Pride Marketing Chapter 4

what is social responsibility?

an organization’s obligation to maximize its positive impact and minimize its negative impact on society

what can socially responsible activities achieve?

1. improve employee performance

2. improve customer loyalty

3. generate positive publicity

4. boost sales

5. have a positive impact on communities

6. generate indirect long-term benefits

what is marketing citizenship?

the adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities

what is Environmental, Social, and Governance (ESG)?

an external assessment of an organization’s impact on society

what are marketing ethics?

a set of moral principles that guide a company’s marketing activities

are philanthropic responsibilities required of a company?

no, but they promote human goodwill

what is cause-related marketing?

the practice of linking products to a particular social cause on an ongoing or short-term basis

what is strategic philanthropy?

the synergistic

what are three social responsibility issues?

1. sustainability

2. consumerism

3. community relations

what is the sustainability issue?

consumers insist on a good quality of life but also on a healthy environment to maintain a high standard of living

what are some major social concerns for sustainability?

1. conservation

2. water pollution

3. air pollution

4. land pollution

what is the consumerism issue?

activities undertaken by independent individuals, groups, and organizations to protect their rights as consumers

what are some major social concerns for consumerism?

1. the right to safety

2. the right to be informed

3. the right to choose

4. the right to be heard

what is the community relations issue?

wanting marketers to contribute to society’s well-being, and wishing to know what marketers do to help solve social problems

what are some major social concerns for community relations?

1. equality issues

2. disadvantaged members of society

3. safety and health

4. education and general welfare

what is sustainability?

the promotion of environmentally and socially responsible products, practices, and brand values

what is marketing ethics?

principles and standards that define acceptable conduct in marketing

what is a marketing ethical issue?

any activity that causes marketing managers or customers in their target market to feel manipulated of cheated

what causes a product-related ethical issue?

when marketers fail to disclose risks or information regarding the function, value, or use of a product or inform customers of product recalls

how can promotion create ethical issues?

1. false or misleading advertising

2. manipulative or deceptive sales promotions, tactics, and publicity

3. promoting products that may be harmful to children

4. bribery

what are some common ethical pricing issues?

1. price fixing

2. predatory pricing

3. failure to disclose the full price

4. price gouging

5. bait and switch

6. quantity surcharging

what are some ethical distribution issues?

1. manipulating a product’s availability

2. using coercion to force intermediaries to behave in a specific manner

3. channel stuffing

4. counterfeiting

why is a Global Supplier Code of Conduct important?

it encourages finding ethical suppliers at reasonable costs, which ensures the integrity of the product

what factors influence the ethical decision-making process?

1. individual factors

2. opportunity

3. organizational relationships

what are some individual factors that influence the decision-making process?

1. socialization by family members

2. social groups

3. religion

4. formal education

an organization’s culture often has more what on marketing decisions than an individual’s own values?

more influence

what do marketers typically use to resolve ethical issues?

what they learned from their own backgrounds as well as what they learned from the organization

what is organizational culture?

the shared beliefs, values, traditions, and behaviors of an organization

how is a firm’s culture formally expressed?

1. codes of conduct

2. memos

3. manuals

4. dress codes

5. ceremonies

how is a firm’s culture informally expressed?

1. work habits

2. extracurricular activities

3. stories

what is a code of conduct?

formalized rules and standards that describe what the company expects of its employees

how can an organization improve ethical conduct?

1. get rid of the unethical employees

2. improve their ethical standards

a well-implemented ethics program and a strong corporate culture result in?

the greatest decrease in ethical risks for an organization