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8/9/2019 Chap03=Ethical & Environmental Issue
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Ethical, Regulatory, and
Environmental Issues
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Ethical Issues in Marketing CommunicationsEthical Issues in Marketing Communications
Ethics in MarcomEthics in Marcom Involves matters of right and wrong, orInvolves matters of right and wrong, ormoralmoral, conduct, conduct
pertaining to any aspect of marketing communicationspertaining to any aspect of marketing communications
Honesty, honor, virtue, integrityHonesty, honor, virtue, integrity
Ethical ConductEthical Conduct
Lack ofLack ofconsensusconsensus about what it isabout what it is
Ethical lapses and moral indiscretions occur underEthical lapses and moral indiscretions occur under
pressures of trying to meetpressures of trying to meet business goalsbusiness goals andandattempting to satisfy the demands of theattempting to satisfy the demands of the financialfinancial
communitycommunity
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Sources of Ethical IssuesSources of Ethical Issues
Ethical Issues in
Marketing Activities and
Communications
Advertising
Targeting Marcom
Public Relations
Internet Marketing
Sales Promotions
Packaging
Communications
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The Ethics ofTargetingThe Ethics ofTargeting
Ethical DebateEthical Debate
Is it ethical to targetIs it ethical to target
products andproducts andcommunications efforts tocommunications efforts to
segments that aresegments that are
vulnerable or put at risk byvulnerable or put at risk bythese actions?these actions?
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The Ethics ofTargetingThe Ethics ofTargeting
Targeting Food and
Beverage Products
Targeting Tobacco and
Alcohol ProductsTargeting Miscellaneous
Products
Ethical Issues in
Targeting Children
and Teens
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Targeting to Economically DisadvantagedTargeting to Economically Disadvantaged
ConsumersConsumers
Billboards advertising tobaccoBillboards advertising tobacco
and alcohol disproportionatelyand alcohol disproportionately
appear in innerappear in inner--city areascity areas
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Ethical Issues in AdvertisingEthical Issues in Advertising
Advertising Creates
Stereotypes
Advertising Persuades
People to Buy Things
They Do Not Need
Advertising Plays on
Peoples Fears and
Insecurities
Criticisms of
Advertising
Advertising Is Untruthful
Advertising Is
Manipulative
Advertising Is Offensive
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Ethical Issues in Public RelationsEthical Issues in Public Relations
PublicityPublicity IInvolves scatter positive information about a firm andnvolves scatter positive information about a firm and
its products.its products.
Like advertisingLike advertisingthe same ethical issues applythe same ethical issues apply
Negative PublicityNegative Publicity
When firms confess to product shortcomings andWhen firms confess to product shortcomings and
acknowledge problems or, instead, attempt to coveracknowledge problems or, instead, attempt to cover
up the problemsup the problems
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Ethical Issues in Packaging and BrandingEthical Issues in Packaging and Branding
Label Information
Packaging Safety
Packaging Graphics
EnvironmentalImplications
Packaging and
Branding
Ethical Issues
Brand Naming and
Brand Name Theft
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Ethical Issues in Sales PromotionsEthical Issues in Sales Promotions
Sales PromotionsSales PromotionsManufacturer promotions directed at wholesalers andManufacturer promotions directed at wholesalers and
retailers and to consumersretailers and to consumers
Slotting AllowancesSlotting Allowances
Manufacturers have to pay retailers to handle a newManufacturers have to pay retailers to handle a new
productproductIs this a form of bribery and is it unethical?Is this a form of bribery and is it unethical?
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Ethical Issues in Online MarketingEthical Issues in Online Marketing
Consumer Privacy IssuesConsumer Privacy IssuesConsumers privacy rights to personal information andConsumers privacy rights to personal information and
shopping behaviors collected by online marketersshopping behaviors collected by online marketers
Security of personal information collected onlineSecurity of personal information collected online
Selling of personal information to other parties withoutSelling of personal information to other parties without
consent of consumerconsent of consumer
Bogus positive product evaluations and blogsBogus positive product evaluations and blogs
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Fostering Ethical Marketing CommunicationsFostering Ethical Marketing Communications
The ProfessionalThe Professional
Ethics TestEthics Test
Take only actions that would be viewed as proper by
an objective panel of your professional colleagues
The Golden RuleThe Golden RuleAct in a way that you would want others to act
toward you
The TV testThe TV testWould l feel comfortable explaining this action on
television to the general public?
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Regulation of Marketing CommunicationsRegulation of Marketing Communications
The Advertising Standards Council of India (ASCIThe Advertising Standards Council of India (ASCI--http://www.ascionline.org/http://www.ascionline.org/) (1985) has adopted a) (1985) has adopted a
Code forSelfCode forSelf--Regulation in Advertising.Regulation in Advertising.
It stands for the protection of the legitimateIt stands for the protection of the legitimate
interests ofinterests ofconsumersconsumers and all concerned withand all concerned with
advertisingadvertising -- aadvertisers, media, advertisingdvertisers, media, advertising
agenciesagencies and others who help in the creation orand others who help in the creation or
placement of advertisementsplacement of advertisements
Fewer false, misleading claimsFewer false, misleading claims
Fewer unfair advertisementsFewer unfair advertisements
Increasing respectabilityIncreasing respectability
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Under Socities Registration Act, 1860 in
Bombay.
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Environmental Marketing CommunicationsEnvironmental Marketing Communications
Legitimate Green MarketingLegitimate Green Marketing Is a firms introduction of environmentally orientedIs a firms introduction of environmentally oriented
products and its undertaking of marcom programs toproducts and its undertaking of marcom programs to
promote thempromote them
Seeks to accomplish two objectives:Seeks to accomplish two objectives:
Improve environmental qualityImprove environmental quality
Satisfy customersSatisfy customers
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Green Advertising
Presenting an
Image of
Environmental
Responsibility
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Green Advertising
Promoting a Green
Lifestyle