The Description for Ethics Issues in Marketing

    Ethics is a collection of principles of right conducts that shape the decisions people or organizations make. Practicing ethics in marketing means deliberately applying standards of fairness, or moral rights and wrongs, to marketing decision making, behavior, and practice in the organization.

    

 In the globalization century, the role of the business is more expect to implement in what it believes to act and gain best interest. The mission of marketing is to achieve a competitive advantage within their competitors. A company will achieves an advantage or benefits when it does better performance or achieve their company mission and vision. Beside of this, when a company can perform better sales level than its competitors at customer’s satisfying of the service and product, this company has require  to reach its target markets.

    Those companies that built a competitive advantage are able to pursue the needs and wants of both company and customers. As the economic level has become more successful and developing at providing for needs and wants for both company and customers, there has been greater focus on organizations implement ethical values rather than only focus on providing products. Due to this consequence it will create two reasons to both parties.

    

   First, when a company behaves ethically, customers will increase positive attitudes about the company, which affects its products, and its services. None of employing ethical marketing practices will cause to dissatisfied customers, bad publicity, a lack of trust, lost business, or, sometimes, legal action. Thus, most organizations are very sensitive to the needs and opinions of their customers and look for ways to protect their long-term interests.

    Second, ethical abuses frequently lead to pressure (social or government) for institutions to assume greater responsibility for their actions. Since abuses do occur, some people believe that questionable business practices abound. As a result, consumer interest groups, professional associations, and self-regulatory groups exert considerable influence on marketing. Calls for social responsibility have also subjected marketing practices to a wide range of federal and state regulations designed to either protect consumer rights or to stimulate trade (eNotes.com, 2013). One of the most important elements of marketing in business is being able to create effective marketing campaigns that do not cross the line from ethical to unethical.

   

   Here are several unethical marketing and business practices that you should stay away from if you want to avoid losing potential clients, angering your audience and hurting your business.

1. Selling a sub-par product or service.

An organization is going to create and sell a product or service that consumer information is lacking, an organization better not be marketing as the best thing since sliced bread. An organization should be honest to their customers it is very basic behavior .Or better yet, create something more worthwhile.

2. Contacting people without their consent.

Make sure consumers are only contacting that company that willing to receive information from consumers.

3.Refusing to respond to and correct customer complaints.

One of the worst things a business that relies on word of mouth referrals can do is ignore unhappy customers. If company receives a complaint about a service that the staffs rendered, company should respond to it promptly and seek a resolution as quickly as possible. It is not only is the “right” thing to do, but company have a chance to turn a negative experience into a positive way and that will lead to a second chance with that customer.

4. Not having a clear and easy-to-understand privacy policy.

Company’s missteps are probably due to company rapid growth in its business, there are plenty of others who hide information in confusing privacy policies.

  Now days, many companies run their business with using unethical step to maximum their profits. Unethical decisions can ruin a business. Dishonest behaviors, such as falsifying financials, overbilling or misleading marketing, can tarnish a company's reputation, causing loss of customers and revenue. In some cases, unethical behavior is also illegal and can result in fines and even jail time for executives (Randi Hicks Rove, 2013).

   Various types of unethical program that implement by companies, such as,

1. Unethical Accounting

  Unethical accounting occurs when businesses bend accounting rules or falsify their financial statements to present a more favorable picture than actually exists. For example, a business may intentionally list higher assets but hide debt or other liabilities, perhaps to qualify for a loan or to sell a business. The most infamous example of a company that "cooked" its books is Enron, which has since gone bankrupt. Although Enron was a large business, a majority of "Inc." magazine's "Inc. 500" chief executive officers believe these unethical practices happen in small businesses as well (Randi Hicks Rove, 2013).

2.Overbilling

  Billing a client or government agency for more than the actual price of a good or services which are common practice by companies (Randi Hicks Rove, 2013).

