Introduction to Moral Philosophy Agenda Ethics

Introduction to Moral Philosophy

Agenda • Ethics: The importantly right or wrong • Our beliefs: Where are they coming from? • Philosophy – Definition and Function – Time, Space and the World of Ideas • Streams in Moral Philosophy – Deontologies – Teleology – Moral relativism – Virtue Ethics – Capitalism as morality

The Judgment (Bosch)

Criteria of What is Right • We employ – unconsciously selected – circumstantially applied – multiple frameworks – from multiple sources

Sources I • Religion – practice – beliefs – given morality given Christ of St. John of the Cross (Dali)

• Philosophy – historical conditions Sources II – social frameworks – dissemination of ideas – argued morality argued Philosopher in Meditation (Rembrandt)

ία • The love of wisdom or • The wisdom of love (Levinas’ “primordial phenomenon of gentleness”) • The meaning of life • A hierarchy of values • From ‘magic’ to ‘trick’ • Philosopher: The flea that climbs the fur and looks the magician into the eye

, form and substance, Logic Aristotle (384 -322 BC) Empiricism and reason Descartes (1596 -1650) Tension between opposites, Revolution Re-evaluation of values Nietzsche. God is Dead (1844 -1900) Sartre Existence takes priority over what I am, consciousness of existence (1905 -1980) Engels (1820 -1895)

έ , έ & Judging the act Formalism / Deontology • Categorical Imperatives • Universal Laws of Nature – rule – act • Duty • Human Rights – – – Freedom of choice Freedom of consent Right to Privacy Freedom of Speech Due Process Judging the outcome Consequentialism / Teleology • Egoism • Enlightened egoism • Utilitarianism – rule – act Not Judging • Amoralism • Light of Day • Neutralisation

Tower of Babel (Bruegel)

Romanticism • Dynamic view of History – each period has its value – each nation has its soul • We have to identify with other people to people understand them HENCE • We have to identify with other cultures to cultures Heidelberg Castle from Philosopher's Way understand them

• The measure of all things is man, for those that are of being, for those that aren’t of not being • Self reference criterion • The only objectivity I understand is mine • Every behaviour is rational to its agent • Culture, the great excuse

Objective (? ) measures of goodness Virtue Is it taught or inherent? Justice Who sets the codes? • Fair treatment and due reward • Trust • Self-control and long– Distributive Justice – Procedural Justice termism – Interactional justice • Empathy: the core of the • Beware of assumptions civil society – Communism • Fairness – Socialism • Truthfulness – Capitalism – Alternative Capitalisms

Conclusion: Some more important assumptions • Parmenides VS Heraclitus – nothing/everything changes – our sensory perceptions are unreliable/reliable • Socrates: Virtue and knowledge • Aristotle, Descartes, Kant, . . . : Body and soul distinction • Free will – – Did the lion decide to become a predator? Stoics, Spinoza: An inner cause of everything - necessity Kant’s basis of morality: Immortal soul, god and free will Descartes:

Applied Ethics

What do we do to remain ethical? 1. Understand motivation & inhibition 1. Hunt & Vitell 1992 2. Zarkada 1998 2. Evaluate actions using a set of criteria 1. ethics / profit trade off matrix 2. marketing ethics continuum positioning 3. consumer sovereignty test 3. Change organisational culture 1. corporate citizenship 2. whistleblower protection

Hunt-Vitell Positive Theory of Marketing Ethics Cultural Environment • Religion • Legal system • Political system Perceived ethical problem Deontological norms Professional environment • Informal norms • Formal codes • Code enforcement Deontological evaluation Perceived alternatives Industry environment • Informal norms • Formal codes • Code enforcement Ethical judgements Organisational Environment • Informal norms • Formal codes • Code enforcement Personal characteristics • Religion • Value system • Belief system • Strength of moral character • CMD • Ethical sensitivity Action control Intentions Behaviour Probability of consequences Perceived consequences Desirability of consequences Teleological evaluation Actual consequences Importance of stakeholders

