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50 IITM Journal of Management and IT

Social Responsibility and Ethics in MarketingAnupreet Kaur Mokha*

Abstract

Ethics are our perception regarding what is right and wrong. Although these idealsmay rangefrom one person to a distinctive or one company to another, ethics and social responsibilityareaforemost part to any company’s marketing department. Ethics has a tendency to focus on theindividual or marketing group decision, whilst social responsibility takes into account the overalleffect of marketing practices on society. The main aim of the marketing department is to selectan audience, engage to that audience, and get the audience to buy that unique products orservices. In doing this, a company should make sure that they are first abiding by way of all lawsand regulations, however they ought to also attempt to be sure that they areappearing ethically and honestly. Though the pursuit of ethical marketing and social responsibilitydoes no longer automatically translate into increased profit, it is far nonetheless the responsibilityof the company to ensure it is accountable for its actions and their impact on society. This paperwillhave a look at the significance of integration of ethics in social responsibility marketing andthe ethical issues faced in the marketing.

Keywords: Social Responsibility Marketing, Ethical Marketing, Marketing plan, Ethical issues

Introduction

A variety of phraseshave been used from time to timeinterchangeably, to refer to social responsibility suchas business ethics, corporate accountability,sustainability, corporate citizenship to describecompanies’ efforts to deal with ethical practices,governance,employee-friendly regulations, humanrights, environmental effect, and communityengagement in the core features of the business.

In accordance with the research by the global non-profit organization known as ‘Business for SocialResponsibility’, companies now tends to reportpublicly on their social responsibility activity so as tofulfil the needs and demands of various stakeholdersand other interested people consisting of personnel,consumers, suppliers, clients,shareholders, regulatorsand lawmakers, who are asking companies to be moreresponsible now not only for their own overallperformance, but also for the impact of their products,the performance of their delivery channel, and the well-being of their personnel(Marinova, 2013).A company

that makes use of both ethical and socially responsiblemarketing strategy will definitely benefitted with therespect and trust of their customers they target andinteract with. Over long term, this could translate togreater benefits all spherical.

Objectives

1. To understand the concept of social responsibilitymarketing and Ethical marketing.

2. To develop and implement a socially responsiblemarketing plan.

3. To analyze the benefits of integrating ethics intomarketing strategy.

4. To understand ethical issues faced in marketing.

Literature Review

Social Responsibility Marketing 

Socially responsibility marketing is a marketingphilosophy that a business enterprise have to take intoconsideration; “What is within the best interestof society in the present and long term?” It is totallybased on the concept that market offerings should not

Anupreet Kaur Mokha* Assistant professor, SGTBKhalsa College, Delhi University

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51Volume 9, Issue 2 • July-December 2018

be simplest profit-driven, however they should alsoreinforce social and ethical values for the advantage ofcitizens. Social responsibility in marketing is oftenconsidered with ethics. The difference among the twois that what is taken into consideration ethical inphrases of business, society and individually might notbe the same thing nor do all business actions necessarilyshould be socially accountableso that you can be takeninto consideration ethical. Social responsibility is a largeconcept that pertains to a business obligation tomaximize its positive impact on society whilstminimizing its negative impact (Anatasia, 2015)

To be socially responsible is when the organization isbasically concerned about individual, its society andenvironment as a whole with whom and where itconducts business. In its most fundamental form,socially responsible marketing is taking ethicalmovements that inspire a positive impact on all of thecompany’s stakeholders, including employees,community, consumers, and shareholders (Hunt et al.,1990). The main responsibility of marketers in thisregard is to package and communicate theorganization’s decisions that will impact the variouscommunities with which they interact(Marinova,2013). Consumers have the right and strength todecide which companies succeed or fail; so marketershave a main duty to make sure their practices are visibleas philanthropic without being phony. BrandKarma isthe right example of one of the means by way of whichconsumers make those decisions.

Socially responsibility marketing is a marketingphilosophy. It shows that a company must consideratewhat is in the best interest of the society in the presentand long time. Socially responsible companies have toproduce desirable products fervently. Consumer’simmediate gratification can reap from this type ofproducts and this form of product can also benefitconsumers and society in the long time. Marketersprovide the right products to the right people at theright time. Ethical marketers make certain productsmeet and exceed their needs, back up their claims andprovide value to the customers over time whilst findingpossibilities to pay it ahead. (Kotler et al., 2013).

