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Chapter08-EthicsandMarketing
PAGE
8-
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30
Copyright?McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.
IMChapter8:
EthicsandMarketing
ChapterObjectives
Afterreadingthischapter,youwillbeableto:
?1. Applyanethicalframeworktomarketingissues.
?2. Describethethreekeyconcernsofethicalanalysisofmarketingissues.
?3. Describethreeinterpretationsofresponsibilityandapplythemtothetopicofproductsafety.
?4. Explaincontractualstandardsforestablishingbusiness’responsibilitiesforsafeproducts.
?5. Articulatethetortstandardsforestablishingbusiness’responsibilitiesforsafeproducts.
?6. Analyzetheethicalargumentsforandagainststrictproductliability.
?7. Discusshowtoevaluatebothethicalandunethicalmeansbywhichtoinfluencepeoplethroughadvertising.
?8. Explaintheethicaljustificationforadvertising.
?9. Tracedebatesaboutadvertising’sinfluenceonconsumerautonomy.
10. Distinguishethicalfromunethicaltargetmarketing,usingmarketingtovulnerablepopulationsasanexample.
11. Discussbusiness’responsibilitiesfortheactivitiesofitssupplychain.
12.Explainhowmarketingcancontributetowardamoresustainablebusinessmodel.
OpeningDecisionPoint
DigitalMarketing
ThisnewDecisionPointcanbeusedtointroducestudentstoawiderangeofethicalissuesinmarketing,fromdeceptionandunfairness,toconsumerprivacyandconsumerautonomy.Thisexamplereplacesthecaseofpharmaceuticalmarketingfrompreviouseditions(althoughwehavekeptseveralofthekeypointsfromthepharmaceuticalcasesasexampleselsewhereinthischapter.Digitialmarketingraisesmoretimelyexampleforstudentsandinourexperiencesgetsthemtomoreeasilyreflectontheissuesfromtheirownexperiences.
Discussionquestionsthatareaimedatraisingsomeoftheseissuesatthestartofthechapter:
U.S.courtssometimesusethe“expectationofprivacy”astestforlimitinggovernmentalmonitoring.Thus,forexample,thepolicecanmonitoryourbehaviorwithoutawarrantwhenyouareinapublicplace,butnotwhenyouaretalkingonyourphone.Whatexpectationsofprivacydoyouhavewhenyouaresurfingtheweb?OrderingsomethingfromAmazonorNetflix?SpendingtimeonFacebook?
Physicallystalkingsomeonecanbeacrime.Arethereparallelsbetweenphysicallystalkingsomeone,andregularlymonitoringtheiractivitiesontheweb?Howaretheysimilar?Howaretheydifferent?
Moston-linetrackingisdonethroughtheuseof“cookies,”smallfilesstoredonacomputerormobiledevicethatprovidesinformationaboutpastbrowsinghistory.Shouldconsumershavearighttoopt-outorshouldtheirexplicitconsentberequiredbeforecookiesareinstalled?
Informationaboutyouron-linebehaviorisacommoditythatcanbeboughtandsold.Whoshouldownthispersonalinformation?
Introduction
DefinitionofMarketing:Somebelievethattheverypurposeofbusinessisfoundwithinthemarketingfunction.
Marketingscholar,TheodoreLevitt,explainsthepurposeofbusinessasfollows:“Thepurposeofabusinessistocreateandkeepacustomer.Todothat,youhavetoproduceanddelivergoodsandservicesthatpeoplewantandvalueatpricesandunderconditionsthatarereasonablyattractiverelativetothoseofferedbyothers.”
TheAmericanMarketingAssociationdefinesmarketinginawaythatalsosuggeststhatitisattheheartofbusinessactivity,stating:“anorganizationalfunctionandasetofprocessesforcreating,communicating,anddeliveringvaluetocustomersandformanagingcustomerrelationshipsinwaysthatbenefittheorganizationanditsstakeholders.”
Theconceptofanexchangebetweenasellerandabuyeriscentraltothemarketeconomyandisthecoreideabehindmarketing.
