Sunday, July 1, 2018

A634.5.4.RB_BorutyAlan_Is Marketing Evil?


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

No comments:

Post a Comment