Social conscious marketing directs the drawback oftraditional marketing practices and follows thephilosophy of mindfulness and responsibility.

Company-marketing practices must be primarily basedon consumer satisfaction, innovative ideas and offersociety long-term value and benefit(Marinova, 2013).A company that makes use of both ethical and sociallyresponsible marketing strategy will benefit the respectand trust of the customers they approach and interactwith. Over long time, this may translate to greaterbenefits all round. Now a day’s firms could make theirpractices more moral and accountable by perfectingthe following characteristics.

• Honesty: Making sure a product satisfies a needit promises to, or helps in presenting a lifestyle itadvertises. Marketinghave to be transparent aboutviable side effects so customers come to recognizethe honesty of your marketing.

• Safety: Any product or service that might be riskyto the health conditions of people, animals or theenvironment need to have clean advisories andwarnings.

• Transparency: Any strategies to control anddisguise facts and information customers needcould damage a company. The practices of thecompany must be transparent, obvious moral orethical.

• Respecting Customer Privacy: When customersbelieve sufficient to allow you to access to theirinformation, selling it to steer companies oracquiring prospective customers’ informationwithout permission is unethical and breaks trust.

• Ethical Pricing: Accumulating data about yourgoal market will come up with information onhow much they may be inclined to pay in yourproduct. Creating fake shortages and terriblemouthing the competition are consideredunethical marketing practices.

Ethical Marketing

Good ethics is a keystone of sustainable marketing. Inthe long run, unethical marketing damages customersand society at a large. Further, it ultimatelyharms acompany’s effectiveness and reputation. As a result, thesustainable marketing goals of long-term customer andbusiness welfare can be achieved best through ethicalmarketing conduct. Ethical marketing is a philosophythat consciousnessspecializes in honesty, fairness and

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responsibility.Ethical marketing is a process throughwhich companies generate customer interest inproducts or services, construct healthier and strongcustomer interest/relationships, and create value for allstakeholders by means of incorporating social andenvironmental considerations in products andpromotions (Anatasia, 2015). All aspects of marketingare considered, from sales strategies to businesscommunication and business development. Thoughwrong and right are subjective, a widespread set ofguidelines can be put in vicinity to ensure thecompany’s intent is broadcasted and accomplished.

Marketing ethics can be defined as formulatingguidelines to establish practices that are obvious andstraightforward. It is basically establishing marketingpolicies and strategies for corporate sectors whereactions show integrity and equity to consumers andall other stakeholders. (Saviour& et al. 1997). Themain reason of marketing ethics is to address principlesand standards for growing desirable conduct inside themarketplace (Mohamed, 2007).

Marketing ethics inculcate decisions about what is rightor wrong within the organizational context of planningand implementing marketing activities in a globalbusiness environment to advantage (i) organizationaloverall performance, (ii) social acceptance andadvancement in the organization,(iii) individualachievement in a work groupand (iv) stakeholders(Hunt et al., 1990). This kind of definition ofmarketing ethics acknowledges that ethical decisionsarise in a complex social network within a marketingorganization. Marketers are usually asked by top-levelmanagement to assist in making the numbers byreaching almost impossible sales targets. In reality, mostmarketing misconduct is accomplished to help theorganization. Being a team player and bending thepolicies and procedures to make targets mayadditionally and effectively result in a promotion.

The following are the principles of ethical marketing:

• All marketing communications share the samestandard of truth and trust.

• Marketing professionals should follow the higheststandard of personal ethics.

• Ethics should be discussed honestly and openlyduring all the minute marketing decisions.

• The privacy of the customer should be utmostimportant and should never be compromised.

• Marketers should be obvious and transparentabout to whom they pay to endorse theirproducts.

• Consumers should be treated with equity basedon the nature of the product as well as consumer(e.g. marketing to children).

• Marketers must comply with the rules, regulationsand standards established by variousgovernmental and professional organizations.

