TEACHING MARKETING ETHICS 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 businessesand marketers, in particular, be more ethically responsible. What have marketing educators done to contribute toimproving the ethical character of future marketers and prepare them to make better ethical decisions ? This pilot studyreviews how marketing educators have approached the teaching of marketing ethics primarily from a pedagogicalperspective and explores the views of prominent marketing ethics educators concerning how we should approach theteaching of marketing ethics in the 2V' century, and suggestions are offered based upon the findings of this study.

Introduction

Marketing's role as boundary spanner between busi-ness and customer places the marketing discipline andmarketing educators in an important position in regardto ethical responsibilities. Wilkie and Moore's (1999)review of marketing's contributions to society and thecriticisms of marketing reveals concerns aboutmarketing's negative effects on cultural values and theharm that can occur by deceptive marketing practices.On the other hand, research by Loe and FerreU (1997)provides evidence that an ethical climate in an organi-zation can contribute toward market orientation, whichhas positive effects on customers and their concerns.

In a retrospective and prospective commentary aboutethics and marketing management over the last 15 years,Chonko and Hunt (2000) conclude that while most mar-keting managers perceive many opportunities in theirfirms and industries to engage in unethical behavior, mostmanagers refrain from taking advantage of this opportu-nity. In addition, most research indicates that marketingmanagers do not believe that unethical behaviors in gen-eral lead to success. Research reveals that ethical prob-lems that are addressed by marketing managers seem toreduce the level of misconduct (Schminke 2001). So, whilethere is a definite concern by society about the ethics ofmarketers, research also suggests that higher levels ofethical behavior have positive outcomes for marketers.

Top management's visible ethical concerns are thesingle best predictor of the extent to which managers

TERRY W. LOE (Ph.D., University of Memphis) is an Assistant Professor ofMarketing in the Department of Marketirig at the Hankamer School ofBusiness at Baylor University. (Email: Terry_Loe@baylor.edu)LINDA FERRELL (Ph.D., University of Memphis) is an AssistantProfessor of Marketing in the Kenneth W. Monfort College of Businessat the University of Northern Colorado. (Email: Unda.ferrell@unco.edu)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.

perceive ethical problems. In addition, situational fac-tors such as gender, size of firm, and education canhave a significant impact on ethical decision making bymarketing managers. For example, the strongest situ-ational effect is that individuals in larger mechanisticorganizations reflect much stronger ethical predisposi-tions, both formalistic and utilitarian (Schminke 2001).

Marketing educators arguably play a critical role inshaping the next generation of marketers' attitudes notonly toward marketing practice, but also in shaping theethical environment of business. Shannon and Berl(1997) report in their study that undergraduate market-ing students feel the discussion of ethics and of ethicalissues is "worthwhile and important." The studentsalso indicate that a course in business or marketingethics should be required and further that they wouldtake such a course if offered, even if it were not re-quired. In the same study, students indicate that mar-keting educators are doing between a weak andadequate job of covering ethics in marketing classes.

Many questions have been raised concerning the mar-keting educator's role in communicating ethical knowl-edge in marketing courses. Do professors of marketingneed to teach marketing ethics? Do ethics have a placein the marketing curriculum? If so, "what" about ethicsshould we be teaching? How should marketing ethicsbe taught? Can ethics be taught? Most importantly,what is our goal in teaching marketing ethics? These orquestions like these have been asked over the past fourdecades and attempts have been made to address them.

However, a complete review of the teaching of ethicsis outside the scope of this study. The various ap-proaches to teaching ethics are difficult to assess andwould require a worthy endeavor that is beyond thescope of this exploratory investigation. A complete studyof the teaching of "business ethics" is also laudable, butagain a monumental task that falls beyond the param-

Marketing Education Review, Volume 11, Number 2 (Summer 2001).

Marketing Education Review

eters of our study. Space is not available to addressthese larger issues or even to consider all of the ques-tions that need to be asked. Instead, we wish to take abrief look at how marketing academics have attemptedto answer some of the questions put forth above. Indoing this we will briefly outline the history of market-ing ethics and the teaching of marketing ethics in highereducation, and review the popular pedagogy used. Inaddition we wish to report on the views of some market-ing ethics educators concerning how we might approachthe teaching of marketing ethics in the 21̂ *' Century.

Though we will specifically focus our discussion onteaching marketing ethics, in part, we will also includemethods that can be used and that have been used byother disciplines. Our reasons for including other disci-plines' approaches are simple and include: (1) the meth-ods of learning concepts and applications of thoseconcepts are similar, regardless of subject, and (2) fewstudies have specifically addressed the teaching of "mar-keting ethics."

A Brief Review of Marketing Ethics

Though a complete review of ethics will not be un-dertaken here, a very brief review of moral philosophyas it relates to business and marketing ethics is useful tounderstand the philosophical approaches to this sub-ject. Modern moral philosophy probably had its begin-nings in G. E. Moore's Principia Ethica in 1903 (Maclntyre1998), though Adam Smith addresses the idea of fairbusiness competition at an earlier date in his book. TheTheory of Moral Sentiments (1759). Formal ethical con-sideration found its way into business in the 1920s withthe first code of ethics in the area of marketing beingattributed to the advertising industry, which developeda code in 1928. Additionally, in academia some earlyadvertising and marketing texts began addressing ethi-cal issues (Curtis 1931). A few classic business ethicsworks were published as early as the 1930s, but as adistinct academic discipline, business ethics conceiv-ably has its roots in the 1950s (Paul 1987). However,one of the first and most prominent, comprehensiveempirical works in business ethics was by Baumhart(1961), who identified eight major ethical problems thatbusiness people wanted to eliminate. As pointed out byChonko and Hunt (2000), five of the eight ethical abusesfell in the domain of marketers' activities.