Marketinginvolvesallaspectsofcreatingaproductorserviceandbringingittomarketwhereanexchangecantakeplace.
Marketingethics,therefore,examinestheresponsibilitiesassociatedwithbringingaproducttothemarket,promotingittobuyers,andexchangingitwiththem.
Considerations:
Evenbeforeaproductiscreated,aproducermightfirstconsiderwho,ifanyone,isinterestedinpurchasingit.
Theproductmightthenberedesignedorchangedinlightofwhatislearnedaboutpotentialbuyersfrommarketresearch.
Oncetheproductisreadyformarket,theproducermistdecidedonapricethatwillbemutuallyacceptable.
Theaskingpriceshould,atminimum,betheproductioncostplussomereasonableprofit.
However,theproducermightconsiderwhothebuyersareandwhattheycanafford,howmuchpricemightinfluencefuturepurchases,howthepricemightaffectdistributorsandretailers,andwhatcompetitorsarechargingbeforesettlingonaprice.
Theproducermightalsoconsideradvertisingtheproducttoattractnewpotentialpurchasersandpromotetheproductamongbuyers.
Lostproductionthatresultsfromthetriptothemarketshouldalsobeconsidered.
Producersmightbemoreconcernedwithcashflowthanprofitandthereforemaybewillingtoaskapricethatisbelowproductioncosts.Themightalsoconsiderwhereandunderwhatconditionstheproductissold.
Throughoutthisentireprocess,theproducermightconductmarketresearchtogatherinformationandusethatinformationinproduction,pricing,promotionandplacementdecisions.
The“FourPs”ofMarketing:Allofthefactorsconsideredandeachdecisionmadethroughoutthisprocessareelementsofmarketing.Thefourmainelementstoconsiderwhenmarketingtoconsumersare:product,price,promotion,andplacement.
EachoftheFourPsraisesimportantethicalquestions:
Product:Whatresponsibilitiesdoproducershaveforthequalityandsafetyoftheirproducts?Whoisresponsibleforharmscausedbyaproduct?Aretheresomeproductsthatshouldnotbeproduced,ordoesconsumerdemanddecideallproductionquestions?
Price:Istheconsumer’swillingnesstopaytheonlyethicalconstraintonfairpricing?Shouldtheabilitytopaybeafactorinsettingprice?Doallcustomersdeservethesameprice,orcanproducersdiscriminateinfavorof,oragainst,someconsumers?Whateffectswillpricehaveoncompetitors?Onretailers?
Promotion:Aredeceptiveormisleadingadsethical?Whatethicalconstraintsshouldbeplacedonsalespromotions?
Placement:Istheinformationgatheredinmarketresearchthepropertyofthebusinessthatconductstheresearch?Whatprivacyprotectionsshouldbeofferedformarketingdata?Isitethicaltotargetvulnerablepopulationssuchaschildrenortheelderly?Whatresponsibilitiesdoesaproducerhavewhenmarketinginforeigncountries?Whatresponsibilitiesdoproducershavetoretailers?Tocompetitors?Tosuppliers?
Marketing:AnEthicalFramework
*ChapterObjective1AddressedBelow*
EthicalFramework:Thesimplemodelofasingleexchangebetweentwoindividualsisausefulwaytointroduceanethicalframeworkformarketingethics.Thisframeworkwillassistthedecisionmakerinarrivingatanethicaldecision,butwillnotpointtothe“correct”decisionbecauseitmerelyidentifiesrights,responsibilities,dutiesandobligations,causesandconsequences.
*Reference:Table8.1–EthicalIssuesinMarketing:AFramework*
Thissimplesituationinwhichtwopartiescometogetherandfreelyagreetoanexchangeisprimafacieethicallylegitimate.
Therights-basedethicaltradition(describedinChapter3)wouldseeitasupholdingrespectforindividualsbytreatingthemasautonomousagentscapableofpursuingtheirownends.
Thistraditionpresumesthateachindividualwillabidebyfundamentalprinciples.
