Chapters 3 & 4: Ethics, Social Responsibility, and the Marketing Environment (Vocabulary)

Vocabulary flashcards covering key terms and definitions from Chapters 3 and 4 on ethics, social responsibility, and the external environment.

Social control

Any means used to maintain behavioral norms and regulate conflict.

Ethics

The moral principles or values that generally govern the conduct of an individual or a group.

Laws

Formal rules that govern conduct within a society.

Formal groups

Officially established groups that influence behavior and norms.

Informal groups

Casual networks that influence behavior and norms.

Self-regulation

Internal regulatory practices or standards within an industry or profession, rather than external laws.

The media

Channels of communication that influence public perception and norms about behavior.

Active civil society

A society with engaged citizens and voluntary associations that monitor and shape behavior and norms.

Ethical decision making

The process of evaluating ethical problems and choosing actions.

Extent of ethical problems within the organization

The magnitude of ethical issues present in a company.

Top management’s actions on ethics

How senior leaders address ethics in the organization.

Potential magnitude of the consequences

The expected severity of outcomes from a decision.

Social consensus

General agreement in society about what is right or acceptable.

Probability of a harmful outcome

The likelihood that a decision will cause harm.

Length of time between the decision and consequences

The delay before consequences of a decision appear.

Number of people to be affected

How many individuals will be impacted by a decision.

Code of ethics

A guideline to help employees make better decisions and serve as internal behavioral controls.

Ethics guidelines

Guidelines that help identify acceptable business practices.

Ethics training

Programs to help employees put ethical principles into practice.

Internal control

Organizational mechanisms that guide and monitor ethical behavior.

FCPA (Federal Corrupt Practices Act)

A law prohibiting U.S. firms from making illegal payments to foreign public officials to obtain business rights.

Pyramid of Corporate Social Responsibility

A framework outlining CSR responsibilities at different levels (economic, legal, ethical, philanthropic).

Corporate social responsibility (CSR)

The idea that businesses should operate in a way that benefits society beyond profit.

Sustainability

The concept that socially responsible companies address social problems and opportunities to build long-term profits.

Environmental sustainability

Minimizing threats to the physical environment through business practices.

Social sustainability

Developing processes and structures that meet present needs and benefit future generations.

Economic sustainability

Efficient use of assets to maintain profitability over time.

Green marketing

Marketing products designed to minimize negative environmental effects or to improve the environment.

Greenwashing

Promoting a product as green with only minimal or superficial environmental attributes.

FTC green guides

Federal Trade Commission guidelines to help marketers avoid misleading environmental claims.

Cause-related marketing

Cooperative marketing between a for-profit firm and a nonprofit to generate extra sales; the nonprofit receives money, goods, or services.

Philanthropy

Donations to charitable causes that are typically tax-deductible.

Corporate giving

Donations of money, goods, or services by a firm to nonprofit causes.

B Corp

For-profit companies certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency.

B Lab

Nonprofit organization that certifies B Corps.

Diversity

Differences among people in race, religion, gender, ethnicity, nationality, socioeconomic status, age, and abilities.

Equity

Fairness in procedures, processes, and distribution of resources.

Inclusion

The action of including people of diverse backgrounds in practices and policies.

Purchasing power

A comparison of income versus the cost of a standard set of goods and services across locations.

Inflation

A measure of the decrease in the value of money, expressed as a percentage change over time.

Recession

A period of negative economic growth characterized by reduced demand for goods and services.

Basic research

Pure research aimed at confirming theories or learning more about a concept.

Applied research

Research aimed at developing new or improved products.

R&D

Spending on research and development; historically led by the U.S. post-World War II with rising expenditures funded by business, government, and higher education.

External marketing environment

Uncontrollable external factors that affect marketing (environmentalism, social, economic, political/legal, technology/innovation, competition).

Environmental scanning

Process of collecting information about the external environment to inform marketing strategy.

Marketing mix

The set of controllable internal tools (product, price, place, promotion) used to implement marketing strategy.

Diversity, Equity, and Inclusion (DEI)

A major external environmental force focusing on diverse representation and fair treatment in marketing practices.