Much of the work in business and marketing ethicssince Baumhart has been based upon philosophical ethi-cal theories and generally has been divided into eitherteleological or deontological classifications. Teleologicaltheories consider the outcome of an action as the criterionfor determining "right" or "wrong," while deontological

theories are "rules" based. These ethical philosophiesare important to understand, as they are the foundationupon which ethics has been taught in the classroom.

Early research in marketing ethics by Walton (1961),Alderson (1964), Patterson (1966), and Farmer (1967) aswell as others took a more normative or prescriptiveapproach to ethics. The consumerism movement thatdominated the late 1960s and early 1970s promulgatedthis approach and is apparent in the writings of Aakerand Day (1978), Kelley (1973) and Murray (1973). Someearlier research also considered marketing ethics froma positive perspective, beginning with Bartels (1967)and Westing (1967).

An emphasis on a descriptive rather than a norma-tive approach eventually became more common withthe emergence of descriptive ethical decision-makingmodels in the 1980s. Based upon five major ethical deci-sion making models, organizations have a general ideaof how an individual or a work group makes ethicaldecisions within an organization (Jones 1991; Ferrelland Gresham 1985; Ferrell, Gresham, andFraedrich,1989; Hunt and Vitell 1986; Trevino 1986).Ethical-issue intensity, individual factors (includingcognitive moral development), as well as the corporateculture, affect ethical or unethical behavior accordingto these models (FerreU, Fraederick, and Ferrell 2000).Within the context of an organization, significant oth-ers, especially the work group, have been found to havethe most influence on how managers make decisions.In other words, most individuals do not feel they havethe freedom to decide ethical issues independent oforganizational pressures. This knowledge places sig-nificant pressure on organizations to develop codes ofethics, ethics training, and an ethical corporate culturethat encourages appropriate behavior. Most organiza-tional ethics programs focus on developing ethics codesand pohcies and developing communication systemsand control mechanisms to encourage ethical behavior.

A study by Babin, Boles, and Robin (2000) reviewedresearch that attempts to explain ethical and unethicaldecision making among marketing managers and con-ducted research to address directly how ethical/un-ethical actions affect the work environment. Theyconcluded that a marketing employee's ethical workclimate was a theoretically useful construct and ex-plained significant variation in other important workoutcomes related to this construct. Specifically, theyfound that as a work climate is perceived as more ethi-cal, marketing employees report lower role conflict,lower role ambiguity, higher job satisfaction, and higherorganizational commitment. Babin et al. conclude thatimportant evidence is available supporting the generalproposifion that good ethics is good business. Ethical

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decision making models provided frameworks thatguided much descriptive research and offer pedagogi-cal tools to introduce ethics into university businessschool classrooms. A number of ethics texts were pub-lished and began utilizing these models (for example, Chonko1995; Ferrell and Fraedrich 1990; Laczniakand Murphy 1993)and are more focused on marketing ethics constructs andissues that students may face in their career.

In 1976, the American Assembly of Collegiate Schoolsof Business (AACSB) began requiring coverage of ethicalissues in the business curriculum. As a result, marketingtexts have included considerable coverage in both sepa-rate chapters and within the context of many of the chap-ters of the texts (Pamental 1988). Marketing educationjournals such as Marketing Education Review and Journal ofMarketing Education have increased the number of articlespublished concerning ethics instruction (Stevenson andBodkin 1996). This emphasis on ethics education beggedthe question of how marketing instructors have responded.Marketing professors now had tools and frameworks to uti-lize in implementing ethics instruction.

A recent review of faculty perspectives on marketingethics by Rozensher and Fergenson (1999) provides agood summary of how the subject has been handledover the last several years. Unfortimately, they foundthat the majority of marketing professors spend 2 hoursor less per course on the subject of ethics and that theprimary areas they cover are those of false advertisingand relations with customers, suppliers, and competitors.Rozensher and Fergenson (1999) also indicated that the is-sues deemed most important by professors (environmentalissues and "Wall Street" ethics, i.e., insider trading, lever-aged buyouts) were seldom, if ever, covered.

Educators will likely not agree on all of the issuesthat should be covered, but of importance is the use ofeffective pedagogical approaches to teaching ethics andethical decision-making. The review by Rozensher andFergenson (1999) suggests that ethics should be inte-grated throughout the students' curriculum rather thanoffered as stand alone courses, but does not outline thepedagogy used. In the next section we review from theliterature some of the means by which marketing ethicshas been presented in the classroom.

Approaches to Teaching Marketing EthicsMany suggestions for teaching business ethics have been

put forth (for example, Brady 1999; Dunfee and Robertson1988; Hemdon 1996; Anderson 1997; Baxter and Rarick 1997;Cragg 1997; Raisner 1997; Wolfe and Fritzsche 1998). ThoughWolfe and Fritzsche (1998) suggest the use of marketinggames, specific suggestions for how to teach marketing eth-ics are scarce. In considering how marketing educators teach

ethics, we have categorized our discussion into the overallstrategic considerations of implementation and the peda-gogical tools that have been used.

Strategies in ImplementingMarketing Ethics Education

The predominant question concerning the implemen-tafion of ethics in marketing educafion is whether eth-ics should be taught as a stand-alone course or integratedthroughout the curriculum. Some universifies chooseto teach a separate, though not required, business eth-ics course. The few marketing departments that teach amarketing ethics course usually have a faculty memberwho has a specific interest in marketing ethics researchor has a strong desire to teach in this area. Both ap-proaches have been used effectively (Rozensher andFergenson 1999). An early study by Marks and Scott(1968) revealed that 35 percent of 159 AACSB schoolsthat responded had a separate course in markefing eth-ics or business social responsibility in the undergradu-ate program. Later, Murphy and Laczniak (1980) foundonly two percent of colleges surveyed offered a specificcourse in marketing ethics, though ninety-eight per-cent indicated the topic is also covered in other courses.More recently. Murphy (1993) identified four universi-fies that offered separate marketing ethics courses: Bos-ton College (undergraduate), Notre Dame (MBAElecfive), Miami University in Ohio (undergraduate),and Georgetown University (undergraduate). The cur-rent research revealed that of those identified byMurphy (1993), only Boston College is still offering amarketing ethics course. Though there have been oth-ers that have offered separate courses (the Universityof New Mexico, the University of Memphis and theUniversity of Northern Colorado, for example), the stra-tegic approach most recently has primarily been throughintegration in individual markefing courses as requiredby the AACSB and which is supported by research asthe preferred and most effecfive method (Feldman andThompson 1990). Pizzolatto and Bevill's (1996) find-ings suggest that ethics education is fairly well inte-grated throughout the business curricula and thatmarketing as a discipline is one of the better repre-sented areas in which ethics is covered.

