Author Question: Why have ethics and social responsibility become so important in recent years? Why is it important ... (Read 100 times)

tsand2 · **on:** Jun 28, 2018

Why have ethics and social responsibility become so important in recent years? Why is it important that marketing ethics be incorporated into the firm's strategic plan?

Question 2

Mike is a sales representative for an industrial equipment company. He plans to meet as many prospective buyers as possible in order to reach his sales target. Mike can expect sales resistance from prospects when:
A) they want to avoid the sales interview.
B) they have all the information they require to make a decision.
C) they are not happy with the product they are currently using.
D) they have been properly qualified by him.
E) they recognize a need for the product he is offering.

itsakadoozi · **Reply #1 on:** Jun 28, 2018

Answer to Question 1

The importance of marketing ethics and social responsibility has grown in recent years, and their role in the strategic planning process has become even more important as many firms have seen their images, reputations, and marketing efforts destroyed by problems in these areas. The failure to see ethical conduct as part of strategic marketing planning can destroy the trust and customer relationships that are necessary for success. Ethics and social responsibility are also necessary in light of stakeholder demands and changes in federal law. Furthermore, ethical and socially responsible behavior improves marketing performance and profits. Marketing ethics does not just happen by hiring ethical people; it requires implementation of an effective ethics and compliance program.

In response to customer demands, along with the threat of increased regulation, more and more firms have incorporated ethics and social responsibility into the strategic marketing planning process. Any organization's reputation can be damaged by poor performance or ethical misconduct. However, it is much easier to recover from poor marketing performance than from ethical misconduct. Obviously, stakeholders who are most directly affected by negative events will have a corresponding shift in their perceptions of a firm's reputation. On the other hand, even those indirectly connected to negative events can shift attitudes toward a firm. In many cases, those indirectly connected to the negative events may be more influenced by the news media or general public opinion than those who are directly connected to an organization. Some scandals may lead to boycotts and aggressive campaigns to dampen sales and earnings.

Answer to Question 2

A