CH-3 Ethics and Social Responsibility – MKTG: Principles of Marketing : Book Guide

CHAPTER 3 Ethics and Social Responsibility This chapter begins with the learning outcome summaries, followed by a set of lesson plans for you to use to deliver the content in Chapter 3. • Lecture (for large sections) on page 4 • Company Clips (video) on page 6 • Group Work (for smaller sections) on page 7 Review and Assignments begin on page 7 • Review questions • Application questions • Application exercise • Ethics exercise • Video assignment • Case assignment Great Ideas for Teaching Marketing from faculty around the country begin on page 15 LEARNING OUTCOMES 3-1 Explain the determinants of a civil society Societal order is created through the six modes of social control. Ethics are the moral principles or values that generally govern the conduct of an individual or a group. Laws come into being when ethical rules and guidelines are codified into law. Formal and informal groups have codes of conduct that prescribe acceptable and desired behaviors of their members. Self-regulation involves the voluntary acceptance of standards established by nongovernmental entities. The media play a key role in informing the public about the actions of individuals and organizations—both good and bad. An informed and engaged society can help mold individual and corporate behavior. 3-2 Explain the concept of ethical behavior Ethics are the 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. Ethics 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. Several ethical theories apply to marketing. Deontological theory states that people should adhere to their obligations and duties when analyzing an ethical dilemma. Utilitarian ethical theory says that the choice that yields the greatest benefit to the most people is the choice that is ethically correct. The casuist ethical theory compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes. Moral relativists believe in time-and-place ethics, that is, ethical truths depend on the individuals and groups holding them. Virtue ethics suggests that individuals become able to solve ethical dilemmas when they develop and nurture a set of virtues. 3-3 Describe ethical behavior in business 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. Morals are the rules people develop as a result of cultural values and norms. 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. 3-4 Discuss corporate social responsibility Corporate social responsibility (CSR) is a business’s concern for society’s welfare. Responsibility in business refers to a firm’s concern for the way its decisions affect society. Stakeholder theory says that social responsibility means paying attention to the interest of every affected stakeholder in every aspect of a firm’s operation, including employees, management, customers, the local community, suppliers, and owners. According to the pyramid of corporate social responsibility, CSR 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. 3-5 Describe the arguments for and against social responsibility 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. 3-6 Explain cause-related marketing 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 come to believe that every company is tied to a cause, resulting in consumer cause fatigue. TERMS behavioral norms ethics  social control casuist ethical theory  Foreign Corrupt Practices Act (FCPA)  stakeholder theory  cause-related marketing  green marketing  sustainability  code of ethics  moral relativism  utilitarian ethical theory  corporate social responsibility (CSR)  morals  virtue  deontological theory  pyramid of corporate social responsibility  LESSON PLAN FOR LECTURE Brief Outline and Suggested PowerPoint Slides: Learning Outcomes and Topics PowerPoint Slides LO1 Explain the determinants of a civil society 3-1 Determinants of a Civil Society 1: Ethics and Social Responsibility 2: Learning Outcomes 3: Learning Outcomes 4: Determinants of a Civil Society 5: The Modes of Social Control LO2 Explain the concept of ethical behavior 3-2 The Concept of Ethical Behavior 6: The Concept of Ethical Behavior 7: Ethical Behavior 8: Ethical Theories LO3 Describe ethical behavior in business 3-3 Ethical Behavior in Business 9: Ethical Behavior in Business 10: Ethical Behavior in Business 11: Ethical Development Levels 12: Ethical Decision Making 13: Creating Ethical Guidelines 14: Ethics in Other Countries LO4 Discuss corporate social responsibility 3-4 Corporate Social Responsibility 15: Corporate Social Responsibility 16: Corporate Social Responsibility LO5 Describe the arguments for and against social responsibility 3-5 Arguments For and Against Social Responsibility 17: Arguments For and Against Corporate Social Responsibility 18: Corporate Social Responsibility 19: Sustainability 20: Green Marketing LO6 Explain cause-related marketing 3-6 Cause-Related Marketing 21: Cause-Related Marketing 22: Cause-Related Marketing 23: Chapter 3 Video Suggested Homework: • This instructor manual contains assignments on the Zappos video and the transglutaminase case. • This chapter’s online study tools include flashcards, visual summaries, practice quizzes, and other resources that can be assigned or used as the basis for longer investigations into marketing. LESSON PLANS FOR VIDEO Company Clips Segment Summary: Zappos Zappos, the world’s largest online shoe retailer, discusses its commitment to social responsibility and to ethical behavior. Developing employee activities and long-term relationships with charitable organizations allows Zappos to ingrain the importance of helping the greater good into its organizational culture. Zappos culture also guides its employees to make ethical decisions. These teaching notes combine activities that you can assign students to prepare before class, that you can do in class before watching the video, that you can do in class while watching the video, and that you can assign students to complete on their own after watching the video. During the viewing portion of the teaching notes, stop the video periodically where appropriate to ask students the questions or perform the activities listed on the grid. You may even want to give the students the questions before starting the video and have them think about the answer while viewing the segment. That way, students will be engaged in active rather than passive viewing. PRE-CLASS PREP FOR YOU: PRE-CLASS PREP FOR YOUR STUDENTS: • Preview the Company Clips video segment for Chapter 3. This exercise reviews concepts for LO1, LO2, and LO3. • Review your lesson plan. • Make sure you have all of the equipment needed to show the video to the class, including the DVD and a way to project the video. • You can also stream the video HERE • Have students familiarize themselves with the following terms and concepts: corporate social responsibility and sustainability. • Review Zappos blog with those terms in mind: http://blogs.zappos.com/ VIDEO REVIEW EXERCISE ACTIVITY Warm Up Begin by asking students “What is corporate social responsibility (CSR)?” and “What do businesses that want to be socially responsible need to consider?” In-class Preview • Segue into a discussion of corporate social responsibility. • Review how ethical decision making and the economic/legal aspects of the pyramid of corporate social responsibility can effect a business focused on social responsibility. Viewing (solutions below) 1. Does Zappos have a societal marketing orientation, or is it just a company that has a large amount of corporate giving? Explain. 2. How is Zappos practicing CSR? Follow-up • Send students back to Zappos blog. Have students write a brief paragraph about how Zappos uses its Web site to demonstrate its corporate social responsibility. • Have students go to zappos.com. Have students look around and write a brief paragraph discussing how customers would know that Zappos is a socially responsible company by shopping on zappos.com. Ask students to explain why they think Zappos pursued the strategy they did on their main consumer site. Ask students to be prepared to share their research at the next class meeting. Solutions for Viewing Activities: 1. Does Zappos have a societal marketing orientation, or is it just a company that has a large amount of corporate giving? Explain. Answer: Students’ answers will vary but might consider that Zappos major goal of “delivering happiness” encourages its employees to have an active role in their community and with the relationships Zappos develops with its charitable organizations. Zappos demonstrates a societal marketing orientation by integrating customer-centric values and social responsibility into its core business practices. Beyond its significant corporate giving, Zappos emphasizes exceptional customer service, a positive workplace culture, and ethical practices, reflecting a broader commitment to societal well-being. This approach shows that their focus extends beyond just charitable contributions to actively enhancing customer and community satisfaction. 2. How is Zappos practicing CSR? Answer: Zappos engages in CSR by partnering with charitable organizations for a wide variety of causes, such as sustainability (nature), pets, poverty, and more. Zappos then encourages its employees to take part in events with those charities and also sponsors events for them. LESSON PLAN FOR GROUP WORK Class Activity – Corporate Social Responsibility The work done by volunteers has long been an integral part of the social fabric of a community. In today’s social environment, the majority of families has two wage earners or is headed by a single wage earner. This phenomenon has reduced the number of persons who have time apart from work and family responsibilities to do volunteer work. Habitat for Humanity is an example