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Ethical Issues: Marketing And Management

  0 Downloads   |   8 Pages 1,879 Words   |   Published Date: 18/12/2017

Question:

Discuss about the Ethical Issues for Marketing and Management.
 
 

Answer:

Introduction

Ethical issues are caused by disagreement and lack of clear conflict resolution in marketing department, if left unresolved it may escalate to a broader misunderstanding leading to losses and frustration. It is hard to clearly determine ethical and unethical companies. Because most companies are ethical in a given area while on the other hand they are unethical in different section (Forbes, Goodman & Dolan, 2015).

Problems on marketing

Due to rise on internet and social media, it is now easier than ever for data to be shared across a wider range within a very short time. Companies are now conducting their research using the new technologies which reduced cost but when the private information is hacked it can cause company to shut down. Customers are connected to companies via internet and give feedbacks on various products. However organizations may face major blow when people think that they are unethical thus rating them as poor performer, having a low rate review usually affect and reduce any chance for a buyer to pick the manufacturer’s product. According to Forbes, Goodman & Dolan (2015), some advertisements may be of great beneficial to some people but it is viewed as unethical with others. Product like Condom may be seen as a way of controlling unwanted pregnancy, contrary on the other side it is viewed as promoting immorality in the communities.

False Advertisements

Current issues in Tourism is an article that provides elaborate explanation on advertisement  that may be considered false, (Hays, Page & Buhalis, 2013, pp.211).Buying a product thinking it will last for long as perceived by the manufacturer, however it end up functioning for a short period. This lack of consumer expectations drive away any future potential regular buyer (Hays, Page & Buhalis, 2013).

Stem cell research & therapy  is an article authored by McLean, Stewart & Kerridge, (2015), which assert that Dove soap, is an example which can illustrate how it is hard sometime to be constant with ethical behavior (p1). For instance Dove soap had used super model to advertise its product on television which they intend to promote how girls view their body in a natural way. But they tricked viewers by hiding body marks from being seen. Ladies who choose to use this product will automatically have a different result to the one they show on the screen.

 

Benefits for ethical on business

Companies may slightly change how they do business or completely change to a new level. This is done when they have analyzed and believe this new strategies will generate a massive business growth. Domino's pizza had taken a picture of a real pizza with no photographic tricks and post them on advertisement bill board. This added more trust from their clients. Practicing ethical methods has more advantages compared to its disadvantages (Moodie, Sinclair, Mackintosh, Power & Bauld, 2016). The Body Shop is one of the worldwide industry whose policies are practiced and used on daily routine when marketing their products. They differentiate themselves from their competitor, by fighting against animal cruelty and advocate for preservation of natural resources. Moreover, their employees are well paid with annual bonus and monthly health care contribution funded by institutions where they work in.

Measures to regulate unethical behavior

Oladinrin & Ho ( 2016) in their article Construction and Architectural Management state that there is need for professional marketers to strike a deal to control and regulate adverts so as to have a fare interest on the wider citizens population, who are always confused on which companies is portraying the real truth (pp.75). Marketing ethic is an obligation which needs to be enhanced, and acted upon. Marketing field should run under proper governance from both the private and public sectors acting as overseers.

According to Payan, Svensson, Wood, Singh & Callaghan, 2015 in their article titled Proceedings of the 2009 Academy of Marketing Science (AMS) Annual Conference Marketing research aid a company to gather information about their competitors, consumers and broader business environment. With research data at hand is easier to curb any form of competition. Companies will be able to adapt and implement measures which are favorable to many people. All diverse section of community will be catered for, with minimal or even no complain, making a win-win on both parties, that is the user and the manufacturer. Ethic is a complex study which affects both large reputable industry and a small upcoming enterprises.

In the article Green Supply Chain Management for Sustainable Business Practice, managers who strive to interact with their partners by building and maintaining a mutual understanding regarding business relationship, tend to have a positive reviews and later gain more fame in the region (Vijayan & Kamarulzaman, 2016, pp 27). Consumer do have a deep degree of desire on corporations which respect an individual privacy. It is unacceptable when targeting vulnerable people by marketing unhealthy stuffs which are addictive and someone cannot do without, is morally unjust and is categorized as being unethical (Vijayan & Kamarulzaman, 2016). In Australia, commercial advertisements are banned on televisions during children’s shows. Those advertisements had targeted mostly children who are under the age of accountability. They were misleading and promoting harmful substance like tobacco, alcohol and unhealthy foods. Companies are investing heavily to safe guard its image while campaigning positively in a just matter, to win audience from all scope of life. However buyers and seller have different taste on how they conduct transactions. Buyers put price and quality as a priority, while sellers settle to increase sells and accumulate profits.

 


Pacific Brands in Australia come under tight criticism from the public who vow not to ever purchase any of their products.  The Australian manufacturer bear the pressure and waited until negative image cooled and then it started popping out in a brand new way. Although it is hard to experience great losses, the stakeholders tried all they could to refurnish the companies glory (Walters, 2016).

