Statement of EthicsAbstractEthical 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 objectiveMarketers 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 formulationMost 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.