Theutilitarianethicaltraditionwouldtakethetwoparties’agreementasevidencethatbotharebetteroffthentheywerepriortotheexchangeandthusconcludethatoverallhappinesshasbeenincreasedbyanyexchangefreelyenteredinto.
Thisassessmentisonlyprimafaciebecause,likeallagreements,certainconditionsmustbemetbeforewecanconcludethatautonomyhas,infact,beenrespectedandmutualbenefithasbeenachieved.
Wewouldneedtoestablishthattheagreementresultedfromaninformedandvoluntaryconsent,andthattherewasnofraud,deception,orcoercioninvolved.
Whentheseconditionsareviolated,autonomyisnotrespected,andmutualbenefitisnotattained.
Evenwhensuchconditionsaremet,othervaluesmayoverridethefreedomofindividualstocontractformutuallybeneficialpurposes.
Forexample,thefreedomofdrugdealerstopursuemutuallyagreeableendsisoverriddenbysociety’sconcerntomaintainlawandorder.
*ChapterObjective2AddressedBelow*
Itwillbehelpfultokeepthreemainconcernsinmindasweapproachanyethicalissueinmarketing:
Therights-basedethicaltraditionwouldasktowhatdegreetheparticipantsarerespectedasfreeandautonomousagentsratherthantreatedsimplyasmeanstotheendofmakingasale.
Theutilitariantraditionwouldwanttoknowthedegreetowhichthetransactionprovidedactualasopposedtomerelyapparentbenefits.
Everyethicaltraditionwouldalsowonderwhatothervaluesmightbeatstakeinthetransaction.
Overall,thethreeissuestoconsiderare:1)thedegreetowhichindividualsfreelyparticipateinanexchange;2)thebenefitsandcostsofeachexchange;3)othervaluesthatareaffectedbytheexchange.
RespectinMarketing:Itisnotalwayseasytodetermineifsomeoneisbeingtreatedwithrespectinmarketingsituations.
Oneconditionofrespectisthatthepersonmustfreelyconsenttothetransaction.
Transactionsunderthethreatofforcearenotvoluntaryandthereforeareunethical.But,therearemanydegreesofvoluntariness.
Forexample,themoreconsumersneedaproduct,thelessfreetheyaretochooseandthereforethemoreprotectiontheydeservewithinthemarketplace.
Example:ThemajorityofcomputerusersdonotevenchoosetheWindowsoperatingsystem,itistheironlyoption.
Moredramaticexamplesofpricegouging,price-fixing,andmonopolisticpricingclearlyraisetheissueoffreedominmarketing.
Practicesaimedatvulnerablepopulationssuchaschildrenandtheelderlyalsoraisequestionsofvoluntariness.
Anadequateanalysisofmarketingethicschallengesustobesensitivetomanywaysinwhichconsumerchoicecanbelessthanfullyvoluntary.
*Reference:“RealityCheck-ImpulseBuying”*
**TeachingNote:Akeyquestiontoask,andagainstwhichtochallengetheabovetheories,iswhatresponsibilitydowehavefortheimpactofourcommunications,asindividualsandascorporationsorotherinstitutionsofsociety?Isthereanydifference?Instructorsmaywishtoaskstudentstotakealookatafewofthekeyissuesrelatingtoresponsibilityanditssourcesinordertoexplorethepossibleanswer.Facultymightaskstudentstoconsider,aswell,howthemoraltheoriestheyhaveexploredwouldresolvethischallenge.Facultycouldusethemovie“ThankyouforSmoking”(
/trailers/fox_searchlight/thankyouforsmoking/trailer/
)oradvertisements/communicationsat
.
InformedConsent:Asecondconditionforrespectrequiresthatconsentbevoluntaryaswellasinformed.
Informedconsenthasreceivedagreatdealofattentioninthemedicalethicsliteraturebecausepatientsareatadistinctinformationaldisadvantagewhendealingwithhealthcareprofessionals.
Outrightdeceptionandfraudclearlyviolatethisconditionandareunethical.
