Chapter 4 - Ethical and Social Responsibility for Sustainable Marketing

Vocabulary flashcards covering core marketing ethics, legal standards, AMA principles, and social responsibility concepts from MKG 224 Chapter 4.

Ethics

Moral principles and values that govern the actions and decisions of an individual or group.

Laws

Society's values and standards that are enforceable in court.

Ethical and Legal Framework

A framework that classifies marketing decisions into four quadrants based on whether they are ethical or unethical, and legal or illegal.

Framework for Understanding Ethical Behavior

A model showing that personal moral philosophy and ethical behavior are influenced by societal culture and norms, business culture and industry practices, and corporate culture and expectations.

Culture

The set of values, ideas, and attitudes that are learned and shared among members of a group.

Business Culture

The rules, boundaries, and competitive behaviors that govern interactions between buyers, sellers, and competitors.

Caveat Emptor

A legal concept meaning 'let the buyer beware' that was pervasive in Western business culture prior to consumer protection standards.

Consumer Bill of Rights (1962)

A codified set of consumer rights defined by President John F. Kennedy, including the right to safety, the right to choose, the right to be informed, and the right to be heard.

Economic Espionage

The clandestine collection of trade secrets or proprietary information about a company's competitors.

AMA Ethical Value: Honesty

To be truthful and forthright in dealings with customers and stakeholders.

AMA Ethical Value: Responsibility

To accept the consequences of marketing decisions and strategies.

AMA Ethical Value: Fairness

To try to balance justly the needs of the buyer with the interests of the seller.

AMA Ethical Value: Respect

To acknowledge the basic human dignity of all stakeholders.

AMA Ethical Value: Openness

To create transparency in marketing operations.

AMA Ethical Value: Citizenship

To fulfill the economic, legal, philanthropic, and societal responsibilities that serve stakeholders in a strategic manner.

Profit Responsibility

The concept of social responsibility holding that companies have a duty to maximize profits for their owners or stockholders.

Stakeholder Responsibility

The concept of social responsibility focusing on obligations an organization has to groups who can affect achievement of its objectives, including suppliers, distributors, employees, and consumers.

Societal Responsibility

The concept of social responsibility focusing on obligations an organization has to the ecological environment, public interest groups, and the general public.

Three Concepts of Social Responsibility

A framework outlining profit responsibility (owners/stockholders), stakeholder responsibility (suppliers, distributors, employees, consumers), and societal responsibility (public interest groups, ecological environment, general public).

Triple Bottom Line

The recognition of the need for organizations to improve the state of people, planet, and profit for long-term growth.

Sustainable Marketing

Marketing that meets today's needs without sacrificing the ability of future generations to meet theirs.

Green Marketing

Marketing efforts aimed at producing, promoting, and reclaiming environmentally sensitive products.

Cause Marketing

Occurs when a firm's charitable contributions are directly tied to its revenue from one or more products.

Social Audit

A systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility.

Greenwashing

When companies make an unsubstantiated or misleading claim about the environmental benefits of a product or service.