Integrafion has been facilitated by markefing text-books that have included separate chapters on market-ing ethics, ethics case studies, and ethical scenarios or"boxes" in most of the chapters of the texts. Hoaas andWilcox (1995) analyzed the degree to which funcfionalareas of business and economics compare in includingethics in teaching materials. In their analysis, they re-viewed texts from several disciplines, including mar-

Marketing Education Review

kefing. Their analysis of eleven marketing texts consid-ered the inclusion of ethics as separate chapters, the useof cases, and the inclusion of ethics throu^out the text.Seven of the eleven texts included a separate chapter onethics. Only three included cases specific to ethics andnine integrated ethics discussion and scenarios through-out the text. Since Hoaas and Wilcox's (1995) researchwas published, most of the markefing texts have up-dated their material and have included ethics through-out their texts as well as separate chapters on marketingethics and social responsibility.

In general, marketing professors take one of two al-ternafive approaches to teaching marketing ethics. Thefirst approach assumes that if individuals can be taughtto have sound personal ethics this wiU be sufficient tohandle ethical issues that arise in the markefing work-place. In these cases, abstract virtues related to honesty,fairness, and openness are communicated through cases,lectures, and vignettes. This approach assumes that ahigh level of personal and moral development wiU pre-vent an individual from making organizational, ethicalmistakes and violating the law. The main focus of thisapproach is to help those people who have unaccept-able personal moral development.

An altemafive approach to teaching marketing ethicsassumes that personal ethics is a minimum requirementfor good marketing ethics but recognizes that a high levelof personal moral development may not be sufficient toprevent an individual from making ethical mistakes orviolating the law in an organizafional context, where evenexperienced lawyers debate the exact meaning of the law.Because organizafions are comprised of diverse individu-als whose personal values must be respected, a collecfiveagreement on personal integrity is not likely. However,developing an agreement on workplace integrity and aset of core values that all employees can adopt which is asvital as other managerial decisions is necessary. Manypeople who have limited experience with marketing is-sues find themselves making decisions about productquality, adverfising, pricing, and hiring pracfices, as wellas other marketing issues. While values learned at homeand school may provide a general background, thesevalues do not provide specific guidelines for complexdecisions in the real world of marketing decision making.Even beginning employees must rely on peers to makedecisions that are dose calls and managers need years ofexperience to understand what is acceptable in a com-pany or industry. Therefore, this approach to teachingmarketing ethics relies on both understanding the needfor good personal ethics as well as understanding theorganizafional complexifies of ethical decision making.

The strategic approach used by marketers in integrat-ing ethics into the markefing curriculum is ever more

important as we advance into the 21*' century.Fukuyama (1995) points out the growing complexity ofmarkets both domesfic and global and that, in fact, eco-nomics is grounded in social life and cannot be under-stood apart from social organizafion and values. Thisintertwining of societal values and business activitymakes examining how we consider marketing's role incontributing to societal harmony necessary. Our contri-bufions largely depend upon how effecfively we ex-pose future marketers to ethics. The pedagogical toolsused help determine our effecfiveness and the followingis a brief review of those tools in marketing educafion.

Pedagogy in Marketing

Marketing professors have approached the teachingof markefing ethics in a similar manner as professors inother disciplines. The primary goal from these teachingtechniques has been to expose students to ethical issuesrelafive to markefing decisions and the marketing pro-cess in order to sensitize them to potenfial ethical situa-tions. Again, pedagogy used by other disciplines wiUbe addressed, but we will first consider those in theliterature that are specifically focused on marketing andits related sub-disciplines.

The literature has identified several tools that havebeen used. These include the use of cases, videos, andethics texts and readings books as well as the use ofpopular and business press articles (Dunfee andRobertson 1988; Murphy 1993). These approaches re-quire analysis and discussion among the students andprofessors. Texts and readings books provide contentthat includes ethical issues as well as differing moralphilosophies used by individuals when making ethicaldecisions. Cases, videos and articles offer specific illus-trations of ethical situations that marketers face and anopportunity to critically evaluate the decisions madeby the parfies and consider alternafive decisions andthe consequences of those decisions.

Several creafive techniques presented include the useof "storytelling" or the narrafive approach (Bush, Harrisand Bush 1997), the use of debate (Winsor 1995), and fic-fional literature (Shannon 1995). Loe and Weeks (2000) in aprofessional selling class included the use of ethical scenariosand role-plays that interjected ethical situations, which re-quired the students to make ethical decisions during liveinteracfion and then discuss the decision with the class.

Gowen et al. (1996) offer a typical approach to inte-grating ethics in marketing classes through a five-classethics module. The module first introduces ethicaltheory (managerial egoism, utilitarianism, duty basedtheories, and virtue ethics) and four models of market-ing ethics suggested by Kohlberg (1969) (moral devel-

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opment model, organizational moral developmentmodel, confingency model, and reasoned action model)through lecture. The second secfion is lecture whichfocuses on specific markefing issues. The lecture alsointroduces several codes of ethics, such as the Ameri-can Marketing Associafion Code of Ethics. The thirdsection introduces case discussion and the fourth bringsa guest speaker who discusses differing dimensions ofa specific industry. The final secfion utilizes role-playand ethics videos for discussion and analysis.

