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morals

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the rules people develop as a result of cultural values and norms

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culture is a socializing force that

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dictates what is right and wrong

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ethical values are

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situational specific and time oriented

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rules come in the form of

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laws, customs, professional standards, and common sense

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ethical development can be thought of as having these 3 levels:

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- pre-conventional morality - Conventional Morality - post conventional morality

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pre-conventional morality

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most basic level; it's childlike. It's calculating self-centered, and even selfish, based on what will be immediately punished or rewarded. Fortunately, most business people have progressed beyond the self centered and manipulative actions of pre-conventional morality

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conventional morality

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moves form an egocentric viewpoint toward the expectations of society. Loyalty and obedience to the organization become paramount. A marketing decision maker would be concerned only whether the proposed action is legal and how it will be viewed by others

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Post conventional morality

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represents the morality of the mature adult. At this level, people are less concerned about how others might see them and more concerned about how they see and judge themselves over the long run. A marketing decision maker who has attained a postconventional level of morality might ask, even though it is legal and will increase company profits, is it right in the long run? Might it do more harm in the end?

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ethical problems within the organization

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marketing professionals who perceive fewer ethical problems in their orgs tend to disapprove more strongly of unethical or questionable practices than those who perceive more ethical problems. The healthier the ethical environment the more likely marketers will take a stand againstt questionable practices

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top managments actions on ethics

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they can influence behavior of marketing professionals by encouraging ethical behavior and discouraging unethical behavior.

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what researdchers found about top managers in ethics

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when top managers develop a strong ethical culture, there is a reduced pressure to perform unethical acts, fewer unethical acts are performed, and unethical behavior is reported more frequently

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potential magnitude of consequences

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the greater the harm done to victims, the more likely it is that marketing professionals will recognize a problem as unethical

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social consensus

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the greater the degree of agreement among managerial peers that an action is harmful, the more likely it is that marketers will recognize a problem as unethical .

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What research found about social consensus

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a strong ethical culture amoung co-workers decreases observations of ethical misconduct. IN companies with strong ethical culture, 8% of employees observed misconduct, compared with 31% in companies with weaker cultures

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probability of a harmful outcome

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the greater the likelihood that an action will result in a harmful outcome, the more likely it is the marketers will recognize a problem as unethical

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length of time between the action and onset of consequences

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the shorter length of time between the action and the onset of negative consequences, the more likely it is that marketers will perceive a problem as unethical

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number of people to be affected

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the greater the number of persons affected by negative outcome, the more likely it is that marketers will recognize a problem as unethical

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a guidline to help marketing managers and other employees make better decisions

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code of ethics

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What do ethical guidelines help do?

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help employees identify what their firm recognizes as acceptable business practices - effective internal control on behavior, which is more desirable than external control such as gov regulation - helps employees avoid confusion when determining whether their decisions are ethical - the process process of formulating the code of ethics facilitates discussion amoung employees about what is right and wrong, ultimately leads to better decisions

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it's good however for companies to not make their code of ethics

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too vague or detailed, because they give little or no guidance to employees in their day to day activities

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ethical beliefs vary ____ _____ from culture to culture

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very little

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foreign corrupt practices

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a law that prohibits US corps from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries

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Corporate Social responsibility (CSR)

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a business's concern for social welfare

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4 components of CSR

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- philanthropic responsibilities - ethical responsibilities - legal responsibilities - economic responsibilities

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philanthropic means:

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be a good corporate citizen contribute resouces to the community improve the quality of life

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ethical responsibilities:

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- be ethical - do what is right, just, and fair - avoid harm

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legal responsibilities:

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- obey the law - law is society's codification of right or wrong - play by the rules of the game

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economic responsibilities:

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- be profitable - profit is the foundation on which all other responsibilities rest

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pyramid of corporate social responsibility

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a model that suggest csr is composed of economic, legal, ethical, and philanthropic responsibilities and the firms economic performance supports the entire structure

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sustainability

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the idea that socially responsible companies will outperform their peers by focusing on the worlds social and env problems and viewing them as opportunities to build profits and help the world out at the same time

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green marketing

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products designed to minimize negative effects on the physical environment or to improve the env`

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UNGC's main goal is to

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increase trust in the company

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cause related marketing

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cooperative marketing efforts between a for-profit firm and a noon-profit org

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Ethics can be defined as:

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the standard of behavior by which conduct is judged. b. socially expected but unwritten behavior. c. personal moral principles. d. the moral principles or values that generally govern the conduct of an individual or group.

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Which of the following is an example of an ethical question?

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"borrowing" a neighbor's wireless internet signal b. physical assault c. cutting in line at the movie theater

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3. Morals are the rules people develop as a result of:

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cultural values and norms

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4. Which of the following questions has not been shown to influence ethical decision making?

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what are the consequences?

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An individual who only thinks of how a certain action will affect him is operating at which level of morality?

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preconventional

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A manager of a trucking firm is considering switching to hybrid vehicles to reduce her firm's carbon footprint. This is an example of:

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postconventional morality

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A set of guidelines that can help managers and employees make good ethical decisions is known as a(n):

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code of ethics

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The ethical values of different cultures tend to:

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have slight differences

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The ethics of business derive primarily from:

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major life values

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Rules come in the form of customs, law, professional standards, and:

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common sense

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To exercise corporate social responsibility, a business has to pursue profits, obey the law, do what is right, and:

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be a good corporate citizen

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________ argues that a business will outperform its competitors when it views the world's problems as opportunities for profit, and a chance to improve the world.

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sustainability

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Which of the following elements is the most important in an organization's corporate social responsibility program?

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maximizing profit

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A firm can fulfill corporate social responsibility by:

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using social problems as business opportunities. b. believing that a company cannot thrive when billions of people are suffering and impoverished. c. helping the world and being profitable at the same time. d. focusing on the world's social problems.

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Which of the following is NOT an example of a green product?

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batteries

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