This website uses cookies to ensure you have the best experience. Learn more

Marketing And Ethics Essay

1992 words - 8 pages

Introduction 2
Ethical Behaviour and Theories 2
Ethical Codes 3
Ethical Dilemmas of Nestle 3
Infant Formula: 3
Overcharged Prices 4
Unfair Labour Practices 4
Steps Taken by Nestle 5
Conclusion 5
References 7


Marketing ethics can be considered as a subset of business ethics which deals with the study of how ethical and moral standards can be applied to various marketing decisions. Various topics can come under the umbrella of marketing ethics and these are product safety, pricing fairness, advertising honesty, product liability, etc. Corporations have increasingly become very competitive and in the last few years, news of breach of ethical codes ...view middle of the document...

For instance, in case when the teleology with regard to an individual is to be happy only or successful, in that case the teleology of an organization is to earn revenues and profit (Hunt, et al., 1989). Based on this assumption, organizations’ basic responsibility is towards its shareholders. One of the contradictions of the amoral business organization myth is that in cases when cost of repairing the social or environmental damage is caused while generating profits, then the overall utility provided to the shareholders may come to be negative.

Ethical Codes

In order to monitor, standardize as well as control the ethical risks with regard to a business is to establish codes of ethics. For instance, the Standards of Professional Conduct detail instances in which a firm can address its ethical dilemmas (Jones, 1991). Ethical codes also face many risks, one of which is to become too rigid or legalistic. Thus, it is important to understand that different theories contain ethical codes in them as well. For instance, the utilitarian theory suggests that there is an ideal ethical code which can be implemented in any kind of business related decision making. Utilitarianism can be considered as subjective where the rigidity of the codes can render them to be less effective. This difficulty has allowed for the creation of another ethical theory which is named as egoism based on which, it is allowed that organizations can act in a manner wherein it is considered best to serve themselves (Jones, et al., 2007). However, with a fine line being created in following ethics, marketers often face ethical dilemmas and two of them are discussed in the following sections.

Ethical Dilemmas of Nestle

Infant Formula: Nestle got itself involved in a controversy surrounding an infant formula as it was criticised for following practices considered as unethical which endangered human life and health. Various agencies called for the boycott of the company until in the 80s, Nestle agreed to integrate the infant formula marketing code as designed by the World Health Organization. The criticism came in the wake of an understanding which believed that Nestle used genetically modified ingredients in the making of infant food products (Solomon, 1981). It was also accused of dumping its products in Asia which were rejected in Europe since laws related to genetically modified ingredients was not followed strictly in these countries. As per Kant, the decision makers of the company had to be willing enough in order to market the product even if they were assumed to be the uninformed consumers. Therefore, it can argued that by compromising with the product safety and ill informing consumer, Nestle followed an unethical path (The Guardian, 2013).

Overcharged Prices: Nestle was criticised for another issues – that of overcharging the consumers. When the firm launched its bottled water, “Pure life” in select Asian cities, its pricing was done keeping in mind only the...

Other Papers Like Marketing and Ethics

Sales Ethic Is an Oxymoron Essay

1816 words - 8 pages alluring and tempting promises on characteristics like durability have become commonly accepted norms of marketing strategies. Not surprisingly the consumers have reached a stage where they are forced to believe, rather decisively that sales ethics is an oxymoron (Hair et al.2009). An ‘oxymoron’ is a combination of oppositely meaning words in literature. For example ‘honest thief’ is an oxymoron. When ‘sales ethics’ are dubbed as oxymoron, it is

Business Ethics In An Organization With Theories

4367 words - 18 pages problem. (Hunt, Parraga, 1993) These alternatives are primarily evaluated from earlier stated teleological (goal based) and deontological (duty based) perspectives.The latest description of the Hunt and Vitell theory of marketing ethics and their discussions of empirical tests of the theory provides an excellent framework for understanding the "why" questions about marketing ethics. The model shows why peoples' ethical judgments differ in an

Managing Market Information

1517 words - 7 pages Chapter Four Managing Marketing Information to Gain Customer Insights Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter 4- slide 1 Learning Objectives Topic Outline • • • • • • • Marketing Information and Customer Insights Assessing Marketing Information Needs Developing Marketing Information Marketing Research Analyzing Marketing Information Distributing and Using Marketing Information Other Marketing Information

Is Sales Ethics An Oxymoron?

