Ethics and marketing management: An empirical examination

Tags: research project, marketing ethics, American Marketing, ethical issues in marketing management, Codes of ethics, Research, College of Business Administration, behaviors, decision processes, top management, American Marketing Association, Ethics, unethical behavior, Marketing Management, unethical behaviors, marketing managers, Marketing Management J BL
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Ethics and Marketing Management: An ~mpirical Examination
Lawrence B. Chonko Al'.lt)ciatt' I'rojt',I,HIT or Marketill!? Bador UniversHl'
Shelby D. Hunt 1'(/1/1 Whitfield I/Oi'll I'mji!sJOr oj Markelill!? Te ws Tech Ullit'ersill'
Almost all studies of ethics in marketing management have either delineated the responsibilities and obligations of managers or explored whether various groups perceive certain marketing management practices to be ethical. This study empir ically examines four research questions: (I) What are the major ethical problems confronting marketing managers? (2) To what extent does the AMA Code of Ethics address the major ethical problems of marketing managers? (3) How extensive are the ethical problems of marketing managers? (4) How effective are the actions of top management in reducing the ethical problems of marketing managers? Marketing has long been charged with ethical abuse because (in part) marketing manager~ face some of the most troublesome ethical problems in business [D I, Baumhart [51 idcntified the major ethical problems that business people wanted to eliminate: (I) gift.,. gratuities. bribes. and "call girls," (2) price discrimination and unfair pricing. (.\) dishonest advertising. (-tJ miscellaneous unfair cUlnpclitive pr;1l' tice~. (5) cheating customcr'i. unfair crcdit practiccs. and ovcrselling. «I) pi icc collu-.ion by competitors. (7) dishonest y in making or keeping a l'llntract. and (X) unfairnes<; to employees and prejudice in hiring, Note that five of the eight most important ethical problems have to do with marketing activities. Brenner and Molander [91 conducted a follow-up study and found the same set of undesirabk practices. Findings such as these prompted Murphy and Laczniak to conclude that "the function within business firms most llften charged with ethical abuse is mar keting" [241. Although Murphy and Laczniak list over 100 publications on mar kcting ethics. progress has been slow in idcntifying major probkm areas. This article empirically delineates both the naturc and cxtent of ethical problems con fronting marketing managers and examinc'i the effectiveness of top management actions and codes of ethics in reducing ethical problems. Murphy and Laczniak's comprehensive review of research on marketing ethics 'coneluded that "the approach taken by the Academy in researchin8 questions related to marketing ethics has been less than innovative and systematic" [24]. ,\ddress corn,:spllndence 10 Prolcssor Lawrence n. Chllnko. Hankamer School of nll'lIleSS. Bavlor University. Waw. TX 7fi744 , JOUrfl.ll of BU'lUl· ...... H.l'~l'all'h 1.1. _l1t) l~9( II'X~) l l:l~l'\icr SClcnce Puhh .. lllnl! Co. Inc.. It}~~ 52 \',,"deThoJl .-\\e No,,' ,;,k. NY IINI17
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They identified several, area" where more research was critically needed. including: "ranking (in terms of importance) the various areas of ethical abuse in marketing." and "finding out whether the behavior of the chief marketing officer is the crucial variable in setting the moral tone of the marketing organization" [24J, Answering Murphy and Laczniak's call. our research addressed four questions: I. What are the major ethical problems confronting marketing managers? 2. To what extent does the AMA code of ethics address the major ethical problems of marketing managers? 3. How extensive are the ethical prohlems of marketing managers? 4. How effective are the actions of top management in reducing the ethical problems of marketing managers? The project explored these questions using a sample of over 450 practicing mar keting management professionals. I Before examining the results of this study. a discussion of the nature of ethical problems in marketing management is appropriate.
The Nature of Ethical Problems in Marketing Management Ethical problems occur only when an individual interacts with other people [31. Ethics can be viewed in terms of the needs of' the individual and the needs of relevant others. The value system of each individual consists of perceived sets of obligations toward others. Bartels identifies numjrous groups (relevant others) that influence ethical decision-making. Memhers of these groups occupy distinct role positions and their expectations influence ethic standards. i
Ethical Conflict
,
Ethical conflict occurs when people perceive liLt their duties to.... ani olle group are inconsistent with their duties and responsihilities toward sOllle other group (including one's self). They then must attempt to ~es()l\ie these opposing obligations. For example. suppose a manager learned that a~'upervisor had bribed a customer. The interests of self. supervisor. corporation, c stomer. and society may conflict. Some of the ways that a manager might handle t is situation include: (I) resigning his/her position. (2) informing the customer's anagement. (3) informing his/her supervisor's management. (4) directly confron ing the supervisor. or (5) doing nothing. The manager's choice of actions will det rmine which interests are satisfied and which are not. None of the alternatives can s' tisfy all the interests of all parties. Bartels [31 succinctly states the nature of ethical conflict:
In a pluralistic society not one but many expectations must be met. Therefore. res olution of what is right to do produces a balanc~ of obligations and satisfactions. Ideally. full satisfaction of the expectations of alliparties would constitute the most ethical behavior. This is impossible. for expectations are often contradictory and sometimes exceed social sanction. Therefore. skill and judgment must be used to .guide one in defermining the point at which his own intqgrity can be best maintained.
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Questions about how marketers nand Ie conflict situations like that described above have led writers such as Steiner [30[ and Farmer [16. 171 to suggcst that marketers have questionable ethics. However. no empirical research has docu mented the extent to which ethical problems actually exist in marketing manage ment. Most research efforts have been dominated by situation-specific approaches. Murphy and Laczniak offer this comment on research concerning ethics in mar keting management: " ... for the most part. the literature consists of philosophical exhortations which usually document areas of ethical abuse and then proceed to supply some general guidelines for improving the moral behavior of marketers" [24]. Most of the empirical research has involved the use of scenarios. For example. Ferrell and Weaver [19] presented a group of marketing practitioners with a written description of ethical situations and asked them to compare their ethical beliefs with the beliefs they ascribed to their peers and top management. They reported that "respondents believe that they make decisions in an organizational environ ment where peers and top management have lower ethical standards than their own" [19J. In another study. Dubinsky. Berkowitz. and Rudelius [141 examined the re sponses of sales representatives and sales managers to 12 situations that might present ethical problems. They concluded that the following posed the greatcst ethical problems: allowing personalities to affect marketing decisiolls. making ex aggerated statements to secure larger orders. and quoting less Competitive Prices to buyers who usc their firm as a sole source of supply than for firms who have multiple supply sources. Ferrell, Ferrell. and Krugman (20] compared the responses of corporate adver tising managers to those of advertising agency account managers 011 16 items that "represented intraOrganizational Behaviors that confront nearly all individuals who participate in a corporate environment." The more serious ethkal prohlems fl" ported occurred in the following situation,: (I) manipulatill!! a sitllaljoll 1(1 make a subordinate or supcrior look bad. (2) divulging confidential informatillll. (J) and falsifying reports. The preceding discussion "uggests that two of the re~earch questions addressed in this article warrant investigation:' "What are the major ethical problems con fronting marketing managers?" and "How extensive are the ethical problems of marketing managers?" Management Actions Previous writers have proposed that top managemcnt activities can help reduce ethical conflicts experienced by employees. They usually draw three conclusions. First. top management can serve as a role model by not sending ambiguous message.. (Ce., verbally endorsing one set of standards while practicing another). Second. lOp managers should discourage unethical behavior by promptly reprimanding unethical conduct. Third. corporate and industry codes of conduct should be de veloped. promoted, and enforced. Concerning the actions of top management. several writers have stated that top management sets the ethical tone for an organization. This has been implicitly referred to as "the organization ethic" by Alderson [I]. Westing l.l~l, and Pruden
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[271· Weaver and Ferr~1I [321. in their study of marketing mana~er... calleu upon top management to "establish a policy as well as express a commitment to ethical conuuct." In a later paper. Weaver and Ferrell concluued that "top management must assume at least part of the responsibility for ethical conduct of marketers within their organization." 119] The authors went on to state that top management must establish and enforce policies. thereby developing a frame of reference for ethical behavior. Similarly, Kaikati and Label, in their examination of American brihery legislation, concluded that "no code of ethical behavior is likely to he observed unless the chief executive officer declares that violators will be punished. When a company fails to take strict disciplinary action. many employees assume that their unethical acts are accepted standards of corporate behavior" [22].
