Ethical & Social Issues in Marketing

8/13/2019 Ethical & Social Issues in Marketing

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Dr S.L Gupta4-1

Ethical and Social Issues in Marketing

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Ethical and

Social Issues inMarketing

4Chapter


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Ethical BehaviourEthics 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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Individual Factors

Organisational Factors

Perceived Opportunity

Understanding Ethical Conduct

Understanding Ethical Behaviour in Marketing Decisions

Individual

Factors

Perceived

Opportunity

Organisational

Factors

Resulting Ethical or

Unethical Behaviour


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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.

Individual Factors


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Organisational FactorsCorporate 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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Perceived OpportunityOpportunity 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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Marketing Related Ethical IssuesEthical 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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Social ResponsibilitySocial 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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Pyramid of Corporate Social Responsibility

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.


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Social Responsibility Issues Consumer Movement (Consumerism)

Ecological Concerns

Green Marketing


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Social Responsibility Issues

Indian Scene Consumer Protection Act, 1986

Consumer Forums

Competition Policy

Corporate Responsibility Issues

Ethical & Social Issues in Marketing

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