1/31/11Chapter 3 – Ethics & Social ResponsibilityEthical Behavior-unwritten rules governing interaction-ex: wait in lines, “please & thank you”, honest, polite-ethics: moral principles/values that govern conducts of the individual-morals: the rules people develop as a result of cultural values and normsEthical Development Levels-preconventional morality: based on what will be punshied; childish,self centered-conventional: moves toward expectations of society; concerned over legality-post conventional: concerned about how they judge themselves; concerned if it is right in the long runFactors that Influence Ethical Decisions-extent of problems-top management actions-potential consequences-social consensus-probability of harmful outcome-time until consequences-number of people affectedCreating Ethical Guidelines-helps identify acceptable practices-helps control behavior internally-avoids confusion in decision making-facilitates discussion about what is right and what’s wrongGreen Marketing-more prevalent with increased in environmental awareness-customers pay more for these products-companies educate customers of environmental benefits4 P’s of Green Marketing-Planning, Processes, Products, Promotion-embedding green targets in strategy-reduce wasts in operations-determine offerings, package, & pricing issues-communicate company’s message on greenCSR (Corporate Social Responsibility)-Philanthropic: be a good citizen-Ethical: do what’s right-Legal: obey the law-Economic: be profitable-commitment by business to economic development while improving quality of life of the community & whole societyArguments Against CSR-focus on profit-expensive1/31/11-businesses shouldn’t pay attentionROI (return on investment) on CSR:1. Enhance reputation & brand image-83% trust CSR companies2. Increase profit & customer loyalty-89% cost would switch brand if associate with better
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