Ethical Marketing and Advertising at Cummins Engine Plant

Ethical Marketing and Advertising at Cummins Engine Plant

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Ethical Marketing and Advertising at Cummins Engine Plant
In the media there are a lot of concerns about ethical standards in marketing and advertisements in corporations and businesses. Cumming’s marketing and advertisements strategies follow strict policies based on ethics that rest on a fundamental belief in people's dignity and decency. Cummins is committed to quality, innovation and integrity. This commitment is possible because each member of Cummins follows the highest standards of ethical conduct. These standards are embodied in the Cummins Code of Business Conduct. Individual integrity and strong corporate culture are the best assurances that this Code will be followed.
Cummins is a multinational Fortune 500 company that operates and serves customers around the globe. Cummins' roots thrive from innovation, persistence and a commitment to the community. Founded in Columbus, IN., in 1919 as Cummins Engine Company by Clessie Lyle Cummins, the firm was among the first to see the commercial potential of an unproven engine technology invented two decades earlier by Rudolph Diesel. In 1933, the company released the Model H, a powerful engine for transportation that launched the company's most successful engine family. J. Irwin Miller, great-nephew of W.G. Irwin, became general manager in 1934 and went on to lead the company to international prominence over the next four decades. (Cummins) By marketing high-quality products through a unique nationwide service organization, the company earned its first profit in 1937. Three years later, Cummins offered the industry's first 100,000-mile warranty. By the 1950s, America had begun a massive interstate highway construction program, with Cummins engines powering much of the equipment that built the roads and thousands of the trucks that began to utilize them. Combining lab-based research and field-based trials allowed Cummins to achieve technological breakthroughs, including the revolutionary PT (pressure-time) fuel injection system of 1954. By the late 1950s, Cummins had sales of over $100 million and a commanding lead in the market for heavy truck diesels.

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Ethics are a collection of principles and behavior that shape decisions people or organizations make. Practicing ethics in marketing means deliberately applying standards of fairness, or moral rights and wrongs, to marketing decision-making, behavior, and practice in the organization.
In a market economy, businesses like Cummins are expected to act in what it believes to be its own best interest. The purpose of marketing is to create a competitive advantage. An organization achieves an advantage when it does a better job than its competitors at satisfying the product and service requirements of its target markets. Those organizations that develop a competitive advantage are able to satisfy the needs of both customers and the organization. As our economic system has become more successful at providing for needs and wants, there has been more focus on organizations' adhering to ethical values rather than just providing products. When an organization behaves ethically, customers develop more positive attitudes about the firm, its products, and its services. When marketing practices depart from standards that society considers acceptable, the market process becomes less efficient. When organizations do not use ethical marketing practices this can lead to dissatisfied customers, bad publicity, a lack of trust, lost business, or, sometimes, legal action. This is why Cummins is very sensitive to the needs and opinions of their customers and continuously looks for ways to protect their long-term interests.
Cummins' mission is to make ethics a part of their business everywhere they operate and distribute their products. Considering ethical concerns as part of doing business, they implemented a code of conduct that all employees have to abide by.
The Current Cummins Code of Business Conduct
The Current Cummins Code of Business Conduct covers the following topics:
*Conduct regarding our Customers, Suppliers and Competitors
*Conduct regarding Conflicts of Interest
*Conduct regarding Our Employees
*Conduct regarding Our Communities
*Conduct regarding Our Shareholders
*Conduct regarding Our Property
*Conduct regarding Political Campaigns and the Media
*Conduct of Leaders
They have recently adopted and marketed a company-wide environmental policy. This policy is displayed at all Cummins facilities as a constant reminder to their employees of commitment to a cleaner, healthier, safer environment. The environmental management systems in Cummins facilities are hard at work to make each facility the best it can be. The Clean Air Act in the 1970s enlisted Cummins ability to reduced oxides of Nitrogen (NOx) emissions by 90% and particulate matter (PM) emissions by 73% in the United States for the heavy-duty on-highway engines from unregulated levels. Reductions of NOx and PM emissions have also been demonstrated in Europe and Asia. They continue to improve their products to reduce emissions while retaining the fuel economy and reliability desired by their customers. Cummins Inc. is working with the U.S. Department of Energy in the announcement of significant progress toward meeting engine efficiency and emissions targets.
When engineers at Cummins first saw the suggested new federal clean-air standards for their engines, they argued that the standards would be impossible to meet. After the standards became official Cummins sued, and industry insiders started placing bets on whether the company would be one of the few to meet the technical challenges and survive. But in October if 2000, the Environmental Protection Agency went to the company that has exceeded their expectations and adhered to the standards they set, they went to Cummins’s headquarters. Cummins announced a day later that it would invest $250 million to revive a partly idled plant and hire 600 workers to build state-of-the-art light duty diesel engines. The thing that had changed at Cummins was not just that they had learned to adapt to tougher environmental regulations. Instead, the new, cleaner engines have become a point of pride.
Before these new regulations, you probably noticed that if you were to sit in traffic behind large public buses they would blow out a huge black cloud of smoke when they took off from a traffic light. Today when they take off you don’t see this, this is because they have upgraded to the new cleaner engine standards.
Cummins offers a stimulating environment where you can interact and communicate with people from around the world on a daily basis. Cummins has global ethics values to uphold along with treating each other with dignity and respect promote a work environment.