of an organization that relies on the donations of materials and labor by various business organizations. Have your students contact one of the organizations in your community that draws upon volunteers to accomplish their goals. Find out what businesses encourage their employees to do volunteer work with this organization. Are the corporate volunteers paid for their efforts, perhaps through designated volunteer days or hours? What do the companies receive for their efforts to be good community citizens? How does the ability to perform volunteer work on company time affect employee perception of the company? REVIEW AND ASSIGNMENTS FOR CHAPTER 3 REVIEW QUESTIONS 1. It is sometimes said that ethics hold a person to higher standards than laws. Explain. Answer: The laws address the lowest common denominator of socially acceptable behavior. Ethics refer to the moral principles or values that generally govern the conduct of an individual or a group. Ethical standards that are legal may not always be ethical, and vice versa. Many people have personal values or ethics that are higher standards than the laws that are passed to maintain order. 2. Explain the difference between ethics and morals and describe the relationship between the two. Answer: Ethics refer to the moral principles or values that generally govern the conduct of an individual or a group. Morals are the rules people develop as a result of cultural values and norms. Moral standards may also reflect the laws and regulations that affect social and economic behavior and therefore can be considered a foundation of ethical behavior. APPLICATION QUESTIONS 1. What are the differences between pre-conventional morality, conventional morality, and post-conventional morality? Give an example of each. Answer: Pre-conventional morality is childlike; it is calculating, self-centered, and even selfish, based on what will be immediately punished or rewarded. Conventional morality moves from an egocentric viewpoint toward the expectations of society. Loyalty and obedience to the organization (or society) become paramount. At this level, a marketing decision maker would be concerned with whether the proposed action is legal and how it will be viewed by others. Post-conventional morality represents the morality of the mature adult. People are less concerned about how others might see them and more concerned about how they see and judge themselves over the long run. 2. Describe at least three situations in which you would not purchase the products of a firm even though it is very socially responsible. Answer: 1. Product Quality Issues: If a socially responsible company’s products consistently have quality or safety concerns, I’d avoid purchasing them to ensure reliability and personal safety. 2. Uncompetitive Pricing: If the socially responsible firm’s products are significantly overpriced compared to similar alternatives, I might choose not to buy them to manage my budget effectively. 3. Poor Customer Service: Even with strong social responsibility, if the company provides inadequate customer service or support, it could deter me from making a purchase due to a lack of trust and satisfaction. 3. A firm’s only responsibility to society is to earn a fair profit. Comment. Answer: Student answers will vary. There are several theories pertaining to corporate social responsibility. The newest theory is called sustainability. This refers to the idea that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities to build profits and help the world at the same time. Another approach to social responsibility is known as the stakeholder theory, which says that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm’s operation. Another theory suggests that total corporate social responsibility has four components: economic, legal, ethical, and philanthropic. The view that a firm’s only responsibility to society is to earn a fair profit is narrow. While generating profit is essential for business sustainability, companies also have broader responsibilities, including ethical practices, environmental stewardship, and contributing to community well-being. Balancing profit with social and environmental considerations can enhance a firm’s reputation, foster long-term success, and contribute positively to society. 