Term
| The moral principles or values that generally govern the conduct of a group. |
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| The rules people develop as a result of cultural norms |
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| A guideline to help marketing managers and other employees to make better decisions |
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| A law that prohibits U.S. corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries |
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Definition
| Foreign Corrupt Practices Act (FCPA) |
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Term
| Explain the concept of ethical behavior |
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Definition
| Ethics are the moral principles or values that generally govern the conduct of an individual or group. They are standards of behavior by which conduct is judged. Standards that are legal may not always be ethical. An ethics violation offends a person's sense of justice or fairness. basically constitute the unwritten rules developed to guide interactions. Many ethical questions arise from balancing a business's need to produce profit for shareholders against its desire to operate honestly and with concern for environmental and social issues. |
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| Describe ethical behavior in business. |
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Definition
Business ethics may be viewed as a subset of the values of society as a whole, with a foundation based on the cultural values and norms that constitute a culture's morals. The ethical conduct of businesspeople is shaped by societal elements, including family, education, and religious institutions. As members of society, businesspeople are morally obligated to consider the ethical implications of their decisions. Ethical decision making can be grouped into three basic approaches. The first approach examines the consequences of decisions. The second approach relies on rules and laws to guide decision making. The third approach is based on a theory of moral development that places individuals or groups in one of three developmental stages: preconventional morality, conventional morality, or postconventional morality.
In addition to personal influences, there are many business influences on ethical decision making. Some of the most influential include the extent of ethical problems within the organization, top management's actions on ethics, potential magnitude of the consequences, social consensus, probability of a harmful outcome, length of time between the decision and the onset of consequences, and the number of people affected.
Many companies develop a code of ethics to help their employees make ethical decisions. A code of ethics can help employees identify acceptable business practices, be an effective internal control on behavior, help employees avoid confusion when determining whether decisions are ethical, and facilitate discussion about what is right and wrong.
Studies show that ethical beliefs vary little from country to country. However, there are enough cultural differences, such as the practice of bribery or gift giving, that laws such as the Foreign Corrupt Practices Act (FCPA)have been put in place to discourage and attempt to modify the current acceptance of such practices. |
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Term
| Discuss corporate social responsibility. |
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Definition
| Responsibility in business refers to a firm's concern for the way its decisions affect society. Social responsibility has four components: economic, legal, ethical, and philanthropic. These are intertwined, yet the most fundamental is earning a profit. If a firm does not earn a profit, the other three responsibilities are moot. Most businesspeople believe they should do more than pursue profits. Although a company must consider its economic needs first, it must also operate within the law, do what is ethical and fair, and be a good corporate citizen. Sustainability is the concept that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as an opportunity to earn profits and help the world at the same time. Social responsibility is growing, but it can be costly and the benefits are not always immediate. In addition, some surveys report that consumer desire to purchase responsible products does not always translate to actually purchasing those products. One branch of social responsibility is green marketing, which aids the environment and often the bottom line of a business. |
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Term
| Explain cause-related marketing. |
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Definition
| Cause-related marketing is the cooperative effort between a for-profit firm and a nonprofit organization. It is different from philanthropy, which is a specific, tax-deductible donation. Cause-related marketing is very popular because it can enhance the reputation of the corporation and also make additional profit for the company. However, consumers sometimes feel that every company is tied to a cause, resulting in consumer cause fatigue. |
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Term
| corporate social responsibility (CSR) |
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Definition
| a business's concern for society's welfare |
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| a model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the firm's economic performance supports the entire structure. |
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Definition
| pyramid of corporate social responsibility |
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| the idea that socially responsible companies will outperform their peers by focusing on the world's social and environmental problems and viewing them as opportunities to build profits and help the world at the same time |
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| the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment |
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| the cooperative marketing efforts between a for-profit firm and a nonprofit organization |
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