1. Ethics and
Social
Responsibility
CHAPTER
3
Marketing 10
Designed by
Lamb, Hair, McDaniel
Prepared by
Eric Brengle Amit Shah
B-books, Ltd. Frostburg State University
Copyright ©2009 by Cengage Learning Inc. All rights reserved 1

2. Learning Outcomes
LOI Explain the determinants of a civil society
LO2 Explain the concept of ethical behavior
LO3 Describe ethical behavior in business
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3. Learning Outcomes
LO4 Discuss corporate social responsibility
LO5 Describe the arguments for and against
social responsibility
LO6 Explain cause-related marketing
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4. LOI Civil Society
Explain the determinants
of a civil society
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5. LO1
Civil Society
Six Modes of Social Control
Ethics The Media
Laws Active Civil Society
Formal and Informal Groups
Self Regulation
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6. LOI REVIEW LEARNING OUTCOME
Explain the determinants of a civil society
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7. LO2 Ethical Behavior
Explain the concept
of ethical behavior
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8. LO2
Ethical Behavior
The moral principles or values
that generally govern the
Ethics
Ethics
conduct of an individual.
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9. LO2
Ethical Theories
People usually base their individual choice of
ethical theory on their life experiences
•Deontology
•Utilitarianism
•Casuist
•Moral Relativists
•Virtue Ethics
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10. LO2
REVIEW LEARNING OUTCOME
Explain the concept of ethical behavior
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11. LO3 Ethical Behavior in Business
Describe ethical behavior
in business
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12. LO3
Ethical Behavior in Business
The rules people develop as a
result of cultural values and
Morals
Morals norms.
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13. LO3
Ethical Development Levels
More • Based on what will be
Childlike Preconventional punished or rewarded
Morality • Self-centered, calculating,
selfish
Conventional • Moves toward the
expectations of society
Morality
• Concerned over legality and
the opinion of others
More Postconventional • Concern about how they
Morality judge themselves
Mature • Concern if it is right in
the long run
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14. LO3
Ethical Decision Making
Influential Factors
Extent of Problems Probability of Harm
Top Management Time Until
Actions Consequences
Potential Consequences Number Affected
Social Consensus
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15. LO3
Code of Ethics
Code of Ethics A guideline to help marketing
Code of Ethics
managers and other employees
make better decisions.
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16. LO3
Creating Ethical Guidelines
• Helps identify acceptable business practices
• Helps control behavior internally
• Avoids confusion in decision making
• Facilitates discussion about right and wrong
16
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17. LO3
Ethical Guidelines and Training
Exhibit 3.3
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18. LO3 REVIEW LEARNING OUTCOME
Describe the role of ethics and ethical decisions in business
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19. LO4 Corporate Social Responsibility
Discuss corporate
social responsibility
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20. LO4
Corporate Social Responsibility
The idea that socially
Sustainability
Sustainability responsible companies will
outperform their peers by
focusing on the world’s social
problems and viewing them as
opportunities to build profits
and help the world at the same
time.
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21. LO4
Corporate Social Responsibility
Stakeholders
Employees Suppliers
Management Owners
Customers
Local Community
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22. LO4
REVIEW LEARNING OUTCOME
Discuss Corporate Social Responsibility
Philanthropic
Be a good citizen.
Ethical
Do what is right.
Legal
Obey the Law.
Economic
Be profitable.
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23. Arguments Against and For Corporate
LO5
Social Responsibility
Describe the arguments for and
against social responsibility
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24. LO5 Arguments Against Social
Responsibility
• Businesses should focus on making a profit and
leave social and environmental concerns to
nonprofits
• Businesses don’t have the expertise to deal with
social issues and doing so may interfere with the
primary goals of their firms
• The expense of social responsibility may damage the
country in the global marketplace
24
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25. LO5
Arguments for Social
Responsibility
• The right thing to do
• Business should police itself to avoid
government intervention
• Small companies can prosper and build
shareholder value as they tackle social problems
25
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26. LO5
REVIEW LEARNING OUTCOME
Arguments for and against social responsibility
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27. LO6 Cause-Related Marketing
Explain cause-related
marketing
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28. LO6
Cause-Related Marketing
The cooperative efforts of a
Cause-Related
Cause-Related “for-profit” firm and a
Marketing
Marketing ‘nonprofit” organization for
mutual benefit.
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29. LO6
Cause-Related Marketing
“Five Questions to Ask Before Participating in
a Cause-Related Marketing Program”
•Is this company committed?
•How is the program structured?
•Who does the program benefit?
•How will the organization that benefits use my money?
•Is the program meaningful to me?
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30. LO6
REVIEW LEARNING OUTCOME
Explain cause-related marketing
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