Ethics and Global Marketing

Lecture one:Course overview

'India Shops fear impact of overseas competitors'BBC, 20 September 2012

http://www.bbc.co.uk/news/business-19657863

'It is clear, in short, that capitalism for the 21st century needs a fundamentally renewed morality to underpin it. To achieve this we must ask ourselves again what progress really is. Is it the accumulation of wealth, or

does it relate to a broader, more integrated well-being and quality of life? Surveys consistently show that

economic progress has not been accompanied by the expected increase in happiness and that the price paid

by many has been in the quality of human relationships . . .'

Stephen Green, Group Chairman of HSBC, The New Statesmen, 2 July 2009

History

• Social / societal marketing• Green marketing• Sustainable marketing

– Strategic, not operational

Definitions of business ethics

• CSR– Corporate social responsibility

• CSP– Corporate social practices– Meeting organisational objectives

Discourse

• Triple bottom line• Sustainability• Corporate governance• Community involvement

Examples of engagement

• Marks and Spencer– Plan A: http://plana.marksandspencer.com/?

intid=gft_plana• Procter and Gamble

– http://www.pg.com/en_UK/sustainability.shtml

Recent case studies

• Barclays • BP• Apple• Amazon

Click on the logos (in slide show format) to read the stories

Environmental concerns

• Climate change and global warming• Deforestation• Waste management• Food production and distribution• Loss of bio-diversity

Pollution from China's growth takes toll on health'BBC, 18 October 2012

http://www.bbc.co.uk/news/world-asia-19995748

Sweatshops

• Concern is with managing human rights through the supply chain– especially with regard to sub-contractors in

developing countries• Spotlight tends to be on multi-nationals

Corruption

• Term covers a range of practices including:– bribery– fraud– money laundering– cronyism– extortion– embezzlement

The impact of corruption

Corruption & Business• Increases the costs of

doing business• Erodes competitive

advantage• Blocks access to

international markets• Damages market efficiency• Loss of reputation• Credit restrictions and

blacklisting

Corruption & Development• Reduces government tax

revenues• Limits government ability to

invest in public health and education

• Weakens the public infrastructure on which growth depends

• Increases construction projects costs

• Increases susceptibility to financial crises

• Damages future business potential

The sustainability continuum

Lee and Carter, 2012

Advantages DangersIncreased sales, market share and customer preference

Choosing the wrong social issue

Strengthened brand position Selecting the wrong initiative to address the issue which does not work

Enhanced corporate image and clout

Not developing and implementing the right combination of marketing mix elements and techniques to address the issue

Increased ability to attract, motivate and retain employees

Overdoing the implementation of marketing mix element(s)

Decreased operating costs Too much ‘bragging’ about what you are doing

Increased appeal to investors and financial analysts

Inadequate evaluation of the process

Improved financial performance long term

Short term gains only

Source: After Kotler and Lee (2005)

Ethical responsibility

• Adoption of codes, standards and principles to meet the challenges of global social issues

• Corporate social responsibility– concerned with the impact of business on the societies

within which the firm operates• Corporate ethics

– concerned with issues of individual decision making and the development of ethical conduct

UN Global Compact: ten principles

Framework for sustainable marketing

Development of corporate codes

• Codes of ethics• Codes of conduct• Statement of business principles• Value statement

Effective ethics codes

• In-house ethics training• Discussion of ethical dilemmas• Training cascaded via reporting line• On-going support• Involvement of senior management

In summary

• Universal ethics:– keep promises– honour contracts– tell the truth– respect the lives and personal integrity of people

with whom we enter into business relationships

McKinley, M., (2012). Ethics in Marketing and Communications: towards a global perspective.

Ethics and Global Marketing

Lecture one:Course overviewTutor: Giovanna Battiston g.battiston@shu.ac.uk

Take any large public organisation of your choice, either profit or not for profit. Taking each of the following factors, critically evaluate how the organisation is addressing the issue of 'sustainability' and whether it is having a positive effect on its marketing and image:

– Consumer values– Community inclusion– Networks as partners– The broader environment(recycling, energy, raw materials, water, waste, packaging, chemicals, climate change, etc.)