Social Responsibility _ Ethics

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					   Social
Responsibility
  & Ethics

   Chapter 4




                 4-1
When Hefty Bags expresses
concern that its products are
having too great an impact on
the pollution of ground water!



   ABCAC has rained more
   than $25 million for breast
   cancer education!


                             4-2
      Social Responsibility
• S.R. refers to a company’s
  obligation to _____________ its
  ________ impact and _________
  its __________ impact on society.
• S.R. is a vital factor in major
  marketing __________________.

                                4-3
• S.R. deals with the _________
  ___________ of all marketing
  decisions on society

• S.R. dimensions include
  ___________, ____________,
  __________, and ___________
  concerns.
                                  4-4
 Benefits of Socially responsible
       business practices.
• Positively impacting local _______
• Creating ____________ toward the
  organizations
• Generating _________ for the firm
• Attracting ________________

                                  4-5
       Marketing Citizenship
The adoption of a _________ focus for
 fulfilling the economic, legal, ethical,
 and philanthropic social
 responsibilities expected by
 __________________________.
Stakeholders: Any ____________ who
 has a claim in some aspect of a
 company’s ___________, operations,
 ________, industry, or ___________.
                                     4-6
Social Responsibility Dimensions
 (Pyramid of Social Responsibility)

          _______________: Be a
            good Corp. citizen

        ______________: Be ethical


       _____________: Obey the Law


     _________________: Be profitable
                                        4-7
     Economic Responsibility
Sometimes business must find a balance
 between society’s _____________ for
 social responsibility & investors’
 desires for ________________.




                                     4-8
      Legal Responsibilities

Law is society’s
 ____________ of
 right and wrong.


_____________ the
 rules of the game!

                               4-9
    Ethical Responsibility
Marketing ethics: __________ &
   _____________ that define
acceptable conduct in marketing.




                               4-10
 Philanthropic Responsibility
Contribute resources to the community
  to improve ___________________.




                                  4-11
Cause-Related Marketing: the practice of
 ______________ a firm’s _________ to a
 particular ________ cause.


     i.e., Every time
     customers used their
     American Express
     card, A.E. donated
     money to the Statue of
     Liberty restoration
     fund.                          4-12
    ___________ Marketing:
 the specific development, pricing,
   promotion, and distribution of
products that _______________ the
       __________________.




                                4-13
   Objectives of marketing programs
  designed to sustain the environment:
1. Eliminate the concept of _________.
2. Make prices reflect the __________
   of a product.
3. _________ the concept of a product.
4. Make environmentalism __________


                                         4-14
Xerox’s Asset Recycle Management
program encourages customers to
return used ink cartridges to be
recycled into new ones.

       In Europe (1992),
       companies can voluntarily
       apply for a Eco-label to
       indicate that their product
       is less harmful to the
       environment than
       competing products. 4-15
          Consumerism:
the efforts of independent individuals,
groups, and organizations to protect the
________________________________.
Ralph Nader: consumer ____________




                                      4-16
       Pres. Kennedy’s
  Consumer Bill of Rights (4):
1. Right to _________: all
  products must be safe for
  their intended use, must
  include thorough and
  explicit ____________ for
  proper and safe use.

                                 4-17
2. Right to be ___________: means that
  consumers should have access to and
  the opportunity to review all _______
  __________ about a product _______
  buying it.




                                     4-18
___________ warranty information
Our knives are warranted to be free of defects
in materials and workmanship for as long as
you own the product(s). To obtain a
replacement, return your damaged knife/knives
postage paid to Quikut, 118 East Douglas (or
Post Office Box 29), Walnut Ridge, AR 72476
along with a check for $2 per knife (U.S.) or $3
per knife (Canada). Your warranty papers may
indicate an old Fremont, OH or Germantown,
TN address which you should not use. Mail is
no longer forwarded from those locations.

                                             4-19
3. Right to ________: consumers
  should have access to ___________ of
  products and services at ___________
  prices.
4. Right to be _______: the idea that
  consumers’ interests should receive
  full and ________________
  consideration in the formulation of
  government ________________.
                                   4-20
          The Nature of Ethics
• When marketers’ activities deviate from
  ________ standards, the exchange process
  can _____________, resulting in customer
  dissatisfaction, lack of trust, and lawsuits.
• An ethical issue is an _________ problem,
  situation, or opportunity requiring an
  individual to choose from among several
  ____________ that must be evaluated as
  _________________, ethical or unethical.
                                           4-21
      Ethical Issues Related to the
            Marketing Mix
• Product Issue: marketers fail to ________
  information to consumers about the _____
  associated with using a product.




                                       4-22
• Promotion: ____________ and/or
  __________________ claims.
• i.e., a cereal company advertises
  that its newest product can lower
  cholesterol even thought the
  company cannot prove this claim.



                                 4-23
4-24
Distribution related
ethical issues: forcing
   intermediaries to
behave in a ________
 ________________.

 Pricing: price fixing,
  ________ pricing &
  _________ pricing.
                          4-25
  Factors that influence the ethical
     decision-making process.

__________                ____________
             __________
  Factors                    Factors




      Ethical marketing decisions

                                    4-26
       Organizational Factors
1. _________ (Organizational) culture:
  A set of ______, belief, goals, _____,
  and rituals that members of an
  organization ______. i.e., taking items
  home because everyone else is doing
  it.
2. Organizational _____________:
3. _____________ executives:
                                     4-27
4. Coworkers: The ______ a person
  is exposed to unethical activity in
  the organization, the ______ likely
  he or she will behave unethically.


            Opportunity:
it is a favorable set of conditions that
   limit _______ or provide _________.

                                       4-28
           Individual Factors
• Individuals most often base their
  decisions on their _______________ and
  principles of ______________________.
• Study of Students:
  _________% indicated that they feel it is
  important to be a person of “good
  character”
  ____% admitted to cheating on an exam
  ____% confessed to lying to their parents
                                        4-29
 As a media buyer for the Bergiel
 Agency, Michelle knows that no one
 ever checks to see if her phone calls are
 business related or personal. With regard
 to ethical behavior, this situation relates
 most closely to:
  A. individuals       C. exposure
  B. opportunity       D. reward


                                        4-30
 Which of the following would be consistent
 with Johnson Chemicals’ understanding of the
 “Bad Apple” concept of improving the ethical
 conduct of salespeople
 A. Retraining unethical salespeople
 B. Publishing ethical guidelines for
    salespeople.
 C. Using customers to review ethical
    guidelines.
 D. Firing unethical salespeople
 E. None of the above
                                           4-31
 It is possible to improve ethical
  behavior in an organization by:
  improving the organization’s
      ethical _____________
                 and
___________ unethical persons.

                                4-32
Ethical choices in business situation
 are most often made _________ in
 work __________ and__________.
 __________ of Conducts
     Formalized _______ and
  ____________ that describe what
     the company expects of its
  employees in terms of ________
             behavior.          4-33
      Social Responsibility vs.
         Marketing Ethics
• Social Responsibility deals with the
  _____________ of marketing
  decisions on _________.
• Marketing Ethics relates to
  ___________ and ___________
  evaluations in __________ situations.
                                    4-34

				
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