presentation on ethics of marketing

The Critical Role Ethics Plays in Modern Marketing

Published: September 02, 2020

As much as it might be difficult to define what "ethics" is in relation to marketing, it's easy to define what it isn't.

Take, for instance, a product pricing landing page that gives incorrect information (or, hides the price entirely … ).

Alternatively, consider a social media advertisement that claims a product will do X, Y, and Z — but then, when you order it, you find it can only do X.

These types of disreputable, dishonest, and corrupt marketing strategies are what we mean when we say a company behaved unethically.

Ultimately, while unethical marketing can potentially succeed in the short-term, it's not a good long-term strategy. Over time, customers will distrust your brand as a whole, and you'll find it difficult to find brand advocates who are willing to spread awareness about your product or service through word-of-mouth marketing .

In short, unethical marketing will make your job as a marketer much harder in the long run , not easier.

Here, let's explore the critical role ethics plays in modern marketing (and leadership as a whole), and how you can ensure you're following best practices to create ethical solutions to all your marketing challenges.

The Role of Ethics in Leadership

To start, let's define what ethics means.

While it's easy to define ethics as "the difference between right and wrong", the truth is a bit more complex than that.

For instance, the concept of "right" and "wrong" is typically a relatively subjective one. What's "right" culturally in the U.S. might be frowned upon in Asia, and vice versa.

The Markkula Center for Applied Ethics defines ethics as two things: "First, ethics refers to well-founded standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues … Ethical standards also include those that enjoin virtues of honesty, compassion, and loyalty."

The Markkula Center for Applied Ethics adds, "Ethics [also] refers to the study and development of one's ethical standards. As mentioned above, feelings, laws, and social norms can deviate from what is ethical. So it is necessary to constantly examine one's standards to ensure that they are reasonable and well-founded."

In the context of marketing, then, ethics refers to the practice of promoting fairness, honesty, and empathy in all marketing activities.

One of the easiest ways to promote ethics in a business sense, of course, is to ensure it's instilled in your company's culture and values.

However, it's important to note, it's not enough just to have a set of values and mission statement. Truly ethical companies need to live out these values every day (as noted in this article about core values by HBR ).

To further investigate what this means in practice, I spoke with Joan Harrington , the Director of Social Sector Ethics at The Markkula Center for Applied Ethics.

Harrington told me, "The key to integrating ethics in organizations is leadership. The leadership must set the example by living the organizational values and incorporating them into all aspects of the business. So having a code of ethics or a set of values in a handbook is not enough to shape an ethical culture."

Harrington adds, "Employees need to be trained on, or at least exposed to, how to make ethical decisions. Ethics is not about what you think is right versus what I think is right. It is how we — in all of our different relationships — ought to behave."

Harrington suggests in an ideal scenario, an entire organization will go through an ethical decision-making training — but, she adds, there are some areas of an organization that are higher-risk for ethical issues than others (like, for instance, engineers working on projects involving AI that might affect millions of people). For those higher-risk groups, these ethical decision-making trainings should be mandatory, not optional.

As Harrington told me, "This is not to say that there may be more than one ethical response, but it is not purely subjective. In training, people need to be exposed to real life situations, relevant to their jobs, so they can really work through how to identify, approach, and decide ethical issues."

To create a truly ethical culture , it's critical leaders model ethical behaviors and values, create a strong community, and design ethical systems in which all employees can thrive.

To do this, Ann Skeet, Senior Director of Leadership Ethics at the Markkula Center, advises leaders to "use goals, mission, and values to make decisions about compensation and other rewards, like promotions."

Ultimately, ethical leadership needs to be baked into the processes, not an "afterthought". This way, it isn't just one person's sole responsibility to raise her hand and say, "That doesn't seem fair to me." Instead, the very foundation of the organization should be built upon ethical pillars, including honesty and fairness, so that each business decision is made with these values top-of-mind.

Next, let's dive into how ethics plays into your role as a marketer.

The Role of Ethics in Marketing

Ethical marketing refers to a marketer's responsibility to ensure all marketing activities adhere to core ethics principles, including integrity, humility, and honesty — both internally, and externally.

To further recognize the difference between internal and external marketing ethics, let's consider an example.