Codes of Ethics Codes of ethics have also been suggested as a means to attain high ethical standards in business [7. 8. 14,20,23]. The American Marketing Association has a general code of ethics for marketers [31). Similarly. many major corporations have also developed codes of ethics. Murphy and Laczniak concluded that "corporate codes are somewhat controversial" [24], as to their effectiveness in resolving ethical conflict. Brenner and Molanuer in their follow-up to Baumharfs [51 classic study on husiness ethics reported that respondents believed that coues are "limited in their ability to change human conduct" [I)J. Nevertheless. "the mere existence of a code, specific or general, can raise the ethical level of business behavior because it clarifies what is meant by ethical conduct." [9] Based upon the preceeding discussion of top management actions and codes of ethics, two additional research questions were addressed: "How effective are the actions of top management in reducing the ethical prohlems of marketing man agers?" and "To what extent docs tht' AMA code of ethics address the IIlaJor ethical problems of marketing managers?"
Method The data was taken from a larger study on several macromarketing issues anu came from a self-administered questionnaire sent to 4.282 marketing practitioners. These represented a systematic sample of one out of every four marketing practitioners in the AMA. Educators and students were excluded from the sample frame. The questionnaire was pretested using a convenience sample of 200 marketers, also obtained from the AMA directory. The final set of mailings consisted of the questionnaire itself, a cover letter, a stamped. pre-addressed reply envelope. a pre notification postcard sent one week prior to the questionnaire, and a follow-up postcard sent one week after the questionnaire. - A total of 1,076 usable questionnaires were returned. for a response rate of 25.1 %. Response rates in this range are consistent with other stuuies using mar keting practitioners as a sample. For example, Myers. Massy. anu Grey~cr [25J ohtained a response rate of 28.5% in their survey of thc AMA memhership. and a straightforward membership survey of AMA practitioners conuucted hy the As sociation reported only a 41 % response rate [2]. These studies had the sponsorship
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of either or both the AMA and the Marketing Science Institute which probably accounts for their higher response rate. From the total of 1.076 usable questionnaires. the responses of the 462 individuals who identified themselves as marketing managers comprised the data base for this analysis. Returns from marketing researchers. advertising agency personnel. and consultants were excluded from this study. The objective of the research was to examine the ethical problems faced by marketing managers. At last three research strategies were available: (\) examine all problems of an ethical nature encountered by individuals who happen to be marketing managers. (2) examine all problems of an ethical nature encountered by marketing managers in their capacity as business people. (3) examine all problems of an ethical nature encountered by marketing managers solely in the execution of management related activities. We chose the . second alternative as the strategy to guide this research as it is the broadest of the three approaches. The characteristics of the sample indicate that respondents have widely varied educational backgrounds, although. as expected, almost all have college degrees. Also, the respondents span a wide range of ages, income. and job titles. Several comparisons showed that the current study's total sample corresponds very well to the AMA membership survey on age. education level, sex. and income. The AMA membership survey had slightly more representation in the manufacturing and service industries. and slightly less representation in an "other" industries category. Some differences also existed in the job titles reported in the two studies. However, these discrepancies probably result from variations in coding procedures. For ex ample, the AMA membership survey did not report a vice-president category but the current study does.
Results Ethical Prohlclns Our fir<;t research question asks "What are the major ethical problems confronting marketing managers?" The lack of prcviolls research on this question necessitated an exploratory research procedure. Marketing managers were asked to respond to the following open-ended question: rn all professions (e.g .· law. medicine. education. accounting. marketing. etc.). man agers are exposed to at least some situations that pmc a moral or ethical pronlem. Would you please hriefly describe the jon situation that poses the most difficult ethical or moral prohlem for you? We phrased the question in this way because of the sensitivity of the subject of ethics. Pre-test information indicated that many marketing practitioners apparently 'believed that the purpose of the study was to isolate the marketing profession and criticize it as unethical. [ndeed. this was not our purpose. The first statement "desensitized" the issue and marketers were much more willing to respond tn the ethics question. The final response rate was 55% on this question. While this was an improvement over pre-test result. some of thc respondents probably still per ceived the question as too sensitive or threatening. A second explanation for the 55% response rate may be that situations which caused concern in the past may
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Tahle 1. Ethical Issues in
Management"
Rank
Is~uc'
I-r<'nll.. n,cv ("; )
J (tic) .i (tic) 5 6 7 H 9 III
Brihcry Fairness Honesty Price Product Personnel Confidentiality Advertising Manipulation of Data Purchasing Other Issues
41 (I'if'" -10 (1-1",) JJ (12";) :n (11';) 32 (II i;,,) 29 (1O~~) 13 c;rf.) 12 (4'7cl 12 (4t::}) H (3"'c) 28 (lO"e) 2!W (I OO"Ic)
"Response In "pcn-ended quc~tion: 'In all profc'~ions Ic.g .. law. medicine. education. account;n!!. marketing. CIC.). managers arc exposed 10 al least Some situation. Ihilt p"se a mllTal or ,'thieal prohlem. Would you picase hrielly descrih" the in" situation thaI POst·s the m",r dif/imlt cthieal or momI prohlcm for vou"" "Although respondents were ask.,,1 10 deserihe onI) (me cthical prohlcm. 2H respondenls dc'scrihcd IWo cocqual prnhlcms and 4 respondents descrihcd three coequal pr"hlems. Therefore. n js the numhcr of pmhlems described hy all ,'alid responses. i.c .. ~5J resp()ndcnt~ descrihcd 2111 pmhiems (Il 2XI J. Of the IOlal of 462 managers who responded 10 the queslionnaire, 2(11) ,45"" J chose nol 10 respond to Ihe question .dcnlilied III {oolnote a. 'Note thaI nol all of these issues (e.g.. personnel and purchasing) are ilislinclly marketing,
be perceived as accepted practice. Yet another reason is that internal pressures for performance may have declined. However, based on the nature of the responses received, there was no indication that these were serious problems. The ethical problems described by respondents were coded according to the issues and conflicts involved. Two independent judges coded all 253 responses. Although the coding of responses to open-ended questions inherently invol\es suojectivity, the interjudge reliability wa" 95% for ethical is'illes and !)J~:. for \.'thit-al Wlillict'"' Agreement was aided by the detailed and k!ngthy responses rn'l'ived from the AMA respondents. Tables 1 and 2 display the results concerning ethical issues and conflicts. The two ethical issues (i.e" problems) most often cited by marketing managers were bribery and fairness (Tahle 1). Other issues frequently cited were those concerned with honesty, pricing, product strategy, and personnel policies. The two most reported ethical conflicts (i.e., inconsistencies between two or more parties) in volved the respondent's attempting to halance: (1) the corporate interest against those of the customer and (2) the corporate interest against those of self (Table 2). The most frequently cited ethical issues will be discussed below, Brihery. The category of brihery accounted for 15% of all responses and in crudes items such as gifts from outside vendors, "money under the table," problems in observing U.S. anti-brihery legislation when dealing in international markets, and the payment of questionahle commissions. Many of the hribery situations involved a marketing manager facing the following conflict situation: accept (or offer) a bribe and the corporation prospers, reject (or do not offer) a bribe and the corporation suffers. For example, one division marketing manager stated:
