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.