Merging Social Responsibility and EthicalMarketing

Organizations are conscious that consumers now a dayare savvy and opinionated. The company’s activatesdirectly or indirectly which have an effect thestakeholders whether it be individuals, groups orbusinesses. With the continuous growth of business,industry and increased push for marketing efforts,marketing ethics is growing to be the top of thecorporate agenda. (Kotler et al, 2013).

Social responsibility and marketing ethics ought to gohand in hand. It is the social responsibility to formulaterules and regulations which might be applicableethically and which work not for maximizing theprofits of the businesses but which targets at the largerinterest of all the stakeholders (Anatasia, 2015). Sowith this in mind, companiesneed to create an ethicallysound marketing plan and combine it into all elementsof their marketing mix.

• Do good not just to look good – Focus on beingaccountable and how your firm can honestly helpthe community or country. It is in doing so thatyour customers, the press, and all those watchingmay be inspired.

• To acknowledge the social obligations toshareholders- It is the duty of the marketer toaccept the effects of their marketing decisions,policies and strategies and accept the socialobligations to shareholders that include increasedmarketing and economic power.

• Speak up against company policies that do notreflect the ethical profile of the company – As

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54 IITM Journal of Management and IT

manner. Interest in ethical concerns in marketing has,significantly heightened (Marinova, 2013).There is nooverstatement in citing that researches in marketingethics have emerge as a precursor of researches in ethicsin different areas.

Many companies integrate social responsibility andethics into their strategic marketing planning processthrough ethics compliance packages or integrityinitiatives that make legal compliance, socialresponsibility and ethics an organization-wide effort.Such programs establish, communicate, and monitora firm’s moral values and legal requirements throughcodes of behavior, ethics workplaces, educationprograms, and audits. The marketing plan ought toconsist of distinct elements of ethics and socialresponsibility as decided by upper-level marketingmanagers. Marketing strategy and implementationplans ought to be evolved that replicate a knowledgeof (i) the risks related to ethical and legal misconduct,(ii) the values of organizational members andstakeholders, and (iii) the ethical and social effects ofstrategic choices (Gilbertson, 1999).

Increasingly, companies are responding to the need tooffer organization guidelines and policies to assist theirmanagers’ cope with questions of marketing ethics. Ofcourse even the best guidelines cannot resolve all thedifficult ethical decisions that people and corporationsought to make. But there are few concepts thatmarketers can choose amongst(Hunt et al., 1990).Oneprinciple states that such troubles ought to bedetermined by the free market and legal system. Aecond, and more enlightened principle, placesobligation not on the system but in the hands ofindividual companies and managers. Every firm andmarketing manager have to work out a philosophy ofsocially responsible and ethical behavior. Under asustainable marketing concept, managers have to lookbeyond what is legal and allowable and developstandards primarily based on personal integrity, long-time consumer welfare and corporate conscience(Marinova, 2013).

The following are the benefits of integrating ethics inmarketing strategy:

• Improves marketing performance: Sociallyresponsible companies and their personnel canbetter respond to the stakeholder’s demands. A

company’s reputation for social responsibility isvery critical for consumers’ buying decisions.Social responsibility and ethical behavior both canreduce the costs of legal violations, civil litigation,and damaging publicity.

• Moral Marketing Compass: This is significantin economic downturns when unethical practicesought to become tempting.

• Win-win Marketing:  The focus of this isprimarily on customer value which will increasecompany value.

• Keeps marketing legal: It reduces the risk ofcutting corners and turning a blind eye.

• Goodwill: Goodwill and strong reputationamong customers are the benefits whichorganizations cannot afford to overlook. Not onlywill customers believe that the organizations caresfor them, but will also accomplice the brand withpleasant feelings and reviews and spread the word.

• Improved quality of recruits and increasesretention: A good company attracts goodpersonnel, customers, suppliers and investors,who will be satisfied to assist the organization toreap its goals. Great marketing practices make newmarketers feel like their time at the job will makea difference and so will be less likely to changejobs.

Ethical Issues Faced in Marketing

Ethical marketing can guide advertising, research andinformation use, strategies for gaining a facet over thecompetition and organization polices (Hunt et al.,1990).Ethical issues in marketing get up from theconflicts and lack of settlement on specific issues.Parties involved in marketing transactions have a setof expectancies about how the business relationshipswill take shape and how diverse transactions need tobe performed. However, there can also be some issuesthat stand up from seeking to employ an ethicalmarketing strategy.

