Do Now: What Is Ethics In Marketing?
One famous example of business ethics is Johnson & Johnson's response to the 1982 Tylenol crisis. When seven people in Chicago died after taking Tylenol capsules that had been laced with cyanide by an unknown individual, Johnson & Johnson immediately launched a nationwide recall of 31 million bottles of Tylenol, despite the significant cost and the fact that the tampering was not their fault. The company worked closely with authorities and introduced tamper-resistant packaging, which became a standard in the pharmaceutical industry. Johnson & Johnson's swift and transparent response is often cited as a benchmark for ethical behavior in business, prioritizing consumer safety over profits.
Do Now 2: What is an example of government regulation in marketing?
An example of government regulation in marketing is the Federal Trade Commission's (FTC) truth-in-advertising laws in the United States. These regulations require that advertisements must be truthful, not misleading, and, when appropriate, backed by scientific evidence. For instance, if a company advertises that their product can provide health benefits or improve performance, they must have factual and scientific proof to support those claims. The FTC ensures that consumers are not misled by false advertising and can take action against companies that violate these laws, which may include fines or requiring the company to change or discontinue misleading advertisements.
Textbook Chapter 2-3
Increasing Social Responsibility
Pages 47-53
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Worksheet |
Quiz 1: Textbook Chapter 2-3 Increasing Social Responsibility
Section: Consumer Protection
Directions: Your first quiz is on the first section of Chapter 2-3 titled Consumer Protection. This section goes from pages 47-49. Watch the video below, read the summary and take the quiz below.
Summary Of Consumer Protection (Textbook Pages 47-49)
The text discusses consumer protection and the role of businesses in being socially responsible. It highlights that marketing activities can have both positive and negative effects on society, and that businesses must address societal needs to remain successful in the long term. The text identifies three major ways that social responsibility in business is increasing: consumerism, government regulation, and improved business practices.
Consumerism refers to the organized actions of consumer groups to influence business practices. This movement gained significant momentum in the 1960s with President Kennedy's Consumer Bill of Rights, which established key rights for consumers, such as the right to information, safe products, choices, and the ability to communicate with businesses and government. Consumer actions like boycotts, lobbying, and education have empowered consumers to protect their rights and influence businesses.
Government regulation plays a key role in ensuring businesses comply with laws designed to protect consumers, such as safety and fair practices. These regulations help maintain a balance between business operations and societal well-being.
The text discusses consumer protection and the role of businesses in being socially responsible. It highlights that marketing activities can have both positive and negative effects on society, and that businesses must address societal needs to remain successful in the long term. The text identifies three major ways that social responsibility in business is increasing: consumerism, government regulation, and improved business practices.
Consumerism refers to the organized actions of consumer groups to influence business practices. This movement gained significant momentum in the 1960s with President Kennedy's Consumer Bill of Rights, which established key rights for consumers, such as the right to information, safe products, choices, and the ability to communicate with businesses and government. Consumer actions like boycotts, lobbying, and education have empowered consumers to protect their rights and influence businesses.
Government regulation plays a key role in ensuring businesses comply with laws designed to protect consumers, such as safety and fair practices. These regulations help maintain a balance between business operations and societal well-being.
Directions (Continued): After you watch the video, read the chapter section and the summary, take the quiz on Schoology. You can preview the questions below.
Quiz 2: Chapter 2-3
Increasing Social Responsibility
Section: Improving Practices
Directions: Your second quiz is on the second section of Chapter 2-3 titled Improving Practices. This section goes from pages 49-51. Watch the video below, read the summary and take the quiz below.
Summary of Improving Practices (pages 49-51)
Improving Business Practices: Businesses recognize their responsibility to consumers and society, working to avoid increased regulation and taxes by improving practices through codes of ethics, self-regulation, and social action.
Improving Business Practices: Businesses recognize their responsibility to consumers and society, working to avoid increased regulation and taxes by improving practices through codes of ethics, self-regulation, and social action.
- Code of Ethics: A set of standards that guide ethical business behavior, ensuring honesty and fairness. Industry organizations, like the American Marketing Association, develop codes of conduct that promote responsible business practices.
- Self-Regulation: Businesses and industries create procedures to address consumer complaints directly, promoting accountability. Organizations like the Better Business Bureau help resolve issues between businesses and consumers, while some industries establish independent panels to ensure fair resolutions.
- Social Action: Companies engage in social responsibility by investing time and money to help communities, with examples like Microsoft's charitable donations and McDonald's support of Ronald McDonald Houses for families in need.
Directions (Continued): After you watch the video, read the chapter section and the summary, take the quiz on Schoology. You can preview the questions below.
Quiz 2: Chapter 2-3
Increasing Social Responsibility
Section: Ethics In Marketing
Directions: Your second quiz is on the second section of Chapter 2-3 titled Ethics In Marketing. This section goes from pages 51-53. Watch the video below, read the summary and take the quiz below.
Main Points "Ethics In Marketing": (Textbook Pages 51-53)
- Ethics in Business: Business ethics have gained attention, and most businesspeople act ethically, though the unethical actions of a few can damage the overall reputation of the business community. Ethical behavior is valued in business, and companies are expected to act responsibly.
- Responsibility to Customers: Marketers have a unique responsibility because they directly influence customer spending. Ethical behavior requires honesty and fairness in dealing with customers, employees, and competitors. Companies, like ConAgra Foods, that act responsibly by recalling products for safety reasons demonstrate ethical decision-making.
- Harm and Accountability: Unethical marketing can harm customers and society. It can also lead to legal consequences for individuals and businesses. Marketers must focus on what benefits everyone in a transaction, not just the business. Some companies are implementing education programs to ensure employees make ethical decisions and improve the overall image of business ethics.
Directions (Continued): After you watch the video, read the chapter section and the summary, take the quiz on Schoology. You can preview the questions below.