Aconsumer’sconsenttopurchaseaproductisnotinformedifthatconsumerisbeingmisledordeceivedabouttheproduct.
Seriousethicalquestionsshouldberaisedwhenevermarketingpracticeseitherdenyconsumersfullinformationorrelyonthefactthattheylackrelevantinformationorunderstanding.
Thecomplexityofmanyconsumerproductsandservicescanmeanthatconsumersmaynotunderstandfullywhattheyarepurchasing.
Whilesomebusinessesclaimthat“aninformedconsumerisourbestcustomer,”manyothercompaniesviewuninformedconsumersastargetsforquickprofits.
AllegedBenefitsofMarketExchanges:
Economistscommonlyassumethatconsumersbenefit,almostbydefinition,whenevertheymakeanexchangeinthemarketplace.However,manypurchasesdonotresultinactualbenefit.
Example:Manymarketingtechniquesthatpromoteimpulsebuyingandsimilarconsumerbehaviorcannotbejustifiedbyappealtosatisfyingconsumerinterestssincethesepurchasescanleadtoover-spendingandevenbankruptcy.
Marketingmaysuggestthatconsumerscanbuyhappiness,buttheever-increasingnumberofindividualbankruptciessuggeststhatconsumerscannotpurchasehappiness.
Studiesprovideevidencethatgreaterconsumptioncanactuallyleadtounhappiness,aconditionthatsomecall“affluenza.”
*Reference:“RealityCheck-ImpulseBuying”*
Bothpartiestothemarketingexchangearenotbenefitedinsituationsinwhichonepartyisinjuredbytheproduct.
Unsafeproductsdonotfurthertheutilitariangoalofmaximizingoverallhappiness.
Consumersarenotbenefitedifthedesiresthattheyseektosatisfyinthemarketaresomehowcontrivedormanipulatedbytheseller.
OtherValues:Anethicalanalysisofmarketingmustconsidervaluesotherthanthoseservedbytheexchangeitself.
Primarysocialvaluessuchasfairness,justice,health,andsafetyarejustsomeofthevaluesthatcanbejeopardizedbymarketingpractices.
Example:Abankthatofferslowermortgageratesinaffluentneighborhoodsthanitdoesininner-cityneighborhoodsmightbeinvolvedonlyindealsthataremutuallybeneficialsincetheydonot,infact,sellmortgagesintheinner-city.Suchcontractswouldviolatethesocialnormsofequaltreatmentandfairness.
Justbecausesomeonewantstobuysomethingandsomeoneiswillingtosellitdoesnotmeanthetransactionisethicallylegitimate.
Thereisamarketforchildrenandorgansandbodypartsandendangeredspecies,butthesearedefinitelynotethicallylegitimatemarkets.
Anadequateethicalanalysisofmarketingmustask“whoelsemightbeaffectedbythetransaction?”
How,ifatall,aretheinterestsoftheseothersrepresented?
Whatsocialgoodsarepromoted,andwhicharethreatened,bymarketingthisproduct?
Truecosts:Anadequateethicalanalysisofmarketingmustconsiderexternalities,thosecoststhatarenotintegratedwithintheexchangebetweenbuyerandseller.
Externalitiesshowthatevenifbothpartiestotheexchangereceiveactualbenefitsfromtheexchange,otherpartiesexternaltotheexchangemightbeadverselyaffected.
Example:ConsidertheenvironmentalorhealthimpactofmarketingproductssuchasSUVs,pesticides,andtobacco.
**TeachingNote:Again,ifwearetoconsidertheobligationthatamarketingprofessionalmightowetosociety,perhapsweshouldfirstdeterminethenatureofthatresponsibilityandthenwecanbegintojudge.
Aremarketingprofessionalsobligatedtocontributetosociety(oreven/atleastconsiderit)?
Domarketingprofessionalhavespecialresponsibilitiestovulnerablegroupsofconsumers,e.g.,children,theelderly?
Whatdoesitmeanfortheirwork(ads,othercommunications)tobe“effective?”
Towhatstandardsdoyouholdthem?
Towhatstandardsdoyouholdus?
i.e.letthe“perceiver”bewarewithregardtodeception(laterdiscussion)
ResponsibilityforProducts:SafetyandLiability
*ChapterObjective3AddressedBelow*
EthicalResponsibilityforProductsandServices:Businesshasanethicalresponsibilitytodesign,manufacture,andpromoteitsproductsinwaysthatavoidcausingharmtoconsumers.
Responsibilityhasseveralmeanings:
Inonesense,responsibilityistobeidentifiedasthecauseofsomething.
Inanothersense,responsibilityinvolvesaccountability.
Athirdsenseinvolvesassigningfaultorliabilityforsomething.
Example:HurricaneSandywasresponsiblefor(caused)thedamageinNewYork,butcannotbeheldresponsible(accountableforpayingforthedamages),norcanitbefaultedforit.
Inothersituations,suchasanautomobilecrash,acarelessdriverwouldbeidentifiedasthecauseoftheaccidentandheldaccountablebecausehe/shewasatfault.
*Reference:“RealityCheck–CaveatEmptorinBuyingDrugs?
ThisisoneplacewherewebringtheOpeningDecisionScenariofromlastedition’spharmaceuticalcaseintothischapter.Prescriptiondrugsareagoodtestcaseforhowfarsocietyoughttogoinrespectingconsumersovereigntyandtheneedtobalancesafetywiththefreedomtochoose.
Bothlawandethicsrelyonasimilarframeworkwhenevaluatingcasesinwhichbusinessproductsorservicescauseharminthemarketplace.
Thefocusformuchofthediscussionofbusiness’sresponsibilityforproductsafetyisonassigningliability(fault)forharmscausedbyunsafeproducts.
Thelegaldoctrineofstrictliabilityisethicallycontroversialexactlybecauseitholdsabusinessaccountableforpayingdamageswhetherornotitwasatfault.
Inastrictliabilitycases,nomatterhowcarefulthebusinessisinitsproductorservice,ifharmresultsfromuse,thebusinessisliable.
ContractualStandardsforProductSafety
*ChapterObjective4AddressedBelow*
CaveatEmptorApproach:Thestandardofcaveatemptor,or“l(fā)etthebuyerbeware,”understandsmarketingonasimplemodelofacontractualexchangebetweenabuyerandaseller.
Thisperspectiveassumesthateverypurchaseinvolvestheinformedconsentofthebuyerandthereforeitisassumedtobeethicallylegitimate.
Buyershavetheresponsibilitytolookoutfortheirowninterestsandprotecttheirownsafetywhenbuyingaproduct.
Fromthisperspective,businesshasonlytheresponsibilitytoprovideagoodorserviceatanagreed-uponprice.
Thesocialcontractmodelholdsthatallethicalresponsibilitiescanbeunderstoodwithinacontractualmodel,andtheonlydutieswehavearethosethatwehavefreelytakenonwithinasocialcontract.
Individualcontractsandpromisesarethebasisofethicalduties.
Theimplicationofthiswithinthebusinesssphereisthatunlessasellerexplicitlywarrantsaproductassafeandpromisestobeliableforharmssufferedbythebuyer,thenbuyersareliableforanyharmstheysuffer.
Eventhissimplemodeofcontractualmarketexchangeplacesethicalconstraintsontheseller.
Sellershaveadutynottocoerce,defraud,ordeceivebuyers.
Consumerswhowereinjuredbyaproductthatwasdeceptivelyorfraudulentlymarketedwouldhavelegalrecoursetorecoverdamagesfromtheseller.
Courtsrecognizeanimplicitpromise,orimpliedwarranty,thataccompaniesanyproductthatismarketed.
“Impliedwarrantyofmerchantability,”holdsthatinsellingaproductabusinessimplicitlyoffersassurancesthattheproductisreasonablysuitableforitspurpose.
Evenwithoutaverbalorwrittenpromiseorcontract,thelawholdsthatbusinesshasadutytoinsurethatitsproductswillaccomplishtheirpurpose.
Howfardoesthisdutyreach?SeetheRealityCheck“The‘Cause’ofObesity,FreeChoiceandMarketingtoChildren”foradiscussionofthisduty.
ImpliedEthics:Theethicsimplicitwithinthecontractapproachassumesthatconsumersadequatelyunderstandproductswellenoughthattheycanreasonablybeexpectedtoprotectthemselves.
Consumersdon’talwaysunderstandproductsfullyandtheyarenotalwaysfreetochoosenottopurchasesomethings.
Ineffect,theimpliedwarrantystandardshiftstheburdenofprooffromconsumerstoproducersbyallowingconsumerstoassumethatproductsweresafefornormaluse.
Producerswereimplicitlypromisingthattheirproductsweresafeundernormaluse.
Theethicalbasisforthisdecisionistheassumptionthatconsumerswouldnotgivetheirconsenttoapurchaseiftheyhadreasontobelievethattheywouldbeharmedbyitwhenusedinanormalway.
Iflawwillholdbusinessliableforimplicitpromises,aprudentbusinesswillseektolimititsliabilitybyexplicitlydisowninganypromiseorwarranty.
Manybusinesseswillissueadisclaimerofliabilityorofferanexpressedandlimitedwarranty.Mostcourtswillnotallowabusinesstocompletelydisclaimtheimpliedwarrantyofmerchantability.
TortStandardsforProductSafety
*ChapterObjective5AddressedBelow*
Theuseofanimpliedwarrantysolvedonesetofproblemswiththecontractlawapproachtoproductliability.
Consumerswouldnotneedcomplexcontractsinordertoprotectthemselvesfromallpossibleharmsthatproductsmightcause.
Ifweholdbusinessliableforonlythosepromisesmadeduringthemarketexchange,thenastheconsumergetsfurtherseparatedfromthemanufacturerbylayersofsuppliersandretailers,theremaybenorelationshipatallbetweentheconsumerwhogetsharmedandtheultimatemanufacturerordesignerwhowasatfault.
*Reference:“RealityCheck–Snapchat
Thisrecentcasecanbeusedtoraisequestionsofcontributorynegligenceandforeseeabilityinassessingbusinessliabilityforharmscausedbytheirproducts.Studentsmightbeaskedtoplaytheroleofjurorsinalegalsuitbroughtinthiscase.Studentsshouldconsideringthefollowingquestionswhenassessingthisscenario:
Whatfactswouldyouwanttoknowbeforedecidingthiscase?
Whatalternativeswouldajuryfaceindecidingthiscase?
Whoarethestakeholdersofyourdecision?Whatistheimpactofeachalternativeoneachstakeholderyouhaveidentified?
Whatrightsanddutiesareinvolved?
Howwouldyoudecidethecase?Isitmostlyamatterofconsequences,orarethereimportantprinciplesinvolved?
Negligence:Aconceptfromtheareaoflawknownastorts,providesasecondavenueforconsumerstoholdproducersresponsiblefortheirproducts.
Underacontractmodel,theonlydutiesthatapersonowesarethosethathavebeenexplicitlypromisedtoanotherparty.
Theethicalperspectivethatunderliestortlawholdsthatwealloweotherpeoplecertaingeneralduties,evenifwehavenotexplicitlyandvoluntarilyassumedthem.
Ioweotherpeopleageneraldutynottoputthematunnecessaryandavoidablerisk.
Example:AlthoughIhaveneverexplicitlypromisedanyonethatIwilldrivecarefully,Ihaveanethicaldutynottodriverecklesslydownthestreet.
Negligenceisacentralcomponentoftortlawandinvolvesatypeofethicalneglect.Specificallyitreferstoneglectingone’sdutytoexercisereasonablecarenottoharmotherpeople.
Manyoftheethicalandlegalissuessurroundingmanufacturers’responsibilitiesforproductscanbeunderstoodastheattempttospecifywhatconstitutesnegligenceintheirdesign,production,andsale.
Whatduties,exactly,doproducersoweconsumers?
