Ch1-7:Ethics in Marketing Study Set

A collection of vocabulary terms based on the American Marketing Association Code of Ethics and the ethical decision-making framework.

Ethics

Moral standards expected by a society.

Norms

Established standards of conduct that are expected and maintained by society and/or professional organizations.

Values

The collective conception of what communities find desirable, important and morally proper, serving as criteria for evaluating actions.

Do no harm

An ethical norm that involves consciously avoiding harmful actions or omissions by embodying high ethical standards and adhering to all laws and regulations.

Foster trust

An ethical norm meaning to strive for good faith and fair dealing to contribute to the efficacy of the exchange process and avoid deception.

Honesty

An ethical value defined as being forthright in dealings with customers and stakeholders and striving to be truthful in all situations.

Responsibility

An ethical value that involves accepting the consequences of marketing decisions and strategies and avoiding coercion with stakeholders.

Fairness

An ethical value that seeks to balance justly the needs of the buyer with the interests of the seller, avoiding false or deceptive promotion.

Respect

An ethical value that acknowledges the basic human dignity of all stakeholders and values individual differences while avoiding stereotyping.

Transparency

An ethical value that creates a spirit of openness in marketing operations, including clear communication and disclosure of list prices.

Citizenship

An ethical value involving fulfillment of economic, legal, philanthropic, and societal responsibilities, such as protecting the ecological environment.

Principle of subsidiarity

The concept of solving issues at the level where the expertise resides, used by the AMA to encourage industry-specific codes of ethics.

Wells Fargo ($2016$)

A bank that was hit with a $185 million$ fine after employees secretly created millions of unauthorized bank and credit card accounts.

WME Index

An index that measures the stock returns of all publicly traded World's Most Ethical Company honorees.

Stakeholders

Parties affected by a firm's decisions, including current and retired employees, customers, suppliers, shareholders, and the community.

Seeing through a problem

A step in the ethical decision-making framework where managers consider ahead of time how a decision will affect all stakeholders.