This document provides an agenda and overview for week three of a course on ethics in advertising and marketing. The week will cover administrative details, a social media example, frameworks for ethics analysis, and two case discussions. Students will be assigned homework on additional case studies and articles. They will also begin working in groups on a final project examining an ethics case or issue, to be presented during the last week of class. Course grading will be based on assignments, participation, and the group project.

1. Week Three – 3/7/13
Ethics in Advertising and Marketing
Ethics in Advertising and Marketing

2. Week Three - Agenda
• Administrivia
• Social Media Example – Budweiser Flash Mob
– Changing laws to accommodate social media
• Framework for Ethics
• Case Discussion – Brazilian Retail Chain
• Case Discussion – Electronics Company
• Marketing and Advertising – The Law
• Brief Discussion, Group Project Options
– Infographics tool (FYI only)
– Marketing event example
Ethics in Advertising and Marketing

3. 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
Ethics in Advertising and Marketing

4. Week Three – 3/7
Administrivia
-Ethics in Marketing Homework: Short Case Study
-Ethics in Selling #4 Honest Tea & Coke
-Trust & Transparency Additional article(s), video(s)
TBA
Week Four – 3/14 -(CSR) Corporate Social Discussion, Honest Tea &
Responsibility Programs Coke case
-Core Values Homework: GROUP PROJECT
-Making Ethical Decisions (Start working on in-class
presentations on ethics case
or issue of your choice, due
3/28)
Format may be a video you
produce, a skit or role play, an
infographic, a presentation….
Week Five – 3/21 -Ethical Marketing Research Discussion, ethical marketing
Practices research
-Using the Internet for market Work on Final Group Projects,
research due 3/28
Week Six – 3/28 Final Group Presentations Take Home Final Exam –
answers due by 4/3
Written Code of Ethics for
your business, your soon-to-
be place of business, or
personal due 4/3
Ethics in Advertising and Marketing

5. Administrivia
Grading:
Course grades will be based on participation and completion of assignments as follows:
% Item
25% Written Short Case Studies and Homework Assignments
30% Active Case participation and discussions
20% Final Group Case Study Research and In-Class Presentation
25% Final exam with Case Study Essay
Ethics in Advertising and Marketing

6. 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.
Murphy, Gene R. Laczniak, and Andrea Prothero, p. 7
Ethics in Advertising and Marketing

7. Basic Perspectives for Evaluating and Improving Marketing Ethics
BP1: Ethical marketing puts people first
Ethics in Marketing, International Cases and Perspectives, Patrick E.
Murphy, Gene R. Laczniak, and Andrea Prothero, p. 7
Ethics in Advertising and Marketing

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

9. BP1: Put people first
• People are not a means to an end
– High pressure selling
– Coercion in distribution
– Over the top approaches
– Sexual exploitation or ethnic stereotyping
– Price gouging when there is a shortage
Ethics in Advertising and Marketing

10. Basic Perspectives for Evaluating and Improving Marketing Ethics
BP1: Ethical marketing puts people first
BP2: Ethical marketers must achieve a
behavioral standard above the law
Ethics in Marketing, International Cases and Perspectives, Patrick E.
Murphy, Gene R. Laczniak, and Andrea Prothero, p. 7
Ethics in Advertising and Marketing

11. 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
Ethics in Advertising and Marketing

12. BP2: Exceed Legal Requirements
• Marketing ethics
– American Marketing Association’s Statement of
Ethics
Ethics in Advertising and Marketing

13. 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
BP1: Ethical marketing puts people first
BP2: Ethical marketers must achieve a
behavioral standard above the law
Ethics in Marketing, International Cases and Perspectives, Patrick E.
Murphy, Gene R. Laczniak, and Andrea Prothero, p. 7
Ethics in Advertising and Marketing

14. 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
Ethics in Advertising and Marketing

15. 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
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 a
behavioral standard above the law
Ethics in Marketing, International Cases and Perspectives, Patrick E.
Murphy, Gene R. Laczniak, and Andrea Prothero, p. 7
Ethics in Advertising and Marketing