Let's say your marketing team hires a design agency for a new marketing campaign. Halfway through the campaign, your team discovers the agency doesn't treat its workers fairly, and doesn't align well with your values in terms of environmental and social responsibility.

Even if your customers don't know about this alliance, it's still in your best interest to discontinue a working relationship with the agency as soon as possible, and re-align yourself with agencies that uphold the same standards you've set for your own team internally.

Equally importantly, of course, is the public-facing component of ethical marketing. This includes ensuring you don't stretch the truth or lie about your product or service (including pricing, functionality, release date, current customers, etc.) to try to attract new customers — lying about Beyonce's use of your product might seem like a good idea in theory, but it won't take long before you're caught out.

Additionally, ethical marketing also means treating workers fairly, using sustainable materials, and doing your part to support environmental or social causes that feel important to your brand.

For instance, consider the brand Toms, which gives away $1 for every $3 it makes , and has given nearly 100 million pairs of shoes to people in need since 2006.

As Harrington notes, "Marketing has its own, built-in, ethical issues. For non-profits, do they do 'storytelling' about their clients in an ethical way when they are engaged in fundraising, i.e., how are they representing their clients? Have they included clients in deciding how to present them? Are they operating from stereotypes?"

Harrington adds, "For all organizations, to figure out whether marketing is ethical, you'll want to ask whether marketers are operating transparently? Is the product accurately described? Is the marketing ahead of the actual product? And is there undue pressure on potential consumers?"

In 2020, ethical marketing is more important than ever.

Consider, for instance, that it costs five to 25 times more to acquire a new customer than to retain an existing one. Brand loyalty is critical for the long-term success of your company.

Additionally, did you know people don't trust businesses nowadays as much as they used to? In fact, 81% trust their friends and family's advice over advice from a business, 69% do not trust advertisements , and 71% do not trust sponsored ads on social networks.

Ultimately, there's only one long-term solution to the ever-growing problem of a distrustful customer base: ethical marketing.

Of course, it's important to remember, ethical marketing needs to influence every aspect of your marketing strategy, not just one or two areas. You need to show honesty, transparency, and integrity across the board — from the Instagram Stories you post, to the new product demos you promote.

To learn more about ethical marketing and how you might apply it to your own team, take a look at The Markkula Center's framework for ethical decision making .

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Marketing Ethics – Definition, Importance, Role and Examples

March 8, 2023 | By Hitesh Bhasin | Filed Under: Marketing

Marketing ethics is one of the most effective long-term branding , word-of-mouth, and trust-building strategies for optimizing the presence, leads, sales, and conversions of a product or service. Marketing ethics revolves around those principles of ethical marketing and standards that guide acceptable marketing conduct.

Ethical marketing is an integral part of the marketing definition that the American Marketing Association suggests, which is-

Marketing is the activity , set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Here, offering value to customers, partners, clients, and society is the core essence of an ethical marketing campaign .

Table of Contents

What is Marketing Ethics?

Marketing ethics are the marketing practices of promoting fairness, social responsibility , empathy , and honesty by following ethical standards . From marketing tactics to marketing decisions and advertising of products and services, all the ethical marketing practices focus not only on how products would benefit users but also on how they fulfill social responsibility and handle different ethical issues.

A few general examples of marketing ethics include

• Honesty is key when it comes to marketing – make sure you don’t deceive your audience with false or overstated claims.
• By providing customers with comprehensive and accurate information, they can make an informed decision that suits their needs.
• Safeguarding customer data and upholding their privacy is of utmost importance.
• Refraining from pressuring consumers into buying something they don’t need or want is essential for a successful business .
• Respecting vulnerable audiences such as minors and those struggling financially by refraining from marketing to them.
• While making marketing communications and strategies, pay heed to environmental and social responsibility and business ethics .

Consumers reap numerous advantages from this philosophy, whether it be environmental or social. It does more than merely provide a strategy ; it is an instrumental part of the company ’s success as well as its consumers.

Through ethical marketing, organizations deliberately apply different sets of moral rights and fairness standards when marketing their products and services, practices, and behavior in the overall structure. These organizations can then develop a competitive advantage over time, thereby satisfying the organization’s needs and customers.

