Marketing 2016/2017
Tutorial
This tutorial is based on topic M: marketing ethics
Task one
Identify which of the following statements are true:
i. Ethics guide the principles and actions of individuals and groups
ii. Marketing ethics are the same as business ethics
iii. Marketing ethics are one component of business ethics
iv. Stakeholder theory contends that firms should be primarily concerned with satisfying their
shareholders
a) I is true
b) II and IV are true
c) I and III are true
d) III and IV are true
Task two
McDonald's GMO dilemma: why fries are causing such a fuss
Plenty of GMO food probably already makes it on to your plate, and the scientific consensus is that it's safe
to eat. So why are activists so opposed to genetically modified potatoes?
"Do you want fries with that?" Not if they're made from genetically engineered potatoes, say activists who
oppose GMOs.
The advocacy group Food & Water Watch is asking McDonald's, the world's biggest buyer of potatoes, not
to source a genetically engineered spud that was developed by its biggest supplier, the J.R. Simplot Co.
"This potato is anything but healthy," writes Wenonah Hauter, the executive director of Food and Water
Watch, in a letter (PDF) to Don Thompson, McDonald's CEO. Altering the plant's genes, she writes, could
unintentionally affect other characteristics of the potato, "with potentially unforeseen consequences for the
health of customers". The letter has been signed by 102,000 people.
Other NGOs, including Friends of the Earth and the Center for Food Safety, also oppose genetically
engineered food. The Consumers Union wants that food labeled. All of them argue that US government
regulation of genetically modified crops is inadequate. This is a problem for McDonald's – and for anyone
who believes that genetic engineering has the potential to increase crop yields, help solve environmental
problems or deliver healthier foods.
a) The previous article is an example of which type of ethical issue in marketing?
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Marketing 2016/2017
b) Identify the four stakeholder groups referred to in the article.
c) How might negative publicity regarding GM foods influence McDonald’s?
d) Suggest steps that McDonalds could take in order to deal with this issue.
Task three
Identify the type of ethical issue in the following situations:
Situation Ethical issue
A It is found that a supplier is using workers below the age of
16 in their production process
B A second-hand car dealer is misrepresenting the condition of
the cars they sell
C A cigarette company has a billboard close to the gate of a
middle school
D Three firms in a small location are colluding in order to drive
up the price they can charge for essential foodstuffs
E It is found that only 12% of those aged 65+ have
smartphones and just 34% have internet access
Task four
a) Explain what is meant by the term ‘philanthropic responsibilities’.
b) Give three examples of ‘sustainable marketing’.
c) Identify at least one cost and one benefit of sustainable marketing.
d) Most companies would like to think of themselves as being responsible corporate citizens,
how might we be able to judge whether this were true?
e) Why is sometimes said that the public may be cynical towards claims of companies being
“green”?
Task five
With the use of examples, explain how ‘societal marketing’ and ‘fair-trade marketing’ may benefit a
firm and identify possible problems with their use. (30 marks)