TEACHING IN THE 21^^ CENTURY

Terry W. Loe and Linda Ferrell

Concerns are constantiy raised about marketing's negative effects on cultural values. Society demands that businesses and marketers, in particular, be more ethically responsible. What have marketing educators done to contribute to improving the ethical character of future marketers and prepare them to make better ethical decisions ? This pilot study reviews how marketing educators have approached the teaching of primarily from a pedagogical perspective and explores the views of prominent marketing ethics educators concerning how we should approach the teaching of marketing ethics in the 2V' century, and suggestions are offered based upon the findings of this study.

Introduction perceive ethical problems. In addition, situational fac- tors such as gender, size of firm, and education can Marketing's role as boundary spanner between busi- have a significant impact on ethical decision making by ness and customer places the marketing discipline and marketing managers. For example, the strongest situ- marketing educators in an important position in regard ational effect is that individuals in larger mechanistic to ethical responsibilities. Wilkie and Moore's (1999) organizations reflect much stronger ethical predisposi- review of marketing's contributions to society and the tions, both formalistic and utilitarian (Schminke 2001). criticisms of marketing reveals concerns about Marketing educators arguably play a critical role in marketing's negative effects on cultural values and the shaping the next generation of marketers' attitudes not harm that can occur by deceptive marketing practices. only toward marketing practice, but also in shaping the On the other hand, research by Loe and FerreU (1997) ethical environment of business. Shannon and Berl provides evidence that an ethical climate in an organi- (1997) report in their study that undergraduate market- zation can contribute toward market orientation, which ing students feel the discussion of ethics and of ethical has positive effects on customers and their concerns. issues is "worthwhile and important." The students In a retrospective and prospective commentary about also indicate that a course in business or marketing ethics and over the last 15 years, ethics should be required and further that they would Chonko and Hunt (2000) conclude that while most mar- take such a course if offered, even if it were not re- keting managers perceive many opportunities in their quired. In the same study, students indicate that mar- firms and industries to engage in unethical behavior, most keting educators are doing between a weak and managers refrain from taking advantage of this opportu- adequate job of covering ethics in marketing classes. nity. In addition, most research indicates that marketing Many questions have been raised concerning the mar- managers do not believe that unethical behaviors in gen- keting educator's role in communicating ethical knowl- eral lead to success. Research reveals that ethical prob- edge in marketing courses. Do professors of marketing lems that are addressed by marketing managers seem to need to teach marketing ethics? Do ethics have a place reduce the level of misconduct (Schminke 2001). So, while in the marketing curriculum? If so, "what" about ethics there is a definite concern by society about the ethics of should we be teaching? How should marketing ethics marketers, research also suggests that higher levels of be taught? Can ethics be taught? Most importantly, ethical behavior have positive outcomes for marketers. what is our goal in teaching marketing ethics? These or Top management's visible ethical concerns are the questions like these have been asked over the past four single best predictor of the extent to which managers decades and attempts have been made to address them. However, a complete review of the teaching of ethics is outside the scope of this study. The various ap- TERRY W. LOE (Ph.D., University of Memphis) is an Assistant Professor of proaches to teaching ethics are difficult to assess and Marketing in the Department of Marketirig at the Hankamer School of Business at Baylor University. (Email: [email protected]) would require a worthy endeavor that is beyond the LINDA FERRELL (Ph.D., University of Memphis) is an Assistant scope of this exploratory investigation. A complete study Professor of Marketing in the Kenneth W. Monfort College of Business of the teaching of "" is also laudable, but at the University of Northern Colorado. (Email: [email protected]) again a monumental task that falls beyond the param- We would like to thank O.C. Ferrell of Colorado State University, Larry Chonko of Baylor University and Jeff Tanner of Baylor Univer- sity for their thoughtful comments and reviews of this manuscript. Marketing Education Review, Volume 11, Number 2 (Summer 2001). Marketing Education Review eters of our study. Space is not available to address theories are "rules" based. These ethical philosophies these larger issues or even to consider all of the ques- are important to understand, as they are the foundation tions that need to be asked. Instead, we wish to take a upon which ethics has been taught in the classroom. brief look at how marketing academics have attempted Early research in marketing ethics by Walton (1961), to answer some of the questions put forth above. In Alderson (1964), Patterson (1966), and Farmer (1967) as doing this we will briefly outline the history of market- well as others took a more normative or prescriptive ing ethics and the teaching of marketing ethics in higher approach to ethics. The movement that education, and review the popular pedagogy used. In dominated the late 1960s and early 1970s promulgated addition we wish to report on the views of some market- this approach and is apparent in the writings of Aaker ing ethics educators concerning how we might approach and Day (1978), Kelley (1973) and Murray (1973). Some the teaching of marketing ethics in the 21^*' Century. earlier research also considered marketing ethics from Though we will specifically focus our discussion on a positive perspective, beginning with Bartels (1967) teaching marketing ethics, in part, we will also include and Westing (1967). methods that can be used and that have been used by An emphasis on a descriptive rather than a norma- other disciplines. Our reasons for including other disci- tive approach eventually became more common with plines' approaches are simple and include: (1) the meth- the emergence of descriptive ethical decision-making ods of learning concepts and applications of those models in the 1980s. Based upon five major ethical deci- concepts are similar, regardless of subject, and (2) few sion making models, organizations have a general idea studies have specifically addressed the teaching of "mar- of how an individual or a work group makes ethical keting ethics." decisions within an organization (Jones 1991; Ferrell and Gresham 1985; Ferrell, Gresham, and Fraedrich,1989; Hunt and Vitell 1986; Trevino 1986). A Brief Review of Marketing Ethics Ethical-issue intensity, individual factors (including Though a complete review of ethics will not be un- cognitive moral development), as well as the corporate dertaken here, a very brief review of moral philosophy culture, affect ethical or unethical behavior according as it relates to business and marketing ethics is useful to to these models (FerreU, Fraederick, and Ferrell 2000). understand the philosophical approaches to this sub- Within the context of an organization, significant oth- ject. Modern moral philosophy probably had its begin- ers, especially the work group, have been found to have nings in G. E. Moore's Principia Ethica in 1903 (Maclntyre the most influence on how managers make decisions. 1998), though Adam Smith addresses the idea of fair In other words, most individuals do not feel they have business competition at an earlier date in his book. The the freedom to decide ethical issues independent of Theory of Moral Sentiments (1759). Formal ethical con- organizational pressures. This knowledge places sig- sideration found its way into business in the 1920s with nificant pressure on organizations to develop codes of the first code of ethics in the area of marketing being ethics, ethics training, and an ethical corporate culture attributed to the industry, which developed that encourages appropriate behavior. Most organiza- a code in 1928. Additionally, in academia some early tional ethics programs focus on developing ethics codes advertising and marketing texts began addressing ethi- and pohcies and developing communication systems cal issues (Curtis 1931). A few classic business ethics and control mechanisms to encourage ethical behavior. works were published as early as the 1930s, but as a A study by Babin, Boles, and Robin (2000) reviewed distinct academic discipline, business ethics conceiv- research that attempts to explain ethical and unethical ably has its roots in the 1950s (Paul 1987). However, decision making among marketing managers and con- one of the first and most prominent, comprehensive ducted research to address directly how ethical/un- empirical works in business ethics was by Baumhart ethical actions affect the work environment. They (1961), who identified eight major ethical problems that concluded that a marketing employee's ethical work business people wanted to eliminate. As pointed out by climate was a theoretically useful construct and ex- Chonko and Hunt (2000), five of the eight ethical abuses plained significant variation in other important work fell in the domain of marketers' activities. outcomes related to this construct. Specifically, they Much of the work in business and marketing ethics found that as a work climate is perceived as more ethi- since Baumhart has been based upon philosophical ethi- cal, marketing employees report lower role conflict, cal theories and generally has been divided into either lower role ambiguity, higher job satisfaction, and higher teleological or deontological classifications. Teleological organizational commitment. Babin et al. conclude that theories consider the outcome of an action as the criterion important evidence is available supporting the general for determining "right" or "wrong," while deontological proposifion that ethics is good business. Ethical 'Summer 2001

