to the global civilization BEHAVIORAL NORMS : standards of proper or acceptable behavior

MODES OF SOCIAL CONTROL 

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ETHICS : the moral principles or values that generally govern the conduct of an individual or group o provide principles of right action LAWS : ethical rules and guidelines codified o not a perfect mechanism for ensuring good corporate and employee behavior FORMAL & INFORMAL GROUPS : businesses, professional organizations, and clubs all have codes of conduct o prescribe acceptable and desired behaviors of their members SELF-REGULATION : involves the voluntary acceptance of standards established by nongovernmental entities o AAAA - American Association of Advertising Agencies THE MEDIA : plays a key role in informing the public about the actions of individuals and organizations - both good & bad AN ACTIVE CIVIL SOCIETY : helps mold individual and corporate ethics as well as socially responsible behavior

ETHICS 

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the standard of behavior by which conduct is judged o standards that are legal may not always be ethical, and vice versa unwritten rules we have developed for our interactions with one another

ETHICS THEORIES 

DEONTOLOGY (DEONTOLOGICAL THEORY)

states that people should adhere to their obligations and duties when analyzing an ethical dilemma  a person will follow his or her obligations to another individual or society because upholding one’s duty is what is considered ethically correct UTILITARIANISM (UTILITARIAN THEORY) o founded on the ability to predict the consequences of an action  the choice that yields the greatest benefit to the most people is the choice that is ethically correct o 2 TYPES  ACT UTILITARIANISM : adheres exactly to the definition of utilitarianism as just described  a person performs the acts that benefit the most people, regardless of personal feelings or societal constraints  RULE UTILITARIANISM : take into account the law and is concerned with fairness  seeks to benefit the most people but through the fairest and most just means available  values justice and doing good at the same time o however, its hard to predict the future consequences in the first place CASUIST (CASUIST THEORY) o compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes o determine severity of the situation and create the best possible solution according to other’s experiences MORAL RELATIVISM o a belief in time-and-place ethics - the truth of a moral judgment is relative to the judging person or group o do not believe in absolute rules  beliefs center on the pressure of the moment and whether the pressure justifies the action taken VIRTUE ETHICS o Aristotle, Plato o individuals solve ethical dilemmas when they develop and nurture a set of virtues  VIRTUE : a character trait valued as being good  self-discipline, friendliness, caring, courage, compassion, trust, responsibility, honesty, determination, enthusiasm, humility o

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ETHICAL BEHAVIOR IN BUSINESS 

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MORALS : the rules people develop as a result of cultural values and norms o PRECONVENTIONAL MORALITY  the most basic level, childlike  calculating, self-centered, selfish, based on what will be immediately punished or rewarded o CONVENTIONAL MORALITY  loyalty and obedience to the organization become paramount  concerned only with whether a proposed action is legal and how it will be viewed by others o POSTCONVENTIONAL MORALITY  less concerned about how other might see them and more concerned about how they see and judge themselves over the long run FACTORS THAT INFLUENCE ETHICAL DECISIONS o EXTENT OF ETHICAL PROBLEMS WITHIN THE ORGANIZATION o TOP MANAGEMENT’S ACTIONS ON ETHICS - top managers influence behavior of marketing professionals by encouraging ethical behavior and discouraging unethical behavior o POTENTIAL MAGNITUDE OF THE CONSEQUENCES o SOCIAL CONSENSUS o PROBABILITY OF A HURTFUL OUTCOME o LENGTH OF TIME BETWEEN DECISION AND CONSEQUENCES o NUMBER OF PEOPLE EFFECTED

CORPORATE SOCIAL RESPONSIBILITY (CSR) is a business’s concern for society’s welfare 

demonstrated by managers who consider both the long-range best interests of the company and the company’s relationship to the society within which it operates

STAKEHOLDERS & SOCIAL RESPONSIBILITY 

STAKEHOLDER THEORY o social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm’s operation

PYRAMID OF CORPORATE SOCIAL RESPONSIBILITY 

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total corporate social responsibility has 4 components o ECONOMIC o LEGAL o ETHICAL o PHILANTHROPIC portrays economic performance as the foundation for the other three responsibilities o pursues PROFITS (ECONOMIC RESPONSIBILITY) o obey the law (LEGAL RESPONSIBILITY) o to do what is right, just, and fair (ETHICAL RESPONSIBILITY) o to be a good corporate citizen (PHILANTHROPIC RESPONSIBILITY)

ARGUMENTS FOR & AGAINST SOCIAL RESPONSIBILITY  

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CSR CAN BE A DIVISIVE ISSUE some analysts believe that a business should focus on making a profit and leave social & environmental problems to nonprofit organizations and government but its simply the right thing to do

BECOMING A B CORP 

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for-profit companies certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency o must score at least 80 points on a 200 point assessment  criteria include things like fair compensation for workers, how much waste the company produces, and the company’s work with local businesses  PATAGONIA, BEN & JERRY’S, ETSY, DANONE COOPERATIVE HOME CARE ASSOCIATES (CHCA) o provides home health care for low-income urban clients

sends its workers into homes to attend elderly and seriously ill clients 10 PRINCIPLES OF THE UNITED NATIONS GLOBAL COMPACT o HUMAN RIGHTS  1) businesses should support and respect the protection of internationally proclaimed human rights  2) businesses should make sure that they are not complicit in human rights abuses o LABOR  3) businesses should uphold the freedom of association and the effective regnitionof the right to collective bargaining  4) businesses should uphold the elimination of all forms of forced and compulsory labor  5) businesses should uphold the effective abolition of child labor  6) businesses should uphold the elimination of discrimination in respect of employment and occupation o ENVIRONMENT  7) businesses should support a precautionary approach to environmental challenges  8) businesses should undertake initiatives to promote greater environmental responsibility  9) businesses should encourage the development and diffusion of environmentally friendly technologies o ANTI-CORRUPTION  10) businesses should work against corruption in all its forms, including extortion and bribery SUSTAINABILITY o the idea that socially responsible companies will outperform their peers by focusing on the world’s social, economic, and environmental problems o

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GREEN MARKETING  

outgrowth of the social responsibility and sustainability movements development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment

CAUSE-RELATED MARKETING

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“cause marketing” - cooperative efforts of a for-profit firm and a nonprofit organization for mutual benefit o the for-profit firm hopes to generate extra sales, and the nonprofit in turn hopes to receive money, goods, and/or services creates good public relation and will often stimulate sales for the brand...