TOPIC 9

MARKETING ETHICS
IN ISLAM

1
9.1 MARKETING ETHICS

• Marketing ethics is an area of

applied ethics which deals
with the moral principles
behind the operation and
regulation of marketing.
• Some areas of marketing
ethics (ethics of advertising
and promotion) overlap with
media and public relations
ethics.
2
3
What is the role of marketing ethics?
Ethics are a collection of principles of right conduct
that shape the decisions people or organizations
make. Practicing ethics in marketing means
deliberately applying standards of fairness, or moral
rights and wrongs, to marketing decision making,
behavior, and practice in the organization.
Why do we need ethical marketing?
Customers do not want to feel manipulated by the
brands they like. Companies can use ethical
marketing as a way to develop a sense of trust
among their customers. ... It can make the consumer
feel like the company is invested in the quality of the
products and the value they provide customers.
4
The Five Dos Of Ethical Marketing
1. Be Transparent
Whenever you are marketing a product or service to customers,
ensure that you are fully transparent about it, including key
information about its safety and effective use.

2. Protect Consumer Data And Privacy

Consumers are becoming increasingly concerned about entrusting
their personal data with companies. For this reason, it’s important to
emphasize the company’s commitment to consumer privacy.

5
3. Commit To Sustainability And Human Rights
Ethical consumerism is becoming a bigger priority for many customers. People
want to feel assured that what they are purchasing is sustainable and ethically
produced. Be honest about your ingredients, product components, and your
supply chain.

4. Respond Meaningfully To Consumer Concerns

If customers have safety concerns about a product or service, then this should be
seen as a company’s top priority. Always seek to protect consumer rights and
immediately investigate any complaint.

5. Maximise Benefits And Minimise Risks

Every ethical marketing strategy should try to benefit as many people as possible
while creating as little harm or cost as possible. Making an overall and lasting
positive impact should always be the aim.
6
The Five Don’ts Of Ethical Marketing
1. Don’t Exaggerate
When you exaggerate the benefits of a product or service, you are making a
false claim. You are promising a customer a level of quality that cannot be
delivered.

2. Don’t Make False Comparisons

This is an unscrupulous tactic that involves making false, inaccurate, or
misleading statements about a competitor’s products.

3. Don’t Make Unverified Claims

This involves promising to deliver results (e.g. improved skin) without providing
any scientific evidence to back this up.

7
4. Don’t Stereotype
This involves the promotion of stereotypes (e.g. portraying women as sex objects) in
order to sell a product. The harm here is that this sort of marketing helps to
maintain a sexist culture.

5. Don’t Exploit Emotions

Getting an emotional reaction from consumers is one of the most effective ways to
generate interest. However, if you evoke negative emotions such as rage, fear,
sadness in a tasteless way, this could be seen as exploitative. Customers want their
emotions to be sympathised with, not manipulated.

Examine your current marketing strategy and see how it could be altered in line with
these 10 ethical principles. If you change the planning, implementation, and
monitoring of your strategy with ethics in mind, you will be able to drive success
while maintaining a solid reputation.
8
9
10
11
9.2 MARKETING ETHICS IN ISLAM

Islamic marketing can be defined as the wisdom of satisfying the needs of customers
through the good conduct of delivering Halal - wholesome, pure and lawful products and
services with the mutual consent of both seller and buyer for the purpose of achieving
material and spiritual well-being in the world here and hereafter and making consumers
aware of it through the good conduct of marketers and ethical advertising

According to Islam, whatever leads

to welfare of the individual or
society is morally good and
whatever is injurious is morally bad.
The ethical system prescribed
in Islam is eternally divine and
forms the foundation of
an Islamic society. GOOD Vs EVIL

12
There are five principles of Islamic transaction:

 P1. Harm minimization and benefit maximization

 P2. Riba is a non-transaction.
 P3. Value is to be created through tangible effort.
 P4. Mutual consent is the main condition of trade.
 P5. Marketing activity must minimize the likelihood of
post-transaction dispute.

