WHAT IS ETHICS & Code of Conduct for Marketing Ethics

04/09/2023 SPP SPTM V.L.Mehta Road, Vile Parl (W) SVKM's NMIMS University

1

WHAT IS ETHICS AND CODE OF CONDUCT FOR

MARKETING ETHICS

Charmi PopatSVKM’s NMIMS SPP SPTM (School

of Pharmacy & Technology Management)


2

The Pyramid of Corporate Social Responsibility


What is ethics? Ethics are the moral principles and values that

governs the action and decisions of an individual or

a group

They serve the guidelines on how to act rightly and

justly when faced with moral dilemmas.

3-3


4

Statement of Ethics Ethical Norms and Values for Marketers

Norms are established standards of conduct that are expected and maintained by

society and/or professional organizations.

Values represent the collective conception of what communities find desirable,

important and morally proper.

ETHICAL NORMS:Do no harm.

Foster trust in the marketing system. .

Embrace ethical values.


5

Several formal written codes of ethics Ray Kroc set the original standard for

McDonald'sCitizenship

Fairness

Transparency


6

The Auto Industry Tries to Go Green

Car manufacturers have gone to great lengths to promote

hybrid cars.

These cars are generally much more expensive to develop

and produce. Do corporations have a social responsibility to

develop environmentally friendly cars? Why or why not?

Marketing Ethics

Principles and standards that define acceptable marketing

conduct as determined by the public, government regulators,

private interest groups, competitors, and the firm itself


8

Marketing Ethics

Customer Service

Pricing

Distributor Relations

General Code

Product Development

Advertising Standards

Corporate Marketing

Ethics Policies


9

Marketing Strategy in Action

R.J. Reynolds has been accused by critics

of using its “Joe Camel” cartoon

character, to target children for cigarette

consumption.


10

Customers

ProductIssues

PricingIssues

PromotionIssues

DistributionIssues

Ethical Issues & the Marketing Mix


11

Factors influencing ethical marketing behavior


12

Types of MisconductObserved in Organizations


13

Codes of Conduct

Codes of Conduct (Codes of Ethics)

Formal statement that describes what an organization

expects of its employees

Not an effective means of controlling ethical behavior

unless integrated into daily decision making

Not effective unless the code has support of top

management


14

Codes of Conduct Codes must reflect management’s desire for compliance with values, rules,

and policies

Codes should have six core values:

1. Trustworthiness

2. Respect

3. Responsibility

4. Fairness

5. Caring

6. Citizenship

Codes can help managers deal with ethical dilemmas


15

Texas Instruments“Ethics Quick Test”

Is the action legal?

Does it comply with our values?

If you do it, will you feel bad?

How will it look in the newspaper?

If you know it’s wrong, don’t do it!

If you’re not sure, ask.

Keep asking until you get an answer.


16

Responsibilities of the marketer

Honesty and fairness

In the Area of Product

Development and

Management

Rights and Duties of

Parties in the Marketing Exchange Process

In the Area of Marketing Research

Organizational

Relationships


17

• Nike has been criticized about NOT being socially responsible• Child labor and exploiting lower income U.S. families

Case Study Nike


18

Conclusion

Importance is increasing

Have become necessities due to:

Stakeholder demands

Changes in Federal law

Improve marketing performance and profits

Are important to development of marketing strategy