ETHICS

AND

GLOBAL MARKETING

GLOBAL ADVERTISING

ZARVAN MISTRY

GLOBAL EMPLOYMENT

LALA LAJPAT RAI COLLEGE OF COMMERCE AND ECONOMICS

CLASS: T.Y.B.M.S

DIV: C

SUBJECT: BUSINESS ETHICS

PROJECT TOPIC: ETHICS AND GLOBAL PERAPECTIVE IN GLOBAL MARKETING IN ADVERTISING AND IN EMPLOYMENT.

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INDEX
SERIAL NUMBER TOPIC PAGE NUMBER

ETHICS

GLOBAL MARKETING AND ETHICS

GUIDELINES TO SOLVE 3 GLOBAL BUSINESS ETHICS

10

ADVERTISEMENT

12

ASCI

13

GLOBAL EMPLOYMENT

18

ILO

20

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ETHICS DERIVATION
The term ethics is derived from the greek word ETHOS which refers to character, customs or accepted behaviour.

DEFINITION OF ETHICS
The study of the general nature of morals and of the specific moral choices to be made by a person; moral philosophy. The rules or standards governing the conduct of a person or the members of a profession.

GLOBAL ETHICS
The meaning of global ethics shifts and it often means different things for different people. Global ethics may mean treating everyone in the world equally no matter what their country, race, religion, or gender. Global ethics may involve an effort to globalize certain ethical value like justice, democracy, or sympathy.

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EHTICS IN GLOBAL MARKETING

Ethics are a collection of principles of right conduct that shape the decisions people or organizations make. Practicing ethics in marketing means deliberately applying standards of fairness, or moral rights and wrongs, to marketing decision making, behaviour, and practice in the organization. In a market economy, a business may be 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 greater focus on organizations' adhering to ethical values rather than simply providing products. This focus has come about for two reasons. First, when an organization behaves ethically, customers develop more positive attitudes about the firm, its products, and its services. Not employing ethical marketing practices may lead to dissatisfied customers, bad publicity, a lack of trust, lost business, or, sometimes, legal action. Thus, most organizations are very sensitive to the needs and opinions of their customers and look for ways to protect their long-term interests. Second, ethical abuses frequently lead to pressure (social or government) for institutions to assume greater responsibility for their actions. Since abuses do occur, some people believe that questionable business practices abound. As a result, consumer interest groups, professional associations, and self-regulatory groups exert considerable influence on marketing.

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ETHICAL PROBLEMS IN GLOBAL MARKETING

The moral question of what is right or appropriate poses many dilemmas for domestic marketers. Even within a country, ethical standards are frequently not clear. Its problem is more complex in international marketplace, because value judgments differ widely among culturally diverse groups. That which is commonly accepted as right on one country may be completely unacceptable in another.

MAJOR GLOBAL MARKETING ETHICAL PROBLEMS ARE AS FOLLOWS:-

TRADITIONAL SMALL SCALE BRIBERY

It involves the payment of small sums of money, typically to a foreign official in exchange for him/her violating some official duty or responsibility or to speed routine government actions.

LARGE SCALE BRIBERY

A relatively large payment intended to allow a violation of the law or designed to influence policy directly or indirectly.

GIFTS/FAVORS
It includes a range of items such as lavish physical gifts, opportunities for personal travel at the companys expense, gifts received after completion and other entertainment.

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PRICING
It includes unfair differential pricing, questionable invoicing where the buyer requests a written invoice showing a price other than the actual price paid, pricing to force out local competition, dumping products at prices well below that in the home country, pricing practices that are illegal in the home country but legal in host country.

PRODUCTS/TECHNOLOGY
It includes products and technology that are banned for use in the home country but permitted in the host country or appear suitable for use by the people of the host country.

TAX EVASION
Used specifically to evade tax such as transfer pricing, including the use of tax havens, where profit is in low tax jurisdiction, adjusted interest payments on intra-firm loans, questionable management and service fees charged between affiliates or the parent company.

ILLEGAL ACTIVITIES IN HOST COUNTRY

Practices such as polluting, unsafe working conditions, trademarks not been enforced etc. charge a country a phantom weight.

QUESTIONABLE COMMISSIONS TO CHANNEL MEMBERS

Unreasonably large commissions of fees paid to channel members such as sales, agents, middlemen etc.

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CULTURAL DIFFERENCES
Some practices involve potential misunderstandings related to the traditional requirements of the exchange process due to cultural differences. These practices include gifts, monetary payments, favors etc.

INVOLVEMENT IN POLITICAL AFFAIRSIt is related to the combination of marketing activities and politics including the following-the exertion of political influence by multinationals -engaging in marketing activities when either home or host countries are at war and illegal technology transfers.

SOCIAL MARKETING AND ETHICS

Social Marketing is defined as the use of marketing principles and techniques to influence a target audience to voluntarily accept, reject, modify, or abandon a behaviour for the benefit of individuals, groups or society as a whole. Social marketing is usually done by a non-profit organization, government, or quasi-government agency. The goal is either to steer the public away from products that are harmful to them and / or society. (e.g., illegal drugs, tobacco, alcohol, etc.) or to direct them towards behaviours or products that are helpful to them and / or society (e.g., having family meals, praying together, etc.).