3. Misleading Marketing

  Good advertising communicates the benefits of companies’ product or service to potential customers and persuades them to buy. Promising what companies can't deliver may increase sales in the short term but over the long term will lead to dissatisfied customers, resulting in negative publicity and possible legal action, says "Entrepreneur" magazine. Be careful of phrases such as "lowest prices." A better choice would be to say, "Shop by Sept. 15 and get the lowest prices this year (Randi Hicks Rove, 2013)

4. Tips

  Ethical decision making positively influences companies’ bottom line. Instituting a system of checks and balances helps prevent unethical financial practices, according to the accounting firm of Miller, Searles, Bahr and Wills LLC. Encourage ethical decision making by developing a code of ethics and setting an example for following it.Suggests asking several questions to staffs about decisions to determine whether they are ethical. (Randi Hicks Rove, 2013).

     Unethical issues have become almost commonplace in today’s world. Many companies ranging from business and sports to politics and the entertainment industry, these scandals have rocked stakeholder confidence and called into question the moral integrity of our society. The current trend is to move away from legally-based ethical initiatives in organizations to cultural- or integrity-based initiatives that make ethics a part of core organizational values. Companies should recognize that effective business ethics programs are good for business performance. Companies that develop higher levels of trust function can more efficiently and effectively and avoid damaged company reputations and product images. Organizational ethics initiatives have been supportive of many positive and diverse organizational objectives, such as profitability, hiring, employee satisfaction, and customer loyalty. Conversely, lack of organizational ethics initiatives and the absence of workplace values such as honesty, trust and integrity can have a negative impact on organizational objectives and employee retention (www.iiste.org, 2013). We should keep avoid of unethical issues occurs in business and protect the authority of purchasing of consumers.

The Understanding of Corporate Culture and Organization Ethicse

     The definition of corporate culture and organization ethics is a culture can share pattern of beliefs, core of ethics, expectation of the goal and meaning that guide the behaviour of its members. For business perspective standard and expectation are the element that influential by the business. For example like working hours, dress codes and firms values. Culture can provide the way or direction when organization facing challenging problem. The stability is a good direction for organization success at one time, but it also the barrier for organization success at another time.

   In some situation that the law cannot really make the judgement for guide the organization, the corporate culture can play important role to be the determining factor. According to Demand Media ethics is an integral part of a functioning society, but many people struggle to define ethics and put it into practice in a business setting. Owners and managers set the bar for ethics in an organization, but they aren't the only participants. Employees and other business players also influence and perpetuate ethics. In the case of small businesses, managers need to know how to carry out ethical policies in addition to knowing the virtues.From the point of view of employees, higher management manage the direction and shapes to build a special working environment for employees. It is the symbols to show that unethical behaviour had come into the minds of subordinates; especially the boss of the organization who pays the salary to the employees is not setting the good example for employees. Employees should know that they have the authority to have personal and professional rights within business operation. For example, if an employee suffers any kind of accident, higher management should take it seriously and take necessary action to overcome it. Working conditions should be safe for employees. Work schedules should be considering the ability of employees to work on time and fair to every employee.

   Business Customers is also an important person that influence by the organization culture. Most of the small businesses usually interact with other companies, such as suppliers and bankers. They are very important person that provide the facilities and capital to the organization, organization should be honest and respect to them and gain the trust from them. We don't want to intimidate or strong-arm other businesses, because owners, managers, and even employees will take it personally. Organization should set up ethical policies that have a sense of reliability and integrity. Consumers usually do not take kindly to unfair pricing and billing practices. Beside of this, consumer wants to ensure that they will get quality products and services, it is under the situation of truthful advertisements and presentation. A lot of consumers do not really understand about business savvy and them trust organization will not cheat them all the time. When trust had broken by the organization, consumer will be angry and try to do similar unethical action to take the revenge from organization. Bad comment from the social networking websites and consumer advocacy groups can destroy the reputation of the organization. We need to fair with all large and small business, not only for that we should have customer service policies and procedures in place to address consumer concerns before they get out of hand.

In particular, city councils, county boards and state legislatures are all playing an important role that influence in local, national and even global business matters.

Their responsible on avoid unethical business practices, they can do more than express concern; they can create new laws that correct unethical behaviour. Organization should consider creating legal policies to every employee’s in an organization. Organization should respect the environment that society depends on. Social responsibility is the term that describes how businesses set out to be good contribution to the earth. Now days many large organizations have very details information on their own public website that clearly lays out the commitment to social responsibility. Some big chain organization hires new staffs that are environmental and sustainability specialists to provide the suggestion and opinion to organization develop these policies. Although small organization lack of resources to implement the policies, managers can make continue effort to adopt more reasonable and useful policies.