decision making models provided frameworks that ethics, we have categorized our discussion into the overall guided much descriptive research and offer pedagogi- strategic considerations of implementation and the peda- cal tools to introduce ethics into university business gogical tools that have been used. school classrooms. A number of ethics texts were pub- lished and began utilizing these models (for example, Chonko Strategies in Implementing 1995; Ferrell and Fraedrich 1990; Laczniakand Murphy 1993) and are more focused on marketing ethics constructs and Marketing Ethics Education issues that students may face in their career. The predominant question concerning the implemen- In 1976, the American Assembly of Collegiate Schools tafion of ethics in marketing educafion is whether eth- of Business (AACSB) began requiring coverage of ethical ics should be taught as a stand-alone course or integrated issues in the business curriculum. As a result, marketing throughout the curriculum. Some universifies choose texts have included considerable coverage in both sepa- to teach a separate, though not required, business eth- rate chapters and within the context of many of the chap- ics course. The few marketing departments that teach a ters of the texts (Pamental 1988). Marketing education marketing ethics course usually have a faculty member journals such as Marketing Education Review and Journal of who has a specific interest in marketing ethics research Marketing Education have increased the number of articles or has a strong desire to teach in this area. Both ap- published concerning ethics instruction (Stevenson and proaches have been used effectively (Rozensher and Bodkin 1996). This emphasis on ethics education begged Fergenson 1999). An early study by Marks and Scott the question of how marketing instructors have responded. (1968) revealed that 35 percent of 159 AACSB schools Marketing professors now had tools and frameworks to uti- that responded had a separate course in markefing eth- lize in implementing ethics instruction. ics or business social responsibility in the undergradu- A recent review of faculty perspectives on marketing ate program. Later, Murphy and Laczniak (1980) found ethics by Rozensher and Fergenson (1999) provides a only two percent of colleges surveyed offered a specific good summary of how the subject has been handled course in marketing ethics, though ninety-eight per- over the last several years. Unfortimately, they found cent indicated the topic is also covered in other courses. that the majority of marketing professors spend 2 hours More recently. Murphy (1993) identified four universi- or less per course on the subject of ethics and that the fies that offered separate marketing ethics courses: Bos- primary areas they cover are those of ton College (undergraduate), Notre Dame (MBA and relations with customers, suppliers, and competitors. Elecfive), Miami University in Ohio (undergraduate), Rozensher and Fergenson (1999) also indicated that the is- and Georgetown University (undergraduate). The cur- sues deemed most important by professors (environmental rent research revealed that of those identified by issues and "Wall Street" ethics, i.e., insider trading, lever- Murphy (1993), only Boston College is still offering a aged buyouts) were seldom, if ever, covered. marketing ethics course. Though there have been oth- Educators will likely not agree on all of the issues ers that have offered separate courses (the University that should be covered, but of importance is the use of of New Mexico, the University of Memphis and the effective pedagogical approaches to teaching ethics and University of Northern Colorado, for example), the stra- ethical decision-making. The review by Rozensher and tegic approach most recently has primarily been through Fergenson (1999) suggests that ethics should be inte- integration in individual markefing courses as required grated throughout the students' curriculum rather than by the AACSB and which is supported by research as offered as stand alone courses, but does not outline the the preferred and most effecfive method (Feldman and pedagogy used. In the next section we review from the Thompson 1990). Pizzolatto and Bevill's (1996) find- literature some of the means by which marketing ethics ings suggest that ethics education is fairly well inte- has been presented in the classroom. grated throughout the business curricula and that marketing as a discipline is one of the better repre- Approaches to Teaching Marketing Ethics sented areas in which ethics is covered. Integrafion has been facilitated by markefing text- Many suggestions for teaching business ethics have been books that have included separate chapters on market- put forth (for example, Brady 1999; Dunfee and Robertson ing ethics, ethics case studies, and ethical scenarios or 1988; Hemdon 1996; Anderson 1997; Baxter and Rarick 1997; "boxes" in most of the chapters of the texts. Hoaas and Cragg 1997; Raisner 1997; Wolfe and Fritzsche 1998). Though Wilcox (1995) analyzed the degree to which funcfional Wolfe and Fritzsche (1998) suggest the use of marketing areas of business and economics compare in including games, specific suggestions for how to teach marketing eth- ethics in teaching materials. In their analysis, they re- ics are scarce. In considering how marketing educators teach viewed texts from several disciplines, including mar- Marketing Education Review kefing. Their analysis of eleven marketing texts consid- important as we advance into the 21*' century. ered the inclusion of ethics as separate chapters, the use Fukuyama (1995) points out the growing complexity of of cases, and the inclusion of ethics throu^out the text. markets both domesfic and global and that, in fact, eco- Seven of the eleven texts included a separate chapter on nomics is grounded in social life and cannot be under- ethics. Only three included cases specific to ethics and stood apart from social organizafion and values. This nine integrated ethics discussion and scenarios through- intertwining of societal values and business activity out the text. Since Hoaas and Wilcox's (1995) research makes examining how we consider marketing's role in was published, most of the markefing texts have up- contributing to societal harmony necessary. Our contri- dated their material and have included ethics through- bufions largely depend upon how effecfively we ex- out their texts as well as separate chapters on marketing pose future marketers to ethics. The pedagogical tools ethics and social responsibility. used help determine our effecfiveness and the following In general, marketing professors take one of two al- is a brief review of those tools in marketing educafion. ternafive approaches to teaching marketing ethics. The first approach assumes that if individuals can be taught Pedagogy in Marketing to have sound personal ethics this wiU be sufficient to handle ethical issues that arise in the markefing work- Marketing professors have approached the teaching place. In these cases, abstract related to honesty, of markefing ethics in a similar manner as professors in fairness, and openness are communicated through cases, other disciplines. The primary goal from these teaching lectures, and vignettes. This approach assumes that a techniques has been to