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ch 4 Ethics and Soc Resp part2 n42 9Sep0

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Information about ch 4 Ethics and Soc Resp part2 n42 9Sep0
Spiritual-Inspirational

Published on December 30, 2008

Author: aSGuest8476

Source: authorstream.com

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Slide 1: Ethics and Marketing Part 2 of 2 Ch 4 Social Responsibility and Marketing Ethics Ethics and Marketing, Discussion Objectives : Ethics and Marketing, Discussion Objectives To overview ethics as an environmental influence on marketing in our society To identify ethical issues in the marketing mix and exchange relationships To understand the interaction of marketing ethics and social responsibility Business Ethics, A Frame of Reference : Business Ethics, A Frame of Reference Business people are motivated by greed. A moral suspicion of businessmen exists that dates back into the middle ages when the profit motive was pitted against the myth of “noblesse oblige” The profit motive is misunderstood. Profits are a reward for economic efficiency. In theory, The Marketing Concept advocates a customer orientation, integrated operations and L-R profits. (GE, 1953) Slide 4: During the Dark ages: Educated monks were trusted with money. Business Ethics and the Ethics of Business : Business Ethics and the Ethics of Business Spring 1987 : J. Shad (former SEC Chrmn.) donated $30 million to Harvard to provide a finishing course in business ethics (WSJ: 5/18/87) . . . Is there economic compatibility between a customer and a society focus ? … Are we living in an age of moral collapse? One response: Society is applying higher stds of ethics to businesses! Preoccupation social/moral issues distracts from economic leadership. (author unknown) Business Ethics,A Consumer Perception Update : Business Ethics,A Consumer Perception Update 76% of adults feel a lack of business ethics is contributing to the perceived decline of the U.S. moral standards. (Time Mag.7/94) Of all occupations, selling and advertising rate the lowest for honesty & ethical standards. (Gallup Poll). Americans do not trust their leaders 1/2 trust doctors & journalists 1/3 trust elected officials 1/5 trust business executives (Am. Demographic1/94) Slide 7: Summary of Literature Review This line chart shows how over the past 8 years favorability towards corporations has gone down. However, in this same time period corporate profits continued to rise. JrlAdRes, Sept. 2005 Slide 8: Relatively Low confidence in many public organizations Ethical Beliefs Shape All Behavior : Ethical Beliefs Shape All Behavior Consumer Needs & Wants Product Price Promotion Distr.. Personnel Production Finance Political & Legal Forces Science & Technology Social & Cultural Values Monopoly Pure Competition Economics Ethics Accounting Is a Lack of Ethics,a basic human condition? : 1990’s Loyalty - US Marine, Russian Embassy - Whistle Blowers?? Sex Scandals - Jim Baker (Evangelist) - W. Clinton (Arkansas) - Jesse Jackson (Rev. ?) Influence - Political Campaign Selling Financing (China) Is a Lack of Ethics,a basic human condition? Answer: Yes Examples of “Ethics” in medicine” : Examples of “Ethics” in medicine” Improper Coding and Cost Reporting Double billing False insurance claims Fabricated visits Quality of Treatment “Code of Silence” Over prescribing drugs Test Tube Fraud Nursing Home Visits @ 2230 Examples of “Ethics” in Education : Examples of “Ethics” in Education HS Teacher says “IUP professors need to clean up their act” (1996) Decline in academic standards Casualness in testing & grading inflation Class attendance and participation Giving “Extra” points for committee/org. work “Ghost” writers Special treatment (atheletes/Honors) Code of conduct – Code of Silence Ethical Issues & the Marketing Mix : Customers Product Issues Pricing Issues Promotion Issues Distribution Issues Ethical Issues & the Marketing Mix + Employee Theft Wal-mart Photo Processors Face A Tough Dilemma:When to call the Police? : Wal-mart Photo Processors Face A Tough Dilemma:When to call the Police? Situation: Processing Questionable photo’s Baby and marijuana leaves Young male teenager and duct tape Nude girls ages 3 and 8 Issues: False Accusation/Legal Liability/ Privacy/Child abuse Ethical Decision: Store policies that force you to choose between your company and your moral and, even legal, duty to society. WSJ,1 June 2001,pg.A1 What would you do? Why study Business Ethics? : Why study Business Ethics? To increase public confidence in business to facilitate the market’s