Individuals who have confined business experienceoften find themselves required to make unexpecteddecisions about product satisfactory, marketing,pricing, sales techniques, privacy, hiring practices, andpollution control (Gilbertson, 1999). Whilst personal

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55Volume 9, Issue 2 • July-December 2018

values are inconsistent with the configuration of valuesheld through the work group, ethical conflict mayadditionally take place. It is essential that a sharedvision of acceptable conduct develop from anorganizational perspective, to cultivate dependable andreliable relationships with all involved stakeholders. Ashared vision of ethics that is part of an organization’sway of life can be questioned, modified and analyzedas new issues develop. However, marketing ethicsshould relate to work environment decisions and mustno longer control or impact personal ethical issues(Hunt et al., 1990).

Each marketing concept has its own ethical issues suchas:

• Irresponsible Market Research: Impropermarket research can lead to stereotyping that willshape undesirable ideas and attitudes which willultimately affect marketing behavior.

• Selecting Specific Market Audience: The useof selective marketing practice is to select specificcustomers and weeding out the other consumerswhich are less important for company whichcauses social disparity and unrest.

• Unethical Advertising and Promotion: Makingfalse claims about the uses of the product itsimportance is an unethical and immoral way ofcreating profits. These are related with deceptiveadvertising when the consumer is led to believesomething which is not true.

• Pricing issue: It emerges when competitors aremaking similar products jointly to determine itsprice and manufacturers are forcing retailers tocharge very high prices.

• Delivery Channel practices: Marketing likeselling their products through telemarketingcompanies which are not only annoying, but arealso disruptive and not trustworthy. Unsolicitedapproaches now-a-days are almost synonymouswith direct marketing and has left the industrywith a tarnished reputation.

• Dealing with competitors: Many companiesadvertise low prices as a bait and then once theydraw the attention of the customers, they switchthem over to a higher priced product, because theadvertised good was unavailable or not of any

value to the customer. Many online surveys andwork from home opportunities use such kind ofunethical marketing technique.

Conclusion

The ethics of marketing and its bond with the clientsforms a basis to the victory of the company. Ethics arethe sincere values and standards that govern the actionsand verdicts of an entity or cluster. It is normal thatcustomers anticipate to be handled in a fair mannerand with reference. Reliability of service,responsiveness, trustworthiness, understanding andreception of value addition to products are few of theexpectations of the customers. They do not wantunrealistic guarantees, or deceptive services. There arefew ethical dilemmas for marketers in meeting theexpectations of customers. Ethical issues usually arisesdue to the dissimilarity between the individual andorganization’s values and norms. When the productsare not disclosed properly then they are dishonorablyadvertising their product.

Conscientious marketers face many more dilemmas.The best thing to do is often uncertain. Due to thefact that not all managers have excellent ethicalsensitivity, companies need to increase corporatemarketing ethics regulations- broad guidelines thateveryone within the organization must comply with.These regulations should cover distributor relations,advertising standards, pricing, customer support,product development and general ethical standards. Ifsomeone does not follow guidelines then the rightactions have to be taken against them for breachingthe codes of conduct. In sum, marketing ethics showsthat there should be an apparent knowledge of whatis right and what is wrong in business.

References

• Anatasia (2015, February 6).Social Responsibility & Ethicsin Marketing. Retrieved from https://www.cleverism.com/social-responsibility-ethics-marketing/.

• Hunt, S.D. (1990). Commentary on an empiricalinvestigation of a general theory of marketing ethics.Journal of the Academy of Marketing Science, 18, 173-177.

• Kotler, P. & Keller, K.L (2013). Marketing Management.13th edition. New Jersey: Pearson/Prentice-Hall.

• Labbai, Mohamed (2007).Social Responsibility, Ethics &Marketing. International Market ing Conference onMarketing & Society, Vol,8, 17-28.

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• Why social responsibility important marketing (2018,August 19).Retrieved from https://www.investopedia.com/ask/answers/042215/why-social-responsibility-important-marketing.asp.