Wotruba (1993) provides one of the only comprehen-sive frameworks for teaching marketing ethics andadapts Rest's (1986) four-component model for ethicaldecision-making. He first suggests that marketing stu-dents be "sensitized" to ethical dimensions of market-ing decisions through the use of personal scenarios thatinvolve the students in roles of specific marketing posi-tions as well as the use of fictional books, such as Deathof a Salesman, Elmer Cantry, and The Music Man.

Wotruba (1993) next suggests that the students berequired to determine the morally "best" altemafive,which requires the introduction of ethical theory(deontological and teleological) or the concept of "cog-nifive moral development" (Kohlberg 1969). Third, herecommends that priority be given to ethical valuesand then "intend to do what is right." Wotruba doesnot give guidance as to which values should be givenhighest priority, as that would require that the studentsbe told what is "right versus wrong." The last step is toconvert intentions into decisions and behavior, whichsuggests an analysis of the consequences of the chosenbehavior. In each of these steps, Wotruba points to sev-eral readings available to give guidance to instructorsconcerning the theory behind his recommendations.

Pedagogy from Other Disciplines

Instructional tools used outside of marketing educa-fion, as one would imagine, are similar to those used inmarketing. A broad study of business ethics in the class-room by Pizzolatto and Bevill (1996) revealed that stu-dents feel the most effective means of covering the issueof ethics include in order: class discussion, case analy-sis, business scenarios, faculty lectures, assigned read-ing, role-playing, and term papers.

A new journal. Teaching Business Ethics, provides numer-ous suggesfions. A review by LeClair et al. (1999) of thosetechniques revealed the use of lecture, case analysis, vignettesand scenarios as well as guest lectures and videos. Addition-ally, LeClair et al. (1999) identify the use of ethics gamesdeveloped by business as a means to improve perceptions ofthe importance of ethics and ethical decision-making.Lockheed Martin developed one such game called Gray

Matters, which has since evolved into its successor. The Eth-ics Challenge. These games promote the understanding ofspecific corporate policies through scenarios that indude mul-fiple-choice answers associated with point totals that rewardanswers more closely related to adherence to coiporate policy.

LeClair et al. (1999) also suggest the utilizafion ofbehavioral simulafions as a teaching tool. This methodprovides some organizafional context and a degree ofaccountability that is often missing from other methodsof teaching ethics. Behavioral simulafions, similar tothe use of role-playing, have the advantage of provid-ing an experienfial learning component. These game-like experiences introduce no right or wrong answers forthe students but instead create an ethical dilemma andintroduce roles in the organizafion which would give astake in the ethics decision and which assist in makingshort term, mid-range and long-term recommendafions.

Others in education have attempted to explore moreinventive means of advancing business ethics. In oneinnovafive case, inmates in a Federal Correcfional Insti-tute helped teach an MBA class on ethics at the Univer-sity of Maryland (Cox 2001). Warren (1995) developeda business ethics course around three components: asection describing some of the fundamental ethical con-cepts (i.e., harm/avoidance, equity, obligafion, jusfice,fideUty, dignity, etc.), suggesting that these be used toanalyze cases; a section describing ethical theories in-cluding a comment on their applicafion to business;and a section of cases with philosophical analysis. Heproposes an emphasis on virtue theory (developmentof excellences of human character or qualifies and par-ficular virtues including honesty, integrity, etc.) in ad-dition to the deontological and teleological or utilitarianand contractarianism theories. Warren further suggeststhe use of the Socratic method of teaching, which pre-cludes the use of much straight lecture.

The teaching of marketing or business ethics courseshas been approached as being really no different fromteaching of other courses, at least in so far as methodssuggested. The approaches used follow the goal of othertypes of educafional instrucdon, i.e., the transfer of knowl-edge or training to develop students' skills to relate to"real-life" decisions. LeClair et al. (1999) suggest that the"university ethics educafion should prepare students toface ethical challenges on the job" (p. 284). Table 1 pro-vides an overview of a number of the pedagogical toolsused and their related goals of teaching ethics.

Teaching Marketing Ethics:Exploratory Findings

Professors of marketing ethics have approached theteaching of ethics in marketing by various means. A

Marketing Education Review

group of professors were selected for our sample basedupon their known interest in marketing ethics throughpublished research in acadenuc journals or presentafionsand papers offered at academic marketing conferences.

Survey Results

E-mail surveys were sent to 34 marketing ethics re-searchers, as idenfified by the authors. The list of sur-vey recipients was determined based on reputation,previous contribufions to marketing ethics research, andinvolvement in marketing ethics issues in conference.The goal was to develop a sample of the most knowl-edgeable respondents on the topic of marketing ethicseducation. Although these resiilts are not representa-tive of what all is offered, they may provide the mostopfimistic view of interest and involvement in market-ing ethics in universities and colleges.

Of the 34 surveys delivered, 12 completed surveyswere returned. Fifty percent of those were returnedwithin five days of their delivery. Eight were e-mailedback and four were mailed. The purpose of the surveywas to determine the scope of marketing ethics courseofferings, integration within the marketing curriculum,approaches to teaching the course and perceptions ofchanges over the past two decades (see Appendix A).

While most marketing ethics scholars suggest thatmarketing ethics is being taken more seriously, we, sur-prisingly, found only three of the twelve respondentswere at Universifies that offer a Marketing Ethics course.Seven offered no Business or Marketing Ethics courseand only two offered a Business Ethics course. Of thoseoffering separate ethics courses, one school offered both aBusiness and Marketing Ethics course. Concerning thedepartment having the greatest influence on the ethicscourse(s), five noted management, four considered mar-keting, two noted business law and one indicated ac-counting. Although eight respondents indicated no ethicscourse, every survey recognized a parficular departmentinfluencing the management of ethics or an ethics course.

