Discuss Cooperative marketing efforts between a for- profit firm and a nonprofit organization
Unrestricted
• Social control: • The ways in a which a society maintains behavioral
norms and regulates conflict
• Modes of social control: • Ethics • Laws • Formal and informal groups • Self-regulation • Media • Active civil society
What holds society together?
“the standard of behavior by which conduct is judged”
What are ethics?
• Deontological theory: • People should adhere to their obligations and duties
when evaluating ethical dilemmas • Will always keep their promises and follow the law • Can introduce conflicting obligations
Ethical theories
• Utilitarian ethical theory: • Based on the ability to predict the consequences of
an action • Act utilitarianism:
• The choice that benefits the most people is the ethically correct choice
• Rule utilitarianism: • Also seeks to benefit the most people, but also
considers fairness and the law
Ethical theories
• Casuist ethical theory: • Compares a current ethical dilemma with similar past
dilemmas and their outcomes
Ethical theories
• Moral relativism: • The ethically correct choice depends on the situation
(time, place, people) • Does not have absolute rules for any decision
• Virtue ethics: • A character trait valued by society as being good
Ethical theories
• Actions taken and choices made will depend
• Morals: • Rules people have based on cultural values and
norms • A foundation for ethical behavior • Often also reflect laws and regulations
Ethical behavior in business
• Based on what will be punished or rewarded • Self-centered, calculating, and selfish
Preconventional morality
• Moves toward the expectations of society • Concerned about the legality and the opinion of
others
Conventional morality
• Represents the morality of the mature adult • Concerned if it works in the long run
Postconventional morality
Ethical development levels
What makes us more likely to behave ethically?
• Code of ethics • Formal guidelines to help managers and
employees make good choices
• Ethics in other countries • Foreign Corrupt Practices Act (FCPA)
Ethical behavior in business
• To behave ethically, an organization should pay attention to the interest of all stakeholders in every aspect of a firm’s operation
Stakeholder theory
• 55% of consumers may be willing to pay more for companies with good CSR (Nielsen study)
• United Nations Global Compact (UNGC) • B Corps
Growth in CSR popularity
• Belief that a socially responsible firm will view the world’s problems as its own – and take action to do something about them
• Environmental • Social • Economic
Sustainability
• Nonprofit organization that provides guidelines for developing a sustainability report
• Economic standards • Environmental standards • Social standards
Global Reporting Initiative (GRI)
• Discuss Cooperative marketing efforts between a for- profit firm and a nonprofit organization
Cause related marketing