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Table 1: Ethical Conflicts Reported By Marketing Managers"
Rank Party One
Part\' Two
Frequency Percentage
1 Corporate Interest
2 Corporate Interest
3 C<,rporate Interest
4 Corporate Interest
5 Customer
6 Corporate Intere7 Corporate [ntcrest
R Top Managemc'nt
9
Other Conftietsh
Customer Self Society Sut>ordinates Customer Top Management CIlInpetitor Self
81
28'1
-15
16'c
-In
1..1'(.
28
IWI
D
,~ ·r
11
4r(
W
·V,'r
10
4r r
:!.J
1.5 (.;.
2RI
1000
· 'Read as lollows: 'The num"er one ethical conllict reported hy marketinll managers was attempting to nalanc... the v, corporate interest allainst the interests of customers." hOf these "other" conl1icts. the f<,lIowlng relationsh'l" accounted for II! of the 43 reported conllicts: II Peers Self (I! 5). 2) Corporate Interests vs Other In = 5)..1) ("'rOTate Interest "5 Peers (n = The construction industry has many areas of temptation. In marketing, the key area is 'buying a job.' Some examples are very clear and easy-e.g .. political payoffs. Many others are very 'gray·-e.g., contributions. favors. hiring certain people. retaining special 'consultants'-these are not simple and straightforward. A corporate marketing manager in the banking industry complained that her "senior manager appears to he 'on the take' from a supplier and promotes using that supplier." A sales manager in the transportation industry describes payoffs in international husiness: In international business it is most common for foreign companie~ to provide kick backs and payoffs to other foreign government officials and business deci..ion-makers in order to securc husinl'....... Sincc my l'Ompany slIhsnihes 10 the U.S. Code of I Ihit:" in regards to hribes ami foreign payments, many times hu,iness is lost to a lloll·l 1 s. or forcign company. A vice-president in the hospital industry stated: "In the selling phase of con vincing hospital hoards to engage our company as managers of the facility. I have seen occasions where our major competition works direct or indirect deals with the individual hoard memhers in order to gain the contract." A consumer products vice-president reported that his most difficult ethical problem was "salesmen 'sweet eners' for gaining a sale-the hasic inequality extends not only to clients hut to the status of the individual salesman." Finally, a division marketing director in the food retailing industry stated: In selling products through a food broker distribution channel it is common practice to 'buy' some types of grocery store huyers/purchasing agents: unless certain actions are taken, your product(s) will very likelv not gain distribution in that buyer's stores, If this buyer represents a major chain and your product doesn't gain distribution, the brand can be in trouble when advertising begins. Fairness. We laheled the second ethical issue "fairness," This category includes activities such as the manipUlation of others in order to accomplish tasks. inducing
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cuslomers to usc services that arc not needed. taking credit for the work of (lther~. and unfairly placing corporate interests over family obligations. Issues of fairness seemed to be most common for marketing managers employed by industrial prod ucts tlrms. For example. a president of an industrial products firm stated that his most difficult ethical problem was "preparing sales quotations that vary from ac count to account. industry to industry." A vice-president for an industrial nrm complained of "interaction with other executives that are politically. instead of goal. oriented." Similarly, a female staff assistant manager in the transportation industry stated: Most managers (division directors) in our punlic transportation company are from the oltl-noy school. To have a working relationship with them you've got to play them right. stroke them. and kiss ass. which in my opinion wastes valuable time. Fairness to customers was mentioned many times in this category. For example, a sales representative in the chemical industry described the problem of "the po tential customer who has a need but no real knowledge of the best wavs of fulfilling that need and the comparative cost of varying ways of fulfilling that need." Sim ilarly. a president of a retailing firm cited "giving the client extra effort when in fact he probably would not know the difference if he received less conscienttous effort." Finally. a vice-president in a services area discussed the conflict between customers' interests and the corporate interests: We do not always deliver the service in thc .;cope committed 10 the cll~tomer. This customer may pay for services not received. Often customers cannot exactly determine that scope was unfulfilled. Customers pay us for our effort. and occasionally it is less than we are paid to provide. Honesty. Honesty was the third most frequently mentioned ethical problem. This category of activities includes the misrepresentating of service., and capahil ities. withholding data which might enhance the sale of a competitor's prodllct, lying to customers in order to ohtain orders. alld withholding illiollnalioll that might he detrimental to the respondent's company. Such prohlem" were l1\ost prevalent in service-oriented firms and were reported by managers at all levels of the organization. The conflict between the corporate interests and customers' interests was fre quently mentioned. For example. a female division vice-president in a Financial Services firm expressed concern for "accurate disclosure of what is best for cus tomers which at times is contrary to what is best for the company." Similarly, a sales manager employed by an energy related llrm descrihed his most difficult ethical problem as "heing honest in descrihing product qualities. benclits. delivery and service to potential users of our product. especially as it pcrtains to delivery and service considerations." Another example of customer-corporate conflict was ex pressed by a marketing manager in the insurance industry: Using the survey approach to acquire insurance leads. Although we tell the respondent wl,'11 contact them at a later date if they check a certain !'lox. th~ mixing of purely Il"earch Ethics and Marketing Management
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manager in the transportation industry expressed concern about "maintaining the courage to tell my boss (a finance person) that the marketing eonsiderations are complex and critical to our work and that he lacks our knowledge but needs our honest candid views. ,. A corporate vice-president of a consumer products firm described another communication problem: Receiving diverse direction from chairman vs president and not having candid dis cussion about differences to gain agreement. Result is acting in one manner and reporting in another thereby feeling dish()ne~1. Over half of the respondents who expressed concern about honesty issues were women. A financial services firm female staff analyst reported "problems of telling senior management what it doesn't want to hear." A female division marketing manager described the following situation: Knowing one of my superiors was doing something contrary to management's (infor mal) policies and could lose his job if the manager found out. I was concerned whether or not to inform management, and move up. Pricing. Problems related to pricing were mentioned as frequently as those related to honesty. Issues cited here were differential pricing, contract pricing, meeting competitive prices, charging higher prices than firms with similar products while claiming superiority. and pricing to present vs non-customers. For example, a staff manager for a utility company complained of "pressure from product man agers and upper management to bias price/demand forecasts to influence selection of price." Similarly. a staff manager employed by a Natural Gas firm felt the conflict between corporate and customer interests. exemplified hy those "consumers who cannot afford the almost essential service that we market," was his most difficult ethical problem.. A product manager for