When asked, in an open-ended format, the ethics top-ics of greatest relevance to the marketing discipline, theresponses were quite varied. The most frequently citedissue was developing an effecfive ethical culture (forty-two percent), followed by pricing and anfitrust issues(twenty-five percent), factors influencing ethical decisionmaking (twenty-five percent), risk areas in strategy de-velopment (seventeen percent), social responsibility (sev-enteen jjercent), ethics and marketingperformance (seventeenpercent), personal moral philosophies (seventeen percent),channel power (seventeen percent), product safety (seven-teen percent), and advertising and selling (eight percent).Other issues that were menfioned once were: marketing

research issues, competitive intelligence, online privacy, glo-bal marketing issues, environmental issues, e-commerce eth-ics, marketing's role in enhancing reputafion, enforcementpolicies, and fair treatment of customers.

Looking at the marketing course where ethics wasintegrated, the following was noted. Principles courseswere menfioned eleven times, followed by PersonalSelling and Sales Management (seven). Marketing Re-search (six), Adverfising and Promofion (six), and Strat-egy (six). Consumer Behavior was menfioned four timesand Business Markefing and E-Commerce were men-tioned three times each. Internafional and the Market-ing Environment courses were menfioned one time each.When asked which courses received the greatest empha-sis on ethics the following was noted: Strategy (four).Personal Selling (three), Adverfising and Promofion(three). Marketing Research (two) and Principles (two).

When asked the approach to teaching the course, ev-ery respondent used a lecture/case format. In addifion,10 used videos to support the lecture and cases, while sixused guest lecturers and 6 used debate issues. Approachesused less often included: games (five), paper and pendlsimulafions-behavioral (four), computerized simulafions(one) and arficles (one). Of the approaches used in class,the majority felt that cases (seven) were the most effec-five method, followed by paper and pencil simulafions(three) and debate issues (three). Games and guest lec-turers each received one menfion.

When asked what teaching philosophy each professorused, whether normafive, posifive or other, ten notedboth normafive and posifive and two menfioned onlynormafive. When asked how to improve the students'experience and appreciafion of marketing ethics issuesthe most dted comment was helping students under-stand that "good ethics is good business" (four), followedby greater integrafion of ethics in marketing texts andcourses, teaching decision making and consequences(two), placing student in realisfic situafion to help under-stand the pracfical value of marketing ethics (two), offer-ing a core business ethics course (one), using a quesfion andanswer format (one), and have students find an arfide in thebusiness press that related to lecture topics (one).

When asked how the course has changed over thepast twenty years, greater integration in markefingcourses and texts was noted (seven) and others notedthe influence of AACSB (two), and one was concernedthat there is more discussion of the area, but poor inte-grafion throughout the marketing curriculum.

Discussion of Survey Findings

Perhaps the finding that creates the most concern isthat only three of the responding schools offer a mar-

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Table 1Pedagogy for Teaching Marketing Ethics

in the 21 «* Century

Goat Pedagogy

Normative/Prescriptive

Create sense of responsibilityto community

Instill, teach virtue; pursuit of truthand other virtues; Virtuous community;change in students' long range ethicsrelated constructs

Reinforce Existing Value System/Self Discovery

Reinforce/encourage "right" behavior;good ethics leads to goodperformance, learn rightfrom wrong; enhance integrity

Teach or improve moral Reasoning skills

Seminar/SocraticReadings/Case analysisFilms/videoTeacher modelingExperientialism

Case studyCollaborative learning groupsRole-playVideo presentation

Stories/parablesRole-playTeacher modelingBiographiesExperientialism

Case studyCollaborative learning groupsRole-playVideo presentation

Ethics gamesDebateExperientialism

Readings & Class discussionExperientialism

Teacher modelingCase studyCollaborative learning groupsRole-playVideo presentation

Role-PlayCase AnalysisExperientialism/honorable community

Warren 1995Warren 1995Hosmer and Steneck 1989O'Connell 1998, Mintz 1996Anderson 1997, Collins 1996Kohls 1996, Kolenko et al. 1996Mintz 1996Mintz 1996Mintz 1996Mintz 1996

Warren 1995McDonald and Donleavy 1995Mintz 1996McDonald and Donleavy 1995Anderson 1997, Collins 1996Kohls 1996, Kolenko et al. 1996Mintz 1996Mintz 1996Mintz 1996Mintz 1996

Dyrud 1998Warren 1995Anderson 1997,Collins 1996,Kohls 1996, Kolenko et al. 1996,Johnston 1998

Warren 1995Anderson 1997, Collins 1996,Kohls 1996Mintz 1996Mintz 1996Mintz 1996Mintz 1996Mintz 1996

Zych1999Zych 1999, Warren 1995Anderson 1997,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

Knowledge of ethicaltheory/frameworks/decisionprocesses/ teach rather thanpreach

Develop ethical critical thinkingand Problem solving skills

Encourage tolerance and respect ofother viewpoints; help studentsdeal with ambiguity

Help students understand"real world" ethical situationsand consequences of ethicaldecisions

Ethics gamesCase study

Lecture/DiscussionRole-Play

Experiential/honorable community

Fictional Stories

Lecture

Case studyScenariosExperiential

Ethics games

Role-Play

Case Analysis

Popular PressExperientialism/honorable community

Ethics gamesDebate

Role-PlayCasesExperientialismLecture & ReadingsEthics Games

Dyrud 1998Warren 1995Harris and Guffey 1991Ebejer and Morden 1988Brown 1994, Smith andVanDoren 1989.Anderson 1997,Gaidis and Andrews 1990,Johnston 1998, Kohls 1996,LeClair and Ferrell 2000,Trevino and McCabe 1994Caywood and Laczniak 1986

Kavathatzopoulos 1994,Warren 1995Wotruba 1992Kavathatzopoulos 1994LeClair and Ferrell 2000

Dyrud 1998,LeClair and Ferrell 2000Zych 1999,McDonald and Donleavy 1995,Brown 1994Bishop 1992, Warren1995,Zych 1999McDonald and Donleavy 1995Anderson 1997Trevino and McCabe 1994,LeClair and Ferrell 2000

Dyrud 1998Warren 1995

Brown 1994, Zych 1999Zych 1999Anderson 1997Kavathatzopoulos 1994, Loeb 1994Dyrud 1998

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keting ethics course. Given that these results are atschools where there are Marketing Ethics experts andresearchers, of note is that the course is not commonlyavailable. However, each suggested that marketing eth-ics was integrated into the curriculum in some manner.We found it interesting that even at schools where therewas no business ethics course offered there is a particu-lar department that offers the greatest influence on eth-ics courses within the college of business. Historically,we would think of management as having the greatestinfluence given the pervasive offering of Business andSociety courses within college curriculum. Marketingfollowed closely given the influence of each respon-dent and their reputation and research emphasis.

