INTRODUCTION Marketing and marketers play an important part in the development of corporate strategy and in the responding to the

Corporate Social Responsibility (CSR) agenda. Indeed from a sustainability perspective, the boundaries between what was traditionally considered to be corporate strategy and marketing strategy become blurred.... This is because conventional marketing theory views the customer as being interested in the marketing mix of the company (the product, its price, its availability, how it is promoted and customer service) but in little else about it. Sustainability concerns have demonstrated that the customer can also be influenced by the company behind the products and brands they buy. The social and environmental impacts of production processes, and the degree of social responsibility with which companies treat their workers, invest their money and conduct their affairs are now all potentially significant on both the marketing and corporate agenda. Ethics refers to the study of moral principles, or right and wrong, therefore marketing ethics is all about marketers doing the right thing. Exactly what the right thing is, is not always completely clear-cut since what is right may vary depending on whether you are looking at it from the perspective of the company, its customers or the society in which they both exist. There are however several basic principles involved in ethical marketing : Taking responsibility : marketers need to take responsibility for their products and their decisions. In the past marketers have often responded to social concern about particular products by defending them on the basis of It was what the customer wanted;Dealing fairly : marketers need to be honest and fair in their dealings with all stakeholders. This means that products must be fit for use and accurately described, and contracts (both formal and implicit) should be drawn up in good faith and honoured; Respecting consumer rights : including the right of redress, the right to information and the right to privacy; In marketing ethics particular emphasis is given to safeguarding the interests of vulnerable consumers, such as children and the elderly. In practice many companies and organisations have attempted to deal with issues of marketing ethics by developing codes of conducts. A good example of a clear code of marketing conduct is the Canadian Marketing Associations code on information-based marketing. There are a number of ways to check whether a given marketing strategy or activity is ethical or not. Try and imagine whether or not you would feel comfortable giving an honest explanation of it on Newsnight, to your family or at a marketing conference. Most marketing organizations do not intentionally work in isolation from the rest of society. Instead they find that greater opportunity exists if the organization is visibly accessible and involved with the public. As weve seen, because marketing often operates as the public face of an organization, when issues arise between the public and the organization marketing is often at the center. In recent years the number and variety of issues raised by the public has increased. One reason for the increase is the growing perception that marketing organizations are not just sellers of product but also have an inherent responsibility to be more socially responsible, including being more responsible for its actions and more responsive in addressing social concerns.

Being socially responsible means an organization shows concern for the people and environment in which it transacts business. It also means that these values are communicated and enforced by everyone in the organization and, in some cases, with business partners, such as those who sell products to the company (e.g., supplier of raw material for product production) and those who help the company distribute and sell to other customers (e.g., retail stores). In addition to insuring these values exist within the organization and its business partners, social responsibility may also manifest itself in the support of social causes that help society. For instance, marketers may sponsor charity events or produce cause-related advertising. Marketers who are pursuing a socially responsible agenda should bear in mind that such efforts do not automatically translate into increased revenue or even an improved public image. However, organizations that consistently exhibit socially responsible tendencies may eventually gain a strong reputation that could pay dividends in the form of increased customer loyalty.
MARKETING ETHICS AND SOCIAL RESPONSIBILITY Social criticism of marketing: 1. Marketings impact on individual consumers: High prices High cost os distribution High advertising and promotion costs Excessive markups

Deceptive practices Pricing Promotion Packaging

High pressure selling Shoddy orunsafe products Planned obsolencence Poor service to disadvantaged consumers

2. Marketings impact on society as a whole: -

False wants and too much materialism Too few social goods Cultural pollution Too much political power

3. Marketings impact on other business: -

Acquisitions of competitors Marketing practices that create barriers to entry Unfair competitive marketing practices

Citizen and public actions to regulate marketing

4. Consumerism -

Traditional sellers rights Traditional buyers rights Additional rights proposed by consumer advocates

Each proposed right has led to more specific proposal by consumerists.

5. Environmentalism -

An organized movement of concerned citizens, businesses and government agencies to protect and improve peoples living environment Environmental sustainability

Pollution prevention Product stewardship New environmental technology Sustainability vision

6. Public actions to regulate marketing -

Mayor legal issues affect every area of marketing management, including:

Selling and advertising decisions Channel decisions Product decisions Packaging decisions Price decisions Competitive reaction decisions

Business actions towards socially responsible marketing

7. Enlightened marketing -

Customers oriented marketing

Companies view and organize their marketing activities from the consumers point of view.

Innovative marketing

Companies seek real product and marketing improvements.

Value marketing

Companies put most of their resources into value building marketing investments

Sense of mission marketing

Companies define their mission in broad social terms, rather than in narrow product terms.

Societal marketing

Companies make marketing decisions by considering consumers wants, the companys requirements, consumers long run interests, and societys long run interests

Societal classification of products

Deficient products Pleasing products Salutary products Desirable products

8. Marketing ethics -

Corporate marketing ethics policies

Distributor relations, advertising starndars, customer service, pricing, product development and general ethical standards.

Guiding principle in policy determination

Free market and legal system Individual companies and managers

International ethical policies are a special challenge.