expose students to ethical issues high level of personal and moral development wiU pre- relafive to markefing decisions and the marketing pro- vent an individual from making organizational, ethical cess in order to sensitize them to potenfial ethical situa- mistakes and violating the law. The main focus of this tions. Again, pedagogy used by other disciplines wiU approach is to help those people who have unaccept- be addressed, but we will first consider those in the able personal moral development. literature that are specifically focused on marketing and An altemafive approach to teaching marketing ethics its related sub-disciplines. assumes that personal ethics is a minimum requirement The literature has identified several tools that have for good marketing ethics but recognizes that a high level been used. These include the use of cases, videos, and of personal moral development may not be sufficient to ethics texts and readings books as well as the use of prevent an individual from making ethical mistakes or popular and business press articles (Dunfee and violating the law in an organizafional context, where even Robertson 1988; Murphy 1993). These approaches re- experienced lawyers debate the exact meaning of the law. quire analysis and discussion among the students and Because organizafions are comprised of diverse individu- professors. Texts and readings books provide content als whose personal values must be respected, a collecfive that includes ethical issues as well as differing moral agreement on personal integrity is not likely. However, philosophies used by individuals when making ethical developing an agreement on workplace integrity and a decisions. Cases, videos and articles offer specific illus- set of core values that all employees can adopt which is as trations of ethical situations that marketers face and an vital as other managerial decisions is necessary. Many opportunity to critically evaluate the decisions made people who have limited experience with marketing is- by the parfies and consider alternafive decisions and sues find themselves making decisions about product the consequences of those decisions. quality, adverfising, , and hiring pracfices, as well Several creafive techniques presented include the use as other marketing issues. While values learned at home of "storytelling" or the narrafive approach (Bush, Harris and school may provide a general background, these and Bush 1997), the use of debate (Winsor 1995), and fic- values do not provide specific guidelines for complex fional literature (Shannon 1995). Loe and Weeks (2000) in a decisions in the real world of marketing decision making. professional selling class included the use of ethical scenarios Even beginning employees must rely on peers to make and role-plays that interjected ethical situations, which re- decisions that are dose calls and managers need years of quired the students to make ethical decisions during live experience to understand what is acceptable in a com- interacfion and then discuss the decision with the class. pany or industry. Therefore, this approach to teaching Gowen et al. (1996) offer a typical approach to inte- marketing ethics relies on both understanding the need grating ethics in marketing classes through a five-class for good personal ethics as well as understanding the ethics module. The module first introduces ethical organizafional complexifies of ethical decision making. theory (managerial egoism, , duty based The strategic approach used by marketers in integrat- theories, and ethics) and four models of market- ing ethics into the markefing curriculum is ever more ing ethics suggested by Kohlberg (1969) (moral devel- • Summer 2001 opment model, organizational moral development Matters, which has since evolved into its successor. The Eth- model, confingency model, and reasoned action model) ics Challenge. These games promote the understanding of through lecture. The second secfion is lecture which specific corporate policies through scenarios that indude mul- focuses on specific markefing issues. The lecture also fiple-choice answers associated with point totals that reward introduces several codes of ethics, such as the Ameri- answers more closely related to adherence to coiporate policy. can Marketing Associafion Code of Ethics. The third LeClair et al. (1999) also suggest the utilizafion of section introduces case discussion and the fourth brings behavioral simulafions as a teaching tool. This method a guest speaker who discusses differing dimensions of provides some organizafional context and a degree of a specific industry. The final secfion utilizes role-play accountability that is often missing from other methods and ethics videos for discussion and analysis. of teaching ethics. Behavioral simulafions, similar to Wotruba (1993) provides one of the only comprehen- the use of role-playing, have the advantage of provid- sive frameworks for teaching marketing ethics and ing an experienfial learning component. These game- adapts Rest's (1986) four-component model for ethical like experiences introduce no right or wrong answers for decision-making. He first suggests that marketing stu- the students but instead create an ethical dilemma and dents be "sensitized" to ethical dimensions of market- introduce roles in the organizafion which would give a ing decisions through the use of personal scenarios that stake in the ethics decision and which assist in making involve the students in roles of specific marketing posi- short term, mid-range and long-term recommendafions. tions as well as the use of fictional books, such as Death Others in education have attempted to explore more of a Salesman, Elmer Cantry, and The Music Man. inventive means of advancing business ethics. In one Wotruba (1993) next suggests that the students be innovafive case, inmates in a Federal Correcfional Insti- required to determine the morally "best" altemafive, tute helped teach an MBA class on ethics at the Univer- which requires the introduction of ethical theory sity of Maryland (Cox 2001). Warren (1995) developed (deontological and teleological) or the concept of "cog- a business ethics course around three components: a nifive moral development" (Kohlberg 1969). Third, he section describing some of the fundamental ethical con- recommends that priority be given to ethical values cepts (i.e., harm/avoidance, equity, obligafion, jusfice, and then "intend to do what is right." Wotruba does fideUty, dignity, etc.), suggesting that these be used to not give guidance as to which values should be given analyze cases; a section describing ethical theories in- highest priority, as that would require that the students cluding a comment on their applicafion to business; be told what is "right versus wrong." The last step is to and a section of cases with philosophical analysis. He convert intentions into decisions and behavior, which proposes an emphasis on virtue theory (development suggests an analysis of the consequences of the chosen of excellences of human character or qualifies and par- behavior. In each of these steps, Wotruba points to sev- ficular virtues including honesty, integrity, etc.) in ad- eral readings available to give guidance to instructors dition to the deontological and teleological or utilitarian concerning the theory behind