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GUIDELINES TO SOLVE GLOBAL BUSINESS ETHICS PROBLEMS

Do not direct intentional harm Produce more good than harm for the host country Respect the rights of employees and of all others affected but ones actions or policies To the extent consistent with ethical norms, respect the local culture and work with and not against it. Multinationals should pay their fair share of taxes and cooperate with the local government in developing equitable laws and other background institutions.

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DEFINTION OF ADVERTISEMENT
An advertisement is defined as a paid for communication, addressed to the public or a section of it, the purpose of which is to influence the opinions or behavior of those to whom it is addressed.

MEANING OF ADVERTISMENT
Advertising is the attempt to send information to people to convince them to spend their money with a certain company. This concept is the foundation of much of the modern financial world. The ads can attack any of the senses. Sight, hearing, touches even smell or taste. Advertising is big business. Billions of dollars are spent on advertising. Many industries exist solely due to influx of money advertising brings in. The cable TV industry, magazines and many other non-media industries.

ETHICAL ISSUES SURROUNDING THE PORTRAYAL OF WOMEN IN ADVERTISING

As society changes, so do the images of and roles assumed by people, regardless of race, sex, or occupation. Women have been portrayed in a variety of ways over the years. When marketers present those images as overly conventional, formulaic, or oversimplified, people may view them as stereotypical and offensive. Examples of demeaning stereotypes include those in which women are presented as less intelligent, submissive to or obsessed with men, unable to assume leadership roles or make decisions, or skimpily dressed in order to appeal to the sexual interests of males. Harmful stereotypes include those portraying women as obsessed with their appearance or conforming to some ideal of size, weight, or beauty. When images are considered demeaning or harmful, they will work to the detriment of the organization. Advertisements, in particular, should be evaluated to be sure that the images projected are not offensive.

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THE ADVERTISING STANDARDS COUNCIL OF INDIA (ASCI)

Like other countries around the world, India too has a self-regulatory organization (SRO) for advertising content The Advertising Standards Council of India, ASCI founded in 1985. The three main cons Stoutens of advertising industry viz advertisers, advertising agencies and media came together to form this independent NGO. The aim of ASCI is to maintain and enhance the public's confidence in advertising. Their mandate is that all advertising material must be truthful, legal and honest, decent and not objectify women, safe for consumers - especially children and last but not the least, fair to their competitors. The sponsors of the ASCI, who are its principal members are firms of considerable repute within industry in India and comprise Advertises, media, ad agencies and other professional services with advertising practice.

CODE OF CONDUCT BY ASCI

Advertising is an important and legitimate means for the seller to awaken interest in his products. The success of advertising depends on public confidence. Hence no practice should be permitted which tends to impair this confidence. The standards laid down here should be taken as minimum standards or acceptability which would be liable to be reviewed from time to time in relation to the prevailing norms of consumers susceptibilities.

CHAPTER 1
To ensure the truthfulness and honesty of representations and claims made by advertisements and to safeguard against misleading ads. 1-Ads must be truthful. All descriptions, claims and comparisons which relate to matters of objectively ascertainable fact should be capable of substantiation.
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2-Where advertising claims are expressly stated to be based on or supported by independent research or assessment, the source and date of this should be indicated in the advertisement. 3-Advertisments shall not, without permission from the person, firm or institution under reference, contain any reference to such person, firm or institution which confers an unjustified advantage on the product advertised or tends to bring the person, firm or institution into ridicule or disrepute. 4-Advertisements shall neither distort facts nor mislead the consumers by means of implications or omissions. Advertisements shall not contain statements or visual presentation which directly or by omission or by ambiguity or by exaggeration are likely to mislead the consumer about the product advertised or the advertiser or about any other product or advertiser. 5-Ads shall not be so framed as to abuse the trust of consumers or exploit their lack of expertise or knowledge. No ads shall be permitted contain any claim so exaggerated as to lead to grave or widespread disappointment in the minds of consumers. 6-Obvious untruths or exaggerations intended to amuse or to catch the eye of consumer are permissible provided that they are clearly to be seen as humorous or hyperbolic and not likely to be understood as making literal or misleading claims for the advertised product. 7-In mass manufacturing and distribution of goods and services it is possible that there may be an occasional, unintentional lapse in the fulfillment of an advertised promise or claim. Such occasional, unintentional lapses may not invalidate the advertisement in terms of this code.

CHAPTER 2
To ensure that ads are not offensive to generally accepted standards of public decency. Ads should not contain nothing indecent, vulgar or repulsive which is likely, in the light of generally prevailing standards of decency and propriety, to cause grave or widespread offence.