Data privacy is a vital thing to be looked at, for instance many people are not worried about their data being shared as long as they are given a bonus when they buy product (Webster & Hume, 2016). Companies are left to decide how they use someone’s private data without anyone making legislations which will restrict the amount of data allowed to be shared by the companies. Data privacy is a global issue with many countries adapting a mechanism which will cope and prevent any further information linkage.

Fixing prices is a total social unethical and ruined a healthy competions from various companies (Wood, 2015). Local citizens are incurring heavy cost burden, leaving people with no options but to admit the outcome of high cost of living. People will not lose their hard earning when companies have competition because, definitely the prices on commodities will reduce, thus favoring a poor individual who had less options to choose when shopping for the cheapest price and good quality.

From the comprehensive article titled Tourism Management Perspectives, BHP Billiton is well known for mining, petroleum and metals in an Anglo-Australian multinational company having its headquarters in Melbourne, Australia (Zeng & Gerritsen, 2014, pp 36). It abruptly cut down 1800 jobs leaving people in a terrible debt, forcing them to indulge in crime and other unlawful activities so as to make end meet (Zeng & Gerritsen, 2014). This was a nightmare for creatures who depend on daily wages for survival. It was a massive tragedy in the country’s history. A good example of how bad and uncontrolled false marketing can deceive a wider society for so long without anyone raising an alarm or even having a doubt on its credibility.

 


Top Australian government officials acknowledge the impact of businesses on the lives of its population. They are inseparable and they will always work hand in hand with the ruling government so as to achieve an economical mileage growth. Never will they dismiss the threat imposed by greedy self-interested organizations (Henningham, 1996). Moreover, they introduced a system which will be overseeing any development be it private or government projects.  Most companies have its interest, they are not bothered with health or welfare of its employees. Workers were poorly paid with delay in payments. Working under harsh conditions without medical covers and doing hard task with no safety gears being put on, like safety boots, gloves or even dust mask.

Purchasing products from ethical companies will help maintain the natural and promote a healthier Australian population for now and in future. Organization like AUSBUY was formed to represent business and prevent any malpractices which may cause harm to human being. It is a non-profitable organization showing no support in any political parties.

 

Conclusion

Ideally, it is very important to do research before investing on a product seen on advertisements. This will make you in a better position from being deceived. Furthermore, general public needs to be empowered and know their rights, what is best for them and have a sober judgment while choosing which product to be bought.

 

Reference list

Forbes, S.L., Goodman, S. and Dolan, R., 2015. Adoption of Social Media in the Australian and New Zealand Wine Industries. The Journal of New Business Ideas & Trends, 13(2), p.1.

Forbes, S.L., Goodman, S. and Dolan, R., 2015. Use of social media in the Australian and New Zealand wine industries. Australian and New Zealand Grapegrower and Winemaker, (619), p.95.

Hays, S., Page, S.J. and Buhalis, D., 2013. Social media as a destination marketing tool: its use by national tourism organisations. Current issues in Tourism, 16(3), pp.211-239.

Henningham, J., 1996. Australian journalists' professional and ethical values.Journalism & Mass Communication Quarterly, 73(1), pp.206-218.

McLean, A.K., Stewart, C. and Kerridge, I., 2015. Untested, unproven, and unethical: the promotion and provision of autologous stem cell therapies in Australia. Stem cell research & therapy, 6(1), p.1.

Moodie, C., Sinclair, L., Mackintosh, A.M., Power, E. and Bauld, L., 2016. How Tobacco Companies are perceived within the United Kingdom: An Online Panel. Nicotine & Tobacco Research, p.ntw024.

Oladinrin, O.T. and Ho, C.M.F., 2016. Embeddedness of codes of ethics in construction organizations. Engineering, Construction and Architectural Management, 23(1), pp.75-91.

Payan, J.M., Svensson, G., Wood, G., Singh, J. and Callaghan, M., 2015. Comparing Codes of Ethics among the Top Companies in Australia, Canada and the USA. In Proceedings of the 2009 Academy of Marketing Science (AMS) Annual Conference (pp. 3-3). Springer International Publishing.

Vijayan, G. and Kamarulzaman, N.H., 2016. An Introduction to Sustainable Supply Chain Management and Business Implications. Green Supply Chain Management for Sustainable Business Practice, 3, p.27.

Walters, K., 2016. The new science of behavioural ethics. Company Director, 32(3), p.12.

Webster, G.B. and Hume, M., 2016. Analysing the Role of Social Media in Dialogue Marketing and Management as a Contemporary Franchising Local Area Marketing Technique. Competitive Social Media Marketing Strategies, p.20.

Wood, G.W., 2015. Communicating the ethos of codes of ethics in Australia's largest organizations: a reliance on osmosis. In Proceedings of the 2000 Academy of Marketing Science (AMS) Annual Conference (pp. 425-429). Springer International Publishing.

Zeng, B. and Gerritsen, R., 2014. What do we know about social media in tourism? A review. Tourism Management Perspectives, 10, pp.27-36.

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