a consumer goods firm stated the followinf,! concerning ethics and pricing: "Taking annual price increases to satisfy corporate necd,; rathcl than individual customer needs." A division marketing manager for a consumer goods firm complained of "pricing exceptions for key accounts," and a district marketing manager in the transportation industry stated that "the pricing of a service where you can influence a product of one producer to be chosen over another due to transportation costs," was particularly troublesome. Finally, a dis trict marketing manager for an industrial products firm voiced the opinions of many in society [13, 29], when he indicated his most difficult ethical problem to be the "ethics of a higher profit margin." Product. Product strategy was the fifth most frequently mentioned isslIe and often involved conflict between corporate and customer interests. Problems cited here included products that do not benefit consumers, product and hrand infrinf,!e - ment. product safety, and exaggerated performance claims. Middle managcr<; ap peared most concerned about product-related ethical issues. For example. a product manager for a hospital supply firm was troubled by: The qucstion of hrand infringement due to similar packaging, graphics. or prndud claim". This is particularly important in my indu<;try hecause of the 'faddish' nature of the business. Products proliferate as all manufacturcrs attempt to snare their share of a hot market before it cools.
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A product manager in the consumer goods industry complained that "design ideas are frequently revamped or an attempt (is made! to utilize someone c1'ic'<; existing product. character. or written words." A staff manager for an industrial products firm was uneasy about: Releasing a product for sale when you are not ahso/ute/" sure it meets minimum quality standards. This is a difficult judgment decision since the customer seldom specifies critical dimensions of the product. One female district marketing manager in the con<;umer goods industry was concerned with being "responsihle for promoting sweet haked goods which arc not good for health: they are 'luxury' junk foods.' .. Finally, corporate vs customer concerns were cited by a consumer goods divisional sales manager: "All companies produce a certain percent of equipment that are lemons. Does the customer have to pay for or should the manufacturer bear the burden?" Personnel. Ethical issues relating to personnel matters are not specific to mar keting. Hiring. firing. and employee evaluation seemed to cause the most concern. A corporate marketing manager for a consumer products firm stated: Our company has no morals relative to personnel. There is no regard for the individual. People are dismissed without cause after bringing them to end-of-track. One day you are told that your work is good. The next day you are out on your proverhial duff. One corporate vice-president employed hy an industrial products manufacturer expressed concern about discrimination in hiring: "Ideally. I would he unhiased. Practically, I know that short-term results are hetter with white males in my in dustry." Regarding performance. a staff manager for tt consumer products firm stated that his most difficult ethical prohlcm involved "whether to replace an average performing mllnager with a candid.l!e with superior performance or po tential." Similmly. a vice-pre,\ident for :J petroleum produdS company expt'l''\scd concern about "terminating an older employee for poor performance." Confidentialty. The seventh most important ethil:al issue concerned confiden tiality. This issue arose from temptations to usc or ohtain information that may he classified. secret. or competitive in nature, For example. a staff manager employed by an industrial products manufacturer expresseu concern ahout "turning my back when competitor information is availahle hut illegal." A vice-president in the elec tronics industry indicated his major prohlcm area was antitrust: We are regulated by the government, hut we negotiate with monopolies overseas. The government lifts anti-trust regulations to allow us and our U.S. competitors to discuss among ourselves a limited range of issues prior to individual's separate ne gotiations with monopolies overseas. One must remain within that restricted list of issues. Lastly. a vice-president in the service industry expressed concern about the disclosure of confidential information to competitors of his cuslomers: The nature of our service-type husiness requires that we perform services for consumer and industrial product firms that arc direct competitors of each other. The programs that we support for these competing firms generate sensitive and valuahle inf(lrmation
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particularly for a direct competitor. The timing. characteristics. and results of pro motions are examples of this information. The relationships developed with contrasts of these firms vary in levels of friendliness, openness, etc. The ethical problem might occur when a firm with which we have a substantial relationship seeks confidential information about a competitor's program. Advertising. Advertising concerns constituted the eighth most important set of issues. Most of the problems in advertising centered around misleading customers. For example. a consumer goods corporate marketing manager was concerned with reality vs perception: "Advertising can create the perception of product perform ance which isn't present in the product." A product manager in the consumer goods industry expressed concern with "crossing the line between puffery and mislead ing." A corporate vice-president emploved by a financial services firm reported: "I feel ethics are most stretched in advertising where you must show product features in the most favorable light even though you know the product may not be optimal for all end users (Market Segments)," This individual went on to state: . , . but I don't lose any sleep over it-I believe the buyer bears a responsibility to examine and decide .... The fault lies with this protective society's failure to prepare the consumer (or allow the consumer to naturally develop the ability) to evaluate and make rational decisions. To knowingly ship defective or impure product that is not what it is claimed to be is unethical. But to allow the consumer unregulated choice among products of varying quality and purity is an essential freedom which comes from a responsibility to be critical and discerning. The seller should not be obliged to perform that function for the consumer. Distortion. The category of distortion was the ninth most important ethical issue. Respondents who expressed concern here generally reported incidents involving falsifying figures or misusing statistics or information. A vice-president of sales for a media finn states: "Media marketing involves product compari'lon'l that arc numerical. It is nevertheless an art with many variahks. The ethkal prohlem frequently posed is how far do you go in manipulating the variahles. ,. A divisional marketing manager employed by a consumer products finn describes "a meeting with many executives. especially upper echelon, where my boss gives out infor mation r know not to be accurate. and I am asked later or at that time to provide the substantiation of that information." A female staff manager in the energy industry criticized distortion of forecast information: "Within the marketing division of my company, management often will adjust the numhers to please the higher levels of management. For example, management will adjust a sales forecast until they'have a set of numbers that higher management will 'buy in on' regardless of the logic of the assumptions." Purchasing. Purchasing constituted the tenth significant ethical issue. Ethical issues of reciprocity and the selection of suppliers were most troublesome. For example, a corporate marketing manager for an industrial products firm stated that his most difficult ethical problem was the "selection of suppliers whether they be ad agencies. maga7ines (space reps), etc. It is often difficult to separate friends in the business and to be 100% objective." Similarly. a bank vice-president expressed concern "when bank customers expect and/or demand business from my area, such as printers. ad agencies. media. etc."