16. 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
Ethics in Advertising and Marketing

17. 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.
Murphy, Gene R. Laczniak, and Andrea Prothero, p. 7
Ethics in Advertising and Marketing

18. 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
a core set of ethical principles
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 a
behavioral standard above the law
Ethics in Marketing, International Cases and Perspectives, Patrick E.
Murphy, Gene R. Laczniak, and Andrea Prothero, p. 7
Ethics in Advertising and Marketing

19. BP5: Use a Core Set of Principles
• Utilitarianism
– Action Utilitarianism
– Rule Utilitarianism
– Flexible, Based on Cost-Benefit
• Duty-based
– Act on rules which are universal
– Humanity in a person is an end, not the means
– Act as if you were sovereign and subject both
Ethics in Advertising and Marketing

20. BP5: Use a Core Set of Principles
• Contract-based
– Social Contract Theory (SCT)
• Respect dignity of each human
• Core human rights are guaranteed
• Equity – fair treatment of similar people
• Avoid unnecessary injury
• Preserve physical environment
– Rawlsian Theory (John Rawls)
• Each person has equal right to basic liberty
• Things should be arranged to benefit most disadvantaged
Ethics in Advertising and Marketing

21. BP5: Use a Core Set of Principles
• Virtue-based
– Lead a virtuous life
– Based on individuals
– Organizations are virtuous by acting ethically
– Orgs have to teach managers how to be virtuous
• Religious-based
– Jewish religion – the Torah
– Islamic religion – based on equity and justice
Ethics in Advertising and Marketing

22. BP5: Use a Core Set of Principles
• Confucian Ethics
– Extend from one situation to another
– Pay careful attention
– Intelligence guides actions, but balance is important
• Buddhist
– Don’t cause harm
– Don’t cheat
– Don’t lie
– Don’t promote intoxication
– Don’t engage in sexual exploitation
Ethics in Advertising and Marketing

23. BP5: Use a Core Set of Principles
• Hindu
– Generate wealth while creating social good
– Satisfy desires within the quest for spiritual
fulfillment
• Catholic Social Thought (CST) (Human good;
Common good; Subsidiarity; Preference for the poor
and vulnerable; Worker rights; Solidarity;
Stewardship)
Ethics in Advertising and Marketing

24. 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
higher moral imagination in their managers
and employees
BP2: Ethical marketers must achieve a
behavioral standard above the law
Ethics in Marketing, International Cases and Perspectives, Patrick E.
Murphy, Gene R. Laczniak, and Andrea Prothero, p. 7
Ethics in Advertising and Marketing

25. BP6: Embrace the Stakeholder Concept
• Stakeholder is anyone who can affect or who
is affected by organization’s objectives
• Marketing operates in and for society
• Primary, indirect, secondary (potential)
• Marketers engage stakeholders proactively
• Triple bottom line – People, Profits, Planet
• Marketers think about consumer stakeholder
Ethics in Advertising and Marketing

26. 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.
Murphy, Gene R. Laczniak, and Andrea Prothero, p. 7
Ethics in Advertising and Marketing

27. BP7: Delineate a Protocol
• Be ethically aware
• I.D. ethical issues
• Articulate stakeholders affected by issues
• Select an ethical theory (legal, utilitarian)
• Specify alternatives, conduct ethical analysis
• Make a decision
• Monitor the results of ethical decisions
Ethics in Advertising and Marketing

28. Group Project
• All must have documented sources
• Presentations (Guy Kawasaki’s 10-20-30)
– http://vimeo.com/56559291
• Infographic, mock ad campaign
• Skit or role play, video
• Get creative!
• Given case or your choice of topic
Ethics in Advertising and Marketing

29. Homework For Class Three, 3/7
• Casas Bahia Case Study (3 pages, 4 total)
http://www.scribd.com/NewIncite
• Montenegro Electronics, Ltd. (4 pages, 5 total)
http://www.scribd.com/NewIncite
• Submit written case question answers to
jenbeever@gmail.com
• Personal ethics statements to
jenbeever@gmail.com
Ethics in Advertising and Marketing