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Copyright Cengage Learning 2012All Rights Reserved

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Chapter 3: Ethics and Social

Responsibility

Prepared and Designed by Laura Rush, B-Books Ltd.

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Learning OutcomesLO 1

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 againstsocial responsibility

Explain cause-related marketing

LO 2

LO 3

LO 4

LO 5

LO 6

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Civil Society

Six determinants of social control:1. Ethics2. Laws3. Formal and Informal Groups4. Self Regulation5. The Media6. Active Civil Society

LO 1

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Review Learning OutcomeExplain the Determinants of a Civil Society

LO1

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Copyright Cengage Learning 2012All Rights Reserved 6

Ethical Behavior

Explain the conceptof ethical behavior.

LO2

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Ethical Theories

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People usually base their individual choice ofethical theory on their life experiences

Deontology

Utilitarianism Casuist

Moral Relativists

Virtue Ethics

LO2

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Review Learning OutcomeExplain the Concept of Ethical Behavior

LO2

Ethical conflicts for business owners,

managers, customers, workers, andthe communities can sometimes beresolved through the reliance onethical theories such as deontology,utilitarianism, casuist, moral relativism,and virtue ethics.

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Ethical Behavior in Business

Describe ethical behaviorin business.

LO3

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Copyright Cengage Learning 2012All Rights Reserved10

Ethics and Morals

Good or Bad Foundation of ethical behavior

Morals and Business Behavior Examine the consequences

Stress the importance of rules

LO 3

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Ethical Development Levels

PreconventionalMorality

ConventionalMorality

PostconventionalMorality

MoreMature

MoreChildlike

Based on what will bepunished or rewarded

Self-centered, calculating,selfish

Moves toward theexpectations of society

Concerned over legality andthe opinion of others

Concern about how they judge themselves

Concern if it is right inthe long run

LO3

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Factors Influencing EthicalDecision Making

Extent of ethicalproblems

Top-managementactions

Potential magnitudeof consequences

Social consensus

Probability of harm Time between

decision andconsequences

Number affected bythe decision

LO 3

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Code of Ethics

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Code of Ethics- A guideline to helpmarketing managers and otheremployees make better decisions.

LO 3

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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 andwrong

LO 3

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Review Learning OutcomeDescribe the Role of Ethics and Ethical Decisions in Business

LO 3

LO3

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Corporate Social Responsibility

Discuss corporate socialresponsibility.

LO4

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Sustainability

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The idea that sociallyresponsible companies will

outperform their peers by focusingon the worlds social

problems and reviewingthem as opportunities to build

profits and help the

world at the same time.

LO4

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Corporate Social Responsibility:Stakeholders

Employees

Management

Customers

Local Community

Suppliers

Owners

18LO4

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Review Learning OutcomeDiscuss Corporate Social Responsibility

EthicalDo what is right.

LegalObey the Law.

EconomicBe profitable.

PhilanthropicBe a good citizen.

LO4

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Arguments Against and For Corporate

Social Responsibility

Describe the arguments for andagainst social responsibility.

LO5

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Arguments Against SocialResponsibility

Businesses should focus on making a profit andleave social and environmental concerns tononprofits

Businesses dont have the expertise to deal withsocial issues and doing so may interfere with theprimary goals of their firms

The expense of social responsibility may damagethe country in the global marketplace

LO5

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Arguments for Social Responsibility

It is the right thing to do

Business should police itself to avoidgovernment intervention

Small companies can prosper and build

shareholder value as they tackle socialproblems

LO5

LO 5

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Review Learning Outcome

ForOn the one hand: Its the right thing to do Government will create new

regulations and levy fines if firmsarent socially responsible

It can enhance a companysprofitability

AgainstOn the other hand: the job of the corporation is to

maximize profits for stockholders Businesses are better suited to

produce goods and services andnot be involved in welfareservices

If global competitors dont haveto be socially responsible, they

will have lower costs and cancompete more effectively in theglobal marketplace

LO 5

Arguments for and Against Social Responsibility

LO5

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Cause-Related Marketing

Explain cause-relatedmarketing.

LO 6

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LO 6

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Review Learning OutcomeLO 6

Explain Cause-Related Marketing

LO 6

Can enhance for-profitcorporations reputation and raise

profits

Non-profit receives financialsupport and publicity for cause

Cause-relatedmarketing:Cooperative effortbetween for-profitand non-profitorganizations

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Chapter 3 Company Clip

This video segment shows the all-naturalhousehold cleaner company, Method, throughyet another lens - that of corporate socialresponsibility (CSR) and sustainability.http://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch03.html

http://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch03.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch03.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch03.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch03.html

lhm 12e ch03_ppt_ie

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