Ch.4: Ethical and Social Responsibility in Marketing – Flashcards

- Moral principles and values that govern the actions and decisions of an individual or group

- Society's values and standards that are enforceable in the courts

- Codified the ethics of exchange between buyers and sellers - These were the right to 1) safety 2) be informed 3) choose 4) be heard

- 2 kinds are most common 1) Economic espionage -> clandestine collection of trade secrets of proprietary information about a company's competitors - most prevalent in high-tech industries 2) Giving and receiving bribes and kickbacks - most evident in industries experiencing intense competition and in countries in the earlier stages of economic development

- set of values, ideas, and attitudes that is learned and shared among the members of an organization

- Formal statement of ethical principles and values of conduct - 86% of US companies have some sort of ethics code and one in every 4 large companies have corporate ethics officers

- Employees who report unethical or illegal actions of their employers

- A personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome

- Personal moral philosophy that focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavior

- Organizations are part of a larger society and are accountable to that society for their actions

1) Profit Responsibility -> companies have a simple duty: to maximize profit for their owners or stockholders 2) Stakeholder Responsibility -> focuses on obligation an organization has to those who can affect achievement of its objectives 3) Societal Responsibility -> refers to obligations that organizations have to the preservation of the ecological environment and to the general public