Consumers have shown an increasing interest in ethical issues over the last few years. Consequently, ethics has become particularly relevant in marketing, as it represents the interface between the company and the customers. This paper discusses the different ways in which an organization can become more ethical and socially responsible in its marketing activities. A presentation of ethical theories clarifies what ethics in marketing is. Many examples of companies' practices permit to identify societal marketing strategies and common ethical issues that marketers are likely to encounter. The development of codes and decision-making processes can help them to be more ethical in their activities.
Keywords - Corporate societal marketing , Social responsibility, Code of conduct and Ethical decision making
[...] The most important in a cause- related marketing program is to choose the right cause, in others words a cause which is linked with corporate values, either because they are common or complementary (Hoeffler and Keller 2002). Vodafone has chosen NAS because the purpose of the firm is to facilitate the communication between people, and artists have difficulties in communicating (Carter 2004). Such CSM strategies are particularly efficient to enhance brand equity: because CSM is an additional occasion to expose the brand and because it brings a personality to the brand, consumers are able to recognize the brand more easily; they are also proud to show their affiliation to this brand which is involved in a non profit and therefore is a highly credible organization (Hoeffler and Keller 2002). [...]
[...] CSM Strategies and benefits Companies which seek more ethical or socially responsible marketing practices have developed a lot of different CSM strategies. Thus, they create an interesting competitive advantage. The first strategy is the corporate philanthropy, i.e. the effort or inclination to increase the well- being of humankind, as by charitable aid or donations. For example, each year Tesco aims to give per cent of its pre-tax profit to good causes and selects a national charity with a strong community network to become its “Charity of the Year” which receives 20% from Tesco Charity Trust. [...]
[...] Organizations which seek to become socially responsible have to consider the ethical dimension in every part of their marketing activities. Ethics must be a component of the corporate culture shared and applied by all stakeholders. To help all members of the organization to act ethically, codes of conduct and decision-making models are very useful when they are well implemented. Ethical marketing is not a succession of specific good actions but a new regard and evaluation of the set of marketing activities. [...]
[...] The third step consists in training the employees at all levels about ethical marketing questions in order to reinforce their ethical awareness. The last step is the periodical audit of the code. Indeed, once the code institutionalized, it is necessary to update it regularly and to check his adoption by the employees. Nevertheless, a regular audit doesn't guarantee the enforcement of a code of conduct. For this reason, on the one hand, a code has to envisage punishment as the consequence of an action that counter the company's standards; but on the other hand, reward for those who take right and fair decisions. [...]
[...] Prentice Hall International, pp769-76. Laczniack, G.R. and Murphy, P.E.(1993). Ethical marketing decisions: the higher road. Upper Saddle River, N.J.: London: Prentice Hall, pp28-42. Macchiette, B., and Roy, A. (1994). ‘Sensitive groups and social issues: are you marketing correct?' The Journal of Consumer Marketing pp55- 64. Nakamoto, M. (2006). ‘Sony's woes deepen with Vaio recall'. Financial Times, 18oct, p24. Nixon, J.C., Wiley, C., and West, J.F. (1992). ‘Ways to encourage ethical conduct among marketing professionals.' European Business Review pp19-21. Ogrizek, M. (2002). [...]
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