Ethical and Social Issues in Marketing

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Chapter

Ethical and Social Issues in Marketing

Ethical and Social Issues in Marketing

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.

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Dr S.L Gupta

Ethical and Social Issues in Marketing

Understanding Ethical Conduct

Individual Factors

Organisational Factors
Perceived Opportunity

Individual Factors

Perceived Opportunity

Organisational Factors

Resulting Ethical or Unethical Behaviour

Understanding Ethical Behaviour in Marketing Decisions 4-3 Dr S.L Gupta

Ethical and Social Issues in Marketing

Individual Factors
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.

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Dr S.L Gupta

Ethical and Social Issues in Marketing

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.

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Ethical and Social Issues in Marketing

Perceived Opportunity
Opportunity refers to a set of conditions perceived as favourable that limit barriers or provide rewards. Most managers in marketing do not deliberately take advantage of every opportunity for unethical conduct in their companies.

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Dr S.L Gupta

Ethical and Social Issues in Marketing

Marketing Related Ethical Issues

Ethical issue refers to some situation, problem, or opportunity that can be recognised and requires a person or organisation to select from among different actions that must be evaluated as right or wrong, or ethical or unethical.

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Dr S.L Gupta

Ethical and Social Issues in Marketing

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.

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Dr S.L Gupta

Ethical and Social Issues in Marketing

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 (earn profits) Make profitable use of resources. Pyramid of Corporate Social Responsibility 4-9 Dr S.L Gupta

Ethical and Social Issues in Marketing

Social Responsibility Issues

Consumer Movement (Consumerism) Ecological Concerns Green Marketing

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Dr S.L Gupta

Ethical and Social Issues in Marketing

Social Responsibility Issues Indian Scene

Consumer Protection Act, 1986

Consumer Forums Competition Policy Corporate Responsibility Issues

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Dr S.L Gupta