Business Ethics is defined as ethical rules and principles (values) within a commercial context, and applying various moral or ethical problems that might arise in a business setting, and special duties or obligations that arise during the course of commerce
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.
The case for ethics: “When customers believe that they can no longer trust a company or that the company is not acting responsibly, they will no longer support that company by purchasing its products or ...view middle of the document...
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.
Marketing practices are deceptive if customers believe they will get more value from a product or service than they actually receive. Deception, which can take the form of a misrepresentation, omission, or misleading practice, can occur when working with any element of the marketing mix.
Marketers control what they say to customers as well as and how and where they say it. When events, television or radio programming, or publications sponsored by a marketer, in addition to products or promotional materials, are perceived as offensive, they often create strong negative reactions. For example, some people find advertising for all products promoting sexual potency to be offensive. Others may be offended when a promotion employs stereotypical images or uses sex as an appeal.
Marketing ethics includes issues relating to:
Many consumers remain highly skeptical of business…and especially of marketing. 62
Truth in advertising
Consumer issues: Promotion of shoddy products
Societal issues like the environment
Global issues: sweatshops
Creating an Strong Ethical Climate within the business should Include the following features:
1- Having a clear set of values that guides decision-making and behavior
2- Norms: Everyone within the firm must share the same understanding of these values and how they translate into the business activities of the firm, and they must share a consistent language to discuss them. 62
3- System of controls and rewards: reward behavior consistent with the firm’s values, punish inconsistent behavior
4- Research has shown that too strong a normative culture in a corporation – where everyone strongly identifies with the values of the brand owner – actually inhibit innovation within the firm. What are the implications of this?