Ethical marketing
Encyclopedia
Ethical marketing refers to the application of marketing ethics
into the marketing
process. Briefly, marketing ethics refers to the philosophical examination, from a moral standpoint, of particular marketing issues that are matters of moral judgment. Ethical marketing generally results in a more socially responsible and culturally sensitive business
community. The establishment of marketing ethics has the potential to benefit society as a whole, both in the short- and long-term. Ethical marketing should be part of business ethics
in the sense that marketing forms a significant part of any business model. Study of Ethical marketing should be included in applied ethics
and involves examination of whether or not an honest
and fact
ual representation of a product or service has been delivered in a framework of cultural and social values.
It promotes qualitative benefits to its customers, which other similar companies, products or services fail to recognise. The concern with ethical issues
, such as child labor, working conditions, relationships with third world countries and environmental problems, has changed the attitude of the Western World towards a more socially responsible way of thinking. This has influenced companies and their response is to market their products in a more socially responsible way.
The increasing trend of fair trade is an example of the impact of ethical marketing. In the 'Ethical Shoppers Price Index Survey' (2009) fair trade was the most popular ethical badge products could have. It also revealed that many consumers distrusted green claims. (The idea of fair trade is that consumers pay a guaranteed commodity price to a small group of producers, the producers agree to pay fair labor prices and conserve the environment - a fair deal for everyone.)
The philosophy of marketing is not lost with this newfound ethical slant, but rather hopes to win customer loyalty by reinforcing the positive values of the brand, creating a strong citizen brand. However, this new way of thinking does create new challenges for the marketer of the 21st century, in terms of invention and development of products to add long-term benefits without reducing the product’s desirable qualities.
Many brands have tried to use ethics to make themselves look responsible, often spinning environmental claims which has led to the term greenwash (see greenwash
ing) In research consumers have shown to have even less trust of ethical claims in ads than ordinary ads. media attention on ethics has resulted in many top brands suffering consumer boycotts. Although many brands have tried to use green issues, it has been noted that in research 2/3 of consumers responded more to ethical claims that relate to people rather than to than environment.
Ethical marketing should not be confused with government regulations brought into force to improve consumer welfare, such as reducing sulfur dioxide emissions to improve the quality of the air. A government regulation is a legal remedy intended to mitigate or correct an ethical issue, such as pollution of the air that we all share. Enlightened ethical marketing is at work when the company and marketer recognize further improvements for humankind unrelated to those enforced by governments or public opinion. By way of example, the Coop Group refuses to invest money in tobacco, fur and any countries with oppressive regimes.
Marketing ethics
Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing. Some areas of marketing ethics overlap with media ethics....
into the marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
process. Briefly, marketing ethics refers to the philosophical examination, from a moral standpoint, of particular marketing issues that are matters of moral judgment. Ethical marketing generally results in a more socially responsible and culturally sensitive business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
community. The establishment of marketing ethics has the potential to benefit society as a whole, both in the short- and long-term. Ethical marketing should be part of business ethics
Business ethics
Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.Business...
in the sense that marketing forms a significant part of any business model. Study of Ethical marketing should be included in applied ethics
Applied ethics
Applied ethics is, in the words of Brenda Almond, co-founder of the Society for Applied Philosophy, "the philosophical examination, from a moral standpoint, of particular issues in private and public life that are matters of moral judgment"...
and involves examination of whether or not an honest
Honesty
Honesty refers to a facet of moral character and denotes positive, virtuous attributes such as integrity, truthfulness, and straightforwardness along with the absence of lying, cheating, or theft....
and fact
Fact
A fact is something that has really occurred or is actually the case. The usual test for a statement of fact is verifiability, that is whether it can be shown to correspond to experience. Standard reference works are often used to check facts...
ual representation of a product or service has been delivered in a framework of cultural and social values.
It promotes qualitative benefits to its customers, which other similar companies, products or services fail to recognise. The concern with ethical issues
Marketing ethics
Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing. Some areas of marketing ethics overlap with media ethics....
, such as child labor, working conditions, relationships with third world countries and environmental problems, has changed the attitude of the Western World towards a more socially responsible way of thinking. This has influenced companies and their response is to market their products in a more socially responsible way.
The increasing trend of fair trade is an example of the impact of ethical marketing. In the 'Ethical Shoppers Price Index Survey' (2009) fair trade was the most popular ethical badge products could have. It also revealed that many consumers distrusted green claims. (The idea of fair trade is that consumers pay a guaranteed commodity price to a small group of producers, the producers agree to pay fair labor prices and conserve the environment - a fair deal for everyone.)
The philosophy of marketing is not lost with this newfound ethical slant, but rather hopes to win customer loyalty by reinforcing the positive values of the brand, creating a strong citizen brand. However, this new way of thinking does create new challenges for the marketer of the 21st century, in terms of invention and development of products to add long-term benefits without reducing the product’s desirable qualities.
Many brands have tried to use ethics to make themselves look responsible, often spinning environmental claims which has led to the term greenwash (see greenwash
Greenwash
Greenwashing , or "green sheen", is a form of spin in which green PR or green marketing is deceptively used to promote the perception that a company's policies or products are environmentally friendly.-Usage:...
ing) In research consumers have shown to have even less trust of ethical claims in ads than ordinary ads. media attention on ethics has resulted in many top brands suffering consumer boycotts. Although many brands have tried to use green issues, it has been noted that in research 2/3 of consumers responded more to ethical claims that relate to people rather than to than environment.
Ethical marketing should not be confused with government regulations brought into force to improve consumer welfare, such as reducing sulfur dioxide emissions to improve the quality of the air. A government regulation is a legal remedy intended to mitigate or correct an ethical issue, such as pollution of the air that we all share. Enlightened ethical marketing is at work when the company and marketer recognize further improvements for humankind unrelated to those enforced by governments or public opinion. By way of example, the Coop Group refuses to invest money in tobacco, fur and any countries with oppressive regimes.