exchange system … (Trust) To develop “healthy” competition to foster the exchange process … (Integrity) To develop economic freedoms which produce economic efficiency resulting in economic & social gains Slide 16: Basic definition: An individual’s beliefs about right and wrong actions Moral values (standards) condition & guide behavior & change with time and society Norms: what “ought” to be done norms in Western society generally are based on Judeo-Christian ethical ideology Are there universal rules? Slide 17: Utilitarianism (teleological) Maximize the good for all focus on the consequences, the end result Ethical formalism (deontological) Golden rule , do unto others as … focus on the means, the inherent good or bad of each action Ethical Dilemma: occurs when two values are in conflict Two Types of Moral Philosophies The Golden Rule of Ethics : The Golden Rule of Ethics “Do unto others as you would have them do unto you.” Different people understand this rule in different ways The other person may be different from you and does not want to be treated as you want to be treated!” Marketing News. “Ethics can be gauged by three key rules.” Written by Dillard B. Tinsley. Sept. 1,2003. Voting Behavior : What motivates voters more, economic (pocketbook) issues or . . . morals and values? Voting Behavior WSJ,26June1996,R2) Ethics In Business : Ethics In Business Corporate Ethics (Culture) : how well an individual’s or an organization’s marketing activities exhibit ethical values Does good ethics = good business? Slide 21: TRADE SHOW -- As a sales person at a trade show, you have the opportunity to pick up an important document invariably left behind by a competitor. - Males 63% yes, take it - females 57% yes, take it GIFT Giving -- The purchasing agent of an important account wants an expensive gift; To provide it would violate company policy, while not providing it would lose the account. - Males 54% yes, do it - females 12% yes, do it What would you do? Slide 22: As the manager of a toy store at holiday time, would you break a promise to a previous customer and sell a toy in scarce supply to a woman who claimed her child was very ill? Males 28% yes (Rules of right/wrong) Females 56% yes (emotional/feelings) What would you do? Marketing Ethics & Socially Responsible Behavior Reasons For NotReporting Ethical Misconduct : Reasons For NotReporting Ethical Misconduct Source: From National Business Ethics Survey, “How Employees View Ethics in Their Organizations 1994-2005,”Ethics Resource Center 2005, p. 29. © Ethics Resource Center, Washington, DC. Reprinted with permission. Four Major Influences on Ethical Business Behavior : Four Major Influences on Ethical Business Behavior Religious Morality Legal Organizational Top-Middle-lower Situation Individual (you) Parents, Family, Relatives, Friends …etcetera What would you do? Sources of Pressure to Compromise Ethics Standards at Work : Sources of Pressure to Compromise Ethics Standards at Work Source: Ethics Resource Center, The Ethics Resource Center’s 2000 National Business Ethics Survey: How Employees Perceive Ethics at Work (Washington, D.C.: Ethics Resource Center, 2000), p. 38. Reprinted with permission. Sets tone Slide 26: Legal Rights & Obligations (Trust-Honesty-Respect) Ethical Marketing Decisions Your Personal Values Opportunity Ethical Influences on Decision Making Processes Deception Privacy Integrity Money The Relationship of Organizational Values to Employee Satisfaction : The Relationship of Organizational Values to Employee Satisfaction Source: Ethics Resource Center, The Ethics Resource Center’s 2000 National Business Ethics Survey: How Employees Perceive Ethics at Work (Washington, D.C.: Ethics Resource Center, 2000), p. 85. Reprinted with permission. Incorporating Social Responsibility and Ethics into Strategic Planning : Incorporating Social Responsibility and Ethics into Strategic Planning Overall Strategic Marketing Planning EthicsIndividual and group decisions Social Responsibility The total effect of marketing decisions on society Top Management’s Role: Model ethical behavior by informing employees about the importance of ethics. Corporate Efforts to Improve Ethical Conduct : Corporate Efforts to Improve Ethical Conduct Codes of Conduct: Formalized rules and standards that describe what the company expects of its employees Create Ethics Officers (High Rank) Implement Legal Compliance Programs Training (Ethics, honesty, respect for people) Support with Time & over time Principle: The more a person is exposed to unethical behavior, the more likely they will exhibit