Ethics in Marketing

Ethics and Morality

• ‘Ethics’ is the study of ‘moral’ behavior and conduct

• Literally, both are used interchangeably

• Contextually, however morality is more about ‘right’ and

‘wrong’, ‘good’ and ‘bad’

• And Ethics (especially in business) is often more about ‘acceptable’

and ‘unacceptable’
 Why bother about Ethics?

• The basic human instinct is ‘survival’ (often short-term)

• There is a need to superimpose it with intellectual control (self-

discipline) to ensure proper behavior required for ‘optimal’ or long-

term survival

• Moral human behavior ‘optimizes’ the survival and nourishment

of the human species. It is what makes humans different from
animals
 Ethics and Culture

• Ethics are often culturally subjective

• Any cultural integration requires a consistent, dependable

and provable moral and ethical value system (code of ethics)

• ‘Acceptable’ behavior in one culture (or sub-culture) may

often be viewed as ‘unacceptable’ in another
 Ethics and Marketing

If companies are fighting marketing ‘warfares’,

supposedly unfair means may get used at times

Companies in their attempt to woo consumers may do

things that seem like crossing ethical or moral
boundaries
 The Ideal Marketing Conduct
(Some Guidelines)

• Maintain professional ethics: not knowingly do any harm

• Adherence to all applicable laws and regulations

• Accurate representation of the product, usage, benefit, harms,

experience, training, etc

• Active support, practice and promotion of Ethics Code

 The Ideal Marketing Conduct
(Some Guidelines)

• Products and services offered are safe and fit for their intended
uses

• Communications about offered products and services are not

deceptive

• Discharge obligations, financial or otherwise, in good faith

• Appropriate and equitable adjustment and redress of grievances

concerning purchases
 Some Ethical Issues in Marketing

• Deception, Misleading claims, Misrepresentation

• Unfair competition and claims

• Selling commonly assumed harmful products - cigarettes, alcohol,

drugs, etc

• Civil rights and Right of privacy

• Trademark and Slogan protection

• Selling to children
 Some Ethical Issues in Advertising

• Using children to influence parents

• Use of sex/nudity for unrelated products

• Surrogate advertising (cigarettes, liquor ads)

• Commercial objectives in garb of social advertising

• Hitting competition below the belt

• Promoting cultural, social or gender stereotypes

Ads have no morality of their own but reflect the

mores of the times and the standards of their users

- Anonymous
 Some emerging Ethical Issues

• Personal database collection without permission

• Pornography and net policing

• Hacking

• Spamming

• GSM tracking through mobile phones

Regulations
 Types of Regulations
By

Consumers Industry Government Pressure

Groups

Consumer Protection Self Regulation Laws,

Groups, Forums Women’s Organization,
(e.g., ASCI) Regulatory Bodies
Environment Groups,
(e.g., TRAI, IRDA,
Animal Protection Groups
RBI, FSSAI, RERA, etc.)
 Consumer / Pressure Groups

• ‘Organized’ social pressure on business by consumers

• To demonstrate and protect consumer rights and power

• Concern with product quality and promotional honesty

• Consumer Protection Organizations (e.g. Consumer Voice)

 Self Regulation

• By industry associations through formulation of code of

conduct / ethics

• A responsible action to gain consumer goodwill

• Also an attempt to ward off more stringent govt. controls and

penalties

• Advertising - AAA of India, ASCI

 Last but not the Least….

• Consumer discretion at the individual level

• Refusing to buy brands that do not match up to their

expectations of fairness, ethics, decency and quality

• Loosing consumer goodwill and sales is a matter of life and

death for the brand and the marketer
 To Sum Up….

• Being sensitive to what might offend ‘their’ consumers is a

must for marketers

• At the same time, stringent laws and active consumer /

pressure groups will ensure that marketers dare slip up