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Otlter Issues. The nnal, set of issues included. in order. abuse of office. com promising personal beliefs. conflicts of interest. and goal setting. For example. abuse of office generally included honesty in handling expense accounts. Those who were concerned with compromising ethics were torn between doing what they considered to be right vs getting ahead in the corporate environment. Conflicts of interest centered around individual and family vs corporate needs. while goal setting problems were concerned with the degree of difficulty of goal achievement. The AMA Code of Ethics Our second research question asks. "To what extent does the AMA code of ethics address the major ethical problems of marketing managers?" Appendix A repro duces the American Marketing Association National Code of Ethics. The AMAcode has sections which. in some way. address the issues of honesty. fairness, product strategy. and advertising. Similarly. four key parties to potential ethical conflicts are identified: the corporation. society. customers, and marketing managers. No section specifically addresses bribery, pricing strategy. personnel decisions. confidentiality. manipulation of data. or purchasing. However. the doc ument is sufficiently vague to allow other interpretations. For example. bribery could be interpreted as being addressed in Point 4 of the AMA code. Several relevant stakeholders (competitors. top management. and subordinates) are not mentioned by the AMA code. even though they were identified by mar keting managers as key parties in ethical conflicts. It might be argued that not all of the issues and/or parties identified by marketing managers should be included in a marketing code of ethics. Perhaps some of these issues (e.g.· personnel de cisions) are better suited for inclusion in general corporate codes. Nevertheless, our findings suggest that the AMA code might be strengthened by some additional sections. Extent of Ethical Problems In the preceding discussion. the most difficult ethical problems faced by marketing managers were identified in terms of issues and conflicts. Our third research ques tion asks "How extensive are the ethical problems of marketing managers?" Table 3 summarizes responses to ten items specifically directed at assessing the extent of ethical problems in marketing management. The items are grouped according to the following categories: L Opportunities for unethical behavior (Items AI and A2) 2. Frequency of unethical behavior (Items Bland B2) 3. The relationship between success and generally unethical behavior (Items Cl and C2) 4. The relationship between success and specific unethical behaviors (Items 01 to 04). Two of these items (03 and 04) are comparahle to two items found to he unethical hy Weaver and Ferrell 1191. The other two items (01 and 02) were generated during the exploratory phase of the project. Table 3 also reports three items on top management action (EI. E2. and E3) that will he discussed later.
Ethics and Marketing Management
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Table 3. Extent of Ethical Problems in Marketing Management"
Pi Agree" Mean
A. Opportunities For Unethical Behavior
I. There are many opportunities for marketing man
agers in my COMPANY to engage in unethical
hahaviors
41
4.1
2. There arc many opportunities for marketing man
agers in m; INDUSTRY to enga!!c in unethical
hehaviors
50
3.4
B. Frequency Of Unethical Behavior
I. Marketing managers in my COMPANY often en
gage in hehaviors that I consider to he unethical
12
5.4
2. Marketing managers in my INDUSTR Y often en
gage in hehaviors that I consider to he unethical
20
4.6
C. Success And Unethical Behavior
I. Successful marketing managers in my COMPANY
(are generally more unethical than unsuccessful
managers'
5.2
2. In order to succeed in my company, it is often to
compromise ones' ethics
16
5.4
D. Success and Specific Unethical Behavior
I. Successful mangers in my company withhold infor·
mation thaI is detrimental to their self interests.
43
4.0
2. Successful managers in my company make rivals look
had in the eyes of important people in my company
29
4.5
3. Successful managers in my company look for a
"scapegoat"' when they feel they may he associated
with failure
32
4.4
4. Successful managers in my company lake credit for
the ideas and accomplishments of others
48
3.R
E. Top Manaf!.ement Actions And Unclhk..1 Behavior
I. "I "p manal!l'llll'lIt in my company h.., 1<-1 111)(' known
in no IIf1l:crlaili terllls that unethical hdwvior will
not hl' I43
3.4
2. If a manager in my company is disco\ered 10 have
engaged in unethical hehavior that re'mlts primarily
in peT.)onai gain (rather than corporate gain) he will
he promptly reprimanded
73
2.5
3. If a manager in my company is disc(wered to have
engaged in une~hical hehavior that results in pri
marily corporte gain (rather than personal gain) he
will he promptly reprimanded
61
3.0
· n=4li2. , peTeem rc~p()nding "slightly iI!!Tee:' "agree," or "slronlZly a!!,rcc." · on a seven-poinl scale: "I" equals "strongly agree" and "1" equals "slrnn!!ly diS:lgrcc." J this ilem ""as phrased in reve[5C manner in the quesltonnaire, i.e., "more elhicaL"
S.D. I.R 1.6 1.5 1.4 1.6 1.6 1.6 1.6 1.5 L5
_The results in Table 3 indicate that many marketing managers (41 %) agree that there are numerous opportunities for managers employed by their respective firms to engage in unethical behavior, A much smaller percentage ( 12%) of these man agers agreed that managers in their respective firms "often" engaged in unethical behaviors. Comparable figures for imJust ry opportunities and frequency of behavior are milch higher. Fifty-six % of our sample agree that there are many opportunities for managers in their industry to engage in unethical behavior, while 26% reported
I
352
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L. B. Chonko and S. D. Hunt
that managers in their' industry frequently engaged in unethical behaviors. This finding is consistent with that of Weaver and Ferrell [191. who reported that mar keting managers believed they had higher ethical standards than their peers. Trade publications have reported that managers feel pressured to engage in unethical behaviors to achieve corporate goals [to]. Surely. if managero; agree that there is a relationship between unethical behavior and success. these perceptions would serve as strong motivators for unethical behaviors. However. only fit"} of the marketing managers believe that generally unethical behaviors lead to success in marketing (Item CI). Similarly, few managers (16%) agree that it is necessary to compromise one's ethics in order to be successful. When marketing managers were asked to respond to the relationship betwccn specific unethical behaviors and success, markedly different results occurred. Items DI through D4 in Table 5 examined four specific unethical behaviors and their relationship to ssuccess: (I) withholding information detrimental to self-interest, (2) making rivals look bad in the eyes of others. (3) looking for "scapegoats" when failure occurs, (4) taking credit for the ideas and accomplishments of others. When each of these specific unethical behaviors is compared to general unethical behavior (Items Cl and ('2). a much higher percentage of marketing managers agree that successful managers engage in those behaviors. Top Management Actions Our 'fourth research question asks "How effective are the actions of top manage ment in reducing ethical problems of marketing managers?" Two measures were used to address this question: (1) the extent of ethical problems perceived by marketing managers and (2) the extent of top management actions. Since no pre vious scale for measuring the extent of ethical problems in marketing management existed. a scale was developed. Eight items (AI. B1. CI, C2. 01. D2. D3. 04) in Tahle 3 relate to ethical prohlems in thc respolldent's liflll. A fm·tor analysi., of these items yielded a one factor solution, with each item havillg a factor loadillg in excess of 0.30 and six of the items having a factor loading in excess of 0.60. An alpha coefficient of 0.83 for these eight items suggests that the eight items can be treated as a single scale measuring the latent construct "ethical problems of mar keting managers." A similar approach was followed for the development of a scale to measure the extent of top management actions. Items El, E2. and E3 in Table 3 describe top management behaviors that other writers have suggested should be undertaken to deter unethical behavior. A factor analysis of these items yielded a one factor solution with each of the items having a factor loading in exccss of 0.50 and an alpha coefficient of 0.75. suggesting that the three items may be treated as a single ~cale measuring the latent construct "top management actions." Many writers have previously endorsed the use of written codes of ethics as a means of deterring unethical behavior. In this research. respondent" were asked whether or not their respective firms and industries had formal written codes of ethics Fifty-four % of the marketing managers reported that their firms had codes of ethics. while 25% stated that their industries had codes of ethics. Regression analysis was used to assess the impact of top management actions on perceptions of the extent of ethical proolems. Results are displayed in Tahle 4.
