ETHICS AND

SOCIAL
RESPONSIBILIT
Y

BUAD 307 ETHICS AND SOCIAL RESPONSIBILITY

 Some Ethical Issues
Misleading advertisements
and marketing in general
Taking advantage of
consumer ignorance
Marketing of harmful products
Physically dangerous
Over-consumption;
marketing to people living
above their means
Marketing of products banned
or not marketed in the U.S. to
other countries

BUAD 307 ETHICS AND SOCIAL RESPONSIBILITY

 One Approach to Evaluating Ethics of
Marketing Activities

IS THE ACT
DECEPTIVE, Yes IS THERE A
MANIPULATIV SUFFICIENTLY
E OR REDEEMING
MISLEADING? PURPOSE?

Yes
No No

MORE LIKELY LESS LIKELY

DOES THE
TO BE TO BE
ACT PREY ON
PERSONAL Yes
ETHICALLY ETHICALLY
INSECURITIES
PROBLEMATI PROBLEMATI
?
C C
No Yes
No
IS A DO
HARMFUL Yes BENEFITS
OR No
APPEAR TO
DANGEROU OUTWEIGH
S PRODUCT COSTS TO
INVOLVED? THE USER?

BUAD 307 ETHICS AND SOCIAL RESPONSIBILITY

 Win-Win Deals and Social
Responsibility
By pooling resources, different
organizations may each get
more than what they put in
Firms may be able to
contribute not only cash but
also relevant expertise
Favorable publicity may be
worth more than the same
amount spent on advertising
Charitable groups may
provide access to potential
customers
BUAD 307 ETHICS AND SOCIAL RESPONSIBILITY
 Promotional Events
A large retail chain might
sponsor a concert series by
paying all expenses in return
for considerable publicity
Triple win-win-win deal:
The charity receives the proceeds
without having to pay costs
The sponsor receives publicity.
Tickets are bought in the store or
on its web site.
An aging artistwhose fans are
now in their prime earning years
gets an opportunity to revive a
career or promote a new venture
(e.g., movie role)
BUAD 307 ETHICS AND SOCIAL RESPONSIBILITY
 INFLUENCES ON
CULTURE
THE FIRM AND
DEMOGRAPHIC ITS CHOICES
S

SOCIAL

ENVIRONMENT ECONOMIC
RESOURCES
TECHNOLOGY

LEGAL/POLITICA
L

PROFIT
PRESSURE FIR
M

OPPORTUNITI
SOCIAL
ES
RESPONSIBILITY

BUAD 307 ETHICS AND SOCIAL RESPONSIBILITY