Business ethics is one of the most complicated and contentious subjects in human history. The relationship between doing the right thing and making money has been studied by both academics and business leaders for years with little concesus reached. A survey by the Ethics Resource Center found that 43% of respondents believed their supervisors lacked ethical integrity. One overriding question surrounds many business practices: what is the ethical way to sell things?
That question has never had a satisfactory answer, but in recent years it has become a hot button issue. According to the Bureau of Economic Analysis, corporate profits soared to all time highs in 2011. At the same time, the world was suffering through a crippling economic downturn made worse by unscrupulous business practices. The vast disparity between corporations and their customers has made ethical business practices an extremely relevant issue.
Companies realize the importance of acting in more ethical way, and broadcasting this transformation to their customers. One of the easiest ways to achieve this is through their marketing practices. If a company makes an effort to advertise more ethically, it reflects positively on every area of that business.
What is ethical marketing?
Ethical marketing is less of a marketing strategy and more of a philosophy that informs all marketing efforts. It seeks to promote honesty, fairness, and responsibility in all advertising. Ethics is a notoriously difficult subject because everyone has subjective judgments about what is “right” and what is “wrong.” For this reason, ethical marketing is not a hard and fast list of rules, but a general set of guidelines to assist companies as they evaluate new marketing strategies.
What is ethical marketing?
Ethical marketing is less of a marketing strategy and more of a philosophy that informs all marketing efforts. It seeks to promote honesty, fairness, and responsibility in all advertising. Ethics is a notoriously difficult subject because everyone has subjective judgments about what is “right” and what is “wrong.” For this reason, ethical marketing is not a hard and fast list of rules, but a general set of guidelines to assist companies as they evaluate new marketing strategies.
There are distinct advantages and disadvantages to ethical marketing. Unethical advertising is often just as effective as it is unethical (black hat marketing ). And since unethical behavior is not necessarily against the law, there are many companies who use unethical advertising to gain a competitive advantage.
Many people buy diet pills even though they are rarely, if ever, effective. This is because some diet pill companies use exaggerated and manipulative claims to essentially trick customers into buying these products. If that same company committed to using ethical advertising they would probably go out of business. However sneaky their business model may be, it is not illegal and it is keeping their doors open.
For companies looking to improve the image of a brand and develop long-term relationships with customers, this kind of unethical behavior can quickly lead to failure. Customers do not want to feel manipulated by the brands they like. Companies can use ethical marketing as a way to develop a sense of trust among their customers. If a product lives up to the claims made in its advertising, it reflects positively on the entire company. It can make the consumer feel like the company is invested in the quality of the products and the value they provide customers. 