   Ethical leadership should set the tone not only via personal behaviour, but also via allocating corporate resource to implement the ethical behavior. According to Desmond Berghofer the ethical leader understands that positive relationships are the gold standard for all organizational effort.  Good quality relationships built on respect and trust—not necessarily agreement, because people need to spark off each other—are the single most important determinant of organizational success. The ethical leader understands that these kinds of relationships germinate and grow in the deep rich soil of fundamental principles: trust, respect, integrity, honesty, fairness, equity, justice and compassion.

   The Importance of ethical leadership is purpose of the employees come to work on punctual working hour every working day and deal or join company activities that can fall anywhere along a spectrum from rewarding and fulfilling to dis-empowering, toxic and debilitating. The benefits of ethical leadership are can shared understanding that success depends on a constellation of relationships. If the employees treat their employees and customers well, employees will be satisfies with their job and happy work as a team, beside of this, they will share that emotional contentment in positive interactions with customers.If operating in this way, the organization will increase their revenue and their products and services are well received and good reputation will be comment by the consumer.Implications for leadership development should be in the middle management who have personal ethical competence and who can ensure that others employees can get the work done and maintain harmony and good relationships with colleagues. Leadership development usually focused on training ethical leaders throughout the organization.

   Organizational ethics will influence every organization runs to earn profits with ethical way but how it makes money is more important. No organization should depend on unfair means to earn money. One must understand that money is not the only important thing; pride and honor are more important. An individual’s first priority can be to make money but he should not stoop too low just to be able to do that. Organizations must not discriminate any employee on the grounds of sex, physical appearance, age or family background. Female employees must be treated with respect. Don’t ask your female employees to stay back late at work. It is unethical to discriminate employees just because they do not belong to an affluent background. Employees should be judged by their work and nothing else. (Susan Liautaud, 2013). Organization should focus on corporate culture and organizational ethics and find a good way to change it be more benefits to both organization and employees as well.

Understanding of Corporate Social Responsibility (CSR)

Corporate Social Responsibility is defines as how companies manage the business processes to produce an overall positive impact on society. Companies need to answer to two aspects of their operations. 1. The quality of their management - both in terms of people and processes (the inner circle). 2. The nature of, and quantity of their impact on society in the various areas. Outside stakeholders are taking an increasing interest in the activity of the company. Most look to the outer circle - what the company has actually done, good or bad, in terms of its products and services, in terms of its impact on the environment and on local communities, or in how it treats and develops its workforce. Out of the various stakeholders, it is financial analysts who are predominantly focused - as well as past financial performance - on quality of management as an indicator of likely future performance (Mallen Baker 2004). Now a days many of the company more focus on generating profits, sustainability was not a main concern for many companies to put the afford or contribute on sustainability. 

The world is changing to globalization century, many of multinational organizations which are conduct business in several countries) and many local businesses are no longer able to unethical practices and conduct destructive, example like factory to drain away the industrial sewage it may cause polluting the environment, it can cause attracting negative feedback from the public as well. With the social media pay the attentions on this issue, many pressures have come from non-governmental organizations, and rapid social media information sharing, there is more pressure from society governments, consumers, and others for organization to implement sustainable business practices in business industry, the reason for organization to attract and retain employees and customers, is because companies are realize the importance of being ethical when running their business.

Many people believe that multinational organization are acting ethically in areas that are highly regulated, such as North America, but at the same time, they are acting in an opposite manner in other parts of the world example like using cheap or child labor to work for them. Furthermore, while organization must have good Corporate Social Responsible policies in order to maintain their reputation, they are also expected to maximize profits for stakeholders such as, employees, customers and shareholders.

Therefore, many people believe that businesses do not put in a sufficient amount of resources to achieve what they have promised in their Corporate Social Responsiblepolicies. In any case, companies are expected to implement better in non-financial areas example like environmental policies, workplace issues, organization contributions, business ethics, community development, human rights, and corporate governance. 