Two Types of Marketing Ethics

The ethical principles of marketing share striking parallels with those of business, yet they can be divided into two distinct categories –

• Positive marketing ethics – When evaluating marketing tactics, positive marketing ethics centers on the notion of “what is” and requires that one vigilantly research any fraudulent or dubious advertising they come across. Keeping a log of all violations must be part of this investigation process to ensure ethical standards are met.
• Normative marketing ethics – Normative marketing ethics is the field of study that evaluates whether moral standards are being properly met when it comes to selling products and services. The same principles used in business ethics, such as duty-based theories as well as virtue ethics, and utilitarianism can help determine if ethical practices are being followed or not. By taking a closer look at how these principles affect marketing decisions and strategies, we can ensure that our approach to promoting businesses remains on firm moral ground.

Why is Marketing Ethics Important?

As per stats, 90+% of millennial consumers prefer buying products from ethical companies. Also, more than 80% of those users think that ethical brands outperform other market players that do follow ethical marketing.

Ethical marketing communications and strategies are essential to the overall growth and development of an organization over time. The applied set of guidelines and rules paves the way for a morally good, organized roadmap for everyone to follow. These sometimes overlap with media ethics since they are closely related in terms of definition and functioning.

The following are the reasons why ethical marketing is an integral part of the life of an organization:

1. Long-term gains

The foundation of a company or organization is not just based on its ability to survive the present, but to plan a bright future.

With the adoption of proper marketing ethics, brands can employ prospects with high credibility, loyalty to customers, significant market share , increased brand value, better sales, and better revenue.

These ethical practices will put their right on their way towards the accomplishment of both short-term and long-term goals with perfection.

2. Customer Loyalty

This is one of the most important factors in ethical marketing .

With the proper adoption of ethics in terms of business and operation, ethical marketing teams can win the loyalty, trust, and confidence of their consumers which can go a long way into the future.

The natural human tendency to go after the genuine brand surely gives them promising gains, both in the present and in the future.

3. Increased credibility

When the organization looks forward to keeping its promises surrounding its services and products on a continuous and consistent basis, it slowly and steadily goes towards the path of carving itself into an authentic and genuine brand in the market and customers’ minds.

This is not just limited to these two, and a good process can even build good respect in front of investors, peers, competitors, stakeholders , etc.

4. Increased Leadership qualities

When a company follows ethical practices of ethics for an extended period, it gradually stations itself as a leader, one who can benchmark its policies and strategies that surround the company’s structure and functioning.

This eventually gives rise to numerous benefits like increased share in the market, higher sales, inspiration for others, respect, mutual benefits, etc.

5. The satisfaction of basic human wants and needs

Once an organization is on course for the proper marketing ethics, it solves the basic needs and wants of its consumers in the form of integrity, trust, and honesty.

When this is displayed for a long time, various other benefits follow.

6. Display of a rich culture

Not only does such a structure give a positive outlook when seen from the outside, but it also paves the way for a good structure and environment within the hierarchy internally.

This gives rise to higher production owing to a confident and highly motivated staff.

7. The attraction of the right talent at the right place

Once the company can create brand value in the market, it becomes a beacon for prominent individuals for the association.

Various people like prospective employees , consultants, vendors, etc. look forward to associating and working with ethical brands that boost them exponentially. This further helps them in achieving their goals in a short period successfully.

8. Reaching financial goals

To function smoothly for more extended periods, the company has to have good financial partners who can help them grow and make significant strides in the market.

Once the brand follows a proper set of rules and ethical guidelines, it helps them earn the moral ground necessary to attract such people.

9. Enhancement of brand value in the market

Once a proper code concerning ethical marketing is followed by the organization, the public in the form of customers, competitors, stakeholders, etc. look up to such organizations. They follow such brands with religious dedication, giving them a sufficient boost to mark the market.

Here is a video by Marketing91 on Marketing Ethics.

Principles of Ethical Marketing

When it comes to ethical marketing, the rules may vary depending on a business’s values and overall objectives. Here are some of the most common ethical marketing principles you should be aware of –

Honesty is paramount in ethical marketing, and it is the responsibility of company leaders and marketers to ensure they are being forthright when communicating about their products or services. As one of the core ethical principles, it protects consumers by safeguarding their health, well-being, and rights.