4. Is sustainability a viable concept for America’s businesses? Answer: Sustainability refers to the idea that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities to build profits and help the world at the same time. The United States is experiencing a growing gap between the rich and the lower class; it seems that the middle class is beginning to disappear. Therefore, the concept of sustainability may present an opportunity for firms to address the nation’s social problems. APPLICATION EXERCISE Purpose: Many companies today are concerned with social responsibility. They may pursue philanthropic activities and/or strive to be ethical. Your goal for this assignment is to evaluate how firms are being socially responsible. Limit your answers to one page and provide a print-out of the Web site you visited. Setting It Up: Have the students choose a company and find that company’s Web site on the Internet. Once they get to the Web site, have them look for information that tells them about the firm’s efforts to be socially responsible. They should look for things like news releases, company information, information about community programs, etc. Have them look in their textbook and their notes to help them define what might be considered socially responsible activities. Have them describe what they find and explain why they think the company is involved with the activities they describe. Have the students answer the following questions: Do the activities described on the Web site seem consistent with the company’s products? Why or why not? (For example, a shoe company may sponsor a race that raises money to help prevent a disease. People who participate in the race may use that company’s running shoes and therefore the race would be consistent with the company’s products.) Have the students evaluate how effective they think the information they find is in terms of how it is presented, what impact it might have, and whether it will help to sell the company’s products. Be sure they support any claims they make. Have the students answer the following questions: Does the information they collected during this activity improve their evaluation of the company? Would it influence their decision to buy the company’s product? Why or why not? ETHICS EXERCISE Jane Barksdale has designed a line of clothing targeted toward Hispanic Americans. The items are sold only by catalog and on the Internet. She thinks that she can increase sales by claiming in ads that the firm is owned by a Hispanic American and that all the company’s employees are Hispanic Americans. She is not Hispanic American nor are most of her employees. She needs a high level of sales to pay her bank loan and remain in business. Questions 1. Should Jane claim that she is Hispanic American? Explain your response. Answer: Jane should not claim to be Hispanic American; this classifies as falsifying claims. To develop a personal set of ethics, a person needs to examine the consequences of a particular act. There are also a few rules that some consider worthy of following when making ethical decisions, such as “always treat others as you would like to be treated,” “copying copyrighted computer software is against the law,” and “it is wrong to lie, bribe, or exploit.” 2. Does the Federal Trade Commission address this issue? Go to www.ftc.gov and search for guidelines for small business advertising or e-commerce. What does Jane risk in making false claims in her ads? Answer: Under the Fair Trade Commission Act • Advertising must be truthful and non-deceptive; • Advertisers must have evidence to back up their claims; and • Advertisements cannot be unfair. There are several risks that Jane would encounter by making false claims in her ads. The penalties that the FTC imposes depend on the nature of the violation. The remedies that the FTC or the courts have imposed include: A. Cease and desist orders. These legally-binding orders require companies to stop running the deceptive ad or engaging in the deceptive practice, to have substantiation for claims in future ads, to report periodically to FTC staff about the substantiation they have for claims in new ads, and to pay a fine of $11,000 per day per ad if the company violates the law in the future. B. Civil penalties, consumer redress, and other monetary remedies. Civil penalties range from thousands of dollars to millions of dollars, depending on the nature of the violation. Sometimes advertisers have been ordered to give full or partial refunds to all consumers who bought the product. C. Corrective advertising, disclosures, and other informational remedies. Advertisers have been required to take out new ads to correct the misinformation conveyed in the original ad, notify purchasers about deceptive claims in ads, include specific disclosures in future ads, or provide other information to consumers. VIDEO ASSIGNMENT: Zappos Zappos, the world’s largest online shoe retailer, discusses its commitment to social responsibility and to ethical behavior. Developing employee activities and long-term relationships with charitable organizations allows Zappos to ingrain the importance of helping the greater good into its organizational culture. Zappos culture also guides its employees to make ethical decisions. 1. At which level of the pyramid of corporate social responsibility is Zappos operating? A. Level 1: economic responsibilities B. Level 2: legal responsibilities C. Level 3: Ethical responsibilities D. Level 4: Philanthropic responsibilities Answer: D Zappos donates its resources (people and funds) to the community and improve the quality of life for others. Economic responsibilities involve focusing on making a profit, which Zappos has achieved. 