Ethical Issues in Marketing and Society: A Diageo Company Report

This report provides a comprehensive analysis of ethical issues in marketing, focusing on the multinational beverage alcohol company, Diageo. The report explores various ethical concerns, including market research ethics, issues related to market audiences, delivery channels, anti-competitive practices, pricing ethics, and deceptive advertising. It examines the impact of these ethical issues on both the organization and society. The analysis highlights how these issues can lead to conflicts and disagreements within the marketing process. The report also discusses how managers can address these issues, especially in the context of digital media and advertising. Furthermore, the report offers recommendations for Diageo to mitigate these ethical challenges, such as the introduction of e-cigarettes and the importance of clear declarations regarding product hazards. This report, contributed by a student, is available on Desklib, a platform offering AI-based study tools for students.

Marketing and Society

INTRODUCTION
Every organization need a proper marketing which improve the sells and market value of
the organization. Marketing is a ongoing activity which follow some set of instructions and
strategies so that Organization can create, manufacture, promote and sell the products and
services. Marketing contain some set of benefits and also drawbacks which affect the
organization. Marketing field face many ethical issues which give adverse impact on the
organizational growth. Every organizations must consider some policies related with the ethical
marketing which help in develop the marketing growth. There are many types of ethical issues
which affect the marketing of the company such as marketing research, marketing audience,
ethics in promotions and advertising, delivery channels, anti competitive practices, pricing ethics
etc. These ethical issues affect the marketing and society and also influence the organization. For
this report, Diageo organization is chosen (Chaudhry and Sharma, 2018).Diageo is a
multinational company which deal with beverage alcohol. The headquarter of this company
establishes in London. This company situated in the year 1997. Diageo is a famous British
company which operate their business more than almost 180 countries and produce almost 140
sites all around the world. In this time, the number of employees in this company are 27,775.
This company. This company operating their business in five regions like North America, Asia
Pacific , Latin America & Caribbean , Europe and Africa so company mainly focus on their
marketing and marketing strategies. Sometimes company experience many ethical issues in the
marketing field which influence the company marketing ( Hunter, et. al., 2018 ). Ethical issues
affect the pricing policies , market research, customers , promotional activities, competition and
employees of the company. Company need to follow ethical marketing policies which reduce
the impact of ethical issues on the company. This report identify the those ethical issues which
affect the company and also analyse the impact of these ethical issues on organization and
society (Porlezza and Splendore ,2016) .
Critical Analysis of Ethical Issues in the field of Marketing & its impact on organization and
society
Ethical problems in marketing create many conflicts which leads disagreements.
Marketing basically consider that how the company relation will exist and how all the marketing
process and transactions should be executed. Diageo company is a most famous company of

beverage alcohol which operate their business operations in many foreign countries so that
sometimes company faced many ethical issues in context of marketing. The discussion of these
ethical issues which affect the organizations and society are given below-
Market Research
Ethical issues in marketing research affect the privacy and invasion of stereotyping. This
situation arise latter because when the the analysis of the population is require to make
estimations and place all people into a groups (Marketing Issues That Have Ethical Implications,
2020 ).If analysis and population approximations is done in a irresponsible way then stereotyping
situation occur that lead to many ethical undesirable outcomes. Diageo company mainly focus on
their marketing activities which help in good market research . Company time to time conduct
market research which help to analyse the data related to the customers preferences and latest
marketing elements and after this company implement it in a good manner. But sometimes
company experience the market research issues which unethically affect the organization and
also society because company collect the data from the real population so that this ethical issue
give adverse impact on the organization and society both (Poomontre and Setthawong, 2016).
Market Audience
This is a common ethical issue which consider the vulnerable audiences that emerge the
market in evolving countries. In this situation, audience are not aware about the skilled
marketing tactics. This ethical issue create many problems for the organizations and society both
because audience is not very much known about the marketing ploys. Diageo is a famous
company which well know all the marketing aspects because company move their business all
over the worlds so company deal with massive number of people. This ethical issue occur when
customers do not know about the marketing rules. For example, unethical market activity, ethnic
minority and also plus size of the market. Customers who are not well known about the company
market procedure so it affect the organization and society both so that company apply strictly all
the laws and regulation which helps in reduce this issue.
Delivery Channels
Delivery channels create various unethical situation in the market. Direct marketing is
one of most controversial promotional and advertising channel that main affected by the
unprompted approaches. The main example of this are direct mail and television commercials.
Diageo company contain many stores and branches all round the world so company is also doing

