Notes 1 Marketing ethics can be defined as "moral principles and values that support marketing decisions and activities." Examples of ethical issues in marketing are provided in Table 4.1 on page 133 of the textbook. The textbook asserts that every company has to develop a corporate marketing ethics policy that provides guidelines and standards for setting marketing decisions or conducting marketing activities (p. 132). The challenge, though, is to identify the principles and values that can help marketers distinguish between what is right and what is wrong in their marketing practices. The textbook (p. 132) discusses two philosophies that can be used in drafting an ethics policy: the free market and legal system philosophy, which stipulates that what is legal is ethical or right. The ethical requirement is limited to respecting the regulations; it does not take into account other considerations that do not lead to sustainable development or preserve social welfare in the short or long run. the socially responsible philosophy, which urges marketers to go beyond what is legally acceptable. This philosophy encourages the incorporation of high ethical standards to make sure that decisions respect the rights of, and optimize the welfare of, all the parties involved—including employees, stockholders, consumers, and the whole society. It is important to understand that a business behaviour may be legal but fail to meet socially responsible ethical standards. The American Marketing Association Code of Ethics (see Table 4.2, textbook, pp. 134–135) is perhaps the best international guide to ethical marketing practices. REVIEWING OBJECTIVES AND KEY TERMS In this chapter, we addressed many of the important sustainable marketing concepts related to marketing’s sweeping impact on individual consumers, other businesses, and society as a whole. Sustainable marketing requires socially, environmentally, and ethically responsible actions that bring value to not only present-day consumers and businesses but also future generations and society as a whole. Sustainable companies are those that act responsibly to create value for customers in order to capture value from customers in return—now and in the future. OBJECTIVE 1 Define sustainable marketing and discuss its importance. Sustainable marketing calls for meeting the present needs of consumers and businesses while preserving or enhancing the ability of future generations to meet their needs. Whereas the marketing concept recognizes that companies thrive by fulfilling the day-to-day needs of customers, sustainable marketing calls for socially and environmentally responsible actions that meet both the immediate and the future needs of customers and the company. Truly sustainable marketing requires a smoothly functioning marketing system in which consumers, companies, public policymakers, and others work together to ensure responsible marketing actions.
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