Review 2 Mktg - Ch.4 1 Ethics Moral principles and values...

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Ch.4 1. Ethics – Moral principles and values that govern the actions and decisions of an individual or group. a. Are ethics situation? Yes 2. Deceptive ads – Volvo station wagon being run over by a monster truck and survives while the competition is crushed! (Except that the Volvo was reinforced and the competition was manipulated to crush easier.) a. Illegal 3. Puffery – Claims made in advertising of product superiority that cannot be proven untrue or true. (Neutrogena “deepest feeling clean.”) 4. Laws – Society’s values and standards that are enforceable in the courts. 5. Culture – Refers to the set of values, ideas, and attitudes that are learned and shared among members of a group. a. Culture serves as a socializing force that determines what is considered by the group to be morally right and just. b. These standards reflect the laws and regulations that affect social and economic behavior, which create moral dilemmas. c. In the US, we may call it a bribe. In other countries, it is the way business gets done. 6. Societal value – Affect ethical and legal relationships among individuals, groups, business institutions, and organizations. a. In the US, the unauthorized use, reproduction, or distribution of another’s intellectual property (copyright, trademark, or patent) is both unethical and illegal. b. The owners of intellectual property lose billions each year, such as those in the music, movie, and software industries. c. The advent of the internet and file-sharing programs has increased the practice of downloading copyrighted music and movies without paying the owner of this property. 7. Business cultures – “comprise the effective rules of the game, the boundaries between competitive and unethical behavior, [and] the codes of conduct in business dealings.” Business culture affects ethical conduct both in the exchange relationship between sellers and buyers and in the competitive behavior among sellers. Some business areas seem to attract corruption. Highway construction and bribery. Brokerage and insider trading. Sales and deception. 8. Consumer Bill of Rights (1962) – President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right to: a. Safety b. Be informed c. Choose d. Be heard 9. Caveat emptor – The legal concept of “let the buyer beware” that was pervasive in American business culture prior to the 1960s. Prior to the 1960s, the legal concept of caveat emptor was pervasive in the American business culture.
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10. Economic espionage – The clandestine collection of trade secrets or proprietary information about a company’s competitors. a.
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Review 2 Mktg - Ch.4 1 Ethics Moral principles and values...

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