Marketing Ethics: Definition and Role
Marketing Ethics can be defined as the set of guidelines and the area of applied ethics that act as a guiding light behind the scope of marketing. Some of the areas of marketing ethics overlap with the ethics of media as they both are co-related.
Marketing ethics and the standards laid out guide organizations to do «the right thing.» These standards are instrumental in identifying acceptable practices, fostering internal control, and dealing honestly and fairly with customers. They also ensure that the businesses have complete compliance with the law. Companies can at times develop and publish their own ethical standards, but in most cases, they comply with the regulations or guidelines of their industry associations.
Marketing ethics help create a framework for good practice in marketing, regardless of the product or market sector.
- Some of the key pointers that marketers need to keep in mind are –
- Customers should be convinced that the products and services are safe and fit for their intended use.
- Products and service communications should not be deceptive.
- Contracts should be drawn up in good faith and should be honored.
- There must be appropriate processes for equitable adjustment and/or redress of any grievances that the customers might have about their purchases.
- Companies should respect consumer rights including the right to information, the right to privacy, and the right to redress.
- There must be emphasis on safeguarding the rights and interests of vulnerable groups such children and the elderly.
Importance of Marketing Ethics
Marketing ethics is important because it helps a business to support the rights and lives of consumers. This subject is an integral part of many marketing team conversations, planning meetings and strategies.
Practicing ethical marketing allows businesses to reach the following goals −
Protect well-being of customers − Ethical marketing often involves informing customers about the risks of specific products and services and protecting the physical and mental health of everyone. This goal is especially important for organizations that sell products with potential side effects or dangers, visit website.
For example, the statutory warnings on cigarette packets or alcohol bottles are a part of marketing ethics safeguarding the well-being of customers.
Support well-being of employees − While many marketers focus their ethical strategies on customers, it is also important for them to support the well-being of their own employees. This may include offering adequate compensation against the labour they put in and offering reasonable work schedules besides ensuring there is a proper work-life balance.
As a revers example, we can look at the allegations brought against a number of Chinese firms for exploiting their workforce and denying basic workers’ rights.
Act as a role model for other businesses − By practicing ethical marketing, companies can foster a good reputation, build a positive work culture for employees and consumers, and encourage other businesses to practice ethical marketing.
Attract and maintain customers − Adhering to ethical marketing methods and caring for the quality and value of goods can be an effective form of advertising and can also help build a sense of trust with the customers. This can then help companies to attract and maintain customers, increase customer satisfaction and loyalty, and generate essential revenue for the organization.
Ethical marketing guidelines can vary based on a company’s purpose, mission, and preferences. Here are some common principles of ethical marketing –
Honesty
One of the most important components of ethical marketing is the idea of honesty in marketing communications. It is important for business leaders and marketers to communicate the truth about a company’s products and services in order to protect the health, well-being, and rights of consumers.
For example, the FSSAI requires food product manufacturing companies to include a «Nutrition Facts» label on products that provides a detailed list of a food’s ingredients and nutrient content. This ensures that consumers have full knowledge of what they may eat or drink.
Transparency
Besides honesty, transparency in marketing ethics is crucial for disclosing the details behind company processes and behaviour. It refers to the process of having open and honest discussions about ethics. Being upfront and straightforward about company history, current practices and future goals can help to keep an organization accountable to its customers and stakeholders. While there is sometimes proprietary or private information to keep confidential, there can be many factors of a business to share with audiences.
For example, a biscuit manufacturing company may publish content about their manufacturing processes, but they do NOT have any compulsion to reveal the content or formula for their products.
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