Ethical Issues in Marketing

What is Business Ethics?Written and unwritten codes of principles and values that govern decisions and actions within a company.

In the business world, the organizations culture sets standards for determining the difference between good and bad decision making and behavior.

In the most basic terms, a definition for business ethics boils down to knowing the difference between right and wrong and choosing to do what is right. The phrase 'business ethics' can be used to describe the actions of individuals within an organization, as well as the organization as a whole

Ethical FrameworksMoral idealism universal rights and obligations

Utilitarianism the greatest good for the greatest number

Social justice emphasis on fairness and equality for all individuals

Activity 1Testing your ethics meter

EthicsWhat lessons are highlighted by the different situations?

What single factor will influence you to change your decision?

Can you uphold your decision at all times?

Behaving ethically.customers develop more positive attitudes about the firm, its products, and its services

Avoids the pressure social or government institutions to assume greater responsibility for their actions

Case StudyInternational Gift Giving Etiquette - China http://www.1worldglobalgifts.com/chinagiftgivingetiquette.htm

FCPAhttp://www.usdoj.gov/criminal/fraud/fcpa/

Article I The Offence of Bribery of Foreign Public Officials1. Each Party shall take such measures as may be necessary to establish that it is a criminal offence under its law for any person intentionally to offer, promise or give any undue pecuniary or other advantage, whether directly or through intermediaries, to a foreign public official, for that official or for a third party, in order that the official act or refrain from acting in relation to the performance of official duties, in order to obtain or retain business or other improper advantage in the conduct of international business. 2. Each Party shall take any measures necessary to establish that complicity in, including incitement, aiding and abetting, or authorisation of an act of bribery of a foreign public official shall be a criminal offence. Attempt and conspiracy to bribe a foreign public official shall be criminal offences to the same extent as attempt and conspiracy to bribe a public official of that Party. 3. The offences set out in paragraphs 1 and 2 above are hereinafter referred to as "bribery of a foreign public official". 4 For the purpose of this Convention: "foreign public official" means any person holding a legislative, administrative or judicial office of a foreign country, whether appointed or elected; any person exercising a public function for a foreign country, including for a public agency or public enterprise; and any official or agent of a public international organisation; "foreign country" includes all levels and subdivisions of government, from national to local; "act or refrain from acting in relation to the performance of official duties" includes any use of the public official's position, whether or not within the official's authorised competence

General GuidelinesLavish gift giving was an important part of Chinese culture in the past. Today, official policy in Chinese business culture forbids giving gifts; this gesture is considered bribery, an illegal act in this country. Consequently, your gift may be declined.

General GuidelinesIf you wish to give a gift to an individual, you must do it privately, in the context of friendship, not business.

General Guidelines

The Chinese will decline a gift three times before finally accepting, so as not to appear greedy. You will have to continue to insist. Once the gift is accepted, express gratitude. You will be expected to go through the same routine if you are offered a gift.

General Guidelines

Giving a gift to the entire company, rather than an individual, can be acceptable in Chinese business culture

General Guidelines

If possible, have your gifts wrapped in red paper, which is considered a lucky color. Plain red paper is one of the few safe choices since a variety of meanings, many of which are negative, are attributed to colors in Chinese culture.

Pink and gold and silver are also acceptable colors for gift wrap. Wrapping in yellow paper with black writing is a gift given only to the dead. Also, do check the variations from region to region about colors. .

Appreciated GiftsAcceptable gifts for a company include items from your country or city, such as handicrafts, or an illustrated book. Be sure to bring a supply of these items with you, so that you can reciprocate if it happens that you are presented with a gift.

Appreciated GiftsGifts of food are acceptable, but not at dinner parties or other occasions where appetizers and meals will be served. Candy and fruit baskets, however, are acceptable as thank-you gifts sent after these events.

Appreciated GiftsEight is considered one of the luckiest numbers in Chinese culture. If you receive eight of any item, consider it a gesture of good will. Six is considered a blessing for smoothness and problem free advances. Four is a taboo because it means 'death.' Other numbers such as '73' meaning 'the funeral' and '84' meaning 'having accidents' are to be avoided.

Gifts to AvoidScissors, knives, or other sharp objects can be interpreted as the severing of a friendship or other bond. As a gesture of friendship, if you do want to give these items as a gift, ask your friend to give you a very small amount of money. By doing so, you would have 'sold' it to him rather than given it to him.

Gifts to AvoidThe following items are to be avoided as they are associated with funerals: Straw sandals, clocks, handkerchiefs, four of any item [the Cantonese word for four sounds similar, in the same language, to death], gifts or wrapping paper in white, black, or blue.