Fair game – How to market ethically

There are many examples of marketing campaigns that have led to accusations of crossing ethical lines, knowingly or unwittingly, or that have been ‘ethically challenged’ in some way. One of the highest profile examples is that of false claims in adverts. Other marketing practices, however, such as ‘stealth marketing’ (the use of surreptitious practices that fail to disclose or reveal the true relationship with the company that sponsors the marketing message) or competitive intelligence gathering, get less exposure.

Some ethical dilemmas that marketers can face are harder to resolve and tackle than the deliberate misleading of customers. These might include marketing across cultural boundaries and to vulnerable customers, dubious pricing and Internet strategies, and marketing products that are inherently controversial and that have big environmental impacts.

The resulting erosion of trust between a customer and vendor can undermine the objective of creating more sales, damage reputation and cause a loss of market share. Every marketer should be aware of such examples and understand why they happened to avoid becoming part of an unwanted headline.

So, how can marketers be effective without compromising their organisation’s ethics policy?

1. Be familiar with professional codes

In addition to legal requirements (such as the EU Comparative Advertising Directive), be aware of key principles that the marketing community itself has identified (such as those from the International Chamber of Commerce and the American Marketing Association). Most commonly they include: honesty, fairness, responsibility and transparency (see also Business in the Community’s 2006 Marketplace Responsibility Principles: www.bitc.org.uk).

Ethics in marketing means actively applying these principles to marketing decision-making and practice. It doesn’t mean that marketing has to be boring or that it can’t be effective in achieving the goals of delivering quality products to customers that want them.

2. Know your own values

Such aspirations can be hotly contested – what is meant by an honest communication or a manipulative practice? Consider what ethical and responsible marketing means in the context of your own organisation and its products.

Is it good enough to comply with ideas of ethical practice and standards of fairness, to do no harm and to eliminate the negatives associated with marketing? Or is there a positive expectation to contribute to doing good through socially responsible marketing approaches – changing behaviours to combat climate change, for example? Does your company’s marketing strategy reflect the concerns of its potential customers regarding corporate responsibility, as well as their needs?

3. Provide your staff with guidance

Take time to engage all the marketing team with the values of the company. Explore with them what this means in terms of your marketing mission specifically. Does your company’s code of ethics or business principles include commitments on ethical and responsible marketing? Does it give guidance to staff on what courses of action are considered unacceptable in the pursuit of higher sales? Could you include adherence to this guidance in staff appraisal discussions?

The following may be useful to consider when taking a business decision and making a judgement of what is the right thing to do:

  • Does it comply with my company’s code of ethics or business principles?
  • Is it legally permissible?
  • Do I mind others knowing what I have decided?
  • Who does my decision affect or hurt?
  • Would my decision be considered fair by those affected?
  • Would my decision undermine trust in the brand and the company?

4. Work across functions

Get product developers and marketers together to carry out scenario planning for your products. Are the former aware of the existence of, or issues around, vulnerable customers or culturally specific markets? Can you sell your product so that you make more profit from using less materials or generating less waste? Understand where you are at risk from errors of judgement.

In these difficult economic times, marketing that is guided by business ethics and corporate responsibility commitments is more likely than ever to pay dividends through brand differentiation and increased incentives for customer loyalty.

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