Ethical values that Cummins operates its business by for structural leadership are:
* Integrity- Strive to do what is right and do what they say they will do.
* Innovation- Apply the creative ingenuity necessary to make them better, faster, and first.
* Delivering Superior Results- Exceed expectations, consistently.
* Corporate Responsibility- Serve and improve the communities in which they live.
* Diversity- Embrace the diverse perspectives of all people and honor with both dignity and respect.
* Global Involvement- Seek a worldview and act without boundaries.
To achieve each of Cummins ethical values, it takes effective communications from all levels of workers. Only authorized individuals should speak to the media or financial community. Media and sensitive customer inquires should be directed to the Director – Public relations, and should not speak to the media on company related issues without prior approval of the director of Public relations
Relaying an ethical message to an ever-changing market involves two elements content and context. Content is expressed through a medium, such as speech and writing. Context is the part of a text or statement that surrounds a particular word or passage and determines its meaning. By using content and context to communicate ethically, people still have a difficult time understanding the exact intent and may not execute the job requested. For effective communication with an emphasis in ethics you want to ask yourself these questions before you start.
1. Who is your Audience
2. Do you have more than one Audience
3. What do you want your Audience to know
4. Narrow your topic to what you want your Audience to know
5. What are your Audience needs in relation to the subject
6. What does your Audience know about the subject
7. What are your Audience’s feelings about subject, sympathetic, hostile, neutral?
8. Does your Audience have different points of view
9. Is your tone respectful (Norris)
To help Cummins employees keep focus on Ethics, an Annual Ethics Certification process is administered by Internal Audit at the end of each year. The Annual Ethics Certification process reinforces commitment to Cummins’ ethical policies and the Code of Business Conduct. It is an aid in promoting an ethical culture. This training has proven to improve the company as a whole while keeping Cummins a leader in ethics. (Mayer) Integrity is the foundation of Cummins' relationships with customers, suppliers, shareholders, competitors, partners, and communities. This provides them the opportunity to meet the needs of customers better than our competitors. All members of Cummins - directors, officers and employees, distributors, subsidiaries and affiliates - continually work to develop and protect this critical asset through their everyday activities. Integrity is essential to Cummins' ability to provide an excellent and sustainable long-term return to their shareholders, and to be able to satisfy the needs of all of Cummins' stakeholders. Cummins commitment to integrity means that they will exceed the minimum requirements of the law and industry practices. Violations at any level will not be tolerated, and in some cases could result in dismissal as well as in civil or even criminal liability for the company, individuals, or both.
With the implementation of the Code of Conduct, Cummins are confident that they will achieve higher standards of excellence. However, by including them in the Code of Conduct, Cummins will emphasize once more its commitment to these values and guide its employees in making ethical decisions. Cummins strives to adhere to the following topics in all areas of business.
· How they treat customers as suppliers
· Philosophy of how they act
· Survey people in how effective the code of conduct is
· Represents themselves and their responsibility
· Cummins marketing motto is “Every time” it is a way of being dependable, honesty, accurately,, treat competitors respectfully, back up a claim , Cummins obeys the law
· If you do not want to see your name in the paper do not do it
Cummins is committed to developing superior products that continually meet or exceed emissions and noise regulations while improving fuel economy. They have a marketing strategy that succeeds their competitors because they are committed to exercising global citizenship. Cummins also sets examples by their will strive to meet and exceed all regulatory requirements for the health and safety of workers and consumers. Cumming’s marketing and advertisements strategies follow a belief that people's dignity and decency is first and foremost and they are committed to quality, innovation and integrity.

. Works Cited
"About Cummins." Cummins Inc. 26 Sep 2008
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