his recommendations. and contractarianism theories. Warren further suggests the use of the Socratic method of teaching, which pre- Pedagogy from Other Disciplines cludes the use of much straight lecture. The teaching of marketing or business ethics courses Instructional tools used outside of marketing educa- has been approached as being really no different from fion, as one would imagine, are similar to those used in teaching of other courses, at least in so far as methods marketing. A broad study of business ethics in the class- suggested. The approaches used follow the goal of other room by Pizzolatto and Bevill (1996) revealed that stu- types of educafional instrucdon, i.e., the transfer of knowl- dents feel the most effective means of covering the issue edge or training to develop students' skills to relate to of ethics include in order: class discussion, case analy- "real-life" decisions. LeClair et al. (1999) suggest that the sis, business scenarios, faculty lectures, assigned read- "university ethics educafion should prepare students to ing, role-playing, and term papers. face ethical challenges on the job" (p. 284). Table 1 pro- A new journal. Teaching Business Ethics, provides numer- vides an overview of a number of the pedagogical tools ous suggesfions. A review by LeClair et al. (1999) of those used and their related goals of teaching ethics. techniques revealed the use of lecture, case analysis, vignettes and scenarios as well as guest lectures and videos. Addition- Teaching Marketing Ethics: ally, LeClair et al. (1999) identify the use of ethics games developed by business as a means to improve perceptions of Exploratory Findings the importance of ethics and ethical decision-making. Professors of marketing ethics have approached the Lockheed Martin developed one such game called Gray teaching of ethics in marketing by various means. A Marketing Education Review group of professors were selected for our sample based research issues, competitive intelligence, online , glo- upon their known interest in marketing ethics through bal marketing issues, environmental issues, e-commerce eth- published research in acadenuc journals or presentafions ics, marketing's role in enhancing reputafion, enforcement and papers offered at academic marketing conferences. policies, and fair treatment of customers. Looking at the marketing course where ethics was Survey Results integrated, the following was noted. Principles courses were menfioned eleven times, followed by Personal E-mail surveys were sent to 34 marketing ethics re- Selling and Management (seven). Marketing Re- searchers, as idenfified by the authors. The list of sur- search (six), Adverfising and Promofion (six), and Strat- vey recipients was determined based on reputation, egy (six). Consumer Behavior was menfioned four times previous contribufions to marketing ethics research, and and Business Markefing and E-Commerce were men- involvement in marketing ethics issues in conference. tioned three times each. Internafional and the Market- The goal was to develop a sample of the most knowl- ing Environment courses were menfioned one time each. edgeable respondents on the topic of marketing ethics When asked which courses received the greatest empha- education. Although these resiilts are not representa- sis on ethics the following was noted: Strategy (four). tive of what all is offered, they may provide the most (three), Adverfising and Promofion opfimistic view of interest and involvement in market- (three). (two) and Principles (two). ing ethics in universities and colleges. When asked the approach to teaching the course, ev- Of the 34 surveys delivered, 12 completed surveys ery respondent used a lecture/case format. In addifion, were returned. Fifty percent of those were returned 10 used videos to support the lecture and cases, while six within five days of their delivery. Eight were e-mailed used guest lecturers and 6 used debate issues. Approaches back and four were mailed. The purpose of the survey used less often included: games (five), paper and pendl was to determine the scope of marketing ethics course simulafions-behavioral (four), computerized simulafions offerings, integration within the marketing curriculum, (one) and arficles (one). Of the approaches used in class, approaches to teaching the course and perceptions of the majority felt that cases (seven) were the most effec- changes over the past two decades (see Appendix A). five method, followed by paper and pencil simulafions While most marketing ethics scholars suggest that (three) and debate issues (three). Games and guest lec- marketing ethics is being taken more seriously, we, sur- turers each received one menfion. prisingly, found only three of the twelve respondents When asked what teaching philosophy each professor were at Universifies that offer a Marketing Ethics course. used, whether normafive, posifive or other, ten noted Seven offered no Business or Marketing Ethics course both normafive and posifive and two menfioned only and only two offered a Business Ethics course. Of those normafive. When asked how to improve the students' offering separate ethics courses, one school offered both a experience and appreciafion of marketing ethics issues Business and Marketing Ethics course. Concerning the the most dted comment was helping students under- department having the greatest influence on the ethics stand that "good ethics is good business" (four), followed course(s), five noted management, four considered mar- by greater integrafion of ethics in marketing texts and keting, two noted business law and one indicated ac- courses, teaching decision making and consequences counting. Although eight respondents indicated no ethics (two), placing student in realisfic situafion to help under- course, every survey recognized a parficular department stand the pracfical of marketing ethics (two), offer- influencing the management of ethics or an ethics course. ing a core business ethics course (one), using a quesfion and When asked, in an open-ended format, the ethics top- answer format (one), and have students find an arfide in the ics of greatest relevance to the marketing discipline, the business press that related to lecture topics (one). responses were quite varied. The most frequently cited When asked how the course has changed over the issue was developing an effecfive ethical culture (forty- past twenty years, greater integration in markefing two percent), followed by pricing and anfitrust issues courses and texts was noted (seven) and others noted (twenty-five percent), factors influencing ethical decision the influence of AACSB (two), and one was concerned making (twenty-five percent), risk areas in strategy de- that there is more discussion of the area, but poor inte- velopment (seventeen percent), social responsibility (sev- grafion throughout the marketing curriculum. enteen jjercent), ethics and marketingperformance (seventeen percent), personal moral philosophies (seventeen percent), Discussion of Survey Findings channel power (seventeen percent), product safety (seven- teen percent), and advertising and selling (eight percent). Perhaps the finding that creates the most concern is Other issues that were menfioned once were: marketing that only three of the responding schools offer a mar- 'Summer 2001