2) Transparency

Transparency is an integral part of marketing ethics, especially the notion of disclosing the elements behind company activities and practices. Furthermore, it necessitates maintaining frank conversations about ethical behavior.

3) Health and Safety

Consumer safety is paramount for any ethical marketing team . As marketers, we must take it upon ourselves to not only educate and inform customers about their rights and privacy but also demonstrate respect towards them to uphold this principle.

4) Legality

Adhering to environmental regulations, industry standards, and governmental laws is an integral part of ethical marketing; it shows customers that a company is committed to cultivating the highest quality products and services.

5) Conscious practices

Companies can choose to make conscious decisions that benefit both the surrounding community and the environment. Popular initiatives include fair wages, as well as eco-friendly production processes.

6) Personal behavior

Each member of a marketing team must adhere to strong moral principles. Although these may be somewhat subjective, companies must establish stringent guidelines mandating respect for the rights and autonomy of others. Such standards represent an integral part of ethical marketing practices.

Role of Ethics in Marketing

With time, our economic system has become sufficient for providing the wants and needs of the public.

This has shifted the main focus of the market with an inclination towards ethical values while serving the needs of customers. This is primarily due to two reasons:

When there is ethical behavior from the organization’s side, there is a more significant positive public attitude to the variety of services and goods they offer. They have to adhere to specific marketing standards to render their efforts valid to the general public.

In addition to this, ethical bodies and organizations tend to pressurize and hold organizations and companies accountable for their actions. There is a lot of questioning and sets of guidelines, which have to be strictly followed.

Ethics in marketing plays a key role in ethical decision making crucial for the optimized presence of a product or service in their target niche.

An ethical marketing strategy is responsible for paying heed to different factors such as

• Organizational factors such as culture , norms, values, and opportunity
• Individual factors such as moral philosophies and values
• Stakeholder interests and concerns
• The intensity of ethical issues in marketing and organization setup
• Ethical decision making
• Evaluation of ethical outcomes

Ethical Marketing Examples

Over the years, companies have been adopting different marketing practices that ethically and morally appeal to the general public. These are a few examples of the same:

1. Dr. Bronner’s Activist Soap

Dr. Bronner’s marketing strategy is sort of activist marketing, as they are involved in ethical marketing campaigns associated with income equality, regenerative organic agriculture, drug policy reform, and animal advocacy.

2. People Tree’s ‘Our Blue Planet’ Collection

People Tree’s ‘Our Blue Planet’ collection is one of the best examples of ethical marketing campaigns in which two companies collaborated for an ethical cause. People Tree collaborated with BBC Earth for emphasizing the importance of our oceans and marine conservation.

3. Lucy & Yak’s Transparent Supply Chain

As a bespoke fashion company, Lucy & Yak’s Transparent Supply Chain is fully dedicated to fighting the ethical issues caused by fast fashion. They let users see their whole production process which makes them fully transparent with their product or service.

Issues in Marketing Ethics

There are some disagreements and conflicts that give rise to ethical issues in many companies concerning marketing.

There is a fixed set of expectations regarding the business and its transactions and how they have to be carried out. The following domains have ethical issues concerning their functioning:

1. Market Research

It revolves around the collection and analysis of information about consumers as well as competitors and the effectiveness of marketing campaigns. Ethical issues that might arise during the process are an invasion of privacy and stereotyping.

2. Market Audience

Excluding potential market sectors like LGBTs, ethnic minorities, etc. are some of the ethical marketing issues associated with the market audience. Also targeting vulnerable audiences with a marketing campaign is also an ethical marketing issue.

3.  Advertising and Promotion

Shaming rivals’ products or services are considered unethical in advertising and promotion. Other ethical issues in advertising and marketing campaigns may be the mistreatment of women or any human being, misleading advertising, issues related to trust, honesty, violence, profanity, sex, taste, and controversy that may lead to the ethical decline of society.

4. Pricing Ethics

Different unethical pricing strategies that are considered issues in ethical marketing campaigns are-

• Bid rigging
• Dumping (pricing policy)
• Predatory pricing
• Price gouging
• Price fixing
• Supra competitive pricing
• Price discrimination
• Price skimming
• Variable pricing

On a concluding note, we can define marketing ethics as an area of applied ethics that is associated with moral principles behind the operation and regulation of marketing that ethical companies use to differentiate between right and wrong marketing decisions and their implementations.