2. At which level of morality does Zappos appear to operate? A. Preconventional B. Post conventional C. conventional D. unconventional Answer: B Zappos is concerned with doing the greatest good possible, regardless of what others think. This is postconventional morality. 3. Zappos employees are “driven” to participate in charitable activities and feel that giving back to the community is something that they “must do.” This demonstrates what about Zappos employees? A. Zappos employees operate at the preconventional level of morality. B. Zappos employees focus on the ethical responsibilities of their jobs. C. Zappos employees have morals that match Zappos values and norms. D. Zappos employees follow the specific Zappos code of ethics. Answer: C Zappos hires people who have moral codes that match the Zappos values and norms. This ensures that its employees will be motivated to work for the greater good. These qualities are opposite of preconventional morality. 4. Zappos relationship with Goodie Two Shoes is an example of cause-related marketing. A. True—Zappos uses its work with Goodie Two Shoes to spread information about Zappos to new markets. B. True—Goodie Two Shoes gets more donations from people who know Zappos donates shoes. C. False—Zappos involvement with Goodie Two Shoes is considered corporate giving, not cause-marketing. D. False—Goodie Two Shoes is a for-profit organization, so any marketing is not considered cause-related. Answer: C This statement is false because Zappos involvement with Goodie Two Shoes is considered corporate giving, not cause-marketing. 5. According to Rob, management action on ethics and social consensus is the major influence on employee ethical decision making. A. True—Rob says that Zappos culture is the main “ethical” guideline given to employees. B. False—Zappos code of ethics is written for employee reference in decision making. C. True—but the happiness hippie is a major factor in ethical decision making. D. False—developing relationships with charities helps the employees develop strong codes of personal ethics. Answer: A This statement is true because top management and social consensus are major factors in creating organizational culture, which is what makes Zappos an ethical company. 6. By emphasizing its Core Values to all its employees, and ensuring that everyone adheres to those values, Zappos is A. telling them that this is the code of ethics. B. stressing the importance of adhering to those values, and, by extension, of making ethical decisions. C. emphasizes how important discussing ethics is to Zappos. D. demonstrating unconventional morality. Answer: B Zappos does not have a “code of ethics” but, by stressing adherence to its ten core values, top management ensure that its employees understand what to factor in to decision making. 7. Zappos founders operate at the post-conventional level of morality. A. True B. False Answer: A 8. Zappos uses a code of ethics to guide its employees to discuss what is right and wrong and ultimately make a better decisions. A. True B. False Answer: B Zappos has ten core cultural values that function as an overall guide for employees, but it is not a code of ethics. 9. Would Zappos employees agree with the following statement from your textbook? “Businesses say they want to be responsible citizens, but that’s often not their only reason for taking action…Networking opportunities is a popular [reason].” A. Yes, they would agree. B. No, they would not agree. Answer: B Based on the video, Zappos employees believe that CSR is for the greater good, and embrace that attitude when they work for the company. 10. Zappos as accompany concentrates most of its advertising dollars into green marketing initiatives, rather than focusing on donating money to charity. A. True. B. False. Answer: B Zappos doesn’t use green marketing to drive business or simple donate money to charity. Zappos embodies the sense of community by participating in socially responsible events, and encouraging employees to do so. CASE ASSIGNMENT: Transglutaminase In the wake of a national campaign focusing on ammonia-spritzed lean finely textured beef—otherwise known as pink slime—media attention turned to another ethically questionable food-processing product. Transglutaminase, or meat glue, is a white powder used to bind scraps of beef that would have otherwise been discarded. Composite pieces of meat are coated in meat glue, reshaped, and resold as complete cuts of meat such as filet mignon steaks. Because meat glue becomes transparent when cooked, it is virtually undetectable by the average consumer. While the USDA ensures that meat glue is safe, California State Senator Ted Lieu believes