Mini Lecture Week 13 : Ethical Considerations In Marketing

Marketing is visible and powerful.  Marketing simultaneously reflects and informs culture. Marketing is influential and marketing can be controversial.  For these reasons, it’s important that marketers demonstrate that they adhere to ethical standards.

According to the American Marketing Association (AMA):

“Marketing ethics Links to an external site. refers to the process of applying morality principles to the execution of marketing campaigns and services. Advertising and promotion are a few of the most relevant applied marketing ethics areas and they often overlap with media ethics – which differ from that of marketing. Marketing ethics is also known as a process of generating consumer intrigue and relationships as well as stakeholder values”.

According to  Harris, Wicks, and Parmar Links to an external site., “An ethical framework is a set of questions that managers can use to get beyond their initial moral intuitions and clarify the relevant features of the case.”

The Six Tests of Ethical Action

  1. Publicity Test. Would I want anybody to see this in the media? How would I feel about having done this if everyone, including the people I love, were to find out?
  2. Moral Mentor Test. Would the person I admire the most do this?
  3. Admired Observer Test. Would I want the person I admire the most to see me doing this?
  4. Transparency Test. Could I give a clear explanation for the action?
  5. Person in the Mirror Test. Would I be able to look in the mirror and respect myself?
  6. Golden Rule Test. Would I like to be on the receiving end of this action and its potential consequences?

Corporate Social Responsibility

Ethical business practices are good for business.  Over 90% of millennial consumers are more likely to buy from ethical companies. Many businesses, large and small, have a sustained focus on Corporate Social Responsibility (CSR).  CSR is an evolving business practice that incorporates sustainable development into a company's business model. It has a positive impact on social, economic, and environmental factors.

Benefits of CSR

  • stronger brand recognition
  • positive business reputation
  • increased sales and customer loyalty
  • potential operational costs savings
  • better financial performance
  • greater ability to attract talent and retain staff

Many of Vermont’s greatest business success stories hold corporate social responsibility as a central tenant: Seventh Generation Links to an external site., Ben & Jerry’s Links to an external site., Magic Hat Brewing Company Links to an external site., and The Alchemist Links to an external site.. Many small businesses assume that CSR is out of reach because of limited resources, but CSR is an important business and ethical consideration for all companies. Chron offers practical advice on how small businesses can benefit from aligning with CSR Links to an external site. approaches.