When looking at the responses to the most importanttopics in teaching ethics in the marketing discipline, wewere surprised. An open-ended format was used in or-der to not bias the results. We would have expected mostlyissues related to product, pricing, promotion /advertis-ing and distribution related ethical issues. What we re-ceived was a greater sensitivity to developing an ethicalorganizational culture and allowing students to have anunderstanding of the factors that influence ethical dedsion-making in the organization. Such responses revealed a greaterconcern for imparting more of a process and organizationalorientation, rather than an issue orientation.

When asked about the courses receiving the greatestemphasis in the ethics area. Strategy was acknowledgedthe most followed by the areas that represent the mostvisible risk areas of the marketing organization, adver-tising and promotion and personal selling. The profes-sors surveyed noted several times that although everyoneintegrates ethics in principles of marketing courses, thereal challenge is integration in upper level, integrativecourses, such as the capstone, strategy course.

The teaching approach deemed the most effective andpedagogically acceptable was the case method. This isperhaps due to the ability to discuss differing ap-proaches to the ethical situation and that cases providesome insight into "real life" ethical situations. Manysuggested that the variety of teaching approaches makescommunicating ethics issues and concerns the most ef-fective means rather than exclusively one specificmethod. Some of the more non-traditional methods usedin conjunction with cases and lectures were debate is-sues and paper and pendl behavioral simulations. Thesetechniques are designed to allow students to partici-pate in the ethical decision-making process and experi-ence the ambiguity, stress, difficulty in defending andmaking the best decisions for varying stakeholders ofthe organization. Experiential ethics exercises appearto be gaining popularity and exposure throughout themarketing curriculum.

There appears to be generalized support for usingboth a positive and normative perspective in teachingethics in marketing courses. However, of interest is thatmany felt the best way to assist students in understand-ing the importance of ethics in marketing was to take apositive perspective and help them understand thatethics is just good business. There was also some con-cern that there is not enough integration of marketingethics material in marketing curriciolum and texts. Manyfeel that coverage of the area will emerge more readily ifyou have an interest in the topic, and that ethics wiU becut if time is short and there is little faculty interest in thetopic. In conjunction with this question, when asked thechanges over the past two decades, the respondents indi-cated that greater integration throughout the marketingdiscipline and the support of ethics education by theAACSB has definitely played a role in this evolution.

Conclusions

How, then, should we approach the teaching of mar-keting ethics in the coming century? This review sug-gests that innovative teaching materials have beendeveloped and that ethics in marketing is being consid-ered in the classroom. However, Rozensher andFergenson's (1999) finding that marketing educatorsare giving attention to ethics two hours or less per courseand that most are not introducing the more importantissues as well as our results that reveal only twenty-fivepercent of ethics professors' schools offer marketingethics courses is disturbing. This lack of coverage ofmarketing ethics may indicate that, like many busi-nesses, many marketing educators are only providing a"window dressing" treatment to ethics. There are sev-eral reasons for why this may be occurring.

Many marketing professors do not feel adequatelytrained to teach ethics. Ethics is a complicated subject andfaculty generally express a reluctance to explore moraland philosophical issues in their courses (Murphy 1993).Time is another concern of marketing faculty. There seemsto be little time to cover aU of the topics a marketingcourse requires and attempting to add an additional mod-ule is difficult. In addition, professors are being asked tocover issues related to technology, global and e-market-ing in most courses. Other criticisms or concerns are thatethics is a "soft" subject that is highly subjective and haslittle effect on students in their careers. Some professorsdo not feel comfortable talking about ethics because theyfeel they must get up on a "soap box" and preach. Thetrue challenge, however, has been to actually integrateethical issues in each component of marketing. True inte-gration would require inserting and discussing an ethicalissue in dass on a fairly regular or daily basis (Murphy 1993).

Marketing Education Review

Table 2Objectives for Marketing Etiiics

Objective

Normative/Prescriptive

Create sense of responsibilityto community

Instiil, teach virtue; pursuitof truth and other virtues;Virtuous community

Reinforce Existing Vaiue System/Self Discovery

Reinforce/encourage "right" behavior;good ethics leads to goodperformance, learn rightfrom wrong; change in students'long range ethics related constructs

Teach or improve moralReasoning skills

Positive/Descriptive

Ethical Sensitivity/ Moral Imagination

Knowledge of ethical theory/frameworks/decision processes/teach rather than preach

Develop critical thinking andProblem solving skills

Encourage tolerance and respectof other viewpoints; help studentsdeal with ambiguity

Help students understand"real world" ethical situationsand consequences of ethicaldecisions

Bishop 1992, Collins 1996, Herndon 1996, Kolenko et al. 1996,Oddo 1997, Pamental 1989, Trevino and McCabe 1994, Warren 1995

Mintz 1996, Solomon 1992

Bishop 1992, Brown 1994, LeClair and Ferrell 2000, Cddo 1997,Warren 1995

Herndon 1996, Cddo 1997, Powers and Vogel 1980,Trevino and McCabe 1994, Wotruba 1993