Ethics and Marketing Management
J BL'SN RES I '1,~~. 1.~·.1 ~Table 4. Regression: Impact of Top Management Actions on Perceptions of Ethical Prohlems
Independent Variable
Simple
Increment
Standardized
,,(,
Correlation
To R'
Beta C6efficient
Titled Sex' Size of Firm' Major Field of Stud\" Technical Business Social Science Humanities Top Management Actions" Industrv Code of Ethics Corporate Code of Ethics'
-U.23" -O.22u IU}9' -10' ... 02 o.m 0.05 -.44" -.07' -.04
U.OS3 (Um 0.OU5
11004 0.004 O.(MH 0.001 0.152 0.001
-.11 -.12 0.09 -117 -. J() 0.03 Olll -.40 -.03
2.JRu ~.5~" I.(n' I 711" I.IlIl lUll O.M 9.19" lUll
Constant R' F
=7.]-l =0.25 = 15.s'a
"sign'ticant at lUll level. 'significant at 0.05 level . Dependent variahle is a summated inde .· of ethical prohlems scale (sec Tahle 5). Higher numhers indicate more prohlems The range of the scale is from R to 5ti. "High numhers arc higher titles than low numhers (see Tallie I for categories I. '[)ummv v'ariahle with" I" as male. 'High n~mhers arc tar~cr firms. 'Dummv' varia hie "ith "I" as reported field of study. lOr 'Summated indn of management actions. Higher nllmhers indicate more action hy top management. The range of the scale is from 3 to 21. '[)ummv nriahlc "ith "I" as existence of industrv code ,,' chtics. 'Dumm)' variahle with "I" as existence of corpor~te code "f ethics.
Factor scores on the et hical prohlems scale were lIsed ;t<; I he dependellt variahle. Preliminary analysis indicated that four demographic variahles were significantly related to the extent of ethical prohlems: (I) the respondent's title. (2) the re spondent's sex, (3) the size of the respondent's firm. and (4) the respondent's major field of study. Brieny. presidents and vice-presidents were less likely to see ethical problems than their counterparts at lower levels in the organization. Similarly. males reported fewer ethical problems than females. Respondents employed by large firms were more likely to see ethical prohlems than respondents employed in smaller firms. Finally, respondents who have technical hack grounds reported fewer ethical problems than their colleagues with hackgrounds in husiness. the social sciences, humanities. or other areas. Since this research is exploratory in nature. no theoretical justification can he given for the inclusion of such demo graphic variables in the analysis, However, they do provide tentative suhstantive findings and. as such. were subsequently used as control variables to assess the impact of top management activities on perception of ethical prohlems. Results in Tahle 4 show that "top management" actions are the single hest predictor of perceptions of the extent of ethical prohlems. The tnp management actions scule expluins 15% of the totul variance. This result is consistent with the suggestions of the previously cited writers. That is. when top management takes specific action to discourage unethical hehaviof, the perceived extent of ethical
354
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L. B. Chonko and S. D. Hunt
prohlems in marketing management decline<;. It should he noted that this rela tionship is merely correlational in nature. No causal relationships are necessarily implied. The existence of corporate or industry codes of ethics made no significant con trihutions toward explaining the extent of ethical problems perceived hy marketing managers. Although hoth were negatively related to the extent of ethical prohlems. neither yielded a significant heta coefficient in the regression analysis. Therefore. the simple correlations were, apparently, spurious. Discussion This research provides empirical evidence ahout ethical prohlems confronting mar keting managers. Our purpose was not to dispel or reinforce some of the popular notions ahout marketing and ethics. Nor was it to criticize or praise marketing managers for their ethically related activities. Rather, our purpose was to report on the kinds and extent of ethical problems faced by marketing managers. To accomplish this, we solicited responses from practicing marketing managers, re cognizing that other potentially interested groups (e.g., consumers. academics. conSllmer advocates) might hold different views of ethics in marketing management. The findings indicate that marketing managers are confronted with a wide variety of difficult ethical prohlems. Ethical prohlems concerning brihery were most fre quently cited. However. ethical prohlems involving fairness, honesty, pricing strat egy. product strategy, and personnel decisions were also frequently cited. Together with hrihery. these isslIes account for 74% of the ethical prohlems identified hy marketing managers. Because of the relatively equal numher of responses to many of the issues presented in Tahle I. care should be taken in not over-interpreting the rank ordering of these items. Readers are reminded that marketing managers were asked to descrihe the joh ,itllation that pme<; the most dilJiud, ethical /lr moral problem for them. Therefore. thest' rcsults ,hOlild 1101 be intl'l [lrl'tnl as the issues that occur most fr('(jlll'lllir. Ilown·cr. the natme of the rc"pollliclitS' COlli ments suggest that marketing managers perceive significant ethical prohlems in the areas identified. The relationship between corporate interests and the interests of customers constituted the most frequent source of ethical conflict for marketing managers. However. the findings in Table 2 should also be cautiously interpreted. These ethical conflicts should be considered as listings rather than strict rank orders. Nevertheless. several conclusions from Table 2 seem evident. First. the corporate interests rep resent one party to the ethical conflict in six of the eight rclationships reported as sources of ethical conflict. These six relationships an:ounted for 7fl0'r: of the total set of relationships reported hy marketing managers. Second. for R5% of the ethical conflicts reported hy marketing managers. the relevant role set appears to consist -of demands from the following: (I) the corporation. (2) customers, (3) the mar keting managers, themselves. (4) society. (5) suhordinates. and (6) top managers. Findings in Table 3 suggest that managers perceive both fewer opportunities for. and less frequent participation in. unethical hehavior for their own firms than for their industries. This finding is consistent with those of Weaver and Ferrell who reported that "respondents helint' they made decisions in an organizational en vironment where peers and top management have lower ethical standards than in
Ethics and Marketing Management
J AUSN RES
355
1'11\5. 11, lJ'I-~5q