Zarkada theory of tendering ethics

Ethics-Profits trade-off Matrix high Tough choice? To have your cake and eat it Foolish Risky and wrong Ethics low Profits high

The Marketing Ethics Continuum Consumer interests favoured over producer interests Producer interests favoured over consumer interests Industry practice caveat emptor school: profit maximisation subject to legal constraints Ethics codes of • firms • industries • professional bodies caveat venditor school: client satisfaction Consumer sovereignty • capability • information • choice

Consumer Sovereignty Test Dimensions • Capability Adequacy tests Ø vulnerability factors age education income social status • Information • Choice Ø availability Ø sufficiency Ø quality Ø level of competition Ø switching costs

A theory of Corporate Citizenship ANTECEDENTS CONSEQUENCES Market Orientation • Customer Loyalty • Customer Orientation • Competitor Orientation • Interfunctional Coordination . 48*** Corporate Citizenship • Legal . 26* Humanistic • Ethical Orientation • Discretionary . 25* • Economic Competitive Orientation Organisational Commitment Business Performance

Moral Issues in Marketing Management

Frameworks for analysis • Value-oriented framework: on the basis of the values which they infringe • Stakeholder-oriented framework: on the basis of whom they affect • Power based analysis: identifying where the power in the exchange relationship lies and whether the power balance is relevant at all • Process-oriented framework, in terms of the categories used by marketing specialists

Process-oriented framework • Functions: – market selection – market research – channel relationships – marketing management • Plans and decisions – Product – Price – Promotion – Place

Grey areas I: Marketing Functions Market Segmentation & positioning unnecessary products or harmful products to disadvantaged or vulnerable consumers Channel relationships suppliers & subcontractors bid –shopping elderly contract variations children (schoolyard promos) minorities competitors mentally unstable market saturation developing markets with limited exposure to marketing tactics price wars “endebtedness” as a criterion of vulnerability cartel arrangements excluding consumers elderly gay +size 3 rd world countries Market research invasion of privacy stereotyping secret shoppers SUGGing (selling under the guise of research) FRUGGing (fund raising under the guise of research push polls (attacks disguised as phone polls) confidentiality data misrepresentation falsification negotiation ethics misrepresentation of position bluffing falsification deception manipulation of constituencies Management bribery facilitating payments (palm greasing) middlemen commissions political contributions cash disbursement to governments reciprocal purchasing collusive practices regulated markets - ENRON

Grey areas II: Marketing Mix Product safety normal usage conditions children & elderly reasonably expected use with other products instructions, warnings and product info me-too & copycat products copying is the highest form of flattery feeling vs being secure: IT security me-toos driving good products out of the market service delivery confidentiality & public interest conflicts denying or withholding services promoting services & competition conflicts protection against counterfeighting Professional Associations, certification and portability of qualifications product bans GR damaged caused • προϊόντα laser proof of non-responsibility (provider) proof of damage & relevance to service (consumer) environmental impact of product & packaging • pvc με φθάλιο • αναπτήρες φανταιζί • >1% υδροφθόριο • κράνη μοτοσυκλέτας που δεν είναι συμβατά με το R 22

Grey areas III: Marketing Mix Price – effect on competition barrier-creating and practices exploiting barriers price fixing and all forms of collusion (illegal) predatory or destroyer pricing (illegal under competition laws) dumping = international predatory pricing supra competitive pricing exploiting legal advantage following successful predatory pricing price discrimination monopoly and oligopoly markets services problems: customer segmentation, rate fencing and prevention of arbitrage artificially differentiated “premium” products (espresso!) special offers, seasonal discounts, clearance sales skimming pricing (riding down the demand curve) variable pricing = price discrimination with bargaining or bidding Price – effect on the consumer misleading pricing gouging = pejorative term for coercive monopoly (felony) Definition: Profiteering under conditions of being short-term, localized, and by a restriction to essentials such as food, clothing, shelter, medicine and equipment needed to preserve life, limb and property

Collusive tendering When a number of several firms that have been invited to tender come to an explicit agreement either not to tender , or to tender in such a manner as not to be competitive with one of the other tenderers, or they all inflate their estimates to accommodate fees, commissions and other undisclosed payments to parties unrelated to the production process.

