Introduction The term “Marketing ethics” has been defined as how moral standards of right and fair practices are implemented into organization and strategy (Murphy et al., 2005). In fact, marketing and ethics are usually seemed as a contradiction, because the purpose of marketing is monetary-oriented. The ultimate goal for business is making profit or generating sales, while ethics is moral and societal, such as contributing to the society. Introcaso et al (1998) quotes Michael Novak’s (1998) words that business might fail in the short term if introducing ethical model in competition, because high moral standards increase costs. Consequently, numerous companies launch misleading advertising, manufacture unsafe products, exploit labour right and waste natural resource for self-interest. They have indirectly deceived vulnerable consumers and sacrificed minority group. Nevertheless, marketing ethics can be seen in positive ways and ethics can actually be moulded into developing blocks of competitive advantages (Wyburd, 1998). Similarly, The Hong Kong Ethics Development Centre documents (1998) also expressed that marketing ethics make better employees and company reputation, which all enhance the company’s competitive edge in the long term. This indicates that ethics is a win-win strategy for business if managers place consumer satisfaction and social welfare beyond profitability. According to Meyers (2004), being ethical or not, is attributed to individual characteristics and business culture. This report will identify how individual characteristics affect ethical behaviour in an organization and its marketing strategy with The Body Shop (TBS) example applied and how it can strike the balance. The relation between ethical behavio... ... middle of paper ... ... to some extent, is a crucial element for Anita Roddick and TBS to persist with ethical responsibility for years. It is a shame-induced sense of imperative. There is also evidence that Alter and Winger consider “shame”, is to criticise socially destructive behaviour. Therefore, ‘shame’ could assist individual and organisation avoid being unethical. For example, TBS was sold to L‘Oreal Group since 2006. During that time, L‘Oreal Group does not have ethical image or adapt Corporate Social Responsibility (CSR). However, TBS remains its passion on moral values, instead of changing its business philosophy. In addition, TBS has influenced L‘Oreal Group successfully by starting introducing 6 Community Fair Trade ingredients across a range of its brands (Global Value Report, 2011). This means ‘shame’ not only makes TBS stick to core values strictly, but also affects others.
Lahdesmaki (2005) argued that marketing can be an ethical contract between businesses and their customers. Therefore businesses are morally obliged to inform their customers about the products in store and provide all the information necessary via marketing strategy so the customer can make informed decisions about their purchase.
...es, their managers, and their employees all act accordingly and fairly when selling products in the market place. According to Hekman (2011) in 2010 alone the BBB received over 25,000 complaints from consumers and success rate nearly perfect at 84% for creating a binding resolution for the consumer. This shows that it can help shape ethical behaviors in business, by working with managers and clients to create a mutual understanding of expectations from the general public of a company.
The abovementioned process is influenced by the commoditisation of products and blurring of consumer's own perceptions of the companies' offering. In order to differentiate and position their products and/or services today's businesses employ advertising which is sometimes considered not only of bad taste, but also as deliberately intrusive and manipulative. The issue of bad advertising is topical to such extent that organisations like Adbusters have embraced the tactics of subvertising - revealing the real intend behind the modern advertising. The Adbusters magazine editor-in-chief Kalle Lason commented on the corporate image building communication activities of the big companies: "We know that oil companies aren't really friendly to nature, and tobacco companies don't really care about ethics" (Arnold, 2001). On the other hand, the "ethics and social responsibility are important determinants of such long-term gains as survival, long-term profitability, and competitiveness of the organization" (Singhapakdi, 1999). Without communications strategy that revolves around ethics and social responsibility the concepts of total quality and customer relationships building become elusive. However, there could be no easy clear-cut ethics formula of marketing communications.
Throughout the course of day-to-day business life, the business professionals come in contact with quite a sum of ethical dilemmas. There are various ways to handle these ethical dilemmas, but failure to follow the appropriate manner could result in an unethical outcome. The ethical guides related to the book definitely help students develop an ethical character that is sure to stand out for highly ethical companies. In addition, there are companies that test how ethical applicants are before hiring them, this in turn makes getting the job more difficult and costly. However, despite the high cost and difficulty said companies stay firm to ethics, guaranteeing they get top-of-the-line employees who will act in an ethical manner. Ethics is defined
...ned with solving problems in the most amicable manner. One of the consequences of unethical practices in business world is that they solve short-term problems and pave way for mistrust. To regain the trust back from the public is not easy and this is costly to the company than anything else. Therefore, the issue of ethical advertising should be very critical in any organization especially if the company has to project and implement its long term goals. It is trust that is going sail the organization through to the attainment of long term goals. This is due to the fact trust creates consumer loyalty and this loyalty ensures a steady and growing market. Finally, though there is a proposal that law should be instituted to control unethical advertising, more should be invested in building the morals because it is these morals that lead to instillation of ethical values.