marketing through physical channels which give contribution in enhancement of company sales
but now the scenario is fully different because this company deal with the beverage alcohol so
company faced many unethical practices and conditions which created by the market and
audiences. This situation give negative impact on the organization and also society. Sometimes
delivery channels promote products in a unethical form which share a unethical practices.
Anti- Competitive Practices
This is the main ethical issue which affect the marketing of the company. This ethical
issue occur when a company many connect as per the restrict inter- company compensation to
manage or involve their relative market value, position and revenue without providing products
and services at a low cost or high quality. Competition is evolving very quickly so company need
to pay more attention on it. Diageo company main focus to follow all the activities, policies and
procedures in a ethical way but when the competition matter occur company plan properly their
marketing strategy so that company can take a competitive advantage. But in this time, other
companies use some anti competitive practices which is totally unethical for the organization
and society. For example , price fixing, anti- competitive agreements, dividing territories,
dumping and refuse to deal, these some anti competitive practices which give bad impact on the
organization and society both (Peterson, 2020).
Pricing Ethics
Pricing a product in a ethical form is really essential decision for the company. Those
companies follow all ethical activities that earn more profit from the market. Mostly pricing
ethical issues occur when company not follow the law and regulations and discriminate the in
context of pricing of the products. Diageo company usually focus on their price so that unethical
situation not occur but sometimes this situation occur because of some conflicts. For example ,
when a company is new than company set price of there products low so that company can take a
competitive advantage but when company become large then that situation company increase
their price which create unethical situation and this is not in favour of the customers. This
unethical situation affect the company marketing and also affect the customers so that company
marketing influenced.
Deceptive Advertising & Ethics
Deceptive marketing is not depend upon single target marketing it marketing can usually
unnoticed by the people. In so many ways deceptive marketing is presented in front of

customers. This ethical issue mainly rise when a company make claims and show that false
impression in front of customers in context of value, quality and price of products and services
on specific offer so this situation is against the law. Diageo company focus on their marketing
and promotional activities so that company can achieve their business objectives. This unethical
advertising practices occur when company advertisement are not ethical, misleading claims. If
this misleading claim situation come then company claim false in context of quality of products
and services so it affect the company goodwill and company employees disturbed by this and
besides this it affect the society.
These types of ethical issues give adverse impact on the organization and society so that
its mandatory for the Diageo company to well aware about this ethical issues and use some
ethical marketing policies which help in reduce these ethical issues so that company can survive
in a effective way at the marketplace.
How managers address these issues
As digital media channels are being used by adults and youngster as well so by
showcasing these advertisement of tobacco over digital media this is very problematic for
parents to control their child. Besides this digital media are accessed by all age grouped people
and due to this planning to ban these ads over digital media is accurate up to the mark. In this
situation manager of Diageo company is required to address this issue in prominent manner so
that they can avail market size in significant manner and deal with business objectives as well.
Managers of the business are having role to tackle business functions in such a way that
proximity to objectives can be provided in prominent manner (Murphy, 2017). Besides this
business manager are associated with the major role of acquiring prominence in the market and
executing their functions in such a way that efficacy can be managed in appropriative manner.
There are various roles which are executed by manager of Diageo company which are enlisted as
below:
Manage ethical relationship
In order to succeed in the business, manager of the organisation is playing significant role
so that to align business objectives with internal efforts. In this manner manager of the
organisation are required to adopted ethical working style so that to minimise market
complexities in particular way. As tobacco and alcohol is not good for health and this provides
negative implications to consumer's health, in this way when a company is managing their