Grey areas IV: Marketing Mix Promotion deceptive/misleading ads puffery and testimonials socially harmful ads sexual innuendo & harassment violence profanity stereotyping taste & controversy shock tactics attack ads astroturfing (fake spontaneous events) pushy sales techniques Place discriminatory distribution exercise of power in n/w franchise agreements Direct marketing spam review sites shills, plants, shill bidding on e-bay Campaign: Όλα είναι θέμα επιλογών - Η ΝΔ κάνει τις δικές της 8/1/09

Ethics as a marketing tactic Values as an asset to be sold and bought - The Body shop case 2000 stores in 54 countries sold for £ 652 m to L'Oreal Roddick, (£ 130 m) “the French executives persuaded me that they wanted to learn from the Body Shop's way of doing business” Piggy-backing on liberation marketing Gap khakis endorsed by Jack Kerouac Nike ‘just do it’ Greenwashing re-use towels cards in hotels green cars in Norway "linguistic detoxification“ sewage sludge = biosolids & used as fertilizer (contains dioxin, arsenic, cadmium, lead, and asbestos) low-level radioactive waste = "beyond regulatory concern", & buried in conventional landfills

Six sins of greenwashing (Terra. Choice 2007, 1. 018 randomly chosen common products surveyed ) Sin of the Hidden Trade-Off: e. g. “Energy-efficient” electronics that contain hazardous materials. 998 products and 57% of all environmental claims committed this Sin of No Proof: e. g. Shampoos claiming to be “certified organic, ” but with no verifiable certification. 454 products and 26% of environmental claims committed this Sin of Vagueness: e. g. Products claiming to be 100% natural when many naturally-occurring substances are hazardous, like arsenic and 196 products or 11% of environmental claims. Sin of Irrelevance: e. g. Products claiming to be CFC-free, even though CFCs were banned 20 years ago. 78 products and 4% of environmental claims. Sin of Fibbing: e. g. Products falsely claiming to be certified by an internationally recognized environmental standard like Eco. Logo, Energy Star or Green Seal. 10 products or less than 1% of environmental claims. Sin of Lesser of Two Evils: e. g. Organic cigarettes or “environmentally friendly” pesticides, This occurred in 17 products or 1% of environmental claims.

Negotiation ethics (1) Traditional competitive bargaining: • Misrepresent your real objectives to the other party. • Make an opening demand that is far greater than what you really hope to settle for. • Make an opening offer or demand so high (or low) that it seriously undermines the other party’s confidence in their ability to negotiate a satisfactory settlement. • Intentionally convey the impression that you are in absolutely no hurry to come to a negotiation agreement, thereby putting more time pressure on the other party to concede quickly.

Negotiation ethics (2) Misrepresentation: • Intentionally misrepresent factual information to the other party to support your negotiating position. • Intentionally misrepresent factual information to the other party, when you suspect that they would do it too. (New variable. ) • Intentionally misrepresent factual information to the other party, when you know that they have already done it.

Negotiation ethics (3) Bluffing: • Threaten to harm the other party, if they don’t give you what you want, even if you know that you will never follow through with that threat. • Promise that good things will happen to the other party, if they give you what you want, when you know that you can’t (or won’t) deliver these good things. • Lead the other party to believe that they can only get what they want by negotiating with you, when you know that they could go elsewhere and get what they want cheaper or faster.

Negotiation ethics (4) Misrepresentation to opponent’s network: • Threaten to make the other party’s negotiators look weak or foolish in front of their boss or others to whom they are accountable.