Marketing Ethics Exam 1

most ethical infractions are performed by…?
good people who fall prey to human weakness
What are analogous situations?
situations in which you can extract principals and apply principals to a solution
EX: warehouse fire – attack situation from all sides -apply concepts to day-to-day
Contrast effect
EX: water temperature experiment
EX: ethical judgment experiment
What are three different forms of ethics?
1. Morality
2. Etiquette
3. Legality
What is “ethics”?
Principles of right and wrong, or justice and fairness governing social conduct
How do arrive at ethical judgment? 2 Theories:
Normative: prescriptive – How you should behave
Positive: descriptive – how you actually behave
Two basic moral philosophies:
Deontological ethics
Some actions, policies or traits are inherently right or wrong without regard to their consequences. A good end does not justify a wrong means. A GOOD END DOES NOT JUSTIFY A WRONG MEANS.
Teleological ethics
gives moral priority to good ends and consequences of human conduct over the means or process by which they are obtained. GOOD ENDS FOR GOOD ACTIONS. ITS ALL ABOUT CONSEQUENTILISM.
Universal dimension: Harm example
pin in palm of you or child
Universal dimension: Fairness Reciprocity example
stolen TV for free
Universal dimension: Loyalty example
Talk bad about your country overseas
Universal dimension: Respect of Authority example
slap a priest onstage at a comedy club
Universal dimension: Sanctity/Purity example
watch nudists on stage peeing for 30min
Name the 5 Simple ethical maxims
The golden rule
The utilitarian principle
Kant’s categorical imperative
The professional ethic
The TV test
The Golden Rule
Treat other as you want to be treated
Utilitarian Principal
Act in a way that affects the greatest good for the greatest amount of people
Kant’s Categorical Imperative
Act in such a way that the action taken under the circumstances could be a universal law or rule of behavior.
The Professional Ethic
Take only actions which would be viewed as proper by a disinterested panel of professional colleagues.
The TV test
Would I feel comfortable explaining to a national TV audience why i took this actions?
the end does not justify the means
Prima facie duties (ROSS)
Duties of fidelity
Duties of gratitude
Duties of justice
Duties of beneficence
Duties of self-improvement
Duties of nonmaleficence (“do no harm”)
Duties of fidelity
compell us to keep our promises to be faithful
Duties of Gratitude
being grateful to other people compell us to consider loyalty in the past
Duties of Justice
based on obligation to distribute rewards based on merit
Duties of Beneficence
do good for the benefit of others, you are obligated to try if you can
Duties of Self-Improvement
do good for your own happiness
Duties of nonmaleficence
do no harm! minimize harm if you can`
The proportionality Framework (Garrett )
Ethical decisions consist of 3 components:
Rational people (not knowing what their fortune will be) would chose a minimax system that minimizes the max loss they could incur (e.g., starvation, slavery, indigence)
Liberty principle (autonomy)
Each person is to have an equal right to the most extensive basic liberty compatible with a similar liberty for others.
Difference principle
Social and economic inequalities are to be arranged so that they are both (a) to the greatest benefit of the least advantaged, and (b) attached to positions and offices open to all.
Rawls’ Two principals of justice
1. Liberty Principal
2. Difference Principal
minimize the maximum amount of harm of loss one could incur
what would mama say?
original position
state you are in at birth
What is the Hunt – Vitell Model based on?
The theory of reasoned action –
i.e., actions are preceded by judgments and intentions to act upon those judgments, subject to situational constraints (“opportunity”).
Individual traits that influence ethical decision making include:
Religion, values, beliefs
Strength of moral character
Stage of cog/moral development
Ethical sensitivity
What is the core of the hunt-Vitell model?
Judgments lead to Intentions which lead to Behavior
What the Hunt-Vitell model start with?
It starts with a personal ethical judgment
Why do good people make bad judgments?
-pressure or stress
-external pressures
-psychological desire
unintentional moral relativism
The intention to do good, but the circumstances change without the decision make knowing so that ethical standards are skewed resulting in biased judgment
Post-hoc rationalization
think before you do. The more you think about it, your opinion might change.
Effort Bias
trying harder doesn’t always give you the same resultes
Propect theory
explains the framing effect. People prefer the “sure thing” rather the problistic gain
Water temperature experiment
Framing effect
The attractiveness of a choice prospect depends upon how it is described or “framed.”
Boundary effect
we tend to draw boundaries around decision problems. Lost ticket was inside boundary; lost cash was outside boundary.
Reference points
surgery example – patient will die 90% of the time from the surgery
Watch in the store example – walk a block in the rain to save $30.
they are thinking in terms of percentage saved rather than absolute dollars. They applied the wrong metric or “yardstick.”
Effort bias
In general, greater effort yields better results when task is easy; but can produce worse results when task is difficult.
1. abstract problem (constricts and principals)
2. consult others
3. awareness of sources of biases
4. question appropriateness of frame of reference
5. adopt multiple frames, multiple reference points
Why do people tend to differ in their ethical judgments?
Different backgrounds (Ferrell; Wotruba)
Different character / sensitivity
Different stages of moral development (Kohlberg)
Different ideologies (Forsyth; Kellaris)
Different standards (Fraedrich; Vitell)
Ethical ideologies
may be thought of as personal moral philosophies that guide an individual’s ethical perspective.
2 DIMENSIONS of Ethical ideologies
Idealism, Relativism
extent to which a person believes that the “right” course of action always yields desirable outcomes.
the extent to which a person rejects universal moral rules (“moral absolutes”) in favor of subjective or situational approaches.
Example of Idealist?
A mean murdered another man, is he guilty?

-Idealist says yes. He killed someone. Period.

Example of a Relativist?
A mean murdered another man, is he guilty?

– Relativist says maybe. What is the situation and the background of the murder and murderer?

What are Several ways to profile cultures?
Values (Hawkins)
Dimensions (Hofstede)
Context (Hall)
Dimensions of Culture (Hawkins)
Three dimensions:
Other-oriented values
Environment-oriented values
Self-oriented values
Hofstede’s cultural dimensions
Individualism vs. Collectivism
Large or Small Power Distance
Masculinity vs. Femininity
Strong vs. Weak Uncertainty Avoidance
Short-term vs. Long-term Orientation
Example of a High Context culture?
Chinese, Korean, Japanese
Example of a low context culture?
Swiss, German
it refers to the capacity of a rational individual to make an informed, un-coerced decision.
do good for the benefit of others, you are obligated to try if you can
a morally right act (or omission) is one that will produce a good outcome, or consequence.
“given an existing problem, it may be better not to do something, or even to do nothing, than to risk causing more harm than good.”

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