Voluntary disclosure regimes – Ethical branding [A. CRANE, Unpacking the ethical product, Journal of Business Ethic, 2001]

MARKET REGULATION AND BUSINESS PRACTICES

THE NOTION OF ETHICAL PRODUCTS

WHAT DOES IT MEANS?

Voluntary disclosure regimes – Ethical branding 2

It is assessing the ethical sustainability of products or services,

By figuring out if what we propose is usefull for the society, if it can be produced whitout harming the environment and if it can be produced respecting the workers.

We find an ethical product when the good is perceived as a result of an honest work.

WHAT IS ETHICAL PRODUCT?WHAT DOES IT MEANS?

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Whole set of issues and considerations that might be implied in the purchase decision PRODUCT SAFETY CONSUMER PRIVACY EMPLOYEE WELFARE DISCRIMINATION FAIR PRICING COMMUNITY ACTION CHARITABLE DONATION

+ FAIR TRADE

+ GENE TECHNOLOGY

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Consumers

Ethical values are now necessary to attract them

Ethical branding and ethical marketing strategies

CompaniesProblem:

Subjectivity ofperceived ethical values

5Voluntary disclosure regimes – Ethical

branding

Ethical Product?

Who’s it for?

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Content of Ethical Augmentation

Direction of Ethical Augmentation

Four levels:

-The product;-Its marketing; -The corporation; -The country;

Ethical Augmentation

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A B C

D E F

G H I

J K L

Product

Marketing

Corporation

Country

Negative Neutral Positive

Content of Ethical Augmentation

Direction of Ethical Augmentation

Ethical product Matrix

Product

Good Service

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MarketingMost of the ethical marketing strategies adopted by companies tends to be a falsification of the ethical perception. They seem to work as ethically correct but they are actually not.

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Corporate

needs to PROMOTE its image

Positive Messages

-social themes-environmental issues

Conquest consumer’s trust

Corporate Reputation

Good or bad reputation?

11 Voluntary disclosure regimes – Ethical branding

ISRAEL

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CountryMost indirect level:

LOCAL products?

ENVIRONMENTAL impact?

BOYCOTT campaigns?

Undemocratic COUNTRIES?

ISRAEL

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Direction of ethical augmentation Negative Neutral

Positive

Consumers reactions are not always predictable

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Palm Oil

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Palm Oil free Products

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Ethical Augmentation

Direction Content

2 dimension

MATRIX

FRAMEWORKS THAT DECONSTRUCT THE PRODUCT FROM AN ETHICAL PERSPECTIVE

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FIRSTAny attempts to address products as ethical products must begin with an acknowledgement that NONE of them can be completely ETHICAL

SECONDAny ethical product augumentation attempt is likely to be complex and a time consuming activity. Many important decisions are required in order to define the right ethical boundaries

THIRDEthical branding might be particularly problematic, that’s why the firms should ensure that every aspect of the ethical branding strategy is in line with the brand image

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ETHICAL BRANDING should not be seen as a simple promotional exercise, but also as a culturale one.The firms must live the ethical values and not just espouse them.

Further researches focus their attention on the consequences of firms’ attempt to develop more ethical products and brands.

Attempts to satisfy consumers’ ethical desires A possible reaction: the precipitation in a spiral of ethical demands.

Voluntary disclosure regimes – Ethical branding

THANK YOU FOR THE ATTENTION

MATTIA PARLANGELI DAYA COSTAGLIOLA D.P. CAMILLA SANGERMANI