Onecanthinkofpossibleanswerstothisquestionfallingalongacontinuum,ononeendissocialcontract,ontheother,strictliability.
Socialcontractanswer:Producersoweonlythosethingspromisedtoconsumersinthesalesagreement.
Strictliability:Producersowecompensationtoconsumersforanyharmcausedbytheirproducts.
Inbetweenthesetwoisarangeofanswerswithdifferentinterpretationsofnegligence.
Negligencecanbecharacterizedasafailuretoexercisereasonablecareorordinaryvigilancethatresultsinaninjurytoanother.
Peoplehavedoneanethicalwrongwhentheycauseharmtoothersinwaysthattheycanreasonablybeexpectedtohaveavoided.
Negligenceincludesactsofbothcommissionandomission.
Onecanbenegligentbydoingsomethingthatoneoughtnot(e.g.,speedinginaschoolzone)orbyfailingtodosomethingthatoneoughttohavedone(e.g.,neglectingtoinspectaproductbeforesendingittomarket).
Negligenceinvolvesforeseeingtheconsequencesofouractsandfailingtotakestepstoavoidthelikelyharmfulconsequences
Thestandardsofforeseeabilityraiseinterestingchallenges
Onestandardofforeseeabilitywouldholdpeopleliableonlyforthoseharmstheyactuallyforesawoccurring(actualforeseeability).But,ifsomeoneactuallythinksthatharmsarelikelytoresultfromhisactsandproceedsnonetheless,hehascommittedaseriouswronganddeservesharshpunishment.
Thiscaseseemsmoreakintorecklessness,orevenintentionalharm,thannegligence.
Thisstandardalsoimpliesthatthoughtlesspeoplecannotbenegligent,sinceoneescapesliabilitybynotactuallythinkingabouttheconsequencesofone’sacts.“Ineverthoughtaboutthat”wouldbeanadequatedefenseifweusedthisstandardofnegligence.
Negligenceismeanttoencouragepeopletobethoughtfulandtoholdthemliablewhentheyarenot.
RealityCheck:StrictLiabilityasRiskManagement
Strictliabilityiscontroversialbecauseitappearstoholdbusinessliableforcausingharmsoverwhichithadnocontrol.Likeall“RealityChecks,”thisboxaimstoaddabitmorecomplexitytoanissuethatatfirstappearstobesimple.Isthereanotherwaytothinkaboutthestrictliabilitystandard,notaspunishment,butasameansforallocatingrisksandcosts?
Apreferablestandardwouldrequirepeopletoavoidharmsthat,eveniftheyhaven’tactuallythoughtabout,theyshouldhavethoughtabouthadtheybeenreasonable.
Forexample,inthewell-knowncaseofLeibeckvMcDonald’s(involvingacustomerwhospilledhotcoffeeonherselfafterdrivingawayfromthethedrive-upwindowatMcDonald’s.PresumablyMcDonald’sdidnotactuallyanticipatethatcustomerswouldbeseverelyburnedbycoffee.But,haditsmanagersthoughtaboutwhatpeoplewhoareservedcoffeeatadrive-thruwindowmightdotoholdtheircupswhentheydriveawayfromthewindow,theycouldhaveforeseenthelikelihoodofspills.Moreover,thefactthatMcDonald’shadreceivedmorethan700priorburnclaimsinvolvingcoffeeovera10-yearperiodsuggeststhatareasonablepersonwouldhaveconcludedthatthiswasadangerouspractice.
This“reasonableperson”standardistheonemostoftenusedinlegalcasesandseemstobettercapturetheethicalgoalsoftheveryconceptofnegligence.
Peopleareexpectedtoactreasonablyandareheldliablewhentheydonot.
Whenonehasactualnoticeofalikelihoodofharm,suchasinthecaseoftheburninghotcoffeeatMcDonald’s,thereasonablepersonexpectationisincreased.
Theissueofforeseeabilitycomesupwhenaproductmightbemisused.
ReasonablePersonStandardcanbeinterpretedinvariousways.
A“reasonable”persondoeswhatwecouldexpecttheordinary,average
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