unethical behavior. Potential Tools Ethics in Business . . . . Are exec’s quick to write off ethics? : Ethics in Business . . . . Are exec’s quick to write off ethics? Situation: An incentive to cheat (falsify audit) - Code of Conduct (Useless) - Personal Values (Fade) - Training (No effect) Result: many executives are quick to write off ethics, ( no “bottom line” effects ?) (JBE, Feb. 1996) 25% of exec’s say ethical standards impede success & a majority feel young exec’s compromise their ethics to achieve wealth & power Applied Research Company Ethics and Purchasing Patterns : Company Ethics and Purchasing Patterns JrlAdRes, Sept. 2005 % Agree Slide 32: Corporate Scandals Enron WorldCom Question – Whose responsible? Answer – “To clean up ethics in corporations, you have to start at the beginning of a career. Business school, that is.” Business Week,27Jan03 Why Ethics is also B-School Business Lack of Personal Ethics Results in Political Action & Legislative Ethics : Lack of Personal Ethics Results in Political Action & Legislative Ethics Legislative ethics are society’s laws that govern marketplace behavior Examples: Federal Trade Commission (Ad substantiation) Congress amended a 1930 Trade Law in 1998 to ban the importation of products made with child labor (due to Teamster Union Influence) Corporate ethics are derived from federal, state, local & regulatory agency compliance laws. Corporate Bribery... : Corporate Bribery... 1994 - Foreign Companies used bribes to edge US competitors on $45 billion of business deals (US Commerce Dept.) Major “Competitors” : France #1 , Germany #2, Britain, Japan Result : Foreign Corrupt Practices Act-1994 Updated: 1998 Economic Espionage Act When the Government Replaces God,a “Higher Law” emerges (WSJ, 30Dec 1995) : When the Government Replaces God,a “Higher Law” emerges (WSJ, 30Dec 1995) Farmers , who once looked to God to solve their problems, now look to the government for subsidies. The Bible supports the Western concept of a “Higher law”. (ex. WW2, 2000 terrorists) It is the acknowledgment of an individual’s right to appeal directly to God over the claims of the secular rulers. On separation of church & state, Thomas Jefferson said: Separation does mean elimination Teenage drug, alcohol users and Religious practices : Teenage drug, alcohol users and Religious practices Result: Those who attended religious services regularly are less likely to use drugs and alcohol Ethical Judgments of College Students : Ethical Judgments and Religion: Intrinsic religious people evaluated the ethical scenarios as more unethical than did those with lower levels of intrinsic religious commitment. Ethical Judgments of College Students Quantifying America’s Decline : Quantifying America’s Decline America is subsiding into decay through default and can be defeated...from within by weariness, boredom, cynicism, greed, and in the end helplessness before its greatest problems. The West has been undergoing an erosion and obscuring of high moral and ethical ideals. The spiritual axis of life has grown dim. Alexander Solzhewitsyen (1993) Born:1920, died July2008 Quantifying America’s Decline : Quantifying America’s Decline Living well versus Living Nobly Percent of abortions & illegitimate births Teenage suicide rates Violent crime rate Ethnic based hate Economic Corruption Low Work ethic vs. immigrants Honesty, integrity -- ethical norms Religion & Morality in decline Slide 40: It’s a special type of relationship which contains trust, favor, dependence, and adaptation and often leads to insider-based decision making in the business world. Guanxi is perceived as an ethical means to efficiently conduct business in China based on Confucian cultural values The Dynamics of Guanxi andEthics for Chinese Executives R. Chan, L. Cheng, and Ricky Szeto, Jrl of Business Ethics,12/2002 Applied Research Another View : Another View Westerners often view Guanxi as related to unethical behavior Lead to corruption Privileged treatment Under-table dealing Analysis uncovered 5 types of Ethical Views 1. Emphasize personal benefits rather than laws. 2. Explore Legal loopholes for profits. 3.Resist official governance and regulations. 4. Emphasize profits rather than friendship. Give favor & do business within a Guanxi network. Slide 42: Study Results: 1. Unethical Profit Seekers (UPS) tend to be younger than . . . Anti-governance, Guanxi-Cultivators (AGGC). 2. UPS and AGGCs generally work for privately-owned companies, 3. Apathetic Executives (AE) were found to work for state-owned companies.

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