Chapter Outlines:: Chapter Nine Marketing Ethics & Social Responsibilities

Chapter Nine
Marketing Ethics & Social Responsibilities

Chapter outlines:
• Ethics in marketing
• Understanding business ethics and socially
responsible marketing
• Characteristics of socially responsible
marketing
• Benefits of integrating ethics into marketing
strategies
1
Introduction
• Ethical marketing is a technique that highlights a
company's values honesty, transparency,
responsibility, or adherence to fair trade
principles as a promotional strategy.
• Marketing ethics are a set of moral principles that
guide a company's promotional activities.
• Organizations that establish and implement
marketing ethics are typically trying to respect
the rights, desires and expectations of consumers.
2
Cont’d…
• Marketing Ethics can be defined as the set of
guidelines and the area of applied ethics that acts as a
guiding light behind the operations and regulations
of marketing.
• The set of ethical guidelines needs to be dedicatedly
followed by the management and marketing
department whilst working on the various marketing
strategies and marketing campaigns to promote the
products and services offered by the firm to the
target market.
3
Social Responsibility & Ethics in Marketing
• It is still the responsibility of the firm to ensure it is

responsible for its actions and their impact on society.
• To be socially responsible is when the organization is
concerned about people, society and environment with
whom and where it conducts business.
• In it’s most basic form, socially responsible marketing
is taking moral actions that encourage a positive
impact on all the company’s stakeholders, including
employees, community, consumers, and shareholders.
4
Characteristics /Principles of Ethical
Marketing
• A few key principles of marketing ethics include:
• 1. Fairness: Establishing fairness as a decision-
making principle means companies commit to fair
prices, better wages, and sustainable development.
• 2. Honesty: A cornerstone of ethical behavior is
honesty. Honest companies use marketing
communications to provide factual and
unexaggerated information about the functionality
and impact of their products and services; they
advertise without attempting to mislead.
5
Cont’d…
• 3. Responsibility: Businesses may emphasize their
responsibility in several ways, including their obligation to
provide a reliable product or service, support social
causes, give back to communities, treat their employees
with respect, or protect the environment through
sustainable practices.
• 4. Transparency: In business, transparency means being
open to the public about your company’s operations,
particularly the ethical way you treat employees and the
sustainability and environmental impact of your products
or services.
6
Cont’d…
• It's critical for businesses to be transparent about the following
elements of their products and services:
• Suppliers: Being transparent about who and what the company
pays and supports can help consumers gain a full understanding
of the organization's partners and networks.
• Pricing: In order to gain customers and build trust, it's usually
necessary for businesses to be transparent about pricing, pricing
strategies and any extra fees that may exist in a transaction.
• Quality: Expressing the level of quality of a good to audiences
can help consumers to have realistic expectations of the value
of their purchases.
7
Cont’d…
• Features: A component of transparency is being truthful
and detailed about the various features and elements of
a company's products or services.
• Legality: Part of ethical marketing is complying
with all governmental and environmental
regulations and industry standards. This proves to
consumers that a business is serious about
developing excellent quality and services. It also
protects the liability and interests of a business,
enabling it to remain in operation.
8
Cont’d…
• Health and safety
• The physical safety of customers is one of the top
priorities for ethical businesses and marketing teams.
Marketers can uphold this principle by educating,
protecting the privacy of and respecting the civil and
human rights of consumers. It's also beneficial when
they focus on supporting the physical safety and
mental health of employees. They may do this by
offering health and wellness benefits and programs.
9
Cont’d…
• Respecting Customer Privacy: When customers
trust enough to allow you access to their
information, selling it to lead companies or
obtaining prospective customers’ information
without permission is unethical and breaks
trust.
• Nobody wants to buy from the creepy guys, no
matter how beautifully packaged their products
are.
10
3 Ethical Marketing Examples
• Here are a few examples:
• 1. A charitable giving campaign: Many ethical
companies engage in significant charitable
giving programs, donating money or goods to
social causes and initiatives with a positive
impact. An example of a charitable giving
campaign is a one-to-one program built into the
business model: The company donates one
product to charity for every product they sell.
11
Cont’d…
• 2. Centering business decisions and impact on
product pages: A common ethical marketing
strategy is to advertise the company’s fair business
practices on product pages. The site may give an
inside look at the production process (like a factory
or office space) or provide accurate numbers about
the product’s minimal environmental impact. This
aims to establish brand loyalty and make customers
feel proud about supporting a company that works
hard to be ethical.
12
Cont’d…
• 3. Socially responsible social media accounts:
Many companies work to show their ethical
practices by being responsible and outspoken
online about social and ethical issues. This
marketing decision emphasizes the company is
an ethical brand with a sense of social
responsibility that customers want to support.
13
What are the Benefits of Ethical Marketing?
• Reputation - Companies that market consistent with ethical

norms or expectations build a positive reputation with the
public.
• Customer Satisfaction/Loyalty - Delivering a product that is
consistent with advertising establishes trust or confidence
with customers. This results in customer happiness and
generates return customers based upon loyalty to the
product, company, or brand.
• Increased Sales - Ethical marketing campaigns generally
have a better long-term effect on sales. Unethical practices
tend to be discovered and have a short-term effect at best.
14
Cont’d…
Customer Loyalty
• The first and the most crucial factor in the list of
Importance of Marketing Ethics is that it helps the
company to win the trust and loyalty of its customers
on the long-term basis as it is the basic human nature
and tendency to go for the brand that is genuine in its
nature, its products and services offered are
authentic, and they sell the exact products and
services that are shown during the marketing
campaigns and artworks.
15
Cont’d…
Long-term gains
• Understanding the Importance of Marketing Ethics is not
only the long-term goal and objective of the company but
there are various long-term gains attached to following the
same such as customer loyalty, high credibility in the
market and in the minds of the customers, increased
market share, enhanced brand value, higher sales, and
elevated revenues amongst others with the company able
to accomplish its both short term and long term objectives
in a successful manner. The
End!
16

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Chapter Nine

Marketing Ethics & Social Responsibilities

• It is still the responsibility of the firm to ensure it is

• Reputation - Companies that market consistent with ethical

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