Ethical Issues in Marketing

What is Business Ethics?

- Written and unwritten 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 behavior.

In the most basic terms,

a definition for business
ethics boils down to
knowing the difference
between right and wrong
and choosing to do what
is right. The phrase
'business ethics' can be
used to describe the
actions of individuals
within an organization,
as well as the
organization as a whole

Ethical Frameworks
Moral idealism universal rights
and obligations
Utilitarianism the greatest good
for the greatest number
Social justice emphasis on
fairness and equality for all
individuals

Activity 1
Testing your ethics
meter

Ethics
What lessons are highlighted by
the different situations?
What single factor will influence
you to change your decision?
Can you uphold your decision at
all times?

Behaving ethically.
customers develop more
positive attitudes about
the firm, its products,
and its services
Avoids the pressure
social or government
institutions to assume
greater responsibility for
their actions

http://www.1worldglobalgifts.com/chinagiftgivingetiquette.htm

Case Study
International Gift Giving Etiquette
- China

FCPA
http://www.usdoj.gov/criminal/fraud/fcpa/
Article I
The Offence of Bribery of Foreign Public Officials
1. Each Party shall take such measures as may be necessary to establish that it is a
criminal offence under its law for any person intentionally to offer, promise or give any
undue pecuniary or other advantage, whether directly or through intermediaries, to a
foreign public official, for that official or for a third party, in order that the official act or
refrain from acting in relation to the performance of official duties, in order to obtain or
retain business or other improper advantage in the conduct of international business.
2. Each Party shall take any measures necessary to establish that complicity in, including
incitement, aiding and abetting, or authorisation of an act of bribery of a foreign public
official shall be a criminal offence. Attempt and conspiracy to bribe a foreign public official
shall be criminal offences to the same extent as attempt and conspiracy to bribe a public
official of that Party.
3. The offences set out in paragraphs 1 and 2 above are hereinafter referred to as "bribery
of a foreign public official".
4 For the purpose of this Convention:
"foreign public official" means any person holding a legislative, administrative or judicial
office of a foreign country, whether appointed or elected; any person exercising a public
function for a foreign country, including for a public agency or public enterprise; and any
official or agent of a public international organisation;
"foreign country" includes all levels and subdivisions of government, from national to
local;
"act or refrain from acting in relation to the performance of official duties" includes any
use of the public official's position, whether or not within the official's authorised
competence

General Guidelines
Lavish gift giving was
an important part of
Chinese culture in the
past. Today, official
policy in Chinese
business culture forbids
giving gifts; this
gesture is considered
bribery, an illegal act in
this country.
Consequently, your gift
may be declined.

General Guidelines
If you wish to
give a gift to an
individual, you
must do it
privately, in the
context of
friendship, not
business.

General Guidelines
The Chinese will
decline a gift three
times before finally
accepting, so as not to
appear greedy. You
will have to continue
to insist. Once the gift
is accepted, express
gratitude. You will be
expected to go
through the same
routine if you are
offered a gift.

General Guidelines
Giving a gift to the entire company,
rather than an individual, can be
acceptable in Chinese business
culture

General Guidelines
If possible, have your gifts wrapped in red
paper, which is considered a lucky color.
Plain red paper is one of the few safe
choices since a variety of meanings, many
of which are negative, are attributed to
colors in Chinese culture.
Pink and gold and silver are also
acceptable colors for gift wrap. Wrapping
in yellow paper with black writing is a gift
given only to the dead. Also, do check the
variations from region to region about
colors. .

Appreciated Gifts
Acceptable gifts for a company
include items from your country or
city, such as handicrafts, or an
illustrated book. Be sure to bring a
supply of these items with you, so
that you can reciprocate if it
happens that you are presented
with a gift.

Appreciated Gifts
Gifts of food are
acceptable, but not at
dinner parties or other
occasions where
appetizers and meals
will be served. Candy
and fruit baskets,
however, are acceptable
as thank-you gifts sent
after these events.

Appreciated Gifts
Eight is considered one of the luckiest
numbers in Chinese culture. If you
receive eight of any item, consider it a
gesture of good will. Six is considered a
blessing for smoothness and problem
free advances. Four is a taboo because it
means 'death.' Other numbers such as
'73' meaning 'the funeral' and '84'
meaning 'having accidents' are to be
avoided.

Gifts to Avoid
Scissors, knives, or other
sharp objects can be
interpreted as the severing
of a friendship or other
bond. As a gesture of
friendship, if you do want to
give these items as a gift,
ask your friend to give you a
very small amount of money.
By doing so, you would have
'sold' it to him rather than
given it to him.

Gifts to Avoid
The following items are to be
avoided as they are associated
with funerals: Straw sandals,
clocks, handkerchiefs, four of any
item [the Cantonese word for
four sounds similar, in the same
language, to death], gifts or
wrapping paper in white, black, or
blue.