The Ethics Statement Objective - Assignment Example

Statement of Ethics Abstract Ethical statements are important in ensuring that marketers follow the right ethical dimensions. Murray & Montanari (1986) view that social product is important in improving ethical position of the company, an approach that is supported by (Cascarino & Esch 2006) in suggesting that mission and vision statement plays a crucial role. Understanding the society in terms of culture and ethical dimensions are discussed depicting the approach of individualism and collectivism in any decision that is made. Thus, the ethic statement championed states that “it is paramount for decision makers to factor into their reasoning cultural boundaries and ethical dimensions in ensuring that businesses operates in social responsible and appreciative approach”. The ethics statement objective Marketers are supposed to market their products and ensure that they are sustainable in the given market. Marketing decisions usually are associated with ethical ramifications, which should be understood by business executives (Laczniak & Murphy 1991). In most cases, when the “proper” ethical dimension is taken it is accredited to the managers and economic efficiencies. However, not all decisions are successful but may become ethical troublesome and may become public embarrassment or sometimes more damaging. For example, Norelco (1982-1986) sold a water purification system that was contaminated with a chlorine chemical with prior knowledge. They called the machine “Clean Water Machine” while at the same time the company engineers knew its damaging effects. However, they assumed that the risk was minimal when it comes to individual consumers and they did not factor into consideration public embarrassment. With time, the public knew about the problem associated with the equipment. Thus, the company made a decision to continue selling the product and at the same time redesigning the problem. This poses an ethical decision making problem, was this approach appropriate or inappropriate? Evaluate the Major Differences in Marketing Journals and practitioner articles as they apply ethics to marketing strategy formulation Most researchers and practitioners congers that ethics is paramount in the way that the business or product will be viewed by customers and competitors. Business strategy and social responsibility contributes to the social and/or economic objective of the organization. In fact, Husted & Allen (2000) state, “increasing research in the field of business and society suggests that ethics and corporate social responsibility can be profitable” (p. 22). Thus, social responsibility is crucial and influences positively to the development of the firm and its success. However, it success can only be achieved through understanding the requirements of the given market and determining ways through strategy formulation in fulfilling ethical responsibilities. Murray & Montanari’s (1986) marketing approach to responsive management conceives social impacts through social products that can be managed in the way that normal marketing manages its ordinary products. Murray & Montanari model requires the identification of the social product and through it determines marketing mix variables for each specific stakeholder group. Then the model formulates and implements social responsibility program that will satisfy the requirements in the given social product markets, and the organization then evaluates means to satisfy the societal expectations. The organization is the determinant in which ethical issues can be championed. The mission and vision statements talk a lot about the development and operation criterion of the organization. Cascarino & Esch (2006) view business ethics as “the principles of conduct within organizations that guide decision making and behavior” (p. 81). Stead 2000 “enterprise strategy is a framework for exploring and understanding what the organization stands for by focusing on the underlying ethical roots of the firm’s strategic choices” (p. 314) also shares this perspective. Thus, the core values and ethical systems within the organizations guide the success or failure of the organization. A good reputation in respect to social contribution and ethical considerations is paramount in achieving both the profits and competitive advantage. Unethical behaviors are likely to harm the reputation of the organization. Ethics in the firm ranges from transparency in the marketed product, general corporate behavior to personal ethics. Generally, most researchers and authors show that ethical consideration is paramount in the success of the organization in terms of image, competitive edge and profitable. Consideration on the impact of the products to the environment and truthfulness associated with the product should be factored into the formulation of the marketing strategy to fulfill its requirements. Analyze the major ethical forces within the marketing function Porter’s (1980) model that brings into consideration competitive strategy has been used by Mahon & McGowan (1998) to develop a social and political strategy model in depicting the importance of social responsibility. They (Mahon & McGraw) utilized the product of the social strategy in developing the social issue. Porter’s model champion’s product market as the core region of transaction place, but Mahon & McGraw changes this perspective of product market into issue arena, and at the same time depict influence as important rather than money from Porter’s perspective. Generally, Mahon and McGraw in relation to Porter’s five forces model, were able to develop five forces that affected social and political strategy. The five forces are issues, stakeholders, substitute issues, political rivalry and audience. Thus, proper