ETHICAL MARKETING

 Ethical marketing refers to the application of marketing ethics into the marketing
process.
 Marketing ethics has the potential to benefit society as a whole, both in the short- and
long-term
 Marketing ethics is the area of applied ethics which deals with the moral principles
behind the operation and regulation of marketing.

PRINCIPLES OF ETHICAL MARKETING

 All marketing communications share the common standard of truth

 Marketing professionals abide by the highest standard of personal ethics
 Advertising is clearly distinguished from news and entertainment content
 Marketers should be transparent about who they pay to endorse their products
 The privacy of the customer should be compromised

ETHICAL VALUES

Honesty- To be truthful and forthright in our dealings with customers and stakeholders
Responsibility – To accept the consequences of marketing decisions and strategies
Fairness – To try to balance justly the need of the buyer with the interest of the seller
Respect – To acknowledge the basic human dignity of all stakeholders
Openness – To create transparency in the marketing decisions
Citizenship – To fulfil the economic, legal, and societal responsibilities that serve stakeholders
in a strategic manner.

IMPORTANCE OF ETHICAL MARKETING

 Satisfying the basic human needs- Every human wants to be in an organization that is
fair and ethical in practice
 Unity- Unity within its employees and leaders as well
 Improves decision making- All are allowed to put forward their inputs, through which
a solid decision can be taken
  Loyal Customers- Loyal customers is what allows a business to survive in the hardest
of times
 Mutual trust- Trust when built within the organization as well as outside it increase its
customer loyalty

UNDERSTANDING ETHICAL DECISION MAKING!

• Ethical decision-making refers to the process of evaluating and choosing among

alternatives in a manner consistent with ethical principles. In making ethical decisions, it
is necessary to perceive and eliminate unethical options and select the best ethical
alternative.
• The process of making ethical decisions requires:
• Commitment: The desire to do the right thing regardless of the cost
• Consciousness: The awareness to act consistently and apply moral convictions
to daily behavior
• Competency: The ability to collect and evaluate information, develop
alternatives, and foresee potential consequences and risks.

Good decisions are both ethical and effective…

 Ethical decisions generate and sustain trust; demonstrate respect, responsibility, fairness

and caring; and are consistent with good citizenship. These behaviors provide a
foundation for making better decisions by setting the ground rules for our behavior.

 Effective decisions are effective if they accomplish what we want accomplished and if

they advance our purposes. A choice that produces unintended and undesirable results is
ineffective. The key to making effective decisions is to think about choices in terms of
their ability to accomplish our most important goals. This means we have to understand
the difference between immediate and short-term goals and longer-range goals.