ETHICAL ISSUES IN MARKETING.

ETHICAL ISSUES IN MARKETING
Ethics are defined as the set of principles that guide a person’s conduct towards
being morally right. When a person is faced with moral dilemma, the choice that
the person makes largely depends upon the values and ethical principles that
person holds. It is over and above just being legal. Due to being dependent upon
the personal values and principles a person holds, an ethical code of conduct
cannot be described in absolute terms. Like in all disciplines of life, recognizing
and quantifying what is ethical in marketing and what is not is difficult. In a
broader sense, ethics in marketing mean implementing standards of moral rights
and wrongs and of fairness in the marketing practices of an organization.
WHy WE NEEd ETHICS ?
1. To create values or trust in marketing communication.
2. To build good image about the organization in the minds of customer.
3. To develop the positive attitude of customers about the firm.
IMPORTANCE OF ETHICS:-
Ethical Marketing is a philosophy that focus focuses on honesty, fairness and
responsibility. it is a general set of guidelines can be put in place to ensure the
company’s intent is broadcasted and achieved. Principles of this practice include:
i. A shared standard of truth in marketing communications.
ii. A clear distinction between advertising and sensationalism.
iii. Endorsements should be clear and transparent.
iv. Consumers’ privacy should be maintained at all times.
v. Government standards and regulations must be adhered and practiced by
marketers.
According to O. C. Ferrell, the three factors influence the ethical decision making
process:

ET
As it is shown in Figure, individual factors mean that individuals substantiate their
decisions on their own concepts of right/ wrong act and act accordingly to their
daily lives. An organisational culture can be defined as a set of values, beliefs,
goals, norms, and rituals that the members or employees of an organisation
share. The culture of accompany may be expressed formally through work habits,
dress codes, extra-curricular activities and anecdotes. The culture of an
organization gives its members meaning and suggests rules for behavior and
dealing with problems within an organization” (Ferrel, 1998). An Opportunity
could be described as a favorable set of the conditions that limit barriers or
provide rewards.
ETHICAL ISSUES IN MARKETING:-
1. Bribery – Gifts from outside vendors, payment of questionable
commissions, ”money under the table.”
2. Fairness – Unfairly placing company interests over family obligations, taking
credit for the work of others, including customers to use services not
needed, manipulation of others.
3. Honesty – Lying to customers to obtain orders, misrepresenting services
and capabilities.
4. Price – Differential pricing, charging higher prices than firms with similar
products while claiming superiority.
5. Product – Product safety, product and brand infringement, exaggerated
performance claims, products that do not benefit consumers.
6. Personnel – Firing, hiring, employee evaluation
ETHICAL
DECISIONS
INDIVIDUAL FACTORS ORGANIZATION FACTORS
OPPORTUNITY