Mark 3000 1st Edition Lecture 2 Outline of Last Lecture I Marketing Introduction II Value III The Marketing Mix a Product b Price c Place d Promotion IV Corporate Orientations a Production b Sales V Market Orientation a Market Concept VI Ford VII Importance of Marketing Outline of current lecture I II III Ethics and Laws Framework for ethical decision making a Types of Norms Levels of Responsibility Current Lecture Ethics are moral principles and values that govern actions Laws are society s values which are enforceable in courts It is important because an action can be unethical and still legal or an action can be ethical but illegal and in these situations the framework for ethical decision making is used to come to a conclusion Framework for Ethical Decision Making Helps individuals decide if something is ethical Step 1 Identify the issues Step 2 Gather information and identify the stakeholders Step 3 Brainstorm and evaluate the alternatives Step 4 Choose a course of action These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute How do you pick among alternatives Pick a course of action through considering these 4 sets of norms 1 Societal norms Basic set of values of society a Ethical Decision making b Publicity test Imaging that the action you are taking will be on the front page of the newspaper and then reflecting on how you would feel about it c Moral mentor test Imagining how your mentor would react to your decision 2 General business norms Standard practice in business a Basic business values b Consumer has the right to safety to be informed to be heard and to choose i Caveat Emptor the rare cases where the consumer does not have these rights 3 Company s norms consist of the values rules and controls that the company has 4 Personal norms defined by family religion values and other personal beliefs a Moral Idealism If any bad action occurs then the action is unethical i Ex If a drug will save 99 people s lives but if 1 will die from it it should still be considered unethical b Utilitarianism Weight the good vs the bad c Golden Rule test Treat others the way you want to be treated d Person in the mirror test Will I be able to look myself in the mirror and respect the person I see Levels of responsibility model 1 Profit responsibility The company is only responsible to stockholders and investors and has only one objective which is to maximize profit within the law 2 Stakeholder responsibility The company is responsible to the investors and customers vendors and employees 3 Corporate Social responsibility Companies are responsible to owners stakeholders and to society in general Could include a cultural diversity in the workplace Could place emphasis on environmentally friendly practices Cause related marketing supporting sponsoring a non profit organization or activity