Chapter 05 Section 5.2.ppt

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Chapter 5  Business and Social Responsibility 1

 Chapter 5 Business and Social Responsibility

Section 5.2 Ethics and

Social Responsibility

Marketing Essentials

Marketing

Essentials

"There is always room at the top."

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SECTION 5.2 SECTION 5.2

What You'll Learn

 _{The areas in which businesses are thought}

to have social responsibilities

 _{The ways that business activities have}

impacted our environment

 _{The definition of ethics and how marketers}

can make ethical choices

 _{The meaning of consumerism and a brief}

history of the movement

 _{The current trends and concerns in the}

workplace for employees

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SECTION 5.2

Ethics and Social Responsibility

Why It's Important

Why It's Important

You know the importance of being considerate of others in your daily life. As you move

toward a career in adult life, you will want to understand the importance of ethics and

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SECTION 5.2

Ethics and Social Responsibility

Key Terms

Key Terms

 _ethics

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SECTION 5.2

Ethics and Social Responsibility

Apart from following the law, should businesses have any further social responsibility? Most

businesses feel they should.

Marketing and Social Responsibility

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1

1 Chapter 5  Business and Social Responsibility 66

What is Business Social

Responsibility?

Many Names: Corporate

Citizenship

Social Responsibility

Giving Back beyond the

products or services they Sale To the Communities in which they do business and society in

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1

The Dow 30 Industrial

Companies

How Much do they “give back”?

Total Employment: 5,279,000 People

Charitable Contributions to Communities and Society:

3 Billion, 80 Million, 200 Thousand Dollars

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1

What Does IBM Corporate Social

Responsibility Look Like>

http://www.ibm.com/ibm/res

ponsibility/

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SECTION 5.2

Ethics and Social Responsibility

Environmental Issues

Socially responsible businesses follow the laws governing environmental issues and understand their roles in helping to preserve our natural resources.

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SECTION 5.2

Ethics and Social Responsibility

Conservation of our natural resources depends heavily on cooperation of business, government, and consumers. Most local governments require mandatory recycling of glass, plastic, and

aluminum through local trash collection.

Conservation and Recycling

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SECTION 5.2

Ethics and Social Responsibility

Ethics are guidelines for good behavior. Ethical behavior is based on knowing the difference between right and right wrongwrong

—and doing what is right.

Laws are made to address ethical concerns involving

products or marketing. The following unethical practices are prohibited:

Business Ethics

 _{bait-and-switch advertising}  _{price fixing}

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SECTION 5.2

Ethics and Social Responsibility

To make the right ethical choices, marketers should answer these three basic questions:

1. Is the practice right, fair, and honest?

2. What would happen if the product were marketed differently?

3. What practice will result in the greatest good for the greatest number of people?

Business Ethics

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SECTION 5.2

Ethics and Social Responsibility

A socially responsible business will recall an unsafe product before the government forces them to do so.

Product Recalls

 _Example:_{McNeil Consumer Products pulled}

Tylenol products off store shelves after

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SECTION 5.2

Ethics and Social Responsibility

Consumerism is the societal effort to protect

consumers by putting legal, moral, and economic pressure on business. Consumerism's focus has changed over the years:

 _{Early 1900s}_—_{product purity, product shortages,}

antitrust concerns, postal rates, and banking.

 _{1930s to 1950s}_—_{product safety, labeling,}

misrepresentation, deceptive advertising, consumer refunds, and bank failures.

Consumerism

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SECTION 5.2

Ethics and Social Responsibility

Early 1960s—President John F. Kennedy signed the Consumer Bill of Rights, which stated that consumers have four basic rights:

 _{To be informed and protected against fraud,}

deceit, and misleading statements, and to be educated in the wise use of financial resources

 _{To be protected from unsafe products}  _{To have a choice of goods and services}  _{To have a voice in product and marketing}

decisions made by government and business

Consumerism

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SECTION 5.2

Ethics and Social Responsibility

Telecommuting

Telecommuting involves working at home,

usually on a computer. Completed jobs are transmitted by email.

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SECTION 5.2

Ethics and Social Responsibility

Flextime

Flextime allows workers to choose their own work

hours. Possible arrangements include early

start/early finish (7 a.m.-3 p.m.), late start/late finish (10 a.m.-6 p.m.), and even four-day workweeks (four 9- or 10-hour days followed by three-day weekends).

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SECTION 5.2

Ethics and Social Responsibility

Family leave

Family leave is now legally required by federal

law for large employers. Workers are entitled to up to 12 weeks of nonpaidnonpaid family leave every two years. This allows people to cope with

births, deaths, and family illnesses without fear of job loss.

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SECTION 5.2

Ethics and Social Responsibility

On-site child carechild care is a benefit that has grown in popularity with the increase in two-income families. Some employers have expanded it to include on-site schoolsschools and on-site clinicsclinics

for children who are ill. Where the benefit is provided in any form, it tends to reduce

employee turnover.

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SECTION 5.2

Ethics and Social Responsibility

Help for the physically challenged is mandated by the Americans with Disabilities Act (1990). Employers must provide physically challenged people with the same job opportunities and work site accesses that others have. To make this

possible, employers may have to alter their

workplaces physically, change the way a job is done, or provide individual assistance.

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SECTION 5.2

Ethics and Social Responsibility

Health-care reform at the national level is an employee issue because so many Americans receive health insurance benefits through their jobs. Of the 37 million Americans who do not, virtually all who work are employed by small businesses or hold minimum-wage jobs. How to cover these people and how to hold the line on costs for those who have coverage are key issues in the national health-care debate.

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SECTION 5.2

Ethics and Social Responsibility

Employee issues have been in the center of public interest since the 1990s.

Workplace Trends and Concerns

 _{sexual harassment}

 _{computer privacy and security}

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5.2

A

SSESSMENTSSESSMENT

Reviewing Key Terms and Concepts

1. What are some areas in which

businesses are thought to have social responsibility?

2. In what ways have business activities impacted our environment?

3. Define the term ethics and explain how marketers can make ethical choices.

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5.2

A

SSESSMENTSSESSMENT

Reviewing Key Terms and Concepts

4. Define consumerism and give a brief history of the movement.

5. What current trends are likely to improve the workplace for employees?

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5.2

A

SSESSMENTSSESSMENT

Thinking Critically

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End of Section 5.2

Marketing Essentials

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