Is Marketing Evil?
Do you feel ethical guidelines make a difference to marketers?
I find it difficult to
feel good about putting punitive rules in place that contain words like ‘perceived’
and ‘guidelines’ on any business function.
It does not seem fair. It sounds
like marketing functions in organizations are being set up to fail. However,
(Ferrell, n. d.). presented several cases that indicate that marketing is
failing in the ethical arena now and the costs are astronomical. It is in the company’s best interest to
create a program.
As always, I assume
people are generally good and want to do what is right. Therefore, it is the company’s responsibility
to make sure its employees know what right actually is. That would imply that I believe that ethical
guidelines make a difference to marketers.
However, Ferrell (n. d.) discussed a few things that tell me it is not
that simple. “Organizational ethics does
not equal personal ethics” (p. ETH-6).
In other words, there are different variables in the organization that
influence an individual’s ethical behavior.
Unethical behavior is primarily used in meeting performance goals, not
for personal gain. If meeting
performance goals is tied to positive reinforcement or rewards, workers and
managers may justify unethical behavior as a necessity. This is especially true if the guideline that
labeled the behavior unethical does not provide for punishment when the rule is
broken (Ferrell, n. d.). I can think of
other similar rationalizations marketers could employ. So, no I do not think that ethical guidelines
alone make a difference to marketers.
The competition between individuals to make sales, meet goals and move
up the corporate ladder is too intense.
How can companies balance the need to win with being ethical?
A company cannot balance
the need to win with being ethical. It
is not a balancing act. The company has
to change that thinking and recognize that the only way to win is by being
ethical. To do this, the company must
establish an ethical organizational culture where its members are trained, educated
and motivated to behave legally and ethically (Ferrell, n. d.). A culture that dictates that any other
behavior is unacceptable and met with consequences. Changing organizational culture is no small
task. Adding a norm of ethical behavior
will require time, examples, consistency, persistence, and accountability
(Boyatzis & McKee, 2005). Where ethical
organizational culture is about ideals that guide member’s behaviors, ethical
climate establishes specifically what is right and what is wrong (Ferrell, n.
d.).
Codes of conduct, ethics policies,
management actions on ethical issues, values/moral development of coworkers,
and opportunities for misconduct all contribute to an organization’s ethical
climate (Ferrell, n. d.). Managing the
ethical climate consistent with the culture will then improve the chances of
winning while being ethical.
Is it ethical to track your buying habits or web visits to
target you for marketing purposes?
My short answer is it
depends. If I am told that my
information is being gathered, compiled, and archived for purposes of making
advertising that I see more relevant to me and I am given the opportunity to say
no, then it is ethical. If I say yes, then
they have a responsibility to protect the information they gather and inform me
if that data is ever compromised. If I
do not agree to allow them to gather my information but they do it anyway, it
is unethical. It is no different than
spying or stealing. To remain ethical in
their behavior, the information they gather cannot be used for any other
purposes. I usually allow this practice. I make many of my purchases online and the ads,
although still annoying, are at least relevant. Ferrell (n. d.) discussed how companies
entrusted with one’s personal information can be judged quite negatively for failing
to protect it. The company’s reputation can
be damaged or destroyed for not doing so.
As a leader, how will you manage the ethical aspects of your
marketing efforts?
I do not see managing the
ethical aspects of my marketers and their operation as being much different
than any other leadership effort. I do
not want to oversimplify or overcomplicate the process. I would ensure my ethics program is in line
with the company’s values and vision. I also
need to ensure each of my marketers understand the company’s values and vision
and their role in earning the company a reputation for solid ethical
behavior. I would also verify that I
have a documented plan for each employee’s continued moral development. I would then lead by example with character
and competence, showing that it can be done and it can be done right without
compromising one trait or the other (Ferrell, n. d.).
The organization’s ethical
culture dictates how every functional operation makes ethical decisions. Therefore, organizational ethics is a
strategic component of decision making.
For the organization to fully benefit, ethical decision-making in
marketing would need to be coordinated with the other functional units within
the organization to ensure each functional area is correctly applying the strategy. In this manner decisions throughout the
organization will be made using the same rationale and ethical principles
(Ferrell, n. d.).
Over time the company
will build a reputation for ethical business practices. According to Ferrell (n. d.), “its reputation
is one of an organization’s greatest intangible assets” (p. ETH-8). It is incredibly valuable though no exact value
can be assessed. At the same time, reputation
is extremely fragile. Much like trust,
reputation is very slow to earn but can be lost in an instant. Everyone in the organization should be proud
of it and protect it through continued ethical business practices.
~Pete
References
Boytzis, R., & McKee,
A. (2005). Resonant leadership: Renewing
yourself and connecting with others through mindfulness, hop, and compassion.
Boston, Massachusetts: Harvard Business School Press.
Ferrell, L. (n. d.).
Marketing Ethics. University of Wyoming. Retrieved from http://college.cengage.com/business/modules/marktngethics.pdf
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