There are many examples to prove that Corporate Social Responsible prepare a safe working environment for employees, contributions to community and charities to public and environmental stewardship. Many companies argue that it is hard to implement corporate social responsible in their business, because CSR is becoming more expensive method among organization to implement, there are some company provide a good image of corporate social responsible because these company have implement good and correct strategy in their daily operation. Accountability and transparency are method tosuccess the business in a functional way. If organization can focus on implement corporate social responsible policies it can assist organization win their competitor and can get new business to grow the structure of the organization.

Customer will stay with our business and support for our business if we have implement CSR.We can enhance our relationship with our loyal customer, network and suppliers. Employee willing to work with the organization, they will happy with the work force and can be the first choice of employer in their mind. Not only for that many new employee will be attract to work with our organization and retain our loyal employees. Organization can save more money on cost of energy and daily operating costs and able to manage the risk. We can differentiate our potential from our competitors, because they may not have implement CSR compare to those organization who implement CSR.Those organizations who implement CSR can improve their business reputation and grow up their business compare to their competitors.CSR can assist organization to generate positive image from the public. The disadvantages of CSR are role of profit. It is because social and environmental programs are hard to account for with regard to financial gain.

Competitive disadvantage. If the organization has not implemented strict adherence industry wide, many companies argue that they cannot fall behind by putting money into CSR programs. Loss of Focus.Lasting impact. According to the My Efficient Planet website, CSR has existed for more than 50 years. However, its prominence as a major business consideration has certainly increased in the 21st century due to heightened awareness of ethical issues in business and environmental preservation standards. Detractors argue that CSR emphasis is a short-term fad in response to prominent scandals like Enron, and current interest in green-friendly practices. According to the Small Biz Connect website one of the serious challenges that businesses face when becoming involved in corporate social responsibility is growing consumer cynicism. Consumers now recognise that for many organisations, social responsibility is simply a public relations campaign in disguise. 

They are skeptical about the true motivation behind corporate social responsibility and are not easily convinced that a business is acting in the best interests of the community and environment. Corporate social responsibility also comes under criticism because it is disposable or reversible. Many businesses get involved in sustainable projects when economic conditions are excellent and they have plenty of disposable resources, however, as soon as conditions worsen, their community projects are the first thing to go. This can be detrimental to groups who were reliant on the assistance they were receiving from the organization. Clearly, organizations that want to be socially responsible must face many challenges and overcome a number of barriers and criticisms. They need to weigh up all the advantages and disadvantages that are associated with corporate social responsibility and determine what is best for the sustainability of their business.

For my conclusion, I think organization need to be more alert when implement CSR, it can cause to many losses to the organization if there is no implementation of a well CSR program, but at the same time, if we can implement CSR program well, we can gain a lot of benefits from it.

Differences between Utilitarianism and Deontological

 

    Utilitarianism (also called consequentialism) is a moral theory developed and refined in the modern world in the writings of Jeremy Bentham (1748-1832) and John Stuart Mill (1806-1873). There are several varieties of utilitarianism. But basically, a utilitarian approach to morality implies that no moral act (e.g., an act of stealing) or rule (e.g., “Keep your promises”) is intrinsically right or wrong. Rather, the rightness or wrongness of an act or rule is solely a matter of the overall no moral good (e.g., pleasure, happiness, health, knowledge, or satisfaction of individual desire) produced in the consequences of doing that act or following that rule. In sum, according to utilitarianism, morality is a matter of the no moral good produced that results from moral actions and rules, and moral duty is instrumental, not intrinsic. Morality is a means to some other end; it is in no way an end in itself. One main problem is that utilitarianism, if adopted, justifies as morally appropriate things that are clearly immoral.  (J.P.Moreland 2009).