business in tobacco or alcohol then this is imperative that manager of the business make certain
strategies in which ethical business style are being followed.
Providing appropriative declaration over advertisement
Proper declaration is required right after tobacco or alcohol advertisement in which health
hazards are properly shown so that to warn consumers regarding negative impacts of these
products. Manager of Diageo company is responsible to address this issue in such a way that
sales of the organisation doesn't fall but at the same time ethical conduct can be enhanced.
Sustainability
In current time sustainability is the major issue which is required to be exerted so that to
acquire higher market share and prominence by the business. Sustainability can be attained by
using environmental friendly practices in such a way that negative implications over
environment can be minimised. In this context manager of Diageo company is trying to inhale
sustainable business practices so that high edge benefits can be received by the company in terms
of sales and profits. In this manner under packaging processes can be made effective and of
recyclable material due to which sustainability can be maintained.
Recommendation
In order to deal with ethical issue of banning of tobacco and alcohol managers are
associated with various functions in which they can deal with ethical issues in practical manner.
In this context managers are laced with the role of innovating the business in a way that
objectives can be aligned along with business efforts. In the context of Diageo company, the
organisation is dealing in alcohol so this is necessary that their manager put high emphasis over
enhancing their sales and profit but in ethical manner. This is highly impactful for the
organisation to deal with their business objectives in a manner that customers can be attracted
along with they are aware regarding negative impacts of consumption of these hazardous
products (Hunter, et. al., 2018). There are various recommendations which are given to Diageo
company in order to deal with this ethical issues and the same are elaborated as under:
Introduction of E-cigarette: E-cigarettes are comparatively providing lesser harm to the
user as level of nicotine is minimum in this. So Diageo company can diversify their business in
manufacturing of E-cigarettes. Besides this, it is a movement by which awareness regarding
negative impacts over health of user can be spread which is helpful in dealing with ethical issues
in prominent manner.

Declaration
Declaration is a sort of acknowledgement which is being rendered to public in order to
provide awareness regarding usage of the same. Besides this manager of Diageo company is
managing appropriate functions in such a way that they provide a declaration on the product
regarding hazardous impact of their products so that to acquire interest and trust of their audience
(Hunt, 2020).
There are certain aspects which are required to be ascertained by manager of Diageo
company in order to deal with ethical issues in prominent manner. These issues are required to
be handled in appropriate manner so that to address ethical issues in effective way.
Evidence of critical application to topic and credible sources
As the organization Diageo sells cigarettes and alcohol products also shows
advertisement about it. In order to promote its product it is required to apply appropriate
marketing theory that is Maslow's Hierarchy theory of needs this theory is given by Abraham
Maslow in the year 1943. In this theory five stages are there that is divided into most important
needs which includes physiological, safety, love, esteem and self-actualization. As per this these
needs is required to be satisfy lower level “basic” needs which make progressing in order to meet
higher level “growth” needs. As these needs are satisfied within an organization it leads to attain
self-actualization. This is applicable to marketing which make creation of needs and provide
fulfilment. Once needs is been satisfied it results in making customers attain highest level of
satisfaction. Needs of customers is fulfilled that makes an organization like Diago to attain
satisfaction for its customers. As the company sell both tobacco and alcoholic products so its is
required to make use of the theory to understand needs of customers which eventually leads over
making an organization like Diago capture market in more appropriate manner. Theory of
hierarchy applied in an organization leads to develop all kinds elements in both internal and
external terms (Golden and Peterson, 2018).
If the model applied is followed then relationship of customers and organization becomes
more stronger which eventually leads over increase in customers satisfaction. Such theory is
applied form bottom to top of marketing which makes employees attain consistency in working
and makes productivity improved. Model applicable in order to make satisfaction increase of
customers. This makes all products to maintain its quality. Cigarette and alcohol are those
products that contributes towards economy and helps in enhancing it. So, it has major

contribution towards an countries economy. If Diago is not promoting its product in better
manner this leads over negative impact on economy. So this is one of the main reason why
cigarette advertisement cannot be banned as it leads over attracting of more and more customers.
Though tobacco and alcohol are injurious to health that is a well known fact but still the
advertisement cannot be banned fully but can be modified in a way that only product is promotes
with health warning over it. In such way the sales will not be impacted and customers will attain
satisfaction. This makes people who does not smoke or drink be aware about its consequences.
These advertisement should can never be banned as they involve large base of customers
(Chaudhry and Sharma, 2018).
CONCLUSION
From the above file it can be concluded that ethics plays important role in making
disciplined and order to be achieved within working of an organization. Then various kinds of
ethics is been explained. Also theory has been explained related to marketing which makes
selling of products to be don in better manner. Marketing helps in making products to be sold in
market and making customer attain more satisfaction from it. In the end reason has been
explained over why advertisement of cigarette and alcohol cannot be banned permanently.

REFERENCES
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