MARKETING STRATEGY

O.C. FERRELL MICHAEL D. HARTLINE

12

Marketing Ethics and

Social Responsibility

The Role of Ethics and Social

Responsibility in Marketing Strategy
Dimensions of Social Responsibility
Social responsibility
Marketing ethics

Marketing Ethics and Strategy

The Challenges of Being Ethical and
Socially Responsible

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Marketing Strategy in Action

R.J. Reynolds has been
accused by critics of using its
Joe Camel cartoon
character, as shown in this
1988 ad, to target children for
cigarette consumption.
How has society acted to
protect children from
advertising such as this?
What obligations do
companies have to protect
children?
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The Pyramid of Social Responsibility

Exhibit 12.1

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Potential Ethical Issues in Marketing

Exhibit 12.2

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Perceived Values in the Workplace

Exhibit 12.3

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Discussion Question
Why is marketing ethics a strategic
consideration in organizational decisions?
Who is most important in managing
marketing ethics: the individual or the firms
leadership? Explain your answer.

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Deceptive Practices in Marketing

Deceptive Communication and Promotion

False/deceptive statements
Exaggerated claims
Ambiguous statements
Product labeling issues
Fraud

Regulating Deceptive Marketing Practices

Trade associations
Better Business Bureau (BBB)

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Better Business Bureau

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Organizational Determinants of Marketing

Ethics and Social Responsibility (1 of 2)
Ethical Climate
Codes of Conduct
Six highly desirable core values:

1) Trustworthiness
2) Respect
3) Responsibility
4) Fairness
5) Caring
6) Citizenship
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Key Considerations in Developing and

Implementing a Code of Ethical Conduct

Exhibit 12.4

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Texas Instruments

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Discussion Question
Why are we seeing more evidence of
widespread ethical marketing dilemmas
within firms today? Is it necessary to gain
the cooperation of marketing managers to
overstate revenue and earnings in a
corporation?

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Organizational Determinants of Marketing

Ethics and Social Responsibility (2 of 2)
Marketing Ethics and Leadership
Great leaders:

1) Create a common goal or vision

2) Obtain buy in
3) Motivate others to be ethical
4) Use available resources
5) Enjoy their jobs

Ethics training can ensure that everyone:

1) Recognizes ethical decision making situations
2) Understands the culture and values of the firm
3) Is able to evaluate the impact of ethical decisions
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Ethics, Social Responsibility,

and Marketing Performance
Firms that are ethical and socially
responsible are rewarded with greater
marketing performance.
Having a strong ethical climate:

Increases employee commitment

Is conducive to a strong market orientation
Creates trust among a firms stakeholders
Increases customer loyalty
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Discussion Question
What is the relationship between marketing
ethics and organizational performance?
What are the elements of a strong
compliance program to support responsible
marketing and a successful marketing
strategy?

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Incorporating Ethics and Social

Responsibility Into Strategic Planning
AMA Code of Ethics
Federal Sentencing Guidelines for
Organizations (FSGO)
Marketing strategy and implementation plans
should reflect an understanding of:
1) The ethical and social consequences of
strategic choices
2) The values of organizational members and
stakeholders
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AMA Code of Ethics for the Internet

Exhibit 12.6

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Frequency of Misconduct and

Penalties Under the FSGO

Exhibit 12.7

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