Explanation should include a definition of business ethics and address the importance of ethics in

the social responsibilities of businesses as a balance between economic growth and the welfare of society
the environmental responsibilities of businesses as a balance between economic growth and the welfare of the natural environment
unintended uses of a product
financial accountability
the protection of customers
the protection of employees.

Explanation should also include business ethics as related to all marketing functions:

Marketing information management—gathering, storing, and analyzing information, including marketing research
Distribution or channel management—transporting products to customers
Product/service management—designing and developing products
Promotion—using a variety of communication methods to educate customers about a business and attract them to buy its product
Market planning—understanding the concepts and strategies used to develop and target to a select audience
Selling—exchanging a product for an agreed upon amount of money
Pricing—setting prices

Process/Skill Questions:

What constitutes ethical business behavior?
What are examples of real-world unethical business practices? What makes them unethical? What are the potential consequences of each?
How can an entrepreneur make sure that his/her employees act ethically?
Why is it important for a new venture to accurately reflect their financial position to investors and to customers?
How does misrepresentation of business finances affect the employees? The business? Investors? The community?
How should an entrepreneur respond when encountering an inferior or unsafe product?
What role do business ethics play in the decision to recall a product?
Should business ethics be enforced by market expectations or by government regulations? Why?
How can businesses promote ethical behavior by their employees?
How does culture influence ethics?
Why should a new business venture be socially responsible in the community? Environmentally responsible?

Teacher Resources: