Ethics week 2

Week Two – 2/28/13

Ethics in Advertising and Marketing


Week Two - Agenda
• Administrivia
• Framework for Ethics
• Review Examples in Light of Framework
• Facebook Case, Other Social Media Cases?
• Trust and Transparency in Social Media
• Brief Discussion, Group Project Options


Administrivia
• Instructor - Jennifer Beever IMCP
• jenbeever@gmail.com
• 818-347-4248 (cell)
• Slides posted on Slideshare
http://www.slideshare.net/jenbeever
• Documents/cases posted on Scribd
http://www.scribd.com/NewIncite


Definitions

Marketing ethics is the systematic study of how
moral standards are applied to marketing
decisions, behaviors, and institutions.

– Ethics in Marketing, International Cases and Perspectives, Patrick E.
Murphy, Gene R. Laczniak, and Andrea Prothero, p. 4


Definitions
Ethical marketing refers to practices that
emphasize transparent, trustworthy, and
responsible personal and/or organizational
marketing policies and actions that exhibit
integrity as well as fairness to consumers and
other stakeholders.
– Ethics in Marketing, International Cases and Perspectives, Patrick E.


Basic Perspectives for Evaluating and Improving Marketing Ethics

BP3: Marketers are responsible for whatever
they intend as a means or end with a
marketing action

BP5: Marketers should articulate and embrace BP6: Adoption of a stakeholder orientation is
a core set of ethical principles essential to ethical marketing decisions

BP1: Ethical marketing puts people first

BP4: Organizations should cultivate better and
BP7: Organizations should delineate an ethical
higher moral imagination in their managers
decisions making protocol
and employees

BP2: Ethical marketers must achieve a
behavioral standard above the law

Ethics in Marketing, International Cases and Perspectives, Patrick E.


BP1: Put people first
• Needs and desires of target audience drive
marketing
• Net benefits to society
– Tobacco industry
– Market credit cards to students


BP1: Put people first
• People are not a means to an end
– High pressure selling
– Coercion in distribution
– Over the top approaches to an end
People are not a means

– Sexual exploitation or ethnic stereotyping
– Price gouging when there is a shortage


BP2: Exceed Legal Requirements
• Marketing Law
– Anti-trust Law (unfair competition)
– FTC – sales and trading practices
– Ad Standards Authority (UK, Independent)
– EU Misleading & Comparative Marketing
Communications Regulations of 2007
– US Consumer Product Safety Commission


BP2: Exceed Legal Requirements

• Marketing ethics
– American Marketing Association’s Statement of
Ethics



marketing action





BP3: Responsible for intended means
to an end
• The intent of the action
• The means or method by which the practice
was implemented
• The end or outcomes



marketing action


BP4: Organizations should cultivate better and
higher moral imagination in their managers
and employees




BP4: Differences in Moral Imagination
and Development
• Egoistic or relativistic marketing managers
– “Everyone else is doing it!”
• Legalist marketing managers
– “We didn’t break the law!”
• Moral strivers
– “My boss told me to do it…”
• Principled marketing managers
– Apply ethical norms, laws, imagination, principle


Hunky Dory Chips Rugby Sponsorship
BP3: Marketers are responsible for
whatever they intend as a means or
end with a marketing action


BP4: Organizations should cultivate
better and higher moral imagination in
their managers and employees

BP2: Ethical marketers must achieve a http://www.youtube.c
om/watch?v=LFaPbTo
oPN8


Hunky Dory Chips – Largo Foods
Hunky Dorys is known for its fun, extrovert and cheeky nature
with strong flavours, including the infamous Buffalo flavour,
inspired by the herd of Buffalo based near the factory in Co.
Meath.

Hunky Dorys campaigns over the years have been edgier than
your typical crisp brand. A playful and exciting brand, Hunky
Dorys has a great sense of humour. Communication is vital to
the brand’s values and it engages with the target audience in a
humorous and entertaining manner. Most recently, the Hunky
Dorys 2010 ‘Rugby’ campaign was a massive success and has
seen brand growth extend to over €1.5 million in the past
year.
http://www.taytocrisps.ie/


Bolthouse Eat Em Like Junk Food
BP3: Marketers are responsible for
whatever they intend as a means or
end with a marketing action

BP1: Ethical marketing puts people
first

BP4: Organizations should cultivate
better and higher moral imagination
in their managers and employees

BP2: Ethical marketers must achieve http://www.youtube.com/watc
a behavioral standard above the law
h?v=DbZHasnugts


Other
• http://www.youtube.com/watch?v=Zkjj-
xHqeH0


Facebook Case Study
• Where do you draw the line between general
information that can be shared and personal
information that should never be given to an
advertiser?
• How much responsibility falls on Facebook
users? Advertisers? Facebook itself? Do you
know of examples of how Facebook’s ever-
changing privacy policy has affected you or
your friends, like it did for Daniel and Jane?


Facebook Case Study
• In what way do you think Facebook’s growth
around the workd both helped and hurt its
ability to protect its users? What are the costs
and benefits?
• Is Facebook, a company whose mission is to
make the world more open, in conflict with its
own identity when it tries to restrict access to
user information?


Facebook Case Study
• Despite criticism and even news of user
information leaks, Facebook continues to
grow exponentially. As a result, have Facebook
users become too “hooked” to forgo social
networking even if their privacy is sacrificed?
How dependent are we on Facebook?


Trust
• Trust = (Credibility +
Reliability + Intimacy) /
Selfishness.
• “Be in the relationship
before the sale.”
• “In social media, human
is the new black.”
• “Be worthy of being
liked.”


Transparency
• Emails – CAN SPAM Act
• Social Media Profiles
– Same photo
– Person not company
• Websites
– Real people at the company
– Physical address if possible


Group Project
• All must have documented sources
• Presentations (Guy Kawasaki’s 10-20-30)
– http://vimeo.com/56559291

• Infographic, mock ad
• Skit or role play, video
• Get creative!
• Given case or your choice of topic


Homework For Class Three, 3/7
• Casas Bahia Case Study (3 pages, 4 total)
• Montenegro Electronics, Ltd. (4 pages, 5 total)
• Submit written case question answers to
jenbeever@gmail.com
• Personal ethics statements to
jenbeever@gmail.com


Ethics week 2

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