Corporate philosophy on ethical marketing
Dr. Mohammed Hossain | Saturday, 7 June 2008
JUST few days ago, this scribe went through a philosophy article on ethics in marketing. This has encouraged this write-up on this issue as we are concerned with ethics and marketing. In the world that we live in, there are corporate scandals and great social concern over businesses, governments, non-profit organisations and educational institutions. Ethics and social responsibility are core values that every business that wants to sustain its existence should have.
There is a term called 'Multiple Bottom Lines' that is being used increasingly now. Even, marketers across the world face an ethical dilemma on marketing issues like distributor relations, advertising standards, customer service, pricing, product development, and general sensitivity to ethical and moral issues. It is true that the different ethical practices and social responsibility initiatives mostly depend on the personal value system of managers, company's attitude, culture and the corporate philosophy.
The concern towards the ethical marketing activities can be identified by eight stakeholders such as share-holders, community, governance, diversity, employees, environment, human rights, and product and services. In the wake of globalization, multinational companies often face different norms of ethics and social responsibility in each country. The case of Bangladeshi companies is questionable as to whether the marketing companies here face ethical dilemma and conflict of interest as they operate in an environment that suffers from a poor record of values and ethics.
Marketers must become aware of the ethical standards and acceptable behaviour in today's society. This awareness means that marketers must recognise the viewpoints of three key players: the company, the industry, and the society.
How can we achieve the objectives of corporate philosophy in ethical case of marketing? As we understand that one corporate philosophy can be developed through preparation of a set of principles which can act as a guideline to resolve all the difficult ethical situations the marketer faces, since the adherence to sales promoting strategy can often result in immoral or amoral actions. The literature argued that the other philosophy puts the onus on individual managers who should develop a social conscience and apply high standards of ethics and morality. Therefore, socially responsible and ethical behaviour go beyond the legal and develop into standards of personal integrity, corporate conscience, and long-run consumer welfare.
The American Marketing Association (AMA) has suggested a list of ethical values that any industry should consider within their own specific codes of conduct. This type of effort is made to foster trust and faith in the promise of businesses that they have the interest of their customers and stakeholders (stakeholders are among others, employees, shareholders, and suppliers) at heart in their operations.
In the context of Bangladesh, we need to develop a code of ethics in our products as well as marketing of the products. The total corporate commitment towards these issues alone can bring success. Businesses must communicate and practise ethical values that will generate confidence in the integrity of our system from our consumers. Also businesses must aspire to these values because they foster a long-term relationship with customers and stakeholders. However, cigarettes are harmful to human health and society. So, we have to put together a common ethical feature in marketing that does not affect the society as whole. Consumer associations and strong monitoring and controlling authorities are the last resources to overcome present situation in ethical dilemma of marketing in Bangladesh.
Ethical conflicts in marketing arise in two contexts: Firstly, a conflict may arise when there is a difference between the needs of the three aforementioned groups -the company, the industry, and the society. This concern has led ITC, a very profitable FMCG company to change its product mix from tobacco to non-tobacco and today its non tobacco-foods, confectionary, apparels, greeting cards and hotel business has grown close to 50 per cent of its sales revenue
Secondly, an ethical conflict may also arise when one's personal values conflict with the organisation. Recently, Pepsi India faced a difficult problem when its cola drink was allegedly containing pesticides as per investigations of a national research laboratory.
Here the brand ambassadors faced a difficult choice on continuing to advertise a supposedly dangerous product. More extreme cases abound in India where drugs with false cures or harmful products get pushed through the use of advertising gimmicks. Promoting and marketing such products violate rules of marketing ethics.
The social work being done by many organisations today is stepping up the need and awareness on these issues. It is our belief that in time these values will have to be adopted by all businesses, big and small.
Within the last few decades, the perception of business's role in society has changed dramatically. Companies increasingly commit to philanthropic activities that are often referred to as the "social responsibility" of business. Not only do companies donate money for charitable purposes (corporate giving) or endow financial resources to civil organisations (social sponsoring), they also encourage, coordinate, and facilitate the volunteer efforts of their employees in community affairs (corporate volunteering) and establish and maintain civil organisations (corporate foundations). Firms undertake marketing efforts to support charitable institutions (cause-related marketing) and partner with community non-profit organisations to support social causes (social commissioning). They also co-fund and cooperate in joint-ventures with state actors and civil society organisations (public-private partnerships). Finally, business firms champion the cause of charitable organisations by professionally influencing political decision-makers (social lobbying) and by venturing risk capital and know-how (venture philanthropy).