Table 1 Pedagogy for Teaching Marketing Ethics in the 21 «* Century

Goat Pedagogy

Normative/Prescriptive

Create sense of responsibility Seminar/Socratic Warren 1995 to community Readings/Case analysis Warren 1995 Films/video Hosmer and Steneck 1989 Teacher modeling O'Connell 1998, Mintz 1996 Experientialism Anderson 1997, Collins 1996 Kohls 1996, Kolenko et al. 1996 Case study Mintz 1996 Collaborative learning groups Mintz 1996 Role-play Mintz 1996 Video presentation Mintz 1996

Instill, teach virtue; pursuit of truth Stories/parables Warren 1995 and other virtues; Virtuous community; Role-play McDonald and Donleavy 1995 change in students' long range ethics Teacher modeling Mintz 1996 related constructs Biographies McDonald and Donleavy 1995 Experientialism Anderson 1997, Collins 1996 Kohls 1996, Kolenko et al. 1996 Case study Mintz 1996 Collaborative learning groups Mintz 1996 Role-play Mintz 1996 Video presentation Mintz 1996

Reinforce Existing Value System/ Ethics games Dyrud 1998 Self Discovery Debate Warren 1995 Experientialism Anderson 1997, Collins 1996, Kohls 1996, Kolenko et al. 1996, Johnston 1998

Reinforce/encourage "right" behavior; Readings & Class discussion Warren 1995 good ethics leads to good Experientialism Anderson 1997, Collins 1996, performance, learn right Kohls 1996 from wrong; enhance integrity Teacher modeling Mintz 1996 Case study Mintz 1996 Collaborative learning groups Mintz 1996 Role-play Mintz 1996 Video presentation Mintz 1996

Teach or improve moral Reasoning skills Role-Play Zych1999 Case Analysis Zych 1999, Warren 1995 Experientialism/ Anderson 1997, honorable community Bishop 1992, Kohls 1996, Trevino and McCabe 1994

(Continued) Marketing Education Review

Table 1 (Continued) Pedagogy for Teaching iVIariceting Ethics in the 21*'Century

Goal Pedagogy

Positive/Descriptive

Ethical Sensitivity/ Moral Imagination Ethics games Dyrud 1998 Case study Warren 1995 Harris and Guffey 1991 Lecture/Discussion Ebejer and Morden 1988 Role-Play Brown 1994, Smith and VanDoren 1989. Experiential/ Anderson 1997, honorable community Gaidis and Andrews 1990, Johnston 1998, Kohls 1996, LeClair and Ferrell 2000, Trevino and McCabe 1994 Fictional Stories Caywood and Laczniak 1986

Knowledge of ethical Lecture Kavathatzopoulos 1994, theory/frameworks/decision Warren 1995 processes/ teach rather than Case study Wotruba 1992 preach Scenarios Kavathatzopoulos 1994 Experiential LeClair and Ferrell 2000

Develop ethical critical thinking and Problem solving skills Ethics games Dyrud 1998, LeClair and Ferrell 2000 Role-Play Zych 1999, McDonald and Donleavy 1995, Brown 1994 Case Analysis Bishop 1992, Warren1995, Zych 1999 Popular Press McDonald and Donleavy 1995 Experientialism/ Anderson 1997 honorable community Trevino and McCabe 1994, LeClair and Ferrell 2000

Encourage tolerance and respect of Ethics games Dyrud 1998 other viewpoints; help students Debate Warren 1995 deal with ambiguity