Many companies that use unethical marketing strategies do not care what is right and wrong on ethical grounds, and ultimately lose the trust of their audiences. Therefore, opting for unethical practices is never suggested by market leaders .

How would you differentiate ethical and unethical marketing practices?

What kind of marketing strategies would you prefer in your ethical marketing campaign?

Liked this post? Check out the complete series on Marketing

Related posts:

• Research Ethics – Importance and Principles of Ethics in Research
• Importance of Marketing Ethics
• What is the Importance of Ethics in Research?
• Ethics in Retail: Importance and Ethical Practice towards consumers
• What are Advertising Ethics? Definition, Principles & Tips
• Channel Flows in Marketing – Definition, Types, Role and Examples
• Incentives – Definition, Types, Role, Examples and Advantages
• What is Event Marketing? Types, Role and Examples
• Recency Effect – Meaning, Examples and Role
• What is a Marketing Agency? Role of a Marketing Agency

About Hitesh Bhasin

Hitesh Bhasin is the CEO of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

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How to Illustrate Ethics in a Presentation [concept visualization]

Last Updated on September 7, 2020 by infodiagram

Understanding and following the ethics concept in communication is a way to successful business relations. Ethics concept comes in many forms – from how you choose projects to how you work with clients. Here we want to introduce the illustrations of ethics concepts that help you get creative in your presentations.

If you want to make your slides look professional, we advise you to follow one style and incorporate relevant graphics to support your presentation. The challenge is how to simplify your concept PPT, but to keep the audience inspired and involved. Here we share some hints for illustrating ethics concept ideas.  

Expressing the ethics concept ideas with outline simple style

Above we suggest several icon examples from our outline icons collection. Use them to make your presentation more visual. Here’s an index of ethnics concept ideas:

• pictograms describing customer care and teamwork values 
• h uman head icon full of emotions  
• interpersonal communication as a key to business ethic: idea change symbol , or persuasion process  
• weighing scale as a main ethnic principal 
• ethical communication icon of groups of people
• graphics of ethical feelings as love , care
• general ethical business principal metaphors: male leader figure , compass 

Design-neutral ethics concept graphics

Flat style icons will suit any presentation slide. You can change colors to suit your brand style. Here’s how you can illustrate  the ethnics concept using flat symbols: 

• hammer symbol highlighting law principles 
• basic principles of ethical communication: interpersonal negotiation and idea changing icons
• work ethics icon showing team job
• feelings as one of the most important resources for guiding ethical conduct – trust , love and admiration icons
• business ethical development stages – growing plant metaphor
• protection shield icon showing the basic ethical principle 

Creative unique hand drawn ethics icons collection

If you want to be more creative and personal, use hand-drawn symbols for showing the ethics principles. See the specific visual ideas below:

• justice and ethics in the contemporary world: layer icon , law hammer , and justice scale
• professional activities icons: male figure during reading
• male figure expressing emotions 
• global business ethics shaped with the compass

I hope you will find some inspiration from those icon ideas to express the Ethics concept. What’s your biggest presentation challenge? Let us know in the comments and we’ll be happy to share our quick design advice.

If you like the suggested icons, you can get them from infoDiagram library. The best way to get them is by  joining subscription access to PPT graphics here . It will allow you to download these symbols, and graphics from any presentation deck you find on the website.

More concept icons ideas

Need to show another concept in a presentation? Leadership, Urgency, Status, Growth you name it. See our blog  Ultimate List of Business Concepts Visualization  to get inspired.

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More From Forbes

Responsible marketing: wear your ethics on your sleeve.

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Jennifer Chase is Chief Marketing Officer and Executive Vice President at SAS.

Responsible marketing isn’t new. As marketers, we have always been responsible for our marketing activities. Yet changes in the past few years have brought the concept of responsible marketing to the forefront. The pandemic made us all digital consumers, thus deluging companies with more customer data than ever before. In tandem, data privacy laws have never been stricter while supply chain shortages, inflation and social discourse turns up the pressure on brands to market responsibly.

While many technologies are changing the marketing landscape, most recently, generative AI has made headlines in sensational ways.