These sorts of activities have led to widespread expectations that companies will (and maybe even should) assume corporate responsibility-in a wide field of interests, including environmental pollution, global warming, child labour, human rights violations, the aging population, social security, and corruption, among others.
(The writer can be reached at e-mail: hossain_mohammed@hotmail.com)
There is a term called 'Multiple Bottom Lines' that is being used increasingly now. Even, marketers across the world face an ethical dilemma on marketing issues like distributor relations, advertising standards, customer service, pricing, product development, and general sensitivity to ethical and moral issues. It is true that the different ethical practices and social responsibility initiatives mostly depend on the personal value system of managers, company's attitude, culture and the corporate philosophy.
The concern towards the ethical marketing activities can be identified by eight stakeholders such as share-holders, community, governance, diversity, employees, environment, human rights, and product and services. In the wake of globalization, multinational companies often face different norms of ethics and social responsibility in each country. The case of Bangladeshi companies is questionable as to whether the marketing companies here face ethical dilemma and conflict of interest as they operate in an environment that suffers from a poor record of values and ethics.
Marketers must become aware of the ethical standards and acceptable behaviour in today's society. This awareness means that marketers must recognise the viewpoints of three key players: the company, the industry, and the society.
How can we achieve the objectives of corporate philosophy in ethical case of marketing? As we understand that one corporate philosophy can be developed through preparation of a set of principles which can act as a guideline to resolve all the difficult ethical situations the marketer faces, since the adherence to sales promoting strategy can often result in immoral or amoral actions. The literature argued that the other philosophy puts the onus on individual managers who should develop a social conscience and apply high standards of ethics and morality. Therefore, socially responsible and ethical behaviour go beyond the legal and develop into standards of personal integrity, corporate conscience, and long-run consumer welfare.
The American Marketing Association (AMA) has suggested a list of ethical values that any industry should consider within their own specific codes of conduct. This type of effort is made to foster trust and faith in the promise of businesses that they have the interest of their customers and stakeholders (stakeholders are among others, employees, shareholders, and suppliers) at heart in their operations.
In the context of Bangladesh, we need to develop a code of ethics in our products as well as marketing of the products. The total corporate commitment towards these issues alone can bring success. Businesses must communicate and practise ethical values that will generate confidence in the integrity of our system from our consumers. Also businesses must aspire to these values because they foster a long-term relationship with customers and stakeholders. However, cigarettes are harmful to human health and society. So, we have to put together a common ethical feature in marketing that does not affect the society as whole. Consumer associations and strong monitoring and controlling authorities are the last resources to overcome present situation in ethical dilemma of marketing in Bangladesh.
Ethical conflicts in marketing arise in two contexts: Firstly, a conflict may arise when there is a difference between the needs of the three aforementioned groups -the company, the industry, and the society. This concern has led ITC, a very profitable FMCG company to change its product mix from tobacco to non-tobacco and today its non tobacco-foods, confectionary, apparels, greeting cards and hotel business has grown close to 50 per cent of its sales revenue
Secondly, an ethical conflict may also arise when one's personal values conflict with the organisation. Recently, Pepsi India faced a difficult problem when its cola drink was allegedly containing pesticides as per investigations of a national research laboratory.
Here the brand ambassadors faced a difficult choice on continuing to advertise a supposedly dangerous product. More extreme cases abound in India where drugs with false cures or harmful products get pushed through the use of advertising gimmicks. Promoting and marketing such products violate rules of marketing ethics.
The social work being done by many organisations today is stepping up the need and awareness on these issues. It is our belief that in time these values will have to be adopted by all businesses, big and small.
Within the last few decades, the perception of business's role in society has changed dramatically. Companies increasingly commit to philanthropic activities that are often referred to as the "social responsibility" of business. Not only do companies donate money for charitable purposes (corporate giving) or endow financial resources to civil organisations (social sponsoring), they also encourage, coordinate, and facilitate the volunteer efforts of their employees in community affairs (corporate volunteering) and establish and maintain civil organisations (corporate foundations). Firms undertake marketing efforts to support charitable institutions (cause-related marketing) and partner with community non-profit organisations to support social causes (social commissioning). They also co-fund and cooperate in joint-ventures with state actors and civil society organisations (public-private partnerships). Finally, business firms champion the cause of charitable organisations by professionally influencing political decision-makers (social lobbying) and by venturing risk capital and know-how (venture philanthropy).
These sorts of activities have led to widespread expectations that companies will (and maybe even should) assume corporate responsibility-in a wide field of interests, including environmental pollution, global warming, child labour, human rights violations, the aging population, social security, and corruption, among others.
(The writer can be reached at e-mail: hossain_mohammed@hotmail.com)