their own" [19]. In both studies. respondents appear to be saying that they them selves are more ethical than others. Several factors may explain the findings in Table 3 concerning the relationship of unethical behavior and success. Results indicate that managers do not believe there is a relationship between generally unethical hehavior and success. Whereas, they perceive success to be related to specific unethical behaviors. One explanation for this apparent conflict is that managers may. in fact. perceive a relationship between success and unethical behavior. but were unwilling to admit this. An alternative explanation is that marketing managers did not perceive the specific unethical behaviors in our scale as being important. Issues such as bribery, outright lying. and conspiracy may be considered more serious breaches of ethics than the kinds of unethical behaviors identified in Items 01 through 04 in Table 3. It should be noted. however. that the activities described in questions 01 to 04 can all he included as fairness issues. the second most frequently reported ethical problem in Table 1. Findings in Table 4 suggest that the individual respondent's title. sex, size of firm. and major field of study were significant in explaining perceptions of ethical problems. Marketing managers at higher management levels in their firms reported fewer ethical problems than did their colleagues at lower levels. This result may have occurred because many top management decisions are not regularly reviewed. Consequently. they may be less sensitive to problems regarding corporate ethics. Alternatively. top managers may feel less need to engage in such behaviors as looking for "scapegoats." taking credit for others ideas, or making rivals look bad in the eyes of others. After all. top managers have few opportunities for advance ment within their respective firms. whereas competition among lower level man agers for advancement might lead to the types of behaviors described. Therefore, when responding. top managers may not have been thinking of these unethical behaviors. while middle level and lower level managers were. A third alternative is that there arc high pressure demands lor performance at lower and llIiddle management levels. These pressures might lead to unethical behaviors. That is. under pressure situations "competition among middle managers can quickly result in a level of behavior which is the lowest common denominator of the group [01." Table 4 also indicates that female managers perceived more ethical problems than male managers. A number of studies have documented difficulties that women encounter in the workplace. For example. Rosen and Jerdee [28] reported anti female bias in managerial ranks, including: ( I) women sacrificing careers for family obligations. (2) retention of male employees over female employees. and (3) male favoritism in employee selection and promotion. Similar ohservations have heen made by other writers [e.g.. 4. 12.26]. Male managers are likely to be less sensitive to these discrimination issues than female managers. Consequently. the typical male's set of unethical behaviors may not include these issues and as a result. he perceives fewer problems. These findings seem to suggest that women have different ethical frameworks than men. Do they "see" the same things. with women con cluding that certain behaviors are unethical while men conclude they are ethical? Or, are certain behaviors not "seen" by male managers as unethical at all? These questions can only he addressed with further research on ethics. Marketing managers employed by largel lilms perceiveJ more ethical problems than those in smaller firms. In larger firms. many subdivisions of departments exist.
356
J BUSN. RES IQR5:D:~39-~59
L. B. Chonko and S. D. Hunt
Each has rules and regulations designed to control behaviors. Departmental re lationships are likely to lead to conflict. some of which may involve ethical con siderations. Also. in larger organizations. longer hierarchies exist. Status and prestige differences at various levels of the hierarchy could result in pressures to engage in unethical behaviors. Coordination and control of behaviors is more difficult. Often. top managers in large firms must rely on staff personnel (who may not fully un derstand the corporate system) to coordinate and control behavior. Finally. managers with technical backgrounds reported fewer ethical prohlems than managers with other educational backgrounds. A Chi Square analysis yielded a significant relationship between sex and educational background. Many more male managers possess technical backgrounds than do their female counterparts (adjusted X~ = 10.47, df ::::: I. significance level = lUlU I ). and as discussed earlier, male managers report fewer ethical problems than female managers. Conclusions Six conclusions are suggested by the findings in this research: I. The most often mentioned ethical problem faced by marketing managers is bribery. Five other issues (fairness, honesty. pricing strategy. product strat egy, and personnel decisions) were also frequently cited as difficult ethical issues. 2. The primary ethical conflict reported by marketing managers involved bal ancing the demands of the corporation against customer needs. In 76% of the ethical conflicts reported. one party in the conflict was the corporation. 3. Marketing managers perceive many opportunitie~ in their firms and industries to engage in unethical behaviors. However. they report that few managers frequently engage in such behaviors. 4. Markcting managers do not believe thai ullcthkal hehavior<; in )!cneral lead un to success. However. many helieve that successful marketing managef" engage in certain specific unethical hehaviors. 5. When top management reprimands unethical behavior. the ethical prohlems perceived by marketing managers seem to be redu<:ed. n. The existence of corporate or industry codes of ethics seems to be unrelated to the extent of ethical problems in marketing management. Coe and Coe III] have cited four criteria that distinguish professions from other occupations. One of these is "governance through a code of ethics and disciplinary procedures for the violation of the code of ethics" (I" 257). If these ethi<:al codes are to be useful. they must he specific. The AMA code. as well as codes of other professional associations. lacks specificity. The AMA code is not alone in not addressing many of the important issues confronting managers. A survey conducted - by the Ethics Resource Center [15J indicated that about 75% of the responding firms had written codes of ethics. but that these too were lacking in specificity. Although the findings suggest that actions by top management can reduce ethical prohlcms. no relationship between corporate and industry codes of ethics and the extent of ethical problems was found. This does not imply that codes serve no purpose. As Kaikati and Label [221 asserted. codes of ethics and enforcement should go hand-in-hand. Perhaps our respondents simply viewed codes as one form
Ethics and Marketing Management