that tighter regulations should be placed on the additive: “They should look at not just whether the meat glue itself is harmful, but the entire process of when you combine meats together.” Filets and other pieces of meat sold commercially must be appropriately labeled if they contain transglutaminase. However, the cuts of meat sold in bulk to restaurants and catering services often contain meat glue—a detail that goes unmentioned on most menus. According to Dr. Betsy Booren, Director of Scientific Affairs for the American Meat Institute, consumers should take responsibility for finding out where their food is coming from. Senator Lieu contends that ethical restaurants and food service providers need to be transparent about their use of food additives like meat glue and pink slime. Amy Powell, “’Meat Glue’ Scandal: California Lawmaker Urges USDA to Investigate,” ABC News, May 2, 2012, http://abclocal.go.com/kabc/story?section=news/consumer&id=8646215 (Accessed May 3, 2012). TRUE/FALSE 1. A restaurant’s decision whether to inform customers about its use of transglutaminase is an ethical issue. Answer: True 2. If a butcher decides not to use transglutaminase because doing so provides the greatest benefit to the greatest number of people, this exemplifies the deontological ethical theory Answer: False This exemplifies utilitarianism. 3. Even though transglutaminase is legal and will increase profits, a meat processing plant decides not to use it because it could do more harm than good in the long run. This exemplifies a conventional morality. Answer: False This exemplifies postconventional morality. 4. Grocery store customers are stakeholders in the decision whether to sell meat that has been treated with transglutaminase. Answer: True 5. Economist Milton Friedman would likely argue that the country’s largest meat treatment facilities should form an agreement not to use transglutaminase for the good of society. Answer: False Economist Milton Friedman would likely argue that it is up to the free market to decide whether meat treated with transglutaminase is desired. MULTIPLE CHOICE 1. Which of the following reasons to use transglutaminase expresses a green marketing viewpoint? A. It reduces the amount of livestock that is needed, reducing industrial pollution. B. It saves meat producers millions of dollars a year. C. The USDA ensures that it is safe for human consumption. D. Most consumers don’t even notice it. E. It encourages consumers to take responsibility for their food choices. Answer: A Green marketing is the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment. 2. Which of the six modes of social control is not relevant when discussing the ethicality of transglutaminase? A. Formal groups. B. Laws. C. Ethics. D. The media. E. None of these. Answer: E All six modes of social control—individually and in combination—are critical to addressing the ethicality of an issue and achieving a socially coherent, vibrant, civilized society. 3. Which of the following might a virtue ethicist say when discussing the transglutaminase issue? A. “Companies never said they wouldn’t use transglutaminase, and it’s not illegal, so they should be allowed to use it as they please.” B. “Consumers across America benefit when companies are required to label meats that contain transglutaminase.” C. “In the past, the use of pink slime was deemed unethical, so that decision should stand here.” D. “Transglutaminase may be wrong under these circumstances, but it’s not necessarily immoral.” E. “I hope that the lawmakers who address this issue are of righteous and honorable character.” Answer: E Aristotle and Plato taught that solving ethical dilemmas requires training—that individuals solve ethical dilemmas when they develop and nurture a set of virtues. 4. Based on your reading of the case, where on the pyramid of corporate social responsibility does the responsibility to label commercially sold transglutaminase-containing filets fall? A. Economic responsibility. B. Legal responsibility. C. Ethical responsibilities. D. Philanthropic responsibility. E. None of these. Answer: B Filets and other pieces of meat sold commercially must be appropriately labeled if they contain transglutaminase, and a business is expected to obey the law (legal responsibility). 