There have been reports of AI-based chatbots that range from the passive-aggressive to the pathological, sometimes riddled with false information. Others have had chatbots compile university-quality essays from simple prompts, leading to a debate on what constitutes plagiarism. There are worries that the technology could be used to disseminate misinformation, manipulate markets and influence elections.

But despite the hyperbolic news coverage and conjecture, it’s important to remember that there are positive applications of AI, and there have been for some time. AI offers many opportunities to enhance the responsibility of your marketing and advertising programs. An AI application may seem like a black box but can be an open book—unlike the human decision-making process.

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Best 5% interest savings accounts of 2024, ethical or unethical ai is neither.

Ethical artificial intelligence is something of a misnomer. AI is mathematics; it’s neither ethical nor unethical. Correlation of two factors implies the likelihood of other factors. It is the use cases that are good or evil, responsible or irresponsible. Fortunately, ethical marketers that we are, we already have principles by which we abide. The ANA Brands for Humanity Coalition is a good example of a collaboration united in principle around the impact of brands being a force for good; a passion for more purposeful and ethical marketing; a focus on fostering diversity, equality, inclusion and belonging; the missions of nonprofit organizations to improve the world; a drive for social responsibility and environmental sustainability; an aspiration for gender equality in all marketing and advertising; a more transparent and safe supply chain; and an internet experience free of toxicity.

Inclusivity: Ensuring Accessibility And Including Diverse Perspectives And Experiences

Often, when we talk about inclusivity, we refer to race or ethnicity, sexual or gender orientation, age, or physical and mental challenges. The “black box” vision of artificial intelligence suggests that biases can hide inside the machine without being revealed. They are easier to flush out than human biases.

Ajay Agrawal, professor at Toronto’s Rotman School of Business and co-author of Prediction Machines: The Simple Economics of Artificial Intelligence , put it this way in an interview :

“While you can’t open up the black box and understand the details of how the neural network works, what you can do with AI that you can’t do with a human is ask an infinite number of questions and it will always answer,” he said. For example, perhaps a loan officer denies a mortgage to someone of a marginalized race, whether through conscious or unconscious bias. “You might ask the loan officer, ‘Would you have denied that loan if the person was exactly the same, except they were of a different race?’ No human would admit, ‘Oh, yes, I would have given them this loan if they had been white as opposed to black.’ But AI will.”

At its heart, it’s the marketers themselves who own the responsibility for inclusivity in AI. Biased data and biased models mean biased results, and that falls squarely on the shoulders of the marketing team.

Transparency: Explaining And Instructing On Usage Openly

Transparency about the data we collect, and how we use it, has become a prime concern among consumers. Startups focusing on helping companies manage customer privacy grew fivefold between 2018 and 2021.

For all their concerns about how their data is collected and used, most consumers don’t really understand the principles of data collection, sharing or use. An explanation of the different types of data, and how it is used, is often buried in user agreement boilerplates. When customers understand the value being exchanged between marketer and consumer, that the company is drawing insights from their data responsibly, trust in the brand becomes relational, not transactional. And this has implications for long-term loyalty.

Accountability: Proactively Identifying And Mitigating Adverse Impacts

AI offers a proactive approach to predicting and ameliorating the threats of criminal actors. Given its huge volume of exploit and vulnerability information, it can reverse-engineer an attack before it happens. But when a failure occurs, companies must be first with the news and first with a plan to assure consumers of their safety. This preparedness also speaks to the remaining principles of AI development: resilience to survive anything from a coordinated attack by bad actors to a simple node failure; and respect for the privacy of all data subjects.

Responsible AI can also drive an organization's accountability proactively. Bissell Centre, in Edmonton, Canada, has been on a mission since 1910 to alleviate the impact of poverty in the northwestern city. It has recently turned to AI's comprehensive data analysis for better outcomes—and to keep the success of its programming and the need for adequate funding front and center among political and other stakeholders.

AI’s future as a tool for consumers and brands, rather than a threat to them, is bright, if we take a principled approach, both as technologists and marketers. Used strategically, AI is no different than any technology: It manages the work that can be done by a machine while allowing humans to focus on more important value-adds that demand human judgment and creativity. Without it, there’s a risk of falling behind in productivity. AI is changing the world. It’s not taking the world over. It is empowering humans to create a better world.

