ethics and global marketing lecture one: course overview
TRANSCRIPT
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
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 overview
Tutor: Giovanna Battiston
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.)