Marketing Chapter 3Business Ethics- refers to a branch of ethical study that examines ethical rules and principles within a commercial context, the various moral or ethical problems that might arise in a business setting, and any special duties or obligations that apply to persons engaged in commerce.Marketing Ethics- refers to those ethical problems that are specific to the domain of marketing.Ethical climate- the set of values within a marketing firm, or in the marketing division of any firm, that guide decision making behavior.In marketing managers often face the choice of doing what is beneficial for them andpossibly the firm in the short run and doing what is right and beneficial for the firm and society in the long run.Ethical Values ContinuedFairness- to balance justly the needs of the buyer with the interests of the seller. To this end, we will:- Represent products in a clear way in selling, advertising and other forms of communication; this includes the avoidance of false, misleading and deceptive promotion.- Reject manipulations and sales tactics that harm customer trust.- Refuse to engage in price fixing, predatory pricing, price gouging or “bait-and-switch” tactics.- Avoid knowing participation in conflicts of interest. Seek to protect the private information of customers, employees and partners.Respect- to acknowledge the basic human dignity of all stakeholders. To this end, wewill:- Value individual differences and avoid stereotyping customers or depicting demographic groups (e.g., gender, race, sexual orientation) in a negative or dehumanizing way.- Listen to the needs of customers and make all reasonable efforts to monitor and improve their satisfaction on an ongoing basis.- Make every effort to understand and respectfully treat buyers, suppliers, intermediaries and distributors from all cultures.- Acknowledge the contributions of others, such as consultants, employees andcoworkers, to marketing endeavors.- Treat everyone, including our competitors, as we would wish to be treated.Transparency- to create a spirit of openness in marketing operations.- Strive to communicate clearly with all constituencies- Accept constructive criticism from customers and other stakeholders- Explain and take appropriate action regarding significant product or service risks, component substitutions or other foreseeable eventualities that could affect customers or their perception of the purchase decision.- Disclose list prices and terms of financing as well as available price deals and adjustments Citizenship- to fulfill the economic, legal, philanthropic and societal responsibilities that serve stakeholders. - Strive to protect the ecological environment in the execution of marketingcampaigns- Give back to the community through volunteerism and charitable donations- Contribute to the overall betterment of marketing and its reputation- Urge supply chain members to ensure that trade is fair for all participants, including producers in developing countries.Corporate Social Responsibility- generally entails voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders.Ethical Decision-Making Framework- Step 1- identify issues- Step 2- gather information and identify stakeholders- Step 3- brainstorm and evaluate alternatives- Step 4- Choose a course of actionIntegrating Ethics into the Marketing Strategy- Planning phase, Implementation stage (tone of the questions switches from “can we?” serve the market with the firm’s products or services in an ethically responsible manner to “should we?” 4P’s are in the implementation phase. Control Phase- during the control phase of the strategic marketing planning process, managers must be evaluated on their actions from an ethical perspective.Locational Privacy- a person’s ability to move normally in public spaces with the assumption that his or her location will not be recorded for subsequent useCorporate Social Responsibility- today, companies are undertaking a wide range of corporate social responsibility initiatives, such as establishing corporate charitable foundations, supporting and associating with existing nonprofit groups, supporting minority activities, and following responsible marketing, sales, and production practices. Inputs: Consumer- CSR often increases consumer awareness of the firm in the short run, which in turn leads to better brand equity and sales in the long run.Company- the output of these CSR initiatives can result in significant positive word-of-mouth for the company, as well as increased profits.Cause/Issue- appropriate linkages between firms and their causes/issues benefit the cause and create better awareness of its objectives in the short run and more resources (workers and money) in the long run that it can devote toward its honorable