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MARKETING ETHICS - PowerPoint PPT Presentation

MARKETING ETHICS

'an ethical issue is an identifiable problem, situation or opportunity requiring ... public relations - exaggerating facts, use of contacts, use of advertorial' ... – powerpoint ppt presentation.

• DIRECT MARKETING COMMUNICATION
• An ethical issue is an identifiable problem, situation or opportunity requiring an individual or organisation to choose from among several actions that must be evaluated as right or wrong, ethical or unethical.
• Any time an activity causes consumers to feel deceived, cheated or manipulated, a marketing ethical issue exists regardless of the legality of that activity.
• Paul Smith Marketing Communications, 1997
• The study of good and right conduct.
• Marketing ethics defined
• 1. Marketing ethics are moral principles that define right and wrong behaviour in marketing.
• 2.Marketing ethics go beyond issues that have been formalised through laws and regulations to conform to societys standards, ethical marketing decisions foster mutual trust.
• Marketing ethics are controversial
• 1. Views on what is ethical or unethical depend on the nature of the organisation, life experiences and personal values.
• 2.Regardless of how a person or organisation views a particular activity, if society judges it wrong or unethical, this view affects the organisations ability to achieve its goals.
• Ethical Issues Defined
• 1. An ethical issue is an identifiable problem, situation or opportunity requiring an individual or organisation to choose from among several actions which must be evaluated as right or wrong ethical or unethical.
• 2. Ethical issues may stem from conflicts between a marketers attempt to achieve organisational objectives and customers desires for safe and reliable products.
• DIRECT MAIL
• TELEMARKETING
• DOOR-TO-DOOR SELLING
• DIRECT RESPONSE ADVERTISING
• COMPUTERISED HOME SHOPPING
• HOME SHOPPING NETWORKS
• MISCELLANEOUS (stuffers,inserts,leaflet drops)
• Advertising - abuses can include exaggerated claims, concealed facts and outright lying.
• Sales promotion - misleading copy, prices, rigged contests, luring customers to the store with a bargain which is out of stock.
• Personal selling - high pressure selling, questionable tactics, cowboy salesmen, bribery, use of lease rental agreements.
• Public Relations - Exaggerating facts, use of contacts, use of advertorial
• Clashes between what consumers want and organisational policies.
• INVASION OF PRIVACY
• UNSOLICTED GOODS
• MISUSE OF MAILING LISTS
• Self Regulation - DMA
• Legislation - UK EC
• Company Corporate Measures
• Ethics - Honesty, Clarity, Legality
• Professionalism - Quality, Training, Competence
• Terms - Special Offers
• Product safety
• Use of mailing lists
• Telephone marketing

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Powerpoint Templates and Google slides for Marketing Ethics

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ETHICS AND INTERNATIONAL MARKETING

Apr 04, 2019

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ETHICS AND INTERNATIONAL MARKETING. BY: Assem Sharaf Sub. To: Dr: Passent Tantawi. Abstract Purpose: The aim of this paper is to present an overview of historical and current trends focusing on IM ethics.

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• economic development structures
• best guidelines
• multinational corporations
• old opinion

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ETHICS AND INTERNATIONAL MARKETING BY: AssemSharaf Sub. To: Dr: PassentTantawi

Abstract • Purpose: The aim of this paper is to present an overview of historical and current trends focusing on IM ethics. • Methodology: The paper examines how ethics in IM have evolved and progressed towards the current “ethics era” • Resources: • Emerald Group Publishing Limited,vol.22 No. 5. 2005 Birmingham Business School , UK. • Admap Magazine. July/August 2009, Issue 507. • Principles of Marketing, Philip Kotler& Gary Armstrong 12e

Findings: Essentially the paper argues that marketers should creatively embrace the complex challenges of the international marketplace by rethinking their approach to marketing ethics.

Contextualizing ethical issues in Marketing IME are important as marketing is expected to satisfy customer needs profitably, thus creating the interface between customer preferences and companies market aspiration. Kant’s (1788) duties can’t be associated with self-interest , thus companies should exist to satisfy needs and firms have a duty to deliver benefits to the society they’re motivated by objectives rather than self interest and hopefully rewarded. Mill (1998) Ethics should maximize pleasure and minimize pain based on “common good rather than self interest”. Would it be applied to target market or whole market? What about international good? He replied;Pleasureand pain principle are universal. Crane & Matten (2004): Moral is based on social norms of the society , no universal moral standards, marketing adaptation, no common framework for ethics agreements.

