CLARITY/CONSISTENCY/COST

What is marketing ethics?

As more business and marketing is done on a global level, an increasing number of

marketers will need to deal with ethical issues in cross-cultural environments. “When
companies operate abroad in the absence of home-country legal constraints, they face a
continuum of choices concerning company ethics” (Keegan & Green, 2005, pg. 175).
Marketing ethics are the principles and standards that help to guide appropriate conduct
within an organization. While adjustments must often be made to accommodate local
practices, it is also important to maintain company ethics. The purpose of this paper is to
identify three of the most pertinent ethical issues that Riordan Manufacturing may face in
marketing to Bulgaria.

Body
Marketing ethics issue?
Typical ethical issue in marketing mix? P 95
The ethical decision making?
* Individual factors.
* Organizational factors.
* Opportunity.
Improving ethical conduct in marketing
* Code of conduct/code of ethic
* Ethic officers
* Implementing ethics and legal compliance program.
* Code of ethic of the AMA (American Marketing Association)
Conclusion
Being ethical is not easy
Ethics improve marketing performances
What is marketing ethics?
Marketing ethics is the study of right and wrong with respect to marketing policies,
practices, and systems. Marketing ethics consist of principles and standards that guide
appropriate conduct in organizations. The importance of ethics in marketing practices is a
major consideration in whether markets achieve their promise relative to previous
arrangements.
As a cultural phenomenon influencing and influenced by marketing customs and
practices, ethics is an important factor in explaining both conduct and performance in
markets. Much progress has been made in public policy initiatives to encourage ethical
compliance in organizations.
The Federal Sentencing Guidelines for Organizations provide a blueprint that many
companies are using for ethic programs. These public policy efforts need to be explored
to determine effectiveness and impact on marketing activities. Internet marketing and
other developments in information technology and in whether and how products of
dubious social merit - tobacco, alcohol, and pornography - are marketed.
The question of whether or not marketing is completely unethical is the question most
critics of marketing seem to be focusing their attention on. Ethics provide the basis for
deciding whether a particular action is morally good or morally bad (Britt 553). But, each
individual develops different opinions, moral standards, and values. So, marketers will
deal with similar on how others see the company. The employees must choose between
what is in the best interest of themselves, the company, or that of society as a whole.
Ethics view is essentially about the definition of what is right and wrong. However, it is
difficult to get agreement about just what is right and wrong. Culture has a great effect in
defining ethics and what is considered unethical in one society may be considered
perfectly acceptable in another. In western societies, ethical considerations confront
marketers on many occasions.
For example, should a business person try to bribe a company's buyer? (not accepted in
most western countries, but commonplace in some parts of the world).Society is
becoming increasingly concerned about the ethical values adopted by its commercial
organisations. With expanding media availability and an increasingly intelligent
audience, it is getting easier to expose examples of unethical business practice. Firms are
responding to increasing levels of ethical awareness by customers.
Examples include ethically produced food; ethical investment funds; better staff training
to avoid unethical behaviour; and staff reward systems which reduce the motivation for
unethical behaviour (e.g. to avoid mis-selling problems). Acting ethically need not
conflict with a company's profit objectives, and indeed can add to profitability (e.g. good
safety standards and employment policies can improve productivity)
Ethical Marketing issue
An ethical issue is an identifiable problem, situation or opportunity requiring an
individual or organization to choose among several actions that must be evaluated as
right or wrong, ethical or unethical. Any time an activity couse marketing managers or
customer in their target to fell manipulated or cheated, a marketing ethical issue exists
regardless of the legality of the activity, for example a company that needs to increase
their profit or market share may pressure marketers to knowingly bring un safe product to
market, such pressure represent ethical issue. And in order to deal with this issue the
marketers must first be familiar with many kind of ethical marketing issues ...
Individual Factors
When people need to resolve ethical conflicts in their daily lives, they often base their
decisions on their own values and principle of right or wrong.
For example a study by josephon institute of ethics reported that seven out of ten students
admitted to cheating on a test at least once in the past year and 95% admitted of lying to
their parents in the past year. One out of six students confess of showing up in class
drunk in the same period, People learn values and principal trough socialization by family
members, social groups, religion and formal education .
Organizational factors
Marketers solve their ethical issues not only the basis of what they learned from their
background but also based on what they learned in an organisation they work for, the out
come of the individual's personal values.
Opportunity
Another factor that may shape ethical decisions in marketing is opportunity that is
conditions that limit barriers or provide rewards
Marketers who takes advantage of an opportunity to act unethically and is rewarded or
suffers no penalty may repeat such acts as other opportunity arise.
For example a sale person who receive raise after using a deceptive sales presentation to
increase sales is rewarded, it is very possible for the sales person to repeat the unethical
behaviour

Ethical issues are usually identifiable problems, situations or opportunities that require an
organization or individual to select an action that can be evaluated as right or wrong.
Ethical issues can vary greatly from one country to the next so the marketing team must
become familiar with what the issues are and how they can impact the organization or
individual. As the world works to become a global market, society as a whole has
become concerned when dealing with ethical values that have been adopted by many
businesses. Solid marketing research will help businesses stay on track and maintain their
ethical values. Many organisations have formal codes of ethics for their employees that
identify specific acts as unethical behaviour however, determining what is right and
wrong can be extremely difficult. A common ethical dilemma might be the over billing of
clients. If faced with such a dilemma the first step is to assess the severity of the situation,
then speak to others employed longer than yourself for an understanding of common
practices. The next step would be to discuss your grievances to a contact person such as a
union delegate, supervisor or counsellor and consider your future in their organisation.
The outcome of your discussion would constitute whether to continue working for the
organisation. Ethics and social responsibility require a total corporate commitment. It is
the responsibility of management at a higher level to set the example to create an
environment that not only encourages and rewards ethical behaviour, but which also
makes anything less unacceptable. For young and inexperienced executives ethical
guidelines can be valuable in helping them resist pressure to compromise personal and
company ethics in-order to move up in the organisation. One simple but effective
approach is to answer the following questions;
1. Would I do this to a friend?
2. Would I be willing to have this done to me?
3. Would I be embarrassed if this action were publicised nationally?
4. Is the action sound from a long-term point of view?
One example of an ethical dilemma might involve a large company marketing its product
in a misleading fashion to the naive, vulnerable and uneducated groups of society. This
unethical behaviour clearly contradicts the four questions listed above. As a marketing
executive in such a position one will have to create new incentives and a new marketing
program not exploiting the lower socioeconomic groups in society.