Business ethics simply can be defined as the application of business values in the business practice of a company (Seawell 2010, p. 2). For a multinational company, business ethics is one of the critical aspects need to be taken into account in business decision-making processes. Failure to give attention on ethics may bring consequences on company’s reputation (Meyer & Jebe 2010, p. 159). The company is expected not only to pursue its own profits but also contributing to the environmental and social welfare of the community where it operates (Svensson & Wood 2008, p. 308).
Business ethics are the core fundamentals of a business and are extremely important for organizations smooth and successful operation. It can have either positive impact by operating ethically or negative impact if they are caught up in any unethical situation or dilemma. Ethics has been defined as “study and philosophy of human conduct with an emphasis in determining the right and wrong” (Ferrell et.al, 2010). This case study will analyze Coca Cola for the ethical dilemmas they were involved in Belgium, and how the company responded to the issues.
The concept of business ethics refers to a set of guiding principles that encourage individuals in an organization to make decisions based on the company’s stated beliefs and attitudes toward business practices within its industry (Lisa McQuerrey., 2016). Ethical and Unethical business decisions have long been a predicament encountered by organisations, these practices are concerned with how the companies interact with the global business world, and to their one-on-one dealings with individuals (Garry Crystal, 2016.) The concept of ethics and social responsibility emerged into the business world in the early 1970s after the end of World War I, saw these organisations become more profit driven resulting in negative impacts on society at large.
Importance of ethics in the business world is superlative and global. New trends and issues arise on a daily basis which may create an important burden to organizations and end consumers. Nowadays, the need for proper ethical behavior within
As legal scholar and philosopher David Luban explains, “You can’t teach good judgment through general rules, because you already need judgment to know how rules apply. Judgment is therefore always and irredeemably particular” which means, ethics are not alone enough to make a legal organization. Though ethics are morally influences us lot it is needed. Ethics in business is very important because it affect not only to the employees and employers of the organizations but also to the whole society is affected by it. Though ethical organization can attract and keep investors it is not the only benefit of it. Investors can invest their valuable money peacefully with confident of their money is save. Employees know that they are not allowed with unethical behaviors and finally customers can buy products which are worth to the money they spend. Ultimately, one of the most difficult assets of the company, reputation, can be built through ethics very easily without wasting extra money on unnecessary promotional
Marketing is a system of business activates designed to plan, price, promote and distribute want-satisfying products, services and ideas to customers in order to achieve business objectives. Consumer law protects consumer’s rights in the marketplace as well as fair trading, competition and accurate information. On the other hand, ethical aspects of marketing are about making marketing decisions that are morally right. However, consumer law and ethical aspects of marketing have a lot of advantages and disadvantages in the marketplace, which impacts business 's sales and growth like it happened to: Harvey Norman, Nurofen, apple, etc.
Singh, J., Vitell, S., Al-Khatib, J., & Clark, I. (2007). The Role of Moral Intensity and Personal Moral Philosophies in the Ethical Decision Making of Marketers: A Cross-Cultural Comparison of China and the United States. Journal of International Marketing, 15(2), 86-112.
In order to generate sales, marketers often promote aggressively and uniquely, unfortunately, not all marketing advertisements are done ethically. Companies around the globe spend billions of dollars to promote new products and services and advertising is one of the key tools to communicate with consumers. Conversely, some methods that marketers use to produce advertisements and to generate sales is deceptive and unethical. Ethical issues concern in marketing has always been noted in marketing practice. According to Prothero (2008), ethics itself has a profound, varied and rich past. It emphasizes on questions of right and wrong or good and bad.
In the past decade, concern with the ethical accountability of companies has continued to grow. Consumers increasingly look to support and buy from companies that make ethical decisions. The government has also created new legislation that requires a certain level of ethics and creates encouragement for companies to go as far as to create ethics programs. The idea of “business ethics” is not new, but there is more pressure now than ever before on companies to prove they are making an honest effort to be ethical. This additional pressure on companies can be largely attributed to a change in the neoclassical view of a company as only needing to take care of stockholder interests by creating profits (Wines & Hamilton III, 2009). Today, people view the organization as a complex unit made of up many different groups that must be considered. This new definition of an “ethical corporation” requires not only compliance with the law, but also consideration of the ethical implications of all actions (Epstein & Hanson, 2006; Thornton, 2009). “Ethics are a system of moral principles and behavioral norms intended to express and support an underlying set of values” (Post, Lee, & Sachs, 2002). Following the meanings given by several professional sources, business ethics is defined as the study of moral standards in the context of all business situations (Columbia University, 2008; Knapp, 2001; Crane & Matten, 2007). Because of this change in consumer and regulator concerns, a corporation cannot survive unless it takes care of and strives to respect the interests of all of its stakeholders by applying ethical standards to actions (Post, Lee, & Sachs, 2002).