1 chapter 3: ethics and social responsibility copyright cengage learning 2013 all rights reserved...
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Chapter 3: Ethics and Social Responsibility
Copyright Cengage Learning 2013All Rights Reserved
Introduction to
Designed & Prepared by Laura RushB-books, Ltd.
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Learning OutcomesLO1 Explain the determinants of a civil society
Explain the concept of ethical behavior
Describe ethical behavior in business
Discuss corporate social responsibility
Describe the arguments for and against social responsibility
Explain cause-related marketing
LO2
LO3
LO4
LO5
LO6
Copyright Cengage Learning 2013All Rights Reserved
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Civil Society
Six determinants of social control:1. Ethics
2. Laws
3. Formal and Informal Groups
4. Self Regulation
5. The Media
6. Active Civil Society
LO1 Copyright Cengage Learning 2013All Rights Reserved
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Ethical Theories
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People usually base their individual choice of ethical theory on their life experiences
• Deontology
• Utilitarianism
• Casuist
• Moral Relativists
• Virtue Ethics
LO2 Copyright Cengage Learning 2013All Rights Reserved
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Ethics and Morals
• Good or Bad
• Foundation of ethical behavior
Morals and Business Behavior
• Examine the consequences
• Stress the importance of rules
LO3 Copyright Cengage Learning 2013All Rights Reserved
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Ethical Development Levels
PreconventionalMorality
ConventionalMorality
PostconventionalMorality
MoreMature
MoreChildlike
• Based on what will be punished or rewarded
• Self-centered, calculating, selfish
• Moves toward the expectations of society
• Concerned over legality and the opinion of others
• Concern about how they judge themselves
• Concern if it is right in the long run
LO3 Copyright Cengage Learning 2013All Rights Reserved
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Factors Influencing Ethical Decision Making
• Extent of ethical problems
• Top-management actions
• Potential magnitude of consequences
• Social consensus
• Probability of harm• Time between
decision and consequences
• Number affected by the decision
LO3 Copyright Cengage Learning 2013All Rights Reserved
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Code of Ethics
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Code of Ethics- A guideline to helpmarketing managers and other
employees make better decisions.
LO3 Copyright Cengage Learning 2013All Rights Reserved
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Creating Ethical Guidelines
• Helps identify acceptable business practices
• Helps control behavior internally
• Avoids confusion in decision making
• Facilitates discussion about right and wrong
LO3 Copyright Cengage Learning 2013All Rights Reserved
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Sustainability
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The idea that socially responsible companies will
outperform their peers by focusing on the world’s social
problems and reviewing them as opportunities to build
profits and help the world at the same time.
LO4 Copyright Cengage Learning 2013All Rights Reserved
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Corporate Social Responsibility: Stakeholders
• Employees
• Management
• Customers
• Local Community
• Suppliers
• Owners
11LO4 Copyright Cengage Learning 2013
All Rights Reserved
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Arguments Against Social Responsibility
• Businesses should focus on making a profit and leave social and environmental concerns to nonprofits
• Businesses don’t have the expertise to deal with social issues and doing so may interfere with the primary goals of their firms
• The expense of social responsibility may damage the country in the global marketplace
LO5 Copyright Cengage Learning 2013All Rights Reserved
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Arguments for Social Responsibility
• It is the right thing to do
• Business should police itself to avoid government intervention
• Small companies can prosper and build shareholder value as they tackle social problems
LO5 Copyright Cengage Learning 2013All Rights Reserved
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Cause-Related Marketing
Five Questions to Ask Before Participating in a Cause-Related Marketing Program
• Is this company committed?
• How is the program structured?
• Who does the program benefit?
• How will the organization that benefits use my money?
• Is the program meaningful to me?
LO6 Copyright Cengage Learning 2013All Rights Reserved