Ethical Issues in Marketing

Ethical Issues in Marketing

Ethical Responsibility, Ethical and Legal Issues

Ethical responsibility refers to a business’s duty not to harm society. Through ethical responsibility, businesses stay mindful of their daily operations so that such operations do not affect the welfare of their customers and community members. On the other hand, ethical issues occur when an activity, decision, or operational scenario conflicts with organizational or societal ethics. Legal issues refer to matters relating to intellectual property rights, business structure, employee welfare, and shareholder matters. Ethical and legal issues apply to businesses in a myriad of ways. For instance, businesses are encouraged to avoid deceptive advertising since it can harm consumers. The legal aspect also applies in business since those businesses that promote deceptive marketing messages are liable to legal penalties if they cheat. Pfizer has an internal code of conduct that promotes ethical responsibility by its employees. The guideline encourages employees to act with integrity and ask questions concerning medical and legal compliance measures. Do you need help with your assignment ? Contact us.

The Triple Bottomline (TBL) Model

According to Slaper and Hall (2011), the triple bottom line (TBL) maintains that businesses should focus on social and environmental sustainability as much as they focus on their profits. The triple bottom line maintains that instead of businesses focusing on one bottom line, they should focus on three bottom-line aspects: profit, planet, and people. Therefore, the TBL gauges a business’s commitment to corporate social responsibility and its effect on the environment over time. On the one hand, the profit aspect of the TBL not only refers to how much money the business makes but is also mindful of whether the profits are made ethically. The financial well-being of a business is also judged based on its ability to pay its vendors and suppliers.

The people aspect encourages businesses to focus beyond traditional priority parties- investors and shareholders and take care of their people. In this case, the people refer to employees, vendors, and customers. This group of individuals is not financially invested in the business but plays a crucial role in its success (Slaper & Hall, 2011). For instance, Pfizer should focus on the welfare of its employees by offering social and financial incentives, which will go a long way in encouraging them to perform better. Finally, the planet’s bottom line is concerned with the impact of business on the environment. To that end, a company like Pfizer may choose to use eco-friendly distribution mechanisms for its products instead of using an aircraft that is potentially damaging to the environment.

The Influence of Customers on a Company’s Ethical Profile

According to Parıltı et al. (2015), customers play a significant role in influencing the ethical standards of a business. In particular, reputation has quite an impact on the pharmaceutical industry. Customers and most healthcare providers consider the reputation of the company from whom they are about to purchase (Goldstein & Turner, 2011). To that end, healthcare providers will avoid companies marred with scandals or questionable ethical issues. Pfizer actively participates in public policy formulation to ensure its customers and the general public access to quality medicines and healthcare.

Value of Communicating Ethical Behavior to the Public

The modern economic environment demands that companies communicate their ethical issues to the public to ensure customers get an accurate marketing message. This is due to the obvious mistrust between manufacturers and consumers since consumers feel that manufacturers use unsatisfactory procedures, yet they lie about what they actually do (Parıltı et al., 2015). Therefore, businesses are encouraged to leverage ethical marketing to influence customers. For instance, Pfizer can communicate about the side effects of its products to gain customers’ trust.

The Influence of Ethical Issues on Legal Issues

Parıltı et al. (2015) aver that ethical issues in business seriously threaten a business’s legal compliance. Some ethical issues that align with Pfizer’s core values may include diversity, governance, and compliance. While some ethical issues do not impact a business’s legal compliance, some have legal implications. Two of the most notable ethical issues in Pfizer’s human resource segment are discrimination and harassment. The U.S. has strict laws protecting employees from discrimination and harassment; hence, failing to curb such behaviour may lead a firm to legal liability.

References

Goldstein, K., & Turner, P. (2011). Corporate Reputation Management in the U.S. Pharmaceutical Industry. https://www.instituteforpr.org/wp-content/uploads/Rep-Management-in-the-US-Pharma-Industry-April-2011.pdf

Parıltı, N., Külter Demirgüneş, B., & Özsaçmacı, B. (2015). Ethical Issues In Marketing: An Application For Understanding Ethical Decision Making. İktisadi ve İdari Bilimler Dergisi, 36(2), 275. https://doi.org/10.14780/iibd.22226

Slaper, T. F., & Hall, T. J. (2011). The triple bottom line: What is it, and how does it work? Indiana Business Review, 86(1), 4-8.

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Ethical Issues in Marketing

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Assignment Content

Read “Ethical Issues in Marketing: An Application for Understanding Ethical Decision Making” from the University Library.

Write a 350- to 575-word analysis and evaluation of a company’s effectiveness in the following areas:
Distinguish between social responsibility, ethical, and legal issues and their effect on marketing.
Relate the triple bottom line to an organization’s sustainability.
Analyze consumer influence on ethical behaviour in marketing.
Assess the value of communicating ethical behaviour to the public.
Conclude how ethical issues influence legal issues in marketing.