Marketing Essentials

Chapter 6: Legal and Ethical Issues

Chapter Summaries

Section 6.1

• The government plays a critical role in enforcing the free enterprise system and providing for the health, safety, and welfare of its citizens.
• The United States government has passed laws creating agencies to protect citizens. The Food and Drug Administration (FDA) and the Consumer Product Safety Commission (CPSC) are two federal agencies that protect consumers. The Federal Trade Commission (FTC) also protects consumers and enforces the principles of the free enterprise system. The Equal Employment Opportunity Commission (EEOC) and the Occupational Safety and Health Administration (OSHA) protect the rights of workers. The Securities and Exchange Commission (SEC) protects investors. The Environmental Protection Agency (EPA) protects the environment.
• The government affects business through actions such as making purchases, adjusting interest rates to influence the economy, and supporting small businesses.

Section 6.2

• Socially responsible businesses have policies and programs that address issues in the workplace, marketplace, community, and environment.
• Business ethics are guidelines for good behavior. Ethical businesses are community-conscious.
• Applying ethics in marketing ranges from pricing and distribution to information management and sales tactics. To make ethical choices, get the facts, identify the parties concerned, think of your alternatives, and evaluate your alternatives.