13
Ethics
Islam has four sources for their ethical system:
1) the Quran,
2) the sayings and behaviours of Prophet
Mohammad,
3) the example set by his companions, and
4) the interpretations of Muslim scholars of
these sources.

These sources emphasize the importance of

human well-being and good life, religious
brotherhood and sisterhood, socioeconomic
justice, and a balanced satisfaction of both the
material and the spiritual.

14
Islamic marketing ethics aims at maximizing equity and justice for the welfare
of the society. It does this by inhibiting customer exploitation, and avoiding
dishonesty, fraud and deceit in business. Any unethical actions will do injustice
and go against brotherhood and equality of humanity which form the core of
Islamic vision.

In today's society, business often relies on free market economy where firms
experience the pressure of competition and seek profit maximization. This may
lead to Islamic ethics being overlooked, which makes the application of ehsan
impossible.

In an Islamic setting, the application of ehsan can strengthen relationships with

customers and communities, which will again improve a firm's public image
and make it more competitive.
15
Application of marketing
To understand Islamic Marketing, it is important to remember that there are
religious factors that define it. Islamic Marketing follows certain sets of rules.
 Production and sales that are considered unclean is forbidden. Examples
include activities that are related to marketing of alcohol, gambling etc.
 Adulteration with something concealed in the sale and purchase is forbidden.
This means it is forbidden to omit and fabricate the quality and quantity of
products.
 Sales and marketing of all the instruments meant for prohibited acts are
forbidden, for example instruments meant for entertainment like lyre, flutes,
harps etc., as well as gambling instruments like backgammon.
 Sales and marketing of weapons to the enemies of Islamic faith, or any faith,
are forbidden when used for war against Muslims.
 Drawing pictures in stone, wood, metal, or any other concrete forms, of living
beings from among human beings and animals is forbidden.
 Performance of magic, as well as learning and teaching it is forbidden.
16
“HALAL”
 
"Halal originates from an Arabic phrase that means allowed or permitted by Islamic Law"
 
The definition of Halal according to the Trade Description Order (Usage of the Term “Halal”) 1975 is as follows:

When the term is used in relation to food in any form whatsoever, in the process of trade or commerce as an aspect of
trading or part of an aspect of trading for the referred food, the terms ‘Halal’, ‘Guaranteed Halal’ or ‘Muslim Food’ or
any other terms that may be used to indicate or may be understood as meaning to indicate as permissible to be
consumed by Muslims and allowed in their religion for the referred food to be consumed, must therefore mean the
following, that is, the food for which such terms are being used:

a) Does not stem from or consists of any part of or item from animals that are forbidden to Muslims by Islamic
law, or animals that have not been slaughtered according to Islamic law.
b) Does not contain any substance that is considered impure in Islamic law.
c) Is not prepared, processed or manufactured using equipment or utensils that are not free from impurities as
defined by Islamic law, and
d) That, in the preparation, processing or storage stage, does not come in contact with or is stored near any kind of
food that does not meet the requirements of para(s) (a), (b) or (c) or any substances that are considered impure
by Islamic law.

17
JAKIM HALAL CERTIFICATION

18
19
20
21
Australian lamb and beef are 100%
guaranteed to be Halal. The Australian and
New Zealand Meat industry caters to the
needs of the different cultures and these
overseas packers produce halal meat
guaranteed to adhere to Islamic laws.

Where is the guarantee?

a) The Australian Government Halal Slaughter Program (AGHS)

The Australian Government Halal Slaughter program (AGHS) provides for maintenance of Halal status and
segregation of product after carcasses are declared Halal by Muslim Slaughtermen. AGHS is responsible for
the approval of all programs and monitors all aspects of the programs on a daily basis. This includes security
and issue of Halal stamps and signing of Certification.

b) Muslim Slaughtermen Registration

Muslim slaughtermen (including trainees) and authorized Halal inspectors must hold a current identity card
which will identify the Recognized Islamic Organization who has registered the representative and declared the
status of the card holder and the cards expiration date. Australian Government issues all Identity cards with the
period of registration being 1st January – 31st December of each calendar year.
22
23