Ethics First…Then Customer
Relationships

McGraw-Hill/Irwin

Copyright © 2007 by The McGraw-Hill Companies, Inc. All

Chapter

2


2-3

Chapter

2


Main Topics
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2-4

Social, Ethical, Legal Influences
Management’s Social Responsibilities


Social, Ethical, and Legal Influences
 An organization’s environment is a major influence on



how the firm sells its products.
Due to the environmental turmoil in the world of
commerce, this chapter is arguably the most important
in the entire book.
Begin by asking, “Does an organization have any
responsibilities to society?”


Exhibit 2-1

on an
have
a
Social,
Ethical,
and
organization’s
marketing
effect
Legalpowerful
(SEL)
influences
program!


Organization’s Performance (CCC GOMES)
Customers
S uppliers

Employees

C ommunity

Organization

Managers

Creditors

G overnment
O wners


An Organization’s Main Responsibilities
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Economic - be profitable
Legal - obey the law
Ethical - do what is right
Discretionary contribute to community
and quality of life


 Preconventional - “What can I
get away with?”


Exhibit 2-5: Moral Development Bell Curve


Are There Any Ethical Guidelines?
 What Does The Research Say?
 American adults said by a 3-to-1 margin that truth
is always relative to a person’s situation.
 People are most likely to make their moral and
ethical decisions based on:
 Whatever feels right
 Comfort in a situation


How Do You Make Your Moral-Right or
Wrong Choices? (Choose One)
 Whatever will bring you the most pleasing or satisfying
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results
Whatever will make other people happy or minimize
interpersonal conflict
Values taught by your family
Primarily from religious principles and teaching or

not copy someone’s homework.
But what would we actually do?


Is Your Conscience Reliable?, cont…
 If a person’s values are at “Level 2,” they may make
decisions based on the situation and what others say
and do.

 Usually people rationalize their decisions; “I’ll
only copy the homework this one time.”
 Many people are so accustomed to doing things
unethically that they think nothing about it.


How Do You Know if What Someone Is
Saying Is True or Not?
 Can there be a moral and ethical standard?
 There is no way for you to know if what I am saying is


true unless you know what is the truth, and
There is no way to know what is the truth unless there
is a truth you can know.


Exhibit 2–6: How Do You Know Which Fork in
the Road to Take? You Need a Moral Compass!
“When you come to a fork in the road, take it.”
YOGI BERRA