Business Ethics Exam: HRM, Marketing Mix Ethical Issues Analysis

This assignment examines business ethics, specifically addressing human resource management (HRM) issues and the ethical considerations within the marketing mix. The HRM section identifies issues like inadequate training and development, unfair promotion practices, and lack of feedback as factors that can breach the psychological contract between employees and management, leading to decreased employee satisfaction and productivity. The marketing mix analysis explores ethical concerns related to product engineering, misleading advertising, promotional tactics using inappropriate content, and pricing strategies like anti-competitive practices. The assignment emphasizes the importance of ethical behavior in all aspects of business to maintain a positive work environment and build consumer trust. It highlights the role of regulations, such as those enforced by the UK Advertising Standards Authority, in guiding ethical marketing practices.

Exploring Business
Ethics
(Exam)

Contents
Identify and discuss at least three human resource management (HRM) issues that could affect the
psychological contract between employees and the managers of companies...............................................3
Discuss the ethical issues associated with each of the following elements of the marketing mix................4
References...................................................................................................................................................6

Identify and discuss at least three human resource management (HRM)
issues that could affect the psychological contract between employees
and the managers of companies
Introduction
Human resource department is referred to a division in the organisation which is
responsible to form and maintain a balance between employees and senior management of a
business. It is essential for a business to take into consideration interest of both the parties so
assure organisational harmony is retailed.
Main Body
However, there are some issues which strain the relationship shared between the two and
harm the organisational output as well. The initial HRM issue is that when Training and
development activities of people is not preferred in the organisation and they are forced into
monotonous jobs. Training and development has been one of the crucial consideration as it
enhances the employees on a personal and professional grounds and at the same time makes sure
that organisational goals are fulfilled (Kim, Karatepe and Lee, 2018). When employees don’t
receive the appropriate opportunities for improvement as promised by their employer they tend
to feel disappointed and harms the psychological contract.
Another HRM issue that can be lead to negatively influencing the psychological contract
between employee and employer is promotion. It is one of the major aspect which motivates an
employee to work hard and to make sure that his/her performance stands out in the crowd. The
efforts are made in order to achieved a higher responsibility or better financial packages from
employer. When the hard work of an employee goes in vain and is not appreciated or promoted
by the employer they will feel betrayed. This feeling of betrayal violates the psychological
contract that has been shared between the management and employees and results in lower
satisfaction of employees which can be further reflected through productivity (Costa and Neves,
2017).
The final HRM issues that can be considered for this question is Feedback that is being
offered to employees after a period of 3 or 6 months. This means that the employees are not
considering the efforts which has been put by employee in their daily tasks. Such instances make
them feel less important and shows that their work does not mean anything for this organisation.
It is essential to overcome this issue and restore a strong communication within the organisation.
Frequent communication with senior authorities will make them feel important and they will
work more dedicatedly towards the organisational goals.
Conclusion
It can be concluded from the above question that it is essential for a business to retain the
psychological contract between both the parties. This contract generally includes the verbal
expectation that the employees have from their respective businesses. It is essential for a

business to deal with the issues of promotion, feedback and T & D so that a right environment
within the business organisation could be retained which further contributes to higher
productivity.
Discuss the ethical issues associated with each of the following elements
of the marketing mix.
Introduction
Marketing is described as a combination of tactics which are used by the organisation to
make sure that products are marketed appropriately in the market (Armstrong and et al, 2018).
This question attempts to identify the ethical issues related with each elements of the marketing
mix.
Main Body
Product: it is mentioned to be the unit which is being offered in the market for an
identified price. Initial ethical issue can be relating to engineering of the product which means
that it is able to harm customer in way whatsoever. Another approach of violating ethical
grounds is printing misleading information on the product to promote higher selling.
Promotion: it can be referred to as one of the crucial tool to market products and services
of an enterprise. This tool has been proven to be most effective when it comes to marketing
products and services of a business organisation overtime. The major reason behind advertising
a products and services is to make sure that buyers are influenced and persuaded to buy the
products advertised (Warrink, 2018). There can be different approaches through which products
and services of a business organisation can be advertised such as newspapers, radio, social media
and other digital platforms.
However, it very important for a business to make sure that ethical and legal compliances
are considered before designing a promotional program. The initial ethical misconduct can be
seen through sexuality which has been present in the advertisement. The use of women in
swimwear just to evoke higher sales for business does not fall in ethical conduct. Therefore, it is
recommended to business to prevent use of such approaches for promotion. Some advertisement
use children as an approach to boost higher sales for toys or kid’s product. This is unethical as
one should opt for right mediums to promote their products and services.
Direct marketing can be referred to another false medium through which promotion is
usually done to end consumers. The channels which are mostly used under such approaches are
marketing through television, telephonic conversation and spam mailing. Such approach tempers
with the ethical boundaries and are not legal as well. Some organisations opt for fake reviews on
distinct platforms as an approach to boost sales of that particular product.
Regulation of marketing in UK

Advertising Standards Authority (ASA) is an organisation that is responsible for regulating the
advertising industry for the United Kingdom. The advertisement which are published online or
offline are regulated by this institution. This self-regulating authority laid down rules for
business that are involved in marketing their products through broadcasting and non-
broadcasting mediums. Considering the changes in the business environment and approach
towards marketing. This institution changes and reforms the practices to the regular basis which
are further communicated to advertisers, media agencies and media owners for compliance. On
non-compliance or any received complaints, the institution first requests to take down the
advertisement when not abided strict legal action is being followed. Marketing and
advertising: the law has been formed by the government of United Kingdom that regulates the
marketing activities that are carried out within country. This law assures that promotional
activities carried out are legally, politically and socially acceptable and does not bring harm to
any being.
Pricing: It is referred to the amount which has been paid by the consumer to avail the products
and services of an organisation. It is a very crucial element as it justifies the value and it’s
positioning in the market. The ethical issue which is relating to pricing is Anti-competitive. The
customers are usually ‘baited’ to the store or to the website where they found that they have been
misled with the advertisement and the product that has been advertised is sold out.
Distribution: In context of direct marketing it can be said that privacy, confidentiality and
intrusion are some of unethical practices. For instance, a powerful manufacturer may enforce
different approaches to deliver its product may lead to ethical violation.
Conclusion
It can be concluded from the above question that it is important for business to avoid unethical
practices which may relates to development of product, determining the price, promotional
tactics and finally channels through which it is delivered to end consumer.

References
Costa, S. and Neves, P., 2017. Job insecurity and work outcomes: The role of psychological
contract breach and positive psychological capital. Work & Stress, 31(4), pp.375-394.
Kim, T.T., Karatepe, O.M. and Lee, G., 2018. Psychological contract breach and service
innovation behavior: psychological capital as a mediator. Service Business, 12(2), pp.305-329.
Warrink, D., 2018. The Marketing Mix in a Marketing 3.0 Context. International Journal of
Innovation and Economic Development, 4(4), pp.7-11.
Armstrong, G.M. and et al, 2018. Marketing: an introduction. Pearson UK.