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of action by top management to reduce unethical behavior. Codes of ethics are necessary so that employees can understand what their organization expects of them. But top management must reinforce these expectations by their own actions. Finally, our findings indicate several fertile areas for additional research on ethical problems in marketing management. The relationship between success and unethical behavior appears to be an important area for investigation. A scenario approach might be useful here. Ethical issues and relationships identified in this study could be combined with certain specific behaviors and used to further examine this relationship. This approHch would be useful in identifying preferred behaviors and outcomes. Also useful would be research thHt addresses the Decision Processes involved in ethical decision-making. For example, are the decision processes of marketing managers deontological in nature or teleological in nature? What ethical tr-lide-offs do marketing managers make between behaviors and outcomes? How do marketing managers adjust these trade-offs as relevant role partners change? Are the actions of top managers effective in reducing all types of unethical behavior. or are they only useful in deterring selected unethical behaviors? All these issues warrant further research. In conclusion, it was encouraging to find that so many of our respondents were. indeed, concerned aI-lOut ethical issues in marketing management. The future chal lenge lies in improving our knowl~dge and behavior with respect to marketing ethics. Both academics and practitioners have roles to play. Academicians can help improve knowledge through research aimed at understanding the ethical decision making process. Practitioners can help to improve behavior by establishing orga nizational climates that deter unethical behavior and reward ethical hehavior. The authors express their sincere appreciation.tn the members of the American Marketing A\\o ciation who participated in this research project. We also gratefully acknowledge the financial support of the Office of Bu~iness Research, College of Business Administration. Texas Tech University, The timely assistance of Paul Surgi Speck at various \tagC\ of the research project is also applcc:iatcd,
Appendix A The American Marketing Association Code of Ethics2 As a member of the American Marketing Association. I recognize the significance of my professional conduct and my responsibilities to society and to the other members of my profession: I. By acknowledging my accountability to society as a whole as well as to the organization for which I work. ~ By pledging my efforts to assure that all presentations of goods. services, and concepts be made honestly and clearly. 3. By striving to improve marketing knowledge and practice in order to better serve society. !Courtcsy of the American Marketing Aswcialion. Chicago. IL
35R
J tlUSN I{['$
I'.j~'" LUJL 8. Chonko and S. D. Hunt
4. By supporting free consumer choice in circumstances that are legal and are consistent with generally accepted community standards. S. By pledging to use the highest professional standards in my work and in competitive activity. 6. By acknowledging the right of the American Marketing Association. through established procedure. to withdraw my membership if I am found to be in violation of ethical standards of professional conduct. References I. Alderson. W. Ethics, ideologies. and sanctions, in Report of tIle Commiftee on El/lical Stalldards and Professional Practices. Chicago, IL: American Marketing Association (1964). 2. American Marketing Association Membership Sun'ey conducted by Higginbothem and Associates. Houston, TX (March 1982). 3. Bartels. R. A model for ethics in marketing. Journal of Marketing 31: 20-26 (Jan. 1967). 4. Bass. B. M., Krusell, J., Alexanders, R. A. Male managers' attitudes toward working women. American Belral'ioral Scientist p. 223 (November 1977). 5. Baumhart. R. C How ethical are husinessmen? Hanoard Business Rel'iew 39: 6-9, 156 157(1961). 6. Baumhart. R. C Ethics in Business. New York: Holt, Reinhart. and Winston (1908). 7. Berkman. H. W. Corporate ethics: who cares'! Journal of the Academy of Marketing Science 5: 154-167 (1977). R. Boling, T. E. The managerial ethics 'crisis': An organizational perspective. Academy of Management Review 2: 360-365 (I97R). 9. Brenner, S. N.. Molander. E. A. Is the ethics of business changing" Harvard Business Review 55: 57-71 (1977). 10. Business Week. The pres,ure to compromise personal ethics. P. 107 (Jan. 31. 1977). II Cne. T. L. Coe. B. Marketing research: the scarch for profcssinnali,m. in /'.'ark(·li"~, J77f}-1976 lind Ileyont/, K. L. Bernhardt. cd.. Chicago, IL: American Marketing Association, 257-:259 (1476). 12. Coleman, J. C. Hammer. C, L. COil temporary pJl'chology alld Hliman Behavior. Glenview. IL: Scott Foresman. 363 (1974). 13. Cox. R. Distribution in a High Level Economy. Englewood Cliffs. NJ: Prentice-Hall. 2(' (1965). 14. Dubinsky. A. J., Berkowitz. E. N .. Rudelius. W. Ethical prohlems in field sales personnel. MSU Business Topics 28: 11-16 (1980). 15. Ethics Resource Center. Codes of Ethics in Corporations lind Trade Associalions and lite Teaching of Ethics ill Graduate BlIsineH Schools. Princeton. New Jersey: Opinion Research Corporation (1979). 16. Farmer, R. N. Would you want your daughter to marry a marketing man? JOllrnal of Markeling 31: 1-3 (Jan. 1967). - 17. Farmer. R. N. Would you want your son to marry a marketing lady? Journal of Marketing 41. 15-IR. IR. Fcldm;m, L. P. Societal adaptation: a new challenge for marketing. Journal of Marketing 35 (July 1971): 54-60. II). Ferrell. O. C. Weaver. M. K. Ethical beliefs of marketing managers. JOllrllal of /'.tllrkeling 42 (July 11)7R): 69-73. 20. Ferrell. O. C. Ferrell. M. Z .. Krugman, D. A comparison of predictors of ethical and
Ethics and Marketing Management
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l')9
1'11<": 1.1:.n'l~.l'i'1
unethical hehavior among corporate ad agency Advertising Managers. Journal oj Macromarketil/X (Spring 19H3), 19-27.
21. Hunt. S. D., Chonko. L. B.. Wilcox, J. B. Ethical prohlems in marketing research. Working Paper (19H3).
22. Kaikati. J. G .. Lahel. W. A. American hriben leldslation: an ohstacle to international marketing. JOllrnal of Markering 44 (Fall 19H(i): 3R--n.
23. Kramer. O. P. Ethics programs can help companies set standards of control. Admmmralll'e Mal/ager 3H (January 1977): 40-49.
24. Murphy. P. E.. Laczniak. G. R. Marketing ethics: a review with implications for managers. eduealOrs. and researchers. in Re~'iell' oj Marketing. 19H I . B. M. Enis and K. J. Roering. cds .. Chicago. IL: AMA, 251-266.
25. Myers. J. (j.. Massy, W. F., Greyser. S. A. Marketing Research ilnd Kllowledge
Dnetopmmt. Englewood Cliffs, NJ: Prentice-Hall. :'%-297 (19XO).
.
20. Orth. C. D .. Jacohs. F. Women in management: patterns for change. J/arl'ard Business
Re1';ew 49 (July-August 1971): 139-147.
27. Pruden, H. O. Which ethics for marketers? in Marketing al/d Social Issues. J. R. Wish and S. H. Gamble. eds. New York: John Wiley and Sons. Inc .. 98-104 (197 J).
2R. Rosen. B., Jerdee. T. H. Sex stereotyping in the executive suite. Harvard BlL~iness Review 52 (May-June 1(74): 45-5R.
29. Steiner. G. A. Business and Society. New York: Random House. 72 (1975).
30. Steiner, R. L. The prejudice against marketing. lournal of Marketing 49 (July 1970): 2-9.
31. Twedt. D. W. Why a marketing research code of ethics'? Journal of Marketillg 27 (Octoher J%3): 4R-50.
32. Weaver. K. M.. Ferrell. O. C. The impact of corporate policy on reported ethical oehe[s and hehavior of marketing practitioners. in Contemporary Marketing Thol/ght. B.A. Greenherg and D.N. Bellenger. eds._ Chicago. IL: American Marketing Association, 477 -4RI (1977).
33. Westing. J. H. Some thoughts on the nature of ethics in marketing. in Changill!( Markellng Systems. Reed Moyer. cd .· Chicago. II.: i\merican Marketing i\",o(·ialilln. Ifll 161

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