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CHAPTER 3
To safeguard against the indiscriminate use of advertising in situations or of the promotion of products which are regarded as hazardous or harmful to society or to individuals, particularly minors, to a degree or of a type which is unacceptable to society at large. 1.No advertisements shall be permitted which; a.Tends to incise people to crime or to promote disorder and violence or intolerance. b.Derides any race, caste, color, creed or nationality. c.Presentd criminality as desirable or directly or indirectly encourages people particularly minors to emulate it or conveys the modus operandi of any crime. d.Adversely affects friendly relations with a foreign State. 2-Ads addressed to minors shall not contain anything, whether in illustrations or otherwise, which might result in their physical ,mental or moral harm or which exploits their vulnerablity.eg ads a.Should not encourage minors to enter strange places or to converse with strangers in an effort to collect coupons, wrappers, labels or the like. b.Should not feature dangerous or hazardous acts which are likely to encourage minors to emulate such acts in a manner which could cause harm or injury. c. Should not feature minors for tobacco or alcohol based products. d.Should not feature personalities from the field of sports, music etc. for products which by law require a health warning in their ads or cant be purchased by minors. 3.Ads shall not without justifiable reason, show or refer to dangerous practices or manifest or disregard for safety or encourage negligence. 4.Ads should not contain which omit anything the law requires. 5.Ads should not propagate products which are banned.
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CHAPTER 4
To ensure that ads observe fairness in competition in the market place of generally accepted competitive behavior in business are served. 1.Ads containing comparisons with other manufacturers including those where a competitor is named are permissible in the interest of public enlightenment provided; a.It is clear what aspects of the advertisers product are being compared b.The subject matter of comparisons is not chosen in such a way as to confer an artificial advantage upon advertiser. c.The comparisons are factual, accurate and capable of substantiation. d.There is no likelihood of consumer being milled. e.The ad does not unfairly denigrate, attack or discredit other products.

2.Ads shall not make unjustifiable use of the name or initials of any other firm, company etc. nor take unfair advantage of the goodwill attached. 3.ads shall not be similar to any other advertisers earlier run ads in general layout ,copy etc. so as to suggest plagiarism.

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GLOBAL EMPLOYMENT
A large part of human relation management is concerned with various ethical issues, both on the part of upper level management in business decision and lower level management in the treatment of individual employees. In making decision the human resource manager should consider the alternative solution, keeping in mind the needs of the business as well as the effect the decision will have on the lives of the employees.

ETHICAL PRINCIPLES IN EMPLOYMENT

Following are the ethics should be followed by the employer in the employment;

1.HIRING
Ethical selection is all about acting in a way that is honest, fair and legal. An ethical personnel officer evaluates the candidates for a given post based on the same criteria. He ensures that all the requirements and benefits of a job are clearly conveyed to the applicants. When the principle of ethical selection is not followed, a wrong candidate may be hired for a job. This breeds dissatisfaction among the employees. Some of the unethical practices in hiring are related to discrimination on the basis of age, gender, etc.

2.REMUNERATION
Remuneration is the act of rewarding employees in proportion to their contribution. Remuneration is not only monetary rewards for work, but includes benefits, perks, recognition etc. According to the principle of ethical remuneration; A. A person with pressing needs do not automatically qualify for greater remuneration. B.Mere possession of superior skills and abilities do not determine the remuneration. C. A person who works hard but fails to achieve results deserves no reward but sympathy.
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3.ETHICS IN FIRING
Firing is considered to be ethical when it is a result of a particular cause. The cause may be related to a workers poor performance, dishonesty or misuse of authority ,which are considered to have an effect on the long-term owner value.

4.NO DISCRIMINATION
Organizations employment policy affirms the right of every person to participate in all aspects of employment. It should be committed to attracting and retaining a diverse work force.

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INTERNATIONAL LABOUR ORGANISATION ORIGIN AND HISTORY

The ILO was founded in 1919 to pursue vision based on the premise that universal lasting peace can be established origin and History; The ILO was founded in 1919 to pursue vision based on the premise that universal lasting peace can be established only if it is based upon decent treatment of working people. The ILO became the first specialized agency of the UN in 1946

ROLE OF ILO
The ILO helps advance the creation of decent jobs and the kinds of economic and working conditions that gives working and business people a stake in lasting peace, prosperity and progress.

TRIPARTITE CHARACTER-UNIQUE FEATURE

India is a founder member of the International Labour Organisation, which came into existence in 1919.At present the ILO has 175 members. A unique feature of the ILO is its tripartite system in the Member countries. At every level in the organisation , governments are associated with the two other social partners, namely the workers and employers. All the three groups are represented on almost all the deliberative organs of the ILO and share responsibility in conducting its work.

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THREE ORGANS
THEY ARE; 1.International labour conference- General assembly of the ILO-Meets every year in the month of June. 2.Governing body-Executive Council of the ILO. Meets 3 times in a year in the months of March, June and November. 3.International Labour Office-A permanent secretariat. The work of the conference and the governing body is supplemented by regional conferences, regional advisory committees, special conference etc.

CONCLUSION
The ILO is the global body responsible for drawing up and overseeing international labour standards. Working with its Member States, the ILO seeks to ensure that labour standards are respected in practice as well as principle.

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