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Is Ethical Marketing Compare with Profit Making?

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Autor:   •  November 13, 2017  •  Research Paper  •  1,124 Words (5 Pages)  •  12 Views

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[IS ETHICAL MARKETING COMPATIBLE WITH PROFIT MAKING?]

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Many types of research have been investigating approaches to ethical marketing, and how to increasing business ethics with profits. When referring to the concept of ‘business ethics’, it is often said that it is a very abstract element or impractical. It is undeniable that businesses which behave ethically will achieve sustainable development and show a steady growth in profits. This essay will seek to define ethical marketing and discuss the extent to which Ethical marketing can be linked to a company’s profits.

Business ethics has been one of the most contentious and complicated issues in human history. Both academics and business leaders have been researching about the relationship between doing the right thing and making money. Firstly, it is essential to understand what ethical marketing is. According to Learn Marketing 2016:

Ethical marketing is about making marketing decisions that are morally right. The morality of the marketing decision can encompass any part of marketing including sourcing of raw materials, staff employment and product advertising and pricing. Each person's view of morality is different. It is based on personal values and experiences’. 

Ethical marketing seeks to promote veracity, fairness and responsibility in all advertising. As a result of this development, the significant of acting in the more ethical way has been realising largely by modern customers. Ethical marketing generally set of guidelines to assist companies as they evaluate new marketing strategies. Additionally, according to makerting-schools.org, the significant role of this is, business ethics consisting ethical marketing is a fundamental element of the trust of customers, for enterprises, enhance the loyalty of employees, regulate the behaviour of entrepreneurs, enhance corporate image and thereby improve corporate profits. Therefore, to achieve sustainable success, businesses must build an ethical business platform for their business.

Any company, from the smallest business to the biggest multinational incorporation, can engage in ethical marketing. They are all able to choose to be open, fair and frank when advertising to their customers. According to marketing-schools.org, ethical marketing can be an effective and economical form of advertising when done in a thoughtful way. In a similar way, unethical advertising does not equal to cheaper advertising costs or increasing sale volumes. Several businesses operate according to lofty personal principles. In these cases, advertising in an ethical way is a necessary and natural extension of their corporate character. As a result of this, companies that are known for sourcing sustainable materials, charitable donation, treating workers fairly and environmental stewardship have to reflect these conventions in their marketing efforts. The reason for this is that many consumers make purchasing decisions not only based on quality and price of the products but also the corporate responsibility of the company making them. Kotter and Heskeu (2011) have analysed the different results of the company in different ways of running ethical business. Their study shows that within 11 years, companies which focused on ethics in business has raised incomes up to 682%. On the other hand, the rival company is not taken seriously the ethical standards only achieve 36%. The value of the ethical company shares on the stock market increased by 901% whereas, in the inferior opponent, then this indicator is only 74%. This study also showed that net earnings of businesses emphasis in business ethics in the US in 11 years have risen to 756%. Thus, focusing on ethics in business will bring development to all important business activities of that organisation, which in turn leads to success.

Ethical consumers have a range of concerns about the products they buy. For example, they care about the environment and are interested in how products are manufactured and whether the company is energy-conscious. Nowadays, numerous brands have been boycotted by customers because of their unethical marketing and business. Palmer & Hartley (2012) pointed out that Adidas was boycotted for using kangaroo skin to make some types of football boots. Nestle has been boycotted for its irresponsible marketing of breast milk substitutes. For example, ‘Nestle seemed to pay little attention to the fact that the proper use of infant formula requires sanitary conditions and a fairly high literacy rate on the part of the users. Because these conditions were not present, infants incurred a substantially higher rate of malnutrition than if they had been fed mothers’ milk.’ (Laczniak & Murphy, 1993:8). Nestle lost popularity and profits and a substantial loss of sales. Another example of this is Primark, which was boycotted because their manufacturing factory in Bangladesh collapsed which led to the lost of 1,129 people their lives and almost 3,000 people were injured. 

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