      Utilitarianism can be used to identify the punishing an innocent victim or small group of people if this act can produce big consequences. Many comments about the utilitarianism have come from public and most of them believe in deontology concept more suitable promote to the public. Utilitarian think that criminals also can be reformed and not only punished to criminals, they also have the change to reformed their attitude and behaviour. Utilitarianism also against ruthless to animals. Supporter of utilitarianism believe that utilitarianism counts equally to every one happiness. Advantages of utilitarianism are utilitarianism fits with the idea thatthe consequences of our actions matter. Beside of this, it gives a guide when there is no time to assess the pros and cons of a situation also treat everyone as equal no one has special treatment. For disadvantages of utilitarianism are it is only consists of counts happiness, treat people as means to an end. It may cause people do the right things but for the wrong reasons doing it. It doesn't care who does something as long as the consequences occur.

 

Deontological ethnics is requires us to all the people as ends, but not as mean that to ends to the people. According to Wikipedia, deontology "judges the morality of an action based on the action's adherence to a rule or rules" and it was first termed in 1930 by C. D. Broad when he wrote his book, Five Types of Ethical Theory (italicize or underline book name). In essence, people who follow deontological ethics "bind" themselves to duties and obligations to certain people and the law. Since deontologists "bind" themselves to their duties, the ethics system is often regarded as agent-relative morality because the person is more concerned with how an act that satisfies or breaks a duty affects them. A common example that always used as the deontology example is a deontologist would let a stranger die, better than to kill other stranger that he or she did not wish to kill stranger again. Duties for deontological consist to three main parts which is obligation, commitments and also responsibilities.

 

     For deontological theories, agent-centered, which means there are some people have their special permissions and obligation based on their duties and also agency, example like parents should provide the food supplier to all their children. Basically morality is more close to personal sides, and encouraged favor for family member and friends. Anyone should holding he or she own “agency” to avoid of moral taint to their behaviour. According to Immanuel Kant and the Categorical Imperative: Our primary duty is to act only in those ways in which the maxim of our acts could be made a universal law. The advantages of deontological ethics is People can have strong satisfy with their obligation is because deontological ethics make people to stay very union and they would present an act in practically in their obligation. Not only for that, those people who have strong deontological ethics often treat their family members and friends with high level of deontological and think that this is the mission to them to teach the deontological to other peoples. The deontological ethics also provides a stage for the followers to be”supererogatory”.In ethics point of view that “supererogatory” is follows an act that is good but not necessary morally required to be done at all the time. For an example is if a crazy man to coerce a women in a shopping mall and said if the women dies, then he will surrender to the polices. The young man who believes in deontology ethics would volunteer to coerce by the crazy man and willing to satisfice his life because he believes that it is his obligation to protect the life of the women who is coerce by the crazy man, and many peoples would view his act as “supererogatory” it is because he is exceeding his position to protect the women. For disadvantages of deontological ethics is that deontologist may not transgress a mission to avoid some violations caused by other people, this is usually called as the “paradox of deontological constraints”. It will cause the “seeming irrationality of our duties and permissions to make the level of morally worse than when we followed it.If we are not manage the situation well, it will lead to disastrous consequences and unpredictable. For a good example a deontologist would not kill the murder and knowing the murder will continue to kill other people, many victims will kill by the murder and many family will lost their family members when the deontologist not to kill the murder. For some situation, the deontologist does not really have the stand or good reason to follow the deontology. For an example, a secretary of a company will make her duty to go to work on time, but why she made it because her job often changes. Ordinary people may think that not going to work late in order to prevent the bad image to the company, but they probably wouldn't make it a duty.Furthermore,the deontological system does not implement  a better way of link with situations when occur duties conflict with each other. Back to the secretary above, if she always late to work, her performance will be worse and she cannot done her job task on time.


     For my point of view, I think that utilitarianism focus the concept of the end of the event can justifies the means, while from deontology side stick to the concept of the end for the event does not justify the means. I believe that utilitarianism is more consider the consequence-oriented philosophy compare to deontology. Both of utilitarianism and deontology has advantages and disadvantages, so we need to consider which one is more useful or be a reference when we facing some problem occur.

Is Important of Business Ethics To Public

Ethics define as the moral judgements about right and wrong. The decisions to run the organization may be decide by the management team or manager, but the decision they made will affect the culture and structure of the company. In a business environment, ethics are responsible to the company to decision making. A company should maintain a high ethical level when operating business, because it can provide benefits to both the internal and external stakeholders in the company. They may get better interest, if they follow the ethics business.