Kavathatzopoulos 1994, Kolendo etal. 1996, Rest 1986,Trevino and McCabe 1994, Wotruba 1993

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

Bishop 1992, Gandz and Hayes 1988, Kavathatzopoulos 1994,Kohls 1996, LeClair and Ferrell 2000, Warren 1995

Bishop 1992, Collins 1996, Gandz and Hayes 1988,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

Herndon 1996

Bishop 1992, Kavathatzopoulos 1994, Trevino and McCabe 1994

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If we are to impact futxare marketers' ethical decisionmaking, they must be informed of the importance ofethical decision-making and even "inspired" to behavein a more ethical manner. Though stand-alone coursesin marketing ethics may contribute to emphasizing theimportance of ethical marketing decisions (Singhapakdi1999), marketing students must also understand theparticulars of making ethical decisions in the context ofday-to-day marketing activities. The application of eth-ics in different situations requires that students be awareof the issues that may arise while conducting market-ing activities. Stand-alone courses will contribute to stu-dents' understanding of the importance of ethics andalso provide some framework in understanding the ethi-cal decision process and implementing ethical market-ing decisions (Herndon 1996; Singhapakdi 1999). Trueintegration throughout the marketing curriculum pro-vides the context of ethical marketing decisions andalso provides an understanding of ethics application.Therefore, marketing educators should, in an idealworld, provide separate marketing courses, as well asintegrate ethical components and ethics discussion on aregular basis in all marketing courses. In the real world,though, we must deal with curriculum restraints andother time limitations in the course. Restraints and bud-geting of time come down to prioritization. We mustdetermine that encouraging ethical behavior and con-tributing to an ethical culture within the marketing or-ganization is worthwhile and important to educatingfuture marketers. In light of greater integration, theintroduction of ethics in the marketing capstone coursesthen is especially important, again to emphasize theimportance of ethics in marketing and also in order toprovide guidance in understanding ethics in light ofmore complex marketing decisions

Though marketing educators face challenges in teach-ing marketing ethics, the results of this study indicatethat marketing educators are making advances in ourapproach to integrating ethics through greater utiliza-tion of experiential approaches to teaching ethics. Edu-cational "gurus" suggest that experiential andinteractive learning are the most effective means of learn-ing. This is consistent with cognitive science and meth-ods shown to be the most effective means of learningethics (Anderson 1997). Teaching marketing ethics pro-vides an excellent opportunity for students to developcritical-thinking skills, as well as awareness of ethicalissues. Our findings suggest that future educatorsshould approach ethics from a more process orienta-tion, with a focus on how organizational culture ischanged and plays a role in impacting marketing ethicsand performance. Also, marketing pedagogy shouldinclude the use of cases and the use of both normative

and descriptive approaches, though more study shouldbe undertaken to understand the marketing ethics'educator's role in guiding the moral decisions of stu-dents. Cases are seen as one of the most effective meansof teaching with an emphasis on experiential teachingmethods. Experiential and interactive learning is amongthe most effective means of learning. The pedagogypresented here offers several experiential approaches.The use of role-play and behavioral simulations revealedin the literature review is useful in improving ethicaldecision-making skills.

Another important dimension that has not been con-sidered to any degree is the measurement of the effec-tiveness of teaching methods. Loe and Weeks (2000)attempted to address this through pretest and posttestanalysis of students' cognitive moral development. Theyfound that the use of lecture, ethics games, group dis-cussion and role-play was instrumental in improvingthe moral reasoning skills of students. As in other areasof teaching, we must consider our goals in teaching andthe effectiveness of our teaching methods.

Goals of Marketing Ethics Education

Effective marketing strategies require well thoughtout goals and objectives. We teach our students thatwhen considering how to develop an advertising ormarketing plan that objectives must first be developedto determine the direction to take. Objectives drive thestrategy and the tactics used to achieve the objectives.Determining the objectives of a marketing ethics courseor the integration of marketing ethics drives the meth-odology and pedagogy to be used. Marketing educa-tors must determine the objectives of marketing ethicsinstruction to guide the implementation of ethics edu-cation. Many of the more common objectives of mar-keting ethics courses and the integration of ethics in themarketing curriculum are outlined in Table 2.

Based upon the above strategic considerations, whatpedagogical approaches should be utilized to achievethese goals and which approaches will assure the great-est opportunity for success. Table 1 offers some ap-proaches deemed to be effective based upon severalcommon objectives of marketing ethics education.

Other areas that need investigation when consider-ing how best to teach marketing ethics in the 21 '̂ Cen-tury include a discussion and analysis of the strategicapproach to most effectively teach marketing ethics.

Normative vs. Descriptive Approach

Probably one of the more controversial issues withwhich marketers are faced is that of offering students

11

Marketing Education Review

"prescriptive" or normative education versus provid-ing only a description of ethical issues and frameworksfor understanding how they may approach ethical situ-ations. A comprehensive study is needed of whether ornot marketing ethics should take a normative or posi-tive approach in dass or both. Our preliminary find-ings suggest some combination of normative anddescriptive means will be productive. However, manymarketing educators feel very reluctant to "impose"their personal ethics on students. As noted earlier, pro-fessors of marketing consider this approach to be equiva-lent to preaching or getting on a "soap box" (Murphy1993). However, our findings indicate that each of therespondents to our survey includes a normative com-ponent while two incorporate solely a normative per-spective when teaching marketing ethics. We wouldlike to offer a couple of explanations for these findings.

First, studies have indicated that when faced withethical situations, marketers (salespeople in particular)desire guidance (Dubinsky et al. 1992). Additionally,significant others (fellow employees and supervisors inparticular) have the greatest influence on ethical deci-sion-making in the work place (Ferrell and Gresham1985; Zey-Ferrell, Weaver and Ferrell 1979; Zey-Ferrelland Ferrell 1982; Zabid and Alsagoff 1993). Guidanceor a normative approach to understanding what is"right" is sought out.