Help students understand Role-Play Brown 1994, Zych 1999 "real world" ethical situations Cases Zych 1999 and consequences of ethical Experientialism Anderson 1997 decisions Lecture & Readings Kavathatzopoulos 1994, Loeb 1994 Ethics Games Dyrud 1998 • Summer 2001 keting ethics course. Given that these results are at There appears to be generalized support for using schools where there are Marketing Ethics experts and both a positive and normative perspective in teaching researchers, of note is that the course is not commonly ethics in marketing courses. However, of interest is that available. However, each suggested that marketing eth- many felt the best way to assist students in understand- ics was integrated into the curriculum in some manner. ing the importance of ethics in marketing was to take a We found it interesting that even at schools where there positive perspective and help them understand that was no business ethics course offered there is a particu- ethics is just good business. There was also some con- lar department that offers the greatest influence on eth- cern that there is not enough integration of marketing ics courses within the college of business. Historically, ethics material in marketing curriciolum and texts. Many we would think of management as having the greatest feel that coverage of the area will emerge more readily if influence given the pervasive offering of Business and you have an interest in the topic, and that ethics wiU be Society courses within college curriculum. Marketing cut if time is short and there is little faculty interest in the followed closely given the influence of each respon- topic. In conjunction with this question, when asked the dent and their reputation and research emphasis. changes over the past two decades, the respondents indi- When looking at the responses to the most important cated that greater integration throughout the marketing topics in teaching ethics in the marketing discipline, we discipline and the support of ethics education by the were surprised. An open-ended format was used in or- AACSB has definitely played a role in this evolution. der to not bias the results. We would have expected mostly issues related to product, pricing, /advertis- ing and related ethical issues. What we re- Conclusions ceived was a greater sensitivity to developing an ethical How, then, should we approach the teaching of mar- and allowing students to have an keting ethics in the coming century? This review sug- understanding of the factors that influence ethical dedsion- gests that innovative teaching materials have been making in the organization. Such responses revealed a greater developed and that ethics in marketing is being consid- concern for imparting more of a process and organizational ered in the classroom. However, Rozensher and orientation, rather than an issue orientation. Fergenson's (1999) finding that marketing educators When asked about the courses receiving the greatest are giving attention to ethics two hours or less per course emphasis in the ethics area. Strategy was acknowledged and that most are not introducing the more important the most followed by the areas that represent the most issues as well as our results that reveal only twenty-five visible risk areas of the marketing organization, adver- percent of ethics professors' schools offer marketing tising and promotion and personal selling. The profes- ethics courses is disturbing. This lack of coverage of sors surveyed noted several times that although everyone marketing ethics may indicate that, like many busi- integrates ethics in principles of marketing courses, the nesses, many marketing educators are only providing a real challenge is integration in upper level, integrative "window dressing" treatment to ethics. There are sev- courses, such as the capstone, strategy course. eral reasons for why this may be occurring. The teaching approach deemed the most effective and Many marketing professors do not feel adequately pedagogically acceptable was the case method. This is trained to teach ethics. Ethics is a complicated subject and perhaps due to the ability to discuss differing ap- faculty generally express a reluctance to explore moral proaches to the ethical situation and that cases provide and philosophical issues in their courses (Murphy 1993). some insight into "real life" ethical situations. Many Time is another concern of marketing faculty. There seems suggested that the variety of teaching approaches makes to be little time to cover aU of the topics a marketing communicating ethics issues and concerns the most ef- course requires and attempting to add an additional mod- fective means rather than exclusively one specific ule is difficult. In addition, professors are being asked to method. Some of the more non-traditional methods used cover issues related to technology, global and e-market- in conjunction with cases and lectures were debate is- ing in most courses. Other criticisms or concerns are that sues and paper and pendl behavioral simulations. These ethics is a "soft" subject that is highly subjective and has techniques are designed to allow students to partici- little effect on students in their careers. Some professors pate in the ethical decision-making process and experi- do not feel comfortable talking about ethics because they ence the ambiguity, stress, difficulty in defending and feel they must get up on a "soap box" and preach. The making the best decisions for varying stakeholders of true challenge, however, has been to actually integrate the organization. Experiential ethics exercises appear ethical issues in each component of marketing. True inte- to be gaining popularity and exposure throughout the gration would require inserting and discussing an curriculum. issue in dass on a fairly regular or daily basis (Murphy 1993). Marketing Education Review

Table 2 Objectives for Marketing Etiiics

Objective

Normative/Prescriptive

Create sense of responsibility Bishop 1992, Collins 1996, Herndon 1996, Kolenko et al. 1996, to community Oddo 1997, Pamental 1989, Trevino and McCabe 1994, Warren 1995

Instiil, teach virtue; pursuit Mintz 1996, Solomon 1992 of truth and other virtues; Virtuous community

Reinforce Existing Vaiue System/ Bishop 1992, Brown 1994, LeClair and Ferrell 2000, Cddo 1997, Self Discovery Warren 1995

Reinforce/encourage "right" behavior; Herndon 1996, Cddo 1997, Powers and Vogel 1980, good ethics leads to good Trevino and McCabe 1994, Wotruba 1993 performance, learn right from wrong; change in students' long range ethics related constructs

Teach or improve moral Kavathatzopoulos 1994, Kolendo etal. 1996, Rest 1986, Reasoning skills Trevino and McCabe 1994, Wotruba 1993

Positive/Descriptive

Ethical Sensitivity/ Moral Imagination Bishop 1992, Brown 1994, Gandzand Hayes 1988, Kolenko etal. 1996, LeClair and Ferrell 2000, McDonald and Donleavy 1995, Cddo 1997, Pamental 1989, Trevino and McCabe 1992, Warren 1995

Knowledge of ethical theory/ Bishop 1992, Gandz and Hayes 1988, Kavathatzopoulos 1994, frameworks/decision processes/ Kohls 1996, LeClair and Ferrell 2000, Warren 1995 teach rather than preach

Develop critical thinking and Bishop 1992, Collins 1996, Gandz and Hayes 1988, Problem solving skills Gandz and Hayes 1988, Herndon 1996, Johnston 1998, Kavathatzopoulos 1994, Kohls 1996, LeClair and Ferrell 2000, Cddo 1997, Pamental 1989, Rest 1986, Trevino and McCabe 1994, Warren 1995, Wotruba 1993, Zych 1999

Encourage tolerance and respect Herndon 1996 of other viewpoints; help students deal with ambiguity

Help students understand Bishop 1992, Kavathatzopoulos 1994, Trevino and McCabe 1994 "real world" ethical situations and consequences of ethical decisions

