Ethics and Social Responsibility Ethics the moral principles or values that generally govern the conduct of an individual or group Influential factors o Extent of problems o Top management actions o Potential consequences o Social consensus o Probability of harm o Time until consequences o Number affected Morals the rules people develop as a result of cultural values and norms Preconventional morality basic level self centered and selfish Conventional morality middle level concerned with how making that decision will be viewed by others Postconventional morality high level less concerned about what people will think of them more concerned about how it will affect them in the long run Code of ethics a guideline to help marketing managers and other employees make better decisions Helps identify a firm s business practices Helps control internal behavior A written code helps say what is ethical and what is not Creates a discussion of right and wrong Ethics in other countries Foreign Corrupt Practices Act FCPA o Prohibits US corporations from making illegal payments o Has been criticized for putting US businesses at a to foreign officials disadvantage o Has encouraged some countries to implement their own anti bribery laws Sustainability the idea that socially responsible companies will outperform their peers by focusing on the world s social problems and viewing them as opportunities to build profits and help the world at the same time Corporate social responsibility a business s concern for social welfares Pyramid of corporate social responsibility o Philanthropic responsibilities o Ethical responsibilities o Legal responsibilities o Economic responsibilities Social responsibility has grown over the past few years mostly in Brazil Canada Australia and the USA Surveys show people will pay more for socially responsible products Making false claims about responsibility can be deadly Green Marketing the development and marketing of products designed to minimize negative effects on the environment or improve the environment Companies tell customers about societal benefits Environmentally aware customers pay more for products Types of awareness True naturals truly concerned about the environment and cater their purchases to saving it New green mainstream concerned but only when convenient Affluent healers concerned about the environment when it concerns their own health less inclined to care about the environment when shopping Young recyclers concerned about issues like solid waste less likely to consider environment when shopping Overwhelmed don t really care too caught up in their own life problems Unconcerned don t pay attention don t believe that the environment is threatened
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