Secondly, and closely associated with the significantinfluence of others and particularly those in positionsof authority, is the fact students look to their professorsfor guidance in understanding what they will face inthe workplace. Students look to their professors to pro-vide "best practices" when teaching any subject. We asmarketing educators are obligated to keeping in touchwith the most effective marketing methods and expos-ing our students to such methods. Students want toknow "what works best." This is especially true whenthe subject is more abstract and right and wrong an-swers are less evident. Often several different ap-proaches to solving a marketing problem or takingadvantage of a market opportunity might be utilized,aU of which may have positive outcomes. The authors,as well as anyone who has instructed a class, are asked,"What is the right answer?" Bishop (1992) suggeststhat actually, "There is no ethically neutral teaching.Everything in the classroom communicates an ethicalposition. The only difference between business ethicscourses and all others is truth in advertising; Ethicscourses state explicitly when value positions are com-municated; the regular curriculum embodies hiddenassumptions of which even the professor may be un-aware" (p. 194). Additionally, Ryle (1972) suggests thatteachers are role models for students, whether we like

it or not and whether or not we have an awareness ofbeing a role model. Teachers cannot avoid impartingvalues in one way or another in the normal course ofour activities as teachers. Moral education in a sense isunavoidable (Carbone 1987). Churchill (1982) states thatmoral values "cannot fail to be taught" (p. 306); andFolse (1991) suggests, "they (moral values) permeatethe student-teacher relationship through the ethos,methods, and objectives of the classroom" (p. 347).Teachers do no avoid teaching ethics by taking a "value-neutral approach." Instead, we may contribute to astudent's lack of confidence in a moral life, which leadsto moral relativism (Carbone 1987). This question isinevitable in a class or discussion of ethics. Ethics, un-doubtedly, is one of the more abstract subjects that weas educators may teach.

The complexity of the market place is growing asnew technology is introduced and utilized. Marketersare just beginning to understand the magnitude of theimpact of the Internet and with the World Wide Web'spervasiveness comes many new opportunities to en-gage in unethical behavior. Especially in such a situa-tion, where the environment is dynamic,decision-making frameworks will be invaluable andthus the inclusion of descriptive approaches is neces-sary. Students will continue to ask for direction, how-ever, and as educators we wiU want to offer suggestionsbased upon existing codes of ethics and standards ofbehavior that are developed within the respective in-dustry. Ultimately, students will be faced with makingdecisions on their on in an ever changing environment.

An important question, then, is "should" we provideanswers (our judgment) or is our primary concern theteaching of critical thinking skills in ethics in an effortto equip students with tools to be able to more effec-tively solve ethical situations they will inevitably face?The answer probably lies somewhere in offering bal-ance. We need to provide the students tools to be effec-tive when faced with abstract ethical situations, butalso we may address their questions of "right" actionsin light of existing codes of ethics, and the expression ofour opinion does not constitute imposing our personalethics on the students. The students, again, ultimatelymust choose their course of action in any given situation.

However, students who have not had experience infacing specific marketing ethics issues will not under-stand the norms of acceptable behavior as well as thepossible consequences of their actions. Ethics codes pro-vide guidelines for acceptable behavior and they maybe used to offer students answers to some of the ques-tions with which they must deal in the workplace. Mar-keting educators may offer their personal understandingof what "actions" are most acceptable, given the situa-

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tion and the code of ethics of a particular industry. TheAmerican Marketing Association's Code of Ethics isone such code that provides direction for answeringethical marketing questions. While we may offer ourjudgments in particular situations, the students alsomust know that they will be on their own when facedwith these ethical situations and must understand theconsequences of their behavior.

While marketing instructors may not have the an-swers for each situation, there are some principles thatwe can offer upon which we can agree. We can andshould recommend that students follow the code ofethics of their chosen profession. Students should beencouraged to be honest and not lie, cheat or steal. Wecan and should promote to students the necessity tohonor the law and promote ethical behavior in theirorganization. In short, we should offer frameworks tomake ethical decisions as well as attempt to inspirestudents to be honest and ethical.

A correlated investigation concerns the outcomes ofethical behavior. To what degree does marketing ethicsactually impact the performance of the organization?Anecdotal evidence for a positive relationship is avail-able, but further empirical investigation is necessary inorder to provide support for discussing this relation-ship in the classroom. A full discussion should addressthe normative vs. descriptive approach and the goals ofmarketing organizations in relation to their impact onsociety and relationships with customers and otherstakeholders is warranted.

This exploratory investigation is intended to encourageadditional researdi into marketing professors' interest andinvolvement in teaching marketing ethics. This small pilotstudy provides some insights into current methods of teach-ing marketing ethics and the activities and concerns of someof the more visible marketing professors that are attemptingto cover marketing ethics in their courses. Finally, we offersome suggestions for strategic considerations and the use ofseveral effective pedagogical methodologies for teachingmarketing ethics in the 2P' century. Hopefully this investiga-tion will contribute to more discussion and research into theteaching of marketing ethics in colleges of business.

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Appendix A

Marketing Ethics Survey

1. Do you teach an ethics course in the dept. of marketing? (circle one)Marketing ethicsBusiness ethics

• Other:None

2. What dept. (or area) in your college has the greatest influence on the development and management ofthe ethics course? (circle one and provide any additional information necessary to understand the influence)

MarketingManagementBusiness 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 researchconsumer behavioradvertising and promotionbusiness marketingpersonal selling and sales managemente-commercestrategyprinciples

• Other:

b) Which courses above receive the greatest emphasis in the ethics area and why do you believe thisis the case?

(Continued)

Marketing Education Review

Appendix A (continued)

5. a) What approaches are used in teaching marketing (business) ethics?Lecture

• Guest lectureCasesComputerized simulationsPaper and pencil simulationsGamesVideos

• 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 provideany input necessary to better understand your teaching philosophy)

NormativePositive

• 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!!

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