1、 M16MKT Marketing ethics & Corporate Social ResponsibilityLearning Objectives2 2To define the meaning of ethics, business ethics and marketing ethicsTo examine the ethical issues in marketing practiceTo discuss the Stakeholder Theory and its impacts on marketing practiceTo evaluate the nature and di
2、mensions of Corporate Social Responsibility (CSR)To present arguments for and against CSR programmesDefinitionsEthics Moral principles and values that govern the actions and decisions of an individual or group.Business Ethics1.Moral principles and values that guide a firms behaviour.2.Written and un
3、written codes of principles and values that govern decisions and actions within a company. In the business world, the organizations culture sets standards for determining the difference between good and bad decision making and behaviour.Marketing Ethics4 4 Moral principles and values that guide beha
4、viour within the field of marketing and cover issues, such as (1) product safety, (2) truthfulness in marketing communications, (3) honesty in relationships with customers and distributors, (4) pricing issues and (5) the impact of marketing decisions on the environment and society.Ethical issues in
5、marketing5 5Ethical issues in marketingMarketing mixeffects onconsumersPolitical issuesSocietalissuesEnvironmentalissuesSocietal responses to ethical issues in marketing ConsumerismEnvironmentalismEthical Consumption6 6Legal and regulatory responses to ethical issues in marketingEU competition laws
6、and regulatory bodies that aim to protect the rights of consumers.National laws covering consumer rights and protection.Competition regulation supported by government-backed regulatory bodies.Voluntary bodies set up by industries to create and enforce codes of practice.7 7HondaHonda is developingaff
7、ordable, fuel-efficientand less-polluting hybridcars.8 8Marketing Mix: ProductPotential harm of products to consumers. e.g. genetically modified (GM) food; high levels of fat in food, tobacco, sugar in childrens food (combined with advertising!)Government and businesses taking steps to reduce harmfu
8、l effect of products (e.g. smoking ban)Creation of Food Standards Agency (FSA) independent food safety body set up to protect public health and consumer interests in relations to food in the UKPortman Group oversees the UKs alcoholic drinks industry: market alcohol in a socially responsible way.9 9M
9、arketing Mix: PriceFirms can collude to force up the price of products. -Interferers with consumers freedom of choice.EU competition policy provides a legal framework designed to prevent firms from colluding. 1010Marketing Mix: PlaceSlotting allowances: fee paid by manufacturers to a retailer in exc
10、hange for an agreement to place a product on shelves.Distorts competition: favouring large manufactures over smaller ones (who might have superior products!)1111Marketing Mix: PromotionExaggerated claims or concealed facts. E.g. food advertised as healthy because of vitamin content, but is high in s
11、ugar or fats.Advertising is tightly regulated now!Deceptive Selling: Salespeople deceiving in order to make a sale OR sell the more expensive product.1212Marketing Mix: PromotionDirect Marketings invasion of privacy: the unethical practice of entering consumer names and addresses onto databases with
12、out consumers permission.Internet Privacy: tracking online shoppers information recorded using “cookies” (downloaded onto shoppers PCs) without permission. Allow marketers to provide customized and personalized content for online shoppers.Promotional inducement to the trade: Offering inducements to
13、retailers to place emphasis on a particular companys products. 1313Green & BlackEthical brands can alsotaste wonderful.1414High-Pressure SellingSalespeople are trained to deliver smooth, canned talks to entice purchase.Hard sales can occur because of prizes going to top sellers.High-pressure selling
14、: not good for long- term relationships.1515Marks and Spencer1616M&S encourages its consumers to look behind the label in one campaign.Corporate Social Responsibility (CSR)1717Definitions1.The ethical principle that an organization should be accountable for how its behaviour might affect society and
15、 the environment.2. A voluntary approach that a business enterprise takes to meet or exceed stakeholder expectations by integrating social, ethical, and environmental concerns together with the usual measures of revenue, profit, and legal obligation.Business ethics and Corporate Social Responsibilit
16、y (CSR)1818Business ethics is about the application of ethical values, CSR is the expression of those values both within core business strategies and as a set of commitments and obligations made to its stakeholders. Why is business ethics important?19Power of businesses in society is significantBusi
17、ness malpractices have lots of negative impactFew business people have formal ethics trainingEthical violations continue to occur in business(Crane & Matten, 2004) Typical key stakeholders for a company2020THECOMPANYShareholdersSuppliersCommunitiesassociated withthe companyCustomers(including interm