 The ethics is a very important moral valued to every employee to consider when they confirm that is the suitable course for action. But this decision may affect the short-term profit, because may reject the route that lead the company business direction. If every employee has strong sense of ethical behaviour and social responsibility, they will bring the big changes and benefits to the company. For example like, employees will stay with their station rather than resign, company will decrease the number of employee turnover and increase the employee productivity. Beside of this, customer will have strong confident to buy our products, sales and profits will be boost to a high level. It also can make more employees to work with the company, it can decrease the recruitment costs and company can find the talented employees to work with the company. Not only for that, more investors will keep company share and no to sell to other investor, it is a good way to protect the business from takeover by other investor. If a company has unethical behavior, it may affect the company reputation and the profits will be reducing, shareholder will sell their share to other investors.          

Business ethics are important for managing a sustainable business, because serious of issues can occur when company lack of managing to ethics. Company should believe that business ethics can bring many good situations to the company, but still have many people argue that good business ethics don’t contribute to profit, but we should believe that when we recognize bad ethics can occur very bad situation to the company, reputation and quality level of the company may be worse than recognize good business ethics. The bottom line of the company will affect by the bad ethics in the long term. Bad ethical level can cause many cases, example like managers will make misinformed, bad decision and misguided to their employees. These will affect the company performance in the future and wide reaching, especially if the employees get injury when they doing their job or financial crisis to other investor while they invest to the company. Business will be drop while poor ethics are operating. Poor ethics can cause many losses to the company, because many employees and customers will seek compensation for the damage to their healthy or mentally purpose. They may suffered those types of cases due to direct or indirect result from the decisions of the company that not participants the formal ethical level while giving the instruction to the employees and customers. For being a high standard ethical company, employees at all the position should commit to the formal ethical levels of the company. As a responsible company, all the employees need to join the activity, it is also important that company should clearly explain the business ethical to the employees, provide necessary consultation to them, prepare all the facilities to them and tell them what level of the ethical level should they be maintain. They also need to know what the consequences are if they failing to achieve those expectations set by the company.

 Ethics at work should be promote to the entire employee, because it is a way that the product produce from raw materials to transformed into the products and sell it to customer. Management team should be focus on control over the step of transformation and what influence will occur to the behavior to distributors and suppliers to the company. Management team should deals with the suppliers of the company and to ensure to work focus on quality with them to ensure they can receive fair price and good quality. Being a good ethics company must have the environmental responsibly and care for its products, employee’s benefits and local communities and those who will be affected by the company.Environmental responsibilities can include like looking to increase its energy efficiency, limited the amount of gases that release to the atmosphere and allocate waste water prior to disposal. Beside of this, company should be provide high level of quality treats, marketed truthfully of the product should be provided, expiry date should be provided and meet the safety standards that make by the government.

Ethics and employment policies should be focus when recruiting employees. Company should promote diversity in the work environment to encourages different ways of analysis and solving problems and it will help to create better creativity from the all company. Company should take care its employees no matter what gender, marital status, age, religion and race. Because of company provides equal opportunities to employees can create better diversity in the company. Company should provide necessary course for the employees to enable employees to improve their personally experience and skills in their workplace. Company should has a perfectly performance appraisal system to employees to provides a fair opportunity to review each employees strengths and weaknesses and provide development plan to those employees willing to improve their self. Employees should have high level of decision making, employees need to define nature of the problem, try to find solution to solve the problem and identify the outcome of the problem. Company should provide the reward to the employees who are hard working.Because it can make the employees be more competitive, employees can get the share from the company and can purchase the share with a reasonable price. When the company provide the training to their employees, employees will be able to performance their duties well and have more motivated when they are working. Company can provide a better working environment that healthy and safe so employees can more comfortable and feel relaxing at work, company should prevent any kind of harassment in the workplace.

 We need to find a better way to protect the ethical approach in business. Its core underlying values influence all its decisions throughout the value chain. This approach is suitable to all the company to practice and can lead the company to the success of the business. Ethics of the business should be a target of the company to achieve, if not the safety and health standard of the employees and customer cannot be guarantee, customers will not have the confident to the company.