10 • Summer 2001

If we are to impact futxare marketers' ethical decision and descriptive approaches, though more study should making, they must be informed of the importance of be undertaken to understand the marketing ethics' ethical decision-making and even "inspired" to behave educator's role in guiding the moral decisions of stu- in a more ethical manner. Though stand-alone courses dents. Cases are seen as one of the most effective means in marketing ethics may contribute to emphasizing the of teaching with an emphasis on experiential teaching importance of ethical marketing decisions (Singhapakdi methods. Experiential and interactive learning is among 1999), marketing students must also understand the the most effective means of learning. The pedagogy particulars of making ethical decisions in the context of presented here offers several experiential approaches. day-to-day marketing activities. The application of eth- The use of role-play and behavioral simulations revealed ics in different situations requires that students be aware in the literature review is useful in improving ethical of the issues that may arise while conducting market- decision-making skills. ing activities. Stand-alone courses will contribute to stu- Another important dimension that has not been con- dents' understanding of the importance of ethics and sidered to any degree is the measurement of the effec- also provide some framework in understanding the ethi- tiveness of teaching methods. Loe and Weeks (2000) cal decision process and implementing ethical market- attempted to address this through pretest and posttest ing decisions (Herndon 1996; Singhapakdi 1999). True analysis of students' cognitive moral development. They integration throughout the marketing curriculum pro- found that the use of lecture, ethics games, group dis- vides the context of ethical marketing decisions and cussion and role-play was instrumental in improving also provides an understanding of ethics application. the moral reasoning skills of students. As in other areas Therefore, marketing educators should, in an of teaching, we must consider our goals in teaching and world, provide separate marketing courses, as well as the effectiveness of our teaching methods. integrate ethical components and ethics discussion on a regular basis in all marketing courses. In the real world, though, we must deal with curriculum restraints and Goals of Marketing Ethics Education other time limitations in the course. Restraints and bud- Effective marketing strategies require well thought geting of time come down to prioritization. We must out goals and objectives. We teach our students that determine that encouraging ethical behavior and con- when considering how to develop an advertising or tributing to an ethical culture within the marketing or- marketing plan that objectives must first be developed ganization is worthwhile and important to educating to determine the direction to take. Objectives drive the future marketers. In light of greater integration, the strategy and the tactics used to achieve the objectives. introduction of ethics in the marketing capstone courses Determining the objectives of a marketing ethics course then is especially important, again to emphasize the or the integration of marketing ethics drives the meth- importance of ethics in marketing and also in order to odology and pedagogy to be used. Marketing educa- provide guidance in understanding ethics in light of tors must determine the objectives of marketing ethics more complex marketing decisions instruction to guide the implementation of ethics edu- Though marketing educators face challenges in teach- cation. Many of the more common objectives of mar- ing marketing ethics, the results of this study indicate keting ethics courses and the integration of ethics in the that marketing educators are making advances in our marketing curriculum are outlined in Table 2. approach to integrating ethics through greater utiliza- Based upon the above strategic considerations, what tion of experiential approaches to teaching ethics. Edu- pedagogical approaches should be utilized to achieve cational "gurus" suggest that experiential and these goals and which approaches will assure the great- interactive learning are the most effective means of learn- est opportunity for success. Table 1 offers some ap- ing. This is consistent with cognitive science and meth- proaches deemed to be effective based upon several ods shown to be the most effective means of learning common objectives of marketing ethics education. ethics (Anderson 1997). Teaching marketing ethics pro- Other areas that need investigation when consider- vides an excellent opportunity for students to develop ing how best to teach marketing ethics in the 21^' Cen- critical-thinking skills, as well as awareness of ethical tury include a discussion and analysis of the strategic issues. Our findings suggest that future educators approach to most effectively teach marketing ethics. should approach ethics from a more process orienta- tion, with a focus on how organizational culture is Normative vs. Descriptive Approach changed and plays a role in impacting marketing ethics and performance. Also, marketing pedagogy should Probably one of the more controversial issues with include the use of cases and the use of both normative which marketers are faced is that of offering students

11 Marketing Education Review

"prescriptive" or normative education versus provid- it or not and whether or not we have an awareness of ing only a description of ethical issues and frameworks being a role model. Teachers cannot avoid imparting for understanding how they may approach ethical situ- values in one way or another in the normal course of ations. A comprehensive study is needed of whether or our activities as teachers. Moral education in a sense is not marketing ethics should take a normative or posi- unavoidable (Carbone 1987). Churchill (1982) states that tive approach in dass or both. Our preliminary find- moral values "cannot fail to be taught" (p. 306); and ings suggest some combination of normative and Folse (1991) suggests, "they (moral values) permeate descriptive means will be productive. However, many the student-teacher relationship through the ethos, marketing educators feel very reluctant to "impose" methods, and objectives of the classroom" (p. 347). their personal ethics on students. As noted earlier, pro- Teachers do no avoid teaching ethics by taking a "value- fessors of marketing consider this approach to be equiva- neutral approach." Instead, we may contribute to a lent to preaching or getting on a "soap box" (Murphy student's lack of confidence in a moral life, which leads 1993). However, our findings indicate that each of the to (Carbone 1987). This question is respondents to our survey includes a normative com- inevitable in a class or discussion of ethics. Ethics, un- ponent while two incorporate solely a normative per- doubtedly, is one of the more abstract subjects that we spective when teaching marketing ethics. We would as educators may teach. like to offer a couple of explanations for these findings. The complexity of the market place is growing as First, studies have indicated that when faced with new technology is introduced and utilized. Marketers ethical situations, marketers (salespeople in particular) are just beginning to understand the magnitude of the desire guidance (Dubinsky et al. 1992). Additionally, impact of the Internet and with the World Wide Web's significant others (fellow employees and supervisors in pervasiveness comes many new opportunities to en- particular) have the greatest influence on ethical deci- gage in unethical behavior. Especially in such a situa- sion-making in the work place (Ferrell and Gresham tion, where the environment is dynamic, 1985; Zey-Ferrell, Weaver and Ferrell 1979; Zey-Ferrell decision-making frameworks will be invaluable and and Ferrell 1982; Zabid and Alsagoff 1993). Guidance thus the inclusion of descriptive approaches is neces- or a normative approach to understanding what is sary. Students will continue to ask for direction, how- "right" is sought out. ever, and as educators we wiU want to offer suggestions Secondly, and closely associated with the significant based upon existing codes of ethics and standards of influence of others and particularly those in positions behavior that are developed within the respective in- of authority, is the fact students look to their professors dustry. Ultimately, students will be faced with making for guidance in understanding what they will face in decisions on their on in an ever changing environment. the workplace. Students look to their professors to pro- An important question, then, is "should" we provide vide "best practices" when teaching any subject. We as answers (our judgment) or is our primary concern the marketing educators are obligated to keeping in touch teaching of critical thinking skills in ethics in an effort with the most effective marketing methods and expos- to equip students with tools to be able to more effec- ing our students to such methods. Students want to tively solve ethical situations they will inevitably face? know "what works best." This is especially true when The answer probably lies somewhere in offering bal- the subject is more abstract and right and wrong an- ance. We need to provide the students tools to be effec- swers are less evident. Often several different ap- tive when faced with abstract ethical situations, but proaches to solving a marketing problem or taking also we may address their questions of "right" actions advantage of a market opportunity might be utilized, in light of existing codes of ethics, and the expression of aU of which may have positive outcomes. The authors, our opinion does not constitute imposing our personal as well as anyone who has instructed a class, are asked, ethics on the students. The students, again, ultimately "What is the right answer?" Bishop (1992) suggests must choose their course of action in any given situation. that actually, "There is no ethically neutral teaching. However, students who have not had experience in Everything in the classroom communicates an ethical facing specific marketing ethics issues will not under- position. The only difference between business ethics stand the norms of acceptable behavior as well as the courses and all others is truth in advertising; Ethics possible consequences of their actions. Ethics codes pro- courses state explicitly when value positions are com- vide guidelines for acceptable behavior and they may municated; the regular curriculum embodies hidden be used to offer students answers to some of the ques- assumptions of which even the professor may be un- tions with which they must deal in the workplace. Mar- aware" (p. 194). Additionally, Ryle (1972) suggests that keting educators may offer their personal understanding teachers are role models for students, whether we like of what "actions" are most acceptable, given the situa-