18、ediaries)EmployeesPotential stakeholders Universities21 UniversityLocal/ National GovtEmployeesSuppliersLocal Business StudentsCompetitorsCarroll (1991) Four-part model of Corporate Social Responsibility2222Economic ResponsibilitiesLegal ResponsibilitiesEthical ResponsibilitiesPhilanthropic Responsi
19、bilitiesPromote human wellbeing.Concept of good corporate citizen.Do what is morallyrightObey lawsShareholder ValueCamel Cigarettes23232424What is this ad portraying?2525Benetton2626Benetton2727Benetton2828Benetton2929Benetton3030Benetton3131Internal marketingDimensionsEmployee RelationsSupply Chain
20、ConsumerSocial (community involvement)Physical environmentDimensions of corporate social responsibility3232Marketing responseSocietal marketing/cause-related marketingSocietal marketingFairtrade marketingSustainable marketingPhysical dimensions of CSRcombating global warming; pollution control; cons
21、ervation of energy and other scarce resources; Use of environmental friendly ingredients and components; non-animal testing; recycling and non-wasteful packaging.Marketing Response: Sustainable marketing: focusing on environmental issues and reducing damage by creating, producing and delivering sust
22、ainable solutions while continuing to satisfy customers and other stakeholders. (e.g. Prius; Green & Black)3333Social and Consumer dimensions of CSRSupport for local communitySupport for the wider communityProduct safety (including harmful long-term effects)Avoidance of price-fixingHonestly in commu
23、nicationsRespecting privacyMarketing response: Societal and Cause-related marketing. Consider consumers and societys needs and long-term welfare. Rectify conflicts between short-term (e.g. fast-food) and long-term needs (health). 3434Dimensions of Supply Chain in CSRFair tradingStandard setting for
24、suppliers (e.g. human rights, labour standards and environmental responsibility).Marketing response: Fair-trade marketing (development, promotion and selling of fair trade brands and the positioning of organisations on the basis of a fair trade ethos.3535Dimensions of employee relations in CSRFair p
25、ayEqual opportunitiesTraining and motivationInformation provision (e.g. career paths, recruitment policies and training opportunities).Marketing response: Internal marketing (development, training and motivation of employees designed to enhance their performance in providing customer satisfaction)36
26、36The stages in the move towards excellencein environmental performance3737Sustainable policyand organizationSingle sustainableproduct/serviceSustainable product/service rangeSustainableproductionAll sustainableproducts/servicesSource: M. Charter, K. Peattie, J. Ottman and M.J. Polonsky (2002) Marke
27、ting and Sustainability, Cardiff: Centre for BusinessRelationships, Accountability, Sustainability and Society (BRASS) in association with Centre for Sustainable Design.Arguments for and against CSR programmes FOR:CSR leads to enhanced brand/corporate image and reputationCSR provides marketing oppor
28、tunities (Body Shop, Organic food etc.)CSR can reduce operating costs (improve energy efficiency, reducing waste, selling recycled materials)CSR increases organizations ability to attract and retain employeesCSR is a form of risk management (no loss of reputation)CSR improves access to capital (acce
29、ss to socially responsible investment)AGAINST:CSR is misguided (companies should make profit/governments should address other issues)CSR is too costlyCSR encourages consumer cynicism(seen as public relation exercises)3838Ethics in the leisure industry3939Grand Theft Auto Responses to ethical issues
30、in marketing4040Responses toethical issues in marketingBusinessCorporate socialResponsibilityLegal and regulatoryEuropean and national lawsand regulatorybodiesSocietalConsumerismEnvironmentalismManaging ethical issues: CSR41Encourages corporations to take greater responsibility for their actionsCorp
31、orations cause social problems, so they need to resolve themCorporations should use their resources & power responsiblyCorporations need to take into account the interests of shareholders & stakeholdersMay lead to more satisfied customers, attract employees & create long-term investment in the commu
32、nityCompany Practicing CSRThe Body Shop & Community Trade partners: With this income from selling seed for oil and from selling a few animals, we were able to save up to buy a small area of land, and so now we can not only guarantee our food and livelihood, but we also have an income.Account of sesa
33、me farmer, Juan Francisco Paz Silva Co-operative, Nicaragua 4242This weeks reading 4343Abela, A.V. and Murphy, P.E. 2008. Marketing with integrity: ethics and the service-dominant logic for marketing. Journal of the Academy of Marketing Science, 36 (1), 39-53. Exercise for next week4444In a group of
34、 4-5Using one of the examples below to prepare a 5 minute presentation summarising the key ethical debates in the case concerned. Use real life examples from marketing magazines, newspaper reports or websites to illustrate your discussion. Choose ONE from the below category. 1.The promotion and sale of unhealthy or harmful products.2.The targeting of vulnerable segments in advertising campaigns.3.The invasion of consumer privacy through intrusive marketing practices.