Do Marketing ethics matter? • Fineman(1999): Marketing is more value laden, and manipulates consumers in anything but an innocent and friendly way, what is desired by consumers may not necessarily be good for them (tobacco) and it may hurt them in the long run. • Kotler (1972) believes that marketers responsibility is to find products that provide satisfaction and long term welfare shifting the roll of marketers from being a seller agent to buyers agent. • Sheth et al(1988) unethical acts can be committed by the most honest and responsible individuals in some circumstances. • The problem is to establish acceptable guidelines and practice and disseminate that within the industry.

International Marketing activities and the importance of Ethics (MNCs) • The need for addressing the issues of IME arises from increased internationalization of MNCs which have greater bargaining power over local governments. • Developing countries can be vulnerable to unethical marketing because of their economic potential, low bargaining power, lack of legal framework and law enforcement to protect local companies. this makes consumers less likely to benefit from marketing ethics. • Tax competition Multinational corporations have played an important role in globalization. Countries and sometimes subnational regions must compete against one another for the establishment of MNC facilities, and the subsequent tax revenue, employment, and economic activity. To compete, countries and regional political districts sometimes offer incentives to MNCs such as tax breaks.

Market withdrawal Because of their size, multinationals can have a significant impact on gov. policy, primarily through the threat of market withdrawal. For example, in an effort to reduce health care costs, some countries have tried to force pharmaceutics companies to license their patented drugs to local competitors for a very low fee, thereby artificially lowering the price. When faced with that threat, multinational pharmaceutical firms have simply withdrawn from the market, which often leads to limited availability of advanced drugs. Lobbying Multinational corporate loppying is directed at a range of business concerns, from tariff structures to environmental regulations. Multinational corporations such as Wal-mart and McDonald‘s benefit from government zoning laws, to create barriers to entry. Many industries such as General Electric and Boeing lobby the government to receive subsidies to preserve their monopoly Patents Many multinational corporations hold patents to prevent competitors from arising in the same time they offer low prices until local competitors withdraw. Local Political influence Massive corporate campaign contributions in democratic elections, and endless global news stories about corporate corruption

MNCs works in one direction from developped countries to developing countries: International marketers control more than the elements of the marketing mix; theyplay a crucial role in changing social structures and competitiveness, in shaping politicalpower, knowledge transfer, and even determining economic development structures.

Consumers in developed countries have low individual bargaining power but a relatively high degree of consumer sovereignty thus being able to exercise much more power on companies’ marketing ethics. The role of experience, education and income in assessing consumer vulnerability in developing countries is of a much greater importance. The roll of local community: you may heard about MADD(mothers against drunk driving) to face kids and teens needs, and DAD (dads and daughters) use their relationship with each other to strengthen the local cultural values.

Philip Kotler: The best guidelines cannot resolve all the difficult ethical decisions that individuals and firms must make but there are some principles that marketers can choose among: One: such decisions should be decided by free market and legal system. Second and more enlightened one put the responsibility in hands of firms and managers.

The situation may get better in recession The effect of tech. The need for honesty& reliability What they really need. Turning to natural food. People power. One global community.

Facing the challenge • In Gaski’s (1999) “Without doubt, the ethics of one day may be the law of the next”. • As Sheth and Sisodia (1999) state, the context of marketing is changing in fundamental ways. The acceptance of law-like generalisations is having to be, as they suggest, “either enhanced or modified”. The old opinion of marketing ethics as “an oxymoron”, or that “marketers do not have ethics” is being re-thought.

Today, as the field of marketing develops a stronger ethical profile, academically and professionally , marketers are finding that it is harder to ignore the “ethics gap” between what society expects and what marketing professionals are delivering (Laczniak, 1993). We don’t really know if all this research activity on marketing ethics has affected the ethical climate of marketing practice, and some practices such as deceptive pricing or manipulative advertising may never disappear (Laczniak, 1993). However, that does not mean that marketing scholars should not strive to improve the ethical climate in which marketing business is conducted.

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