12 • Summer 2001 tion and the code of ethics of a particular industry. The Bartels, Robert (1967), "A Model for Ethics in Marketing," Journal of American Marketing Association's Code of Ethics is Marketing, 31 (January), 20-26. Baumhart, R. C. (1961), "How Ethical Are Businessmen?" Harvard one such code that provides direction for answering Business Review, 39(July-August), 6-9. ethical marketing questions. While we may offer our Baxter, Gerald D. and Charles A. Rarick (1997), "Education for the judgments in particular situations, the students also Moral Development of Managers: Kohlberg's Stages of Moral must know that they will be on their own when faced Development and Integrative Education," Journal of Business Eth- ics, 16,243-248. with these ethical situations and must understand the Bishop, Terrence R. (1992), "Integrating Business Ethics into an Under- consequences of their behavior. graduate Curriculum, Journal of Business Ethis, 11 (April), 291-299. 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In short, we should offer frameworks to Caywood, Clarke and Gene Laczniak (1986), "Ethics and Personal make ethical decisions as well as attempt to inspire Selling: Death of a Salesman as an Ethical Primer," Journal of students to be honest and ethical. Personal Selling and , 6 (August), 81-88. Chonko, Lawrence B. (1995), Ethical Decision Making In Marketing, A correlated investigation concerns the outcomes of Thousand Oaks, CA: Sage Publications, Inc. ethical behavior. To what degree does marketing ethics and Shelby D. Hunt (2000), "Ethics and Marketing actually impact the performance of the organization? Management: A Retrospective and Prospective Commentary," Journal of Business Research, 50,235-244. Anecdotal evidence for a positive relationship is avail- Churchill, Larry R. (1982), The Teaching of Ethics and Moral Values able, but further empirical investigation is necessary in in Teaching: Some Contemporary Confusions," The Journal of order to provide support for discussing this relation- Higher Education, 53,296-307. ship in the classroom. A full discussion should address Collins, Denis (1996), "Serving the Homeless and Low-Income Com- munities Through Business & Society/Business Ethics Class the normative vs. descriptive approach and the goals of Projects; The University of Wisconsin-Madison Plan," Journal of marketing organizations in relation to their impact on Business Ethics, 15,67-85. society and relationships with customers and other Cox, James (2001), "Inmates teach MBA students ethics from behind stakeholders is warranted. bars," USA Today, May 24, Bl. 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Appendix A

Marketing Ethics Survey

1. Do you teach an ethics course in the dept. of marketing? (circle one) Marketing ethics Business ethics • Other: None

2. What dept. (or area) in your college has the greatest influence on the development and management of the ethics course? (circle one and provide any additional information necessary to understand the influence) Marketing Management Business law • Accounting • Finance • MIS/CIS Economics • Other:

3. What topics are of the greatest importance in teaching ethics within the marketing discipline?

4. a) In which of the following marketing courses do you integrate an ethics component? (circle those appropriate) marketing research consumer behavior advertising and promotion personal selling and sales management e-commerce strategy principles • Other:

b) Which courses above receive the greatest emphasis in the ethics area and why do you believe this is the case? (Continued) Marketing Education Review

Appendix A (continued)

5. a) What approaches are used in teaching marketing (business) ethics? Lecture • Guest lecture Cases Computerized simulations Paper and pencil simulations Games Videos • Debate issues • Other:

b) Of the above approaches, which do you feel are the most effective and why?

6. What approach(es) do you use in teaching ethics in marketing courses? (circle those that apply and provide any input necessary to better understand your teaching philosophy) Normative Positive • Other:

7. How do you feel students experience and appreciation of ethics in marketing can be improved?

8. How has the treatment of ethics changed within the marketing discipline over the past 20 years?

9. I would like to receive a summary of the results of this survey, (circle one) • Yes • No

Thanks for your participation and insights!!

16