aligning and positioning of the five forces ensures that social and political strategy is achieved. However, a shortcoming associated with this strategy is that there is no specific fit nature in which it will be determined or how the competitive advantage can be achieved. Generally, consideration of customers and other stakeholders in an ethical perspective is important in determining the formulation of the marketing strategy. Analyze the major ethical problem areas external to an organization External environment exhibits ethical problems to the success of the organization in terms of social responsibilities. The way that the external environment perceives the organization impacts a lot in ethical development. Propagandas, illegal or counterfeits approaches and unhealthy competition are some of ethical problems that can negatively exhibit the organization. Propagandas can be championed and commissioned by people with personal vendetta in making the society to think otherwise of the organization. Illegal and counterfeits coming with poor quality products may injure consumers resulting in suing of the organization. Swenzer (2006) states, “societal approach of a given organization may be disoriented by illegal and counterfeits products that does not meet the requirements of organizational products. This will really injure the image of the organization…” (p. 34). Moreover, culture diversity and preservation plays a crucial role in shaping ethical position of the organization. Analyze how ethical considerations might affect decisions in formulating a marketing strategy and implementing it in an organization Economies are diversifying and as lead to globalization where many cultures are exposed for the marketers to formulate and implement a marketing strategy. Different people and organization in different parts of the world view qualities of ethical deliberations differently. For example, one culture view a given issue as ethical while another view it unethical. Beekun et al (2008) explored the ethical decision making process that exist between United States and Egypt. They found out that ethical differences exist between the two countries and may be attributed to cultural dimensions. From this research, Beekun et al (2008) quantifies cultural dimensions as “power distance, uncertainty avoidance, masculinity/femininity, and individualism/collectivism” (p. 588). Therefore, ethics plays an important role in determining the better approach to penetrate and get a competitive advantage of a given market. Marketers should ensure that they understand the benefits that exist between individualism and collectivism and maximize them in formulating and implementing a given marketing strategy. Ethical decision making sometimes utilizes various theories, which ensures that the right approach is utilized. In fact, there are two common approaches that marketers may base their decisions: teleological and deontological. Teleological ethics determines the outcome of a given strategy while deontological determines the individualistic aspect of a moral. Moreover, managers analyze ethical approach differently, which may harm or promote formulation and implementation of a strategy. In fact, Robertson & Fadil (1999) references the study carried out by Manning (1981) in appraising managers’ ethical perspective “…found out that managers in stage one were likely to judge a situation in egocentric terms (an individualistic trait) while managers in stage four considered the employee’s loyalty to the organization (a collectivist trait)” (p. 389). In most instances, managers guides decision making approach – it may be approached differently when it comes to the application of traditional and modern leadership traits, hence a manager will influence a lot to the final decision. Ethics Statement From the analysis, it is evident that social uprightness of the community and culture factors and guides the way that decisions are to be made. Ethical dimensions and social responsibility plays a paramount role in ensuring that ethics are highly acclaimed. Thus, this statement is guided by the statement: it is paramount for decision makers to factor into their reasoning cultural boundaries and ethical dimensions in ensuring that businesses operates in social responsible and appreciative approach. References Beekun, R., Hamdy, R., Westernman, W. & HassabElnaby, R. (2008). An Exploration of Ethical Decision-making Processes in the United States and Egypt. Journal of Business Ethics, 82,587-605. DOI: 10.1007/s10551-007-9578-y. Cascarino, R. & Esch, S. (2006). Internal Auditing: An Integrated Approach, 2nd ed. New York: Juta and Company Publishers. Husted, B. & Allan, L. (2000). Is It Ethical to Use Ethics as Strategy? Journal of Business ethics, 27(1), 21-31. DOI: 10.1023/A:1006422704548 Laczniak, R. & Murphy, E. (1991). Fostering Ethical Marketing Decisions. Journal of Business Ethics, 10(4), 259-271. DOI: 10.1007/BF00382965 Manning, F. (1981). Managerial Dilemmas and Executive Growth. VA-Reston: Reston Publishers. Mahon, F. & McGowan, R. (1998). Modeling Industry Political Dynamics. Business & Management, 37(4): 390-413. Murray, B. & Montanari, R. (1986). Strategic Management of the Socially Responsible Firm: Integrating Management and Marketing Theory. Academy of Management Review, 11(4), 815-827. Porter, M. (1980). Competitive Strategy. New York: The Free Press. Robertson, C. & Fadil, P. (1999). Ethical Decision Making in Multinational Organizations: A Culture-Based Model. Journal of Business Ethics, 19, 385-392. Swenzer, L. (2006). Managerial Decisions and Implications. New York: Prenctice Hall Publishers. Wicks, C., Berman, S. & Jones, T. (1999). The Structure of Optimal Trust: Moral and Strategic Implications. The Academy of Management Review, 24(1), 99-116. Read More