Global Marketing Ethics and CSR / Green Marketing

Business Ethics

Inquiry into the nature and ground of morality guiding business behavior in specific situations.

Corporate Social Responsibility (CSR)

The responsibility of enterprises for their impacts on society, integrating social and environmental topics in core business activities.

Sustainability

Development meeting present needs without compromising future generations' ability to meet their own needs.

Relativism

Considers different moral views as equally valid, rejecting a universal standard and emphasizing cultural differences.

Utilitarianism

Focuses on the outcome of a decision, aiming to produce the greatest good for the greatest number of people affected.

Universalism

Duty-based theory demanding actions that could be universal rules, emphasizing individual well-being and ethical means.

Theory of Justice

Critique of utilitarianism, arguing against trade-offs between basic rights and societal goals for achieving justice.

Theory of Justice

Rawls' contractarian approach to moral justice based on impartiality, equal rights, and arranging social and economic inequalities for the benefit of the least advantaged.

Virtue Theory

Rooted in Aristotle's teachings, it advocates for living a virtuous life beyond duty and self-interest, focusing on good habits, virtuous role models, and a balance of desirable qualities.

Sources of Disparity

Renewed interest in virtue theory seen in corporate codes of ethics and virtuous leadership as ways to introduce virtuous qualities into organizations.

Ethical Differences

Highlighted by scholars like Donaldson and Nash, who propose frameworks for analyzing and addressing ethical disparities across cultures and countries.

Donaldson's Approach

Categorizes ethical differences into two categories based on economic development levels, suggesting allowances for local conditions and additional analysis for different ethical standards.

Nash's Approach

Divides ethical problems into acute dilemmas and cases of acute denial, emphasizing fair processes and behavior evaluation, but criticized for focusing on behavior over intentions.

Ethical Issues in Global Supply Chains

Concerns related to marketing, working conditions, Fair Trade movement, and consumer behavior in global supply chains, emphasizing ethical sourcing, intermediaries, and retailers.

Product Sourcing Ethics

Focuses on child labor, working conditions, working hours, and intellectual property rights in developing countries, highlighting challenges faced by global marketers.

Intermediaries Ethics

Discusses fair purchasing agreements, discriminatory pricing, fair wealth distribution, and fair relationships with producers and customers, emphasizing the complexity of defining fairness.

Retailers Ethics

Addresses predatory pricing, collusion, and dumping practices by retailers, highlighting unethical behaviors that harm competition and consumers.

Gray Marketing

Unauthorized distribution of legitimate products, also known as parallel importing, which can undermine exclusive distribution strategies and harm relationships between manufacturers and authorized dealers.

Network Marketing

A direct sales technique involving independent salespeople who sell products door-to-door, recruit new salespeople, and earn a percentage from the sales of recruits, often criticized for over-inflated claims and exploitation of personal relationships.

Ethical Positioning

Retailers presenting themselves as more ethical, ecologically minded, or charitable than competitors to enhance their image and gain a competitive advantage, such as through Fair Trade support or cause-related marketing activities.

Consumer Misbehavior

Various forms of consumer misconduct, including theft, fraud, unjustified complaints, abuse of employees, and cheating, which can lead to financial costs for businesses.

Vulnerable Consumers

Consumers with impaired ability to make informed market exchange decisions, often labeled as 'the least sophisticated' consumers, requiring protection from unethical marketing practices.

Cultural Appropriation

The use of elements from one culture by another cultural group, which can lead to negative reactions, such as when Victoria's Secret faced criticism for using American Indian headdresses in a fashion show.

Mission Statements

Statements reflecting a company's values and priorities, such as Merck Sharp and Dohme Corp.'s core values including ethics and integrity, innovation, and diversity, to guide decision-making and corporate culture.

Corporate Codes of Ethics

Detailed statements setting corporate principles, ethics, and rules of conduct, addressing relationships with stakeholders, community, environment, and fairness, to guide ethical behavior within the company.

Corporate Ethics Training Programs

Programs aimed at educating employees on ethical behavior, often involving discussions on compliance, values, integrity, and balancing responsibilities, such as McDonald's online ethics training.

Regulatory Drivers

Legal and regulatory considerations, such as the US Federal Sentencing Guidelines and the Foreign Corrupt Practices Act, driving the institutionalization of ethics in corporations and defining ethical and legal behavior to prevent misconduct.

GRI Guidelines

Guidelines that require companies to decide on the level of detail for CSR reporting and whether third-party assurance should be applied to verify the CSR activities.

Green Marketing

Marketing strategy focused on promoting eco-friendly products or services while ensuring authenticity and transparency in environmental claims.

Authenticity in Green Companies

The importance of genuinely meeting green marketing requirements, such as using non-toxic materials, reusable products, and eco-friendly packaging, to be considered a true green company.

Cultural Integration

Incorporating environmental friendliness into the core values and practices of a company to ensure that green marketing aligns with the organization's identity and mission.

Community Support

Involving the local community in eco-friendly initiatives and activities, showcasing support through participation, financial contributions, and social media promotion to build goodwill.

Transparency in Green Marketing

Emphasizing honesty and authenticity in green marketing efforts to establish credibility and demonstrate a commitment to eco-friendly causes.