5. Imagine that an organic meat processing plant collaborated with a nonprofit health advocacy organization on a series of advertisements that instructed consumers how to check if their meat contained transglutaminase. This would be an example of: A. Moral relativism. B. Corporate social responsibility. C. Band focus. D. Cause-related marketing. E. Sustainability. Answer: D Cause-related marketing is the cooperative efforts of a for-profit firm and a nonprofit organization for mutual benefit. Any marketing effort for social or other charitable causes can be referred to as cause-related marketing. GREAT IDEAS FOR TEACHING CHAPTER 3 Raymond F. Keyes, Boston College EXPERIMENTAL COURSE IN MARKETING ETHICS We are experimenting with a new approach for teaching marketing ethics in a way that will make it more interesting and challenging for our marketing majors. In our Marketing Topics course we are experimenting with an approach that may be the forerunner to a “Marketing Ethics and Creative Thinking” course—if the experiment is successful. Toward the end, the experimental course focuses on two main topics: marketing ethics and creative problem solving. • Marketing ethics: We begin by reviewing the traditional foundations of ethical reasoning followed by more intensive study of selected current theories and relevant readings in the areas of business ethics and marketing ethics. Against this background, we are using an experimental model for ethical decision-making—a five step case analysis approach for ethical analysis of marketing situations and decisions. During the semester we discuss cases and readings involving ethical problems in marketing. Finally, student teams examine an ethical problem situation of their choice, gather and analyze relevant information on the problem, lead a class discussion of their “case,” and prepare a written term paper on the results of the study. • Creative problem solving: This portion of the course utilizes a more free-wheeling approach for stimulating creative thinking. We begin by thinking about “thinking” and about the creative process. During the semester we try a variety of exercises and techniques designed to enhance the creative dimensions of our problem-solving and decision-making efforts. • Merging the topics: The two topics, joined together in this seminar, provide interesting opportunities for future business practitioners to develop their ethical decision making skills and to apply creative thinking in the formulation of alternative courses of action in difficult ethical situations. Chung-kue Hsu, Montclair State University SEX ROLES AND PRODUCT CONSUMPTION This exercise is designed to help students think critically about how sex roles may affect consumer perception or even their actual consumption of certain consumer products or brands. Societies tend to assign a set of traits or characteristics to males (e.g., aggressiveness, toughness) and anther set to females (e.g., tenderness, obedience). Such a division in sex roles can also affect consumers’ perceptions and consumption of certain products or brands. Traditionally, some products or brands are perceived as masculine (e.g., pocket knife, Marlboro cigarettes), while others are perceived as feminine (e.g., hand lotion, Virginia Slim cigarettes). However, it is observed that the link between sex roles and consumer products has gradually been eliminated for many products, while for other products, the link still lingers. This exercise requires each student to collect two print ads from magazines: one ad for a brand of consumer product that illustrates a diminishing link between sex roles and the product and another that demonstrates an enduring link. Students are asked to bring in the ads to class. The instructor can use these ads as examples to facilitate discussion and ask if any other students disagree that the product in the ad is (or is not) linked to sex roles. Randy Stuart, Kennesaw State University A LESSON ON PACKAGING AND SOCIAL RESPONSIBILITY This exercise was developed in conjunction with a university-wide community food drive and to reinforce the lesson on packaging. To encourage participation, it was presented as an extra credit opportunity. Have the students bring in three cans of the same type of food, (i.e., corn, peas, etc.), one manufacturer, one private label/house brand, and one generic. Each can is worth 5 points. Have the students write a paper (one to three pages), comparing and contrasting the packaging strategy of each can. The paper is worth 10 points. Encourage them to address such topics as: • Size and pricing • Use of color • What attracted them to each can • What were the strong and weak points of each label • Which package they think was the most efficient and effective and why Due to the difficulty of finding generic merchandise in our market, the exercise was modified so that the students who were unable to find generic merchandise could do the exercise with two manufacturers and one house brand. Students who were able to find a can of generic food earned an additional 5 points. Creative students were encouraged to make their own labels and discuss why their label was better than the rest. This was also worth an additional 5 points. The exercise was fun for all. It made the students take what was learned in class and apply it. Most importantly, much food was donated to local food banks and the students received a lesson in social responsibility. Nancy M. Carr, Community College of Philadelphia SCENARIOS IN