Marketing Chapter 4 terms and concepts – Flashcards

The 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.

—let the buyer beware—

codified the ethics of exchange between buyers and sellers. These were the right (1) to safety, (2) to be informed, (3) to choose, and (4) to be heard. Consumers expect and often demand that these rights be protected, as have American businesses.

the clandestine collection of trade secrets or proprietary information about a company's competitors.

a formal statement of ethical principles and rules of conduct.

employees who report unethical or illegal actions of their employers.

Two prominent personal moral philosophies have direct bearing on marketing practice: (1) moral idealism and (2) utilitarianism.

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

a 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.

that organizations are part of a larger society and are accountable to that society for their actions.

(1) profit responsibility, (2) stakeholder responsibility, and (3) societal responsibility.

focuses on the obligations an organization has to those who can affect achievement of its objectives.

obligations that organizations have (1) to the preservation of the ecological environment and (2) to the general public.

companies have a simple duty: to maximize profits for their owners or stockholders.

recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.

marketing efforts to produce, promote, and reclaim environmentally sensitive products—takes many forms.

when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products.

a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility.

1. Recognition of a firm's social expectations and the rationale for engaging in social responsibility endeavors. 2. Identification of social responsibility causes or programs consistent with the company's mission. 3. Determination of organizational objectives and priorities for programs and activities it will undertake. 4. Specification of the type and amount of resources necessary to achieve social responsibility objectives. 5. Evaluation of social responsibility programs and activities undertaken and assessment of future involvement.

conducting business in a way that protects the natural environment while making economic progress.

the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice.

(1) a belief that a consumer can get away with the act and it is worth doing and (2) the rationalization that the act is justified or driven by forces outside the individual—"everybody does it."

(1) may be unwilling to sacrifice convenience and pay higher prices to protect the environment and (2) lack the knowledge to make informed decisions dealing with the purchase, use, and disposition of products.