Chapter 5

Marketing EssentialsMarketing Essentials

Chapter 5 � Business and Social Responsibility 1

� Chapter 5 Business and Social Responsibility

Section 5.2 Ethics and

Social Responsibility

5.2 ASSIGNMENTASSIGNMENT

DECA Connection

•10 minutes to read situation and write response.

Chapter 5 � Business and Social Responsibility 2

write response.

•Discuss answers

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SECTION 5.2SECTION 5.2

What You'll LearnWhat You'll Learn

� The areas in which businesses are thought to have social responsibilities

� The ways that business activities have

Ethics and Social ResponsibilityEthics and Social Responsibility

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� The ways that business activities have impacted our environment

� The definition of ethics and how marketers can make ethical choices

� The meaning of consumerism and a brief history of the movement

� The current trends and concerns in the workplace for employees

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

Why It's ImportantWhy It's Important

You know the importance of being considerate of others in your daily life. As you move toward a career in adult life, you will want to

Chapter 5 � Business and Social Responsibility 4

a career in adult life, you will want to understand the importance of ethics and social responsibility in the life of a business.

Social responsibility means that businesses are part of a larger society and should be held accountable to that society for their actions.

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

Key TermsKey Terms

� ethics

� consumerism

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� consumerism

� green marketing

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

Apart from following the law, should businesses have any further social responsibility? Some businesses feel they should.

Marketing and Social Responsibility

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businesses feel they should.

� Example: Ben & Jerry's Homemade, Inc. donates 7.5 percent of its pretax earnings to the disadvantaged and the needy.

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

Environmental Issues

Socially responsible businesses follow the laws governing environmental issues and understand their roles in helping to preserve

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understand their roles in helping to preserve our natural resources.

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

Air & Water Pollution

The Federal Government established the Environmental Protection Agency (EPA).

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• Cars• Chlorofluorocarbons (CFC’s)• Freon• Agricultural pesticides and chemicals

fertilizers• Chlorine gas• Industrial waste

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

Conservation of our natural resources depends heavily on cooperation of business,

Conservation and Recycling

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on cooperation of business, government, and consumers. Most local governments require mandatory recycling of glass, plastic, and aluminum through local trash collection.

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

Because of the growing importance of ecological issues, companies make an effort to produce and promote environmentally safe products.

Green Marketing

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promote environmentally safe products.

These are often labeled as ozone-safe, recyclable, environmentally friendly or biodegradable.

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

Ethics are guidelines for good behavior. Ethical behavior is based on knowing the difference between right and wrong—and doing what is right.

Business Ethics

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between right and wrong—and doing what is right. Laws are made to address ethical concerns involving products or marketing. The following unethical practices are prohibited:

� bait-and-switch advertising� price fixing� selling unsafe products

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

To make the right ethical choices, marketers must answer these three basic questions:

1.

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1. Is the practice right, fair, and honest?

2. What would happen if the product were marketed differently?

3. What practice will result in the greatest good for the greatest number of people?

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

A socially responsible business will recall an unsafe product before the government forces them to do so.

Product Recalls

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them to do so.

� Example: McNeil Consumer Products pulled Tylenol products off store shelves after someone was fatally poisoned by a capsule that had been tampered with.

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

Consumerism is the societal effort to protect consumer rights by putting legal, moral, and economic pressure on business. Consumerism's

Consumerism

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economic pressure on business. Consumerism's focus has changed over the years:

� Early 1900s—product purity, product shortages, antitrust concerns, postal rates, and banking.

� 1930s to 1950s—product safety, labeling, misrepresentation, deceptive advertising, consumer refunds, and bank failures.

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SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

Early 1960s—President John F. Kennedy signed the Consumer Bill of Rights, which stated that consumers have four basic rights:

Consumerism

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consumers have four basic rights:� To be informed and protected against fraud,

deceit, and misleading statements, and to be educated in the wise use of financial resources

� To be protected from unsafe products� To have a choice of goods and services� To have a voice in product and marketing

decisions made by government and business

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SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

Telecommuting involves working at home, usually on a computer. Completed jobs are transmitted either by mail or by phone using

Workplace Trends

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transmitted either by mail or by phone using a fax machine or a modem.

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

Flextime allows workers to choose their own work hours. Possible arrangements include early start/early finish (7 a.m.-3 p.m.), late

Workplace Trends

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early start/early finish (7 a.m.-3 p.m.), late start/late finish (10 a.m.-6 p.m.), and even four-day workweeks (four 9- or 10-hour days followed by three-day weekends).

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

Family leave is now legally required by federal law for large employers. Workers are entitled to up to 12 weeks of nonpaid family leave every

Workplace Trends

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up to 12 weeks of nonpaid family leave every two years. This allows people to cope with births, deaths, and family illnesses without fear of job loss.

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

On-site child care is a benefit that has grown in popularity with the increase in two-income

Workplace Trends

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the increase in two-income families. Some employers have expanded it to include on-site schools and on-site clinics for children who are ill. Where the benefit is provided in any form, it tends to reduce employee turnover.

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

Help for the physically challenged is mandated by the Americans with Disabilities Act (1990). Employers must provide physically challenged

Workplace Trends

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Employers must provide physically challenged people with the same job opportunities and work site accesses that others have. To make this possible, employers may have to alter their workplaces physically, change the way a job is done, or provide individual assistance.

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

Health-care reform at the national level is an employee issue because so many Americans receive health insurance benefits through their

Workplace Trends and Concerns

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receive health insurance benefits through their jobs. Of the 37 million Americans who do not, virtually all who work are employed by small businesses or hold minimum-wage jobs. How to cover these people and how to hold the line on costs for those who have coverage are key issues in the national health-care debate.

SECTION 5.2SECTION 5.2 Ethics and Social ResponsibilityEthics and Social Responsibility

Employee issues have been in the center of public interest since the 1990s.

Workplace Trends and Concerns

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� sexual harassment

� computer privacy and security

� employee monitoring

5.2 AssignmentAssignment

Chapter 5.2 Review page 94

Due: Today

Role Play DECA Connection pg.

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Role Play DECA Connection pg. 97 (Type Answer & Turn In)

Due: Today

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End of Section 5.2