Ethics are defined as a set of moral principles that guide an organisation in its business activities. In the context of marketing, ethics are practised by intentionally applying such standards.
In marketing, ethical standards are the practices of promoting fairness, empathy, legitimacy and honesty. From planning to the final delivery and beyond of a product or service, ethical marketing practices would decide the sustainability of an organisation and its growth.
In market economies such as Sri Lanka, businesses are expected to operate in ways that ensure their sustainability and growth. To achieve a competitive edge, companies adopt marketing strategies that highlight their ability to better meet customer needs compared to their competitors. Therefore, they have to establish trust, customer loyalty and organisational credibility to effectively promote the products they market.
Ignoring ethical standards
On the other hand, ignoring ethical standards can lead to mistrust, dissatisfaction and unfavourable publicity. Hence, most commercial organisations treat marketing ethics as an extremely sensitive area in their businesses.
Successful organisations look at ethical marketing practices not only as a policy but also as a philosophy. This includes everything from advertising campaigns to the final delivery of goods or services, to be honest and trustworthy. The intention is to build a strong relationship with the clientele with a set of shared values. Organisations with an ethical marketing approach usually base their decisions on business strategies with an emphasis on moral values and obligations.
General examples of marketing ethics include honesty in information offered to customers, providing accurate information, refraining from overselling and adhering to social and environmental responsibility.
Safeguarding customer data privacy is also of utmost importance in marketing ethics. Why is marketing ethics important? According to reliable statistics, a vast majority, almost 90% of modern buyers, prefer to purchase products from companies that they believe practice ethical standards. They consider that a fair share of genuine communication strategies is essential for the overall growth of a business. Such strategies can lead to a morally sound and organised roadmap.
Ethical marketing
Goods are marketed to satisfy customers in the literal sense. Committing to sustainability and protecting the rights of customers is part of ethical marketing. Being honest in providing correct information without exaggeration is identified as a good marketing practice. Often customers come across products in the market with inadequate information on ingredients, composition, or components.
By following ethical guidelines, the foundation of a company is not merely based on its ability to survive the present but also to plan a bright future. With such adaptations, a company can engage prospects with credibility and loyalty that can significantly improve the brand value and increase revenue.
Customer loyalty is considered one of the most important factors in business success. Proper adaptation of ethics in terms of business can win the loyalty, trust, and confidence of customers. By nature, humans tend to believe genuine and trustworthy advice on what they purchase rather than aggressive sales drives.
When a company keeps to its promises on products and services continuously and consistently, its credibility as an authentic outfit grows gradually but steadily in the customer’s mind. Good ethical processes can even obtain respect from investors, peers, competitors and stakeholders leading to many other benefits in the long run. When an organisation visibly applies ethical practices for extended periods, it gradually stations itself as a leader, one who can benchmark its policies and strategies. This can lead to numerous benefits such as increased share in the market, higher sales, inspiration for others, respect and mutual benefits.
Ethical business practices can tremendously enhance a company’s image and brand value of the products marketed. Once a proper code concerning ethical marketing is followed by the organisation, customers tend to follow its brands with religious dedication, giving them a sufficient boost to feature the market.
Being transparent whenever a product is released to the market is an exceedingly important function in ethical marketing practices. With the introduction of e-commerce, thousands of online marketers appeared in the marketplace who sought unethical practices, giving a somewhat undesirable image to marketers. However, such companies faded into oblivion in a short while.
Like many other aspects of marketing practices, ethical applications are not without disagreement and conflict. There is a fixed set of expectations regarding the business and its transactions and how they must be carried out. If these expectations are not met effectively, a business can lose its credibility. Deceptive message content, exploitation of vulnerable social sectors, invasion of privacy, undue price undercutting, and promotion of harmful products are considered unethical actions. Such acts are not beneficial in the long run, and those who engage themselves in such actions tend to lose customer loyalty. Organisations must be watchful of these issues when they strategise marketing efforts.
For example, if a company makes exaggerated claims about the effectiveness of a product without authentic evidence, it risks losing credibility when customers discover the truth. Similarly, using offensive or controversial content in advertising can alienate audiences and provoke public backlash.
Cultural sensitivity
Cultural sensitivity is a vital factor in any country, and planning and implementing marketing strategies must be carried out respecting cultural values and traditions to avoid hostile responses. Marketing campaigns that challenge or disregard cultural practices can result in backlash and rejection of the product or brand.
For example, when an advertising message, social media post or a video is created with offensive content to a social group, the damage it can cause can be devastating and long-lasting. Hence, companies must thoroughly research the cultural context of their target audience before tailoring their strategies. This approach not only prevents misunderstandings but also demonstrates respect and appreciation for the audience’s values.
Ethics does not mean legal implications. It is far beyond the legitimacy of marketing content, a company, or a brand. Ethical marketing is a planned approach that builds trust and promotes lasting loyalty that fosters long-term success. By prioritising ethical standards, organisations can create meaningful connections with their customers and contribute positively to the community. In this sense, ethical marketing is not a requirement any longer but a necessity. Businesses that embrace ethical practices demonstrate their commitment to doing what is right, not only to customers but also for society as a whole. This commitment paves the way for sustainable growth, stronger relations and a lasting positive impact on the market.