1698 words - 7 pages force which helps bring about the immoral sales is putting more pressure on to the business in the competitive global market of today. Many facts, such as pay plans, investment, job insecurities and a marketing environment, are core fact that gives rise to competition in too many cases[1]. When come to such situation, it becomes an fraudulent choice between selling and following one's morals. Hence, the topic whether sales ethics is oxymoron rises

Business Ethics Across the World

1136 words - 5 pages . Business ethics in China has the responsibility to meet challenges in their new form and to offer insights into how to address them. The other article written by Margret Steen, “ Business Ethics in a Global World: India’s Changing Ethics”. This article reviews an address to the Markkula Center for Applied Ethics by Jagdish Sheth who is the executive director of the Indian, China, and America Institute and professor of marketing at Emory

Total Quality Management

5007 words - 21 pages product and “green” tourism as an example of the industry’s response to ethical considerations. Literature review Many authors in the tourism area have considered the phenomena of tourism marketing, (Haywood, 1990; Middleton, 1988) but few have related tourism marketing to the concept of ethics. The trend has been to look at definitional aspects of tourism marketing which has been followed by prescription towards the management process. The subject

Business Administration

541 words - 3 pages Problem Solving for Managers Management Science in Business Service Operations Management Small Business Management Social Networking and Enterprise Understanding Challenges in the Third Sector E-Commerce Global Marketing Ethics and Culture List B Advanced Project and Risk Management International Human Resource Management Taxation for non-Specialists International Financial Management Forecasting Methods for Managers Issues in Global Economy Supply Chain Managers List AB (two semesters) Marketing Communications Dissertation-Management (including Research Methods) (Business Studies only) 5


2248 words - 9 pages the brand and the customer. Societal marketing is defined as “a principle marketing that holds that a company should make marketing decisions by considering consumers wants, the company’s requirements, consumers long-run interests, and society’s long-run interests.” The company is aware that neglecting consumer and societal long-run interests is a disservice to consumers and society. 5. What role do ethics play in marketing? Unethical

Is It Ethical to Use Woman as a Marketing Instrument?

1176 words - 5 pages ethical or not. Business ethics is a form of professional ethics that analyzes ethical principles and moral problems that arise in business environment. Therefore, business ethics literature must tell us something about the firms’ controversial application mentioned above. This study aims at evaluating the abuse of women in marketing practices in the lights of business ethics theories. Women have always been obsessive to

Personal Ethics Development

1258 words - 6 pages . According to Free & O’Brien (2009) Australia wanted to make credit easily accessible for consumers but it turned out for the worse. Free & O’Brien’s (2009) research shows that many of the institutions geared toward advertising and marketing practices in Australia try to make the best financial decisions within their country. There are clear requirements for ethics within every place of employment, along with certain ethics set for

How Personal Can Ethics Get?

1125 words - 5 pages within a more personal setting - amongst individuals and how they are raised. Ethics and morals lie against the same barrier - right or wrong. The underlying question on contrary is, “How personal can ethics get?” “Case Scenario” Valerie Young is an immigrant worker employed as a Marketing Manager at Wisson Cosmetic Company in Chicago, IL. Valerie Young was hired by Lionel Waters to contribute her organizational, financial and marketing

Related Essays

Marketing Ethics Essay

559 words - 3 pages Marketing Research Ethics The dictionary describes ethics as a system of moral principles that set the guidelines for the rules of conduct recognized in respect to a particular class of human actions or a particular group. Ethics are a branch of philosophy dealing with the values relating to the human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions

Ethics On Marketing Essay

882 words - 4 pages . Although the terms had mentioned that Octopus had the right to sell the personal data to its partners, the practice of Octopus is obviously unethical. American Marketing Association(AMA) has promoted a code of ethics. It includes Honesty, Responsibility , Fairness ,Respect ,Openness and Citizenship. Honesty requires the company telling truth to the stakeholders in all situations and at all time. Octopus had not met honesty requirement

Business Ethics Essay

539 words - 3 pages of a social group. 5. Meta Ethics * A form of philosophical enquiry that treats ethical concepts, belief systems as objects of philosophical enquiry in themselves. ETHICAL NORMS IN MAKING MARKETING DECISIONS 1. Demonstrate Integrity to the marketing profession 2. Be fair and equitable 3. Be honest in dealing with customers and all stakeholders 4. Avoid the dissemination of false information. 5. Demonstrate current

Boeing Code Of Ethics Essay

568 words - 3 pages Code of Ethics In March of 2005, Boeing’s Board, “asked for and received” CEO Harry Stonecipher’s resignation, this action was taken following an investigation into a personal relationship between Stonecipher and a female executive of the company (MSN Money, 2005, p.1). Stonecipher was brought in to put a series of scandals behind the company and had been credited with a more aggressive marketing approach. As a result of this ethics