Chapter 4 - Marketing Ethics

Objectives:

• Identify Ethical values marketers should embrace,
• Distinguish between ethics and social responsibility,
• Identify the four steps in ethical decision making,
• Describe how ethics can be integrated into a firm's marketing strategy,
• Describe the ways in which corporate social responsibility programs help various stakeholders.

 Although Firms cannot stay in business without earning a profit, using profits as the sole guiding light for corporate action can lead to short-term decisions that cause the firm to lose customers in the long run.

"Sometimes the ethical dilemma has as much to do with defining our terms as with what the products contain."

Business Ethics: Refers to a branch of ethical study that examines ethical rules and principles within the commercial context, the various moral and ethical problems that might arise in a business setting, and any special duties and obligations that apply to persons engaged in commerce.

Marketing Ethics: Refers to those ethical problems that are specific to the domain of marketing.

"Because the marketing profession is often singled out among business disciplines as the root cause of a host of ethical lapses, anyone involved in marketing must recognize the ethical implications of their actions."

Ethical Climate: the set of values within a marketing firm, or in the marketing division of any firm, that guide decision making and behavior.

"Everyone within the firm must share the same understanding of its ethical values and how they translate into the business activities of the firm."

Corporate Social Responsibility: Refers to 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.

"After the 2010 oil spill in the gUlf of Mexico, BP committed to donating millions of dollars to help economically affected states promote tourism."

Four Steps to Ethical Decision Making:

• Step 1 -> Identify issues
• Step 2 -> Gather information and identify stakeholders
• Step 3 -> Brainstorm and evaluate alternatives
• Step 4 -> Choose a course of action

"To choose the appropriate course of action, marketing managers will evaluate each alternative by using a process something like the sample ethical decision making metric."

Ethical Decision-Making Metrics:

• Publicity tests: Would I want to see this action that I am about to take on the front page of a local newspaper or magazine?
• The Moral Mentor test: Would the person I admire most engage in this activity?
• The Admired Observer test: Would I want the person I admire most to see me doing this?
• The Transparency test: Could I give a clear explanation of the actions I'm contemplating, including an honest and transparent account of all my motives, that would satisfy a fair and dispassionate judge?
• The Person in the Mirror test: Will I be able to look at myself in the mirror and respect the person I see there?
• The Golden Rule test: Would I like to be on the receiving end of this action and its potential consequences?

Integrating Ethics into Marketing Strategy:

• Planning Phase: Marketers can introduce ethics at the beginning of the planning phase simply by including ethical statements in the firm's mission and vision statements.
• Implementation Phase: During implementation, firms must use ethical practices when defining a target market and how to pursue and push the 4 Ps. 
• Control Phase: Once the strategy is implemented, controls must be established to evaluate whether the firm is living up to its mission. 

Location Privacy: A persona's ability to move normally in public spaces with the expectation that his or her location will not be recorded for subsequent use. 

Corporate Social Responsibility:

• Employees
• Customers
• Marketplace
• Society