-Morality and business ethics
-Ethical decision making
-Ethical guidelines and training
-Ethics in other countries

[SLIDE 1]

Depending on the ethical theory picked, or even if no theory is chosen, different actions are taken in a business setting. While the law is usually clear, ethical decisions are less so. A deontologist should always follow the law and therefore would not pay a bribe if it is illegal. However, a moral relativist might pay the bribe depending on the current situation and opportunity.

Morals are the rules people develop as a result of cultural values and norms, they evolve in society and are different in different societies. Morals are often a driving factor in the creation of laws, as society uses morals to decide what is allowed.

Morals also include the idea of "good v bad". However, those words also have varied connotations depending on circumstance. For instance, a salesperson might view selling a product with a feature the customer does not need as good if that helps her get closer to meeting the sales quota.

"Good" and "bad" can also refer to "conforming" or "deviant" behavior. For instance, doctors are expected not to hold sales similar to those found in a furniture store.  The two words can also vary by religion or even within religions. While some Jews and Muslims consider eating pork to be "bad", many others do not think it is bad – even if it does not rise to the meaning of "good".

[SLIDE 2]

When applying morality to business ethics and actions, there are three primary approaches.

Examine consequences of actions

Who is helped? Who is harmed? How long will the consequences last? This approach means taking a close look at the impact of the action.

Stress importance of rules

The approach stresses that rules exist for a reason. Customer, laws, professional standards and common sense are all rules that should be following in business setting.

Emphasize moral character

The approach says that if individuals develop moral character, they can make ethical decisions. That development is considered to have three levels:

-Preconventional morality: calculating, self-centered, even selfish, based on immediate punishment and reward. Marketing focuses on short-term sales.

-Conventional morality: moves from egocentric to a focus on society, loyalty and obedience become paramount. Marketing at this level focuses on whether or not actions are legal.

-Postconventional morality: less concerned with how people see themselves and more on they see and judge themselves. Marketing focuses on whether or not this benefits the customer.

[SLIDE 3]

Ethics are complex and making decisions based up an ethical foundation rely on many factors. Some of the key factors in an ethical decision in business are:

-Extent of the problem: Marketers who see fewer ethical problems are more likely to disapprove of unethical behavior.

-Top management’s actions: The executive suite sets the example for ethics that is followed by personnel.

-Potential magnitude of consequence: The larger the negative consequence, the more likely marketers are to understand the ethics.

-Social Consensus: The greater the agreement between peers in the organization, the more likely people are to act ethically or unethically.

-Probability of harmful outcome: The greater the likelihood of a negative outcome, the more likely marketers will recognize the action as unethical.

-Length of time between decision and consequence: The shorter the time between action and consequence, the more likely marketers will recognize an unethical choice.

-Number of people affected: The greater the number of people affected by the action, the more likely an ethical decision will be made.

[SLIDE 4]

One key way to make clear the ethical position of a company is to create and publish a code of ethics, a guideline to help marketing managers and other employees make better decisions.

Formalizing the ethics into a code has several benefits:

-Identify corporate ethics: it makes clear what the organization views as acceptable business practices.

-Internal control: it clarifies the position to follow and is much easier and less expensive than external controls such as government regulations.

-Avoid confusion: a written code makes sure that all people have access to a consistent and public position on ethics.

-Facilitate discussion: creating the policy and continued training should facilitate conversations about how to ethically handle issues.

[SLIDE 5]

Ethics vary from culture to culture, from nation to nation. In the past, many companies would adapt to use whatever ethics are used in nations foreign to their home country. In modern times, that has been changing, with some nations expecting business practices to remain ethically consistent across international business.

One example is the Foreign Corrupt Practices Act (FCPA). American companies are forbidden by law to bribe potential customers in other nations. The companies have to follow US anti-bribery laws or employees can be charged with a crime.

While some people say that puts American companies at a competitive disadvantage overseas, the result has been that more countries have started creating anti-bribery laws in order to move to the same ethics as American companies.