SALES MANAGEMENT: ETHICAL ISSUES FOR CLASS DISCUSSION Scenario I. As sales manager, you have noticed changes in salesman Mike lately. Mike used to be your “bright-eyed and bushy-tailed inside salesman,” but now he seems tired all the time. You even caught him asleep at his desk twice in the last week. You ask Mike if he is okay and he says wearily, “I’m adjusting to my wife leaving, but Jeremy is only twelve and he was very close to his mother.” Monday the circles under Mike’s eyes are even darker and he’s drinking lots of coffee. You ask about Jeremy. Mike says Jeremy’s teachers called on Saturday and all said he had failed tests in subjects in which he had been getting an A or a B. You ask if Jeremy has anyone else he is close to and Mike says, “Not since my mother died six months ago”. Meanwhile, Mike has not brought in any new accounts and five of his major accounts have called you complaining that he is not returning phone calls. You are sorry now that you ever held the division “Bring your spouse or significant other” cocktail party and even sorrier that you casually introduced your thrice-divorced brother to Mike’s wife. You never dreamt that they would run off together. You will never have another such party, but right now you are concerned about what to do about Mike. Scenario II. You are very lucky to have two outstanding salespeople desiring the two straight commission sales positions in your new company. Both have impressive past sales records, want a new challenge, and have the confidence to desire straight commission pay. Their personal lives are quite different. Susan is from a wealthy family and married a very successful man. Susan volunteers that she is childless by choice and says she wants to show herself and the world that she can make it professionally, not just live off her father and husband’s money. David is also married. He and his homemaker wife have six children and the last four are adopted special-needs children. David was handling the medical expenses, saving for the children’s education, and remodeling an older but larger home for his family when his wife was in an automobile accident that left her permanently bedridden and in need of round-the-clock care. They have no family to help care for the children, so they also need household help. You would like to give David a higher commission rate because of his circumstances. Would you do it? Scenario III. A prospect calls the office and is looking for a property in the $300,000 price range. This is much higher than most of the company’s prospects can pay. This excellent prospect quickly states that she is only willing to work with a salesperson of her own race and religion. Foreign language is not an issue. The office uses a planned rotation of “floor time,” which is the time when prospects are given to assigned salespeople. Granting the request would seriously upset the office plan and personnel. What would you do? Scenario IV. You have never had a sales trainee like Joe. When you arrive early in the morning, he is already there working. He is thoughtful, courteous, and a real self-starter. The only problem is that Joe smells. Since you work with the trainees individually, no one else is affected but you feel ill from Joe’s body odor. Much as you would like to say something to him, Joe has told you, “I have been criticized all my life—first by my father who deserted me, then by my aunt who got stuck with me, and then by teachers when they were not ignoring me.” Joe promises to work hard and never give you reason to criticize him because he cannot take it anymore and any criticism will drive him “over the brink.” You fear that Joe will truly go “over the brink” if you say anything to him. Scenario V. You have been taking phone applications for counter positions in your doughnut shop. One applicant, Cindy, is very well spoken and polite. You tell Cindy to come in after lunch when you will be in the shop. At 1:30 p.m., a car pulls up and a gigantic young woman gets out. She comes in and introduces herself as Cindy. She is so nice, so qualified, but so fat. Cindy volunteers that she will have her seamstress make her uniforms because she knows they do not come in sizes to fit a 260-pound, five-foot-three-inch woman. She tells you that she has no medical problem—she is just fat. Meanwhile, you have vowed never to eat another doughnut and to drink your coffee black and sugarless. You do not want to not hire such a nice person solely because of her weight. There are no space problems with hiring Cindy, as your work area is large. You wonder if this fear of lost business is personal or if Cindy’s size will really affect business. How do you find out? What do you tell nice, but morbidly obese, Cindy if you decide not to hire her? Solution Manual for MKTG: Principles of Marketing Charles W. Lamb, Joe F. Hair, Carl McDaniel 9781305631823, 9781285860145, 9781337116800