marketing management chapter 04

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© SHH Kazmi, 2007

Excel BooksMarketing Management Text and Cases, S H H Kazmi4-1

Ethical and Social Issues in Marketing

Marketing Management Text and Cases

Excel Books4-1

Ethical and

Social Issues inMarketing

4Chapter



© SHH Kazmi, 2007



Ethical Behaviour Ethics are moral principles and values that govern the actions and decisions

of an individual or group. In the marketing context, ethics is the moral

evaluation of marketing activities and decisions as right or wrong.



© SHH Kazmi, 2007



Individual Factors

Or ganisational Factors

Perceived Opportunity

Understanding Ethical Conduct

Understanding Ethical Behaviour in Marketing Decisions

Individual

Factors

Perceived

Opportunity

Organisational

Factors

Resulting Ethical or

Unethical Behaviour



© SHH Kazmi, 2007



When marketing managers face ethically challenging situations and are unable to

resolve them all alone, they experience ethical conflict, though they make

decisions in their everyday lives based on their personal concepts of right or

wrong.The two major concepts relevant to marketing situations are utilitarianism and

ethical formalism.

Individual Factors



© SHH Kazmi, 2007



Organisational Factors

Corporate culture refers to a set of values, beliefs, goals, norms, etc., shared by

its members and expressed in every day working through work habits, and other

activities.



© SHH Kazmi, 2007



Perceived Opportunity

Opportunity refers to a set of conditions perceived as favourable that limit

barriers or provide rewar ds. Most managers in marketing do not deliberately

take advantage of every opportunity for unethical conduct in their companies.



© SHH Kazmi, 2007



Marketing Related Ethical IssuesEthical issue refers to some situation, problem, or opportunity that can be

recognised and requires a person or or ganisation to select from among

different actions that must be evaluated as right or wrong, or ethical or

unethical.



© SHH Kazmi, 2007



Social Responsibility

Social responsibility of business refers to the obligation of a business to make

deliberate efforts to maximise its positive contributions and minimise the

negative impact on society as a whole and on various groups of individuals

within the society.



© SHH Kazmi, 2007



Pyramid of Corporate Social Responsibility

Philanthropic

(be a good

corporate citizen)

Contribute to improve the

quality of community life.

Ethical Conduct

(do the right thing, avoid harm)

Obligation to do what is right,

just, and fair, and avoid harm.

Legal

(obey the laws)Play by the rules of game.

Economic

(ear n profits)

Make profitable use of resources.



© SHH Kazmi, 2007



Social Responsibility Issues

Consumer Movement (Consumerism)

Ecological Concer ns

Green Marketing



© SHH Kazmi, 2007



Social Responsibility Issues ± Indian Scene

Consumer Protection Act, 1986

Consumer Forums

Competition Policy

Corporate Responsibility Issues

marketing management chapter 04

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