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Responsible Marketing
- 2. Learning Objectives
I. Explain how ethical issues influence marketing
planning.
II. Analyse examples of how organisations respond
to ethical issues.
© 2014 Berlin Asong. All rights reserved.
2
- 4. “Ethics are values that an individual
uses to interpret whether an action or
behaviour is acceptable or appropriate”.
Peter Stanwick & Sarah Stanwick (2013), “Understanding Business Ethics”. 2nd edition. Sage publication, p. 3
© 2014 Berlin Asong. All rights reserved.
4
- 6. It is the Study of
right &
wrong
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6
- 7. What’s right & wrong is
sometimes not clear-cut.
For example…
© 2014 Berlin Asong. All rights reserved.
7
- 8. Is it right or wrong for
McDonald’s to profit from
selling high-carb meals
often linked to obesity and
heart-related diseases?
© 2014 Berlin Asong. All rights reserved.
8
- 9. Is it right or wrong for
companies to use bio-fuel
made from corn when 9 million
people (5 million are children)
die each year of hunger?
© 2014 Berlin Asong. All rights reserved.
9
- 10. Yahoo CEO Scott
Thompson stepped
down after it was
revealed he doesn’t
have a computer
science degree as
stated in his CV.
May 2012
Right or Wrong?
© 2014 Berlin Asong. All rights reserved.
10
- 11. It could be argued…
He lied to get a job
he “canSo what?so well”.
do
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11
- 12. A counter-argument could be…
He has the skills to do
his job, but no longer has
the trust or integrity of his
employees & shareholders.
© 2014 Berlin Asong. All rights reserved.
12
- 13. Sky News admits hacking emails
but says it was 'in the public interest'
Source: The Independent (2012). Retrieved from www.independent.co.uk/news/uk/crime/sky-news-admitshacking-emails-but-says-it-was-in-the-public-interest-7621831.html
© 2014 Berlin Asong. All rights reserved.
13
- 14. Hacking into someone’s email is a criminal offence.
Sky News argues its
action is morally right because
it helped solve a crime.
© 2014 Berlin Asong. All rights reserved.
14
- 16. Some ethicists observe that…
…what is right and
wrong is subjective and
not universally binding.
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16
- 17. 30 minutes
What criticisms do
organisations face nowadays?
Alternatively, what criticisms do marketers face nowadays?
© 2014 Berlin Asong. All rights reserved.
17
- 27. Child obesity often linked to
high carb products and pastimes
that discourage active lifestyle.
© 2014 Berlin Asong. All rights reserved.
27
- 30. The poor pay for the same pricey
products and services as the rich.
© 2014 Berlin Asong. All rights reserved.
30
- 31. Price-fixing
Barclays fined £290m
for rigging LIBOR rate.
Source: www.guardian.co.uk/business/2012/jun/27/barclays-chief-bob-diamond-bonus-fine
3 July 2012
Source: insurance-center.org
© 2014 Berlin Asong. All rights reserved.
Former Barclays CEO Bob Diamond resigned amid libor scandal
31
- 33. There are unverified claims that…
…Apple intentionally limits supplies
of the iPhones and iPad to create a
perception of high demand.
© 2014 Berlin Asong. All rights reserved.
33
- 36. Skechers USA Inc. fined
$40 million
for misleading advertising claims.
© 2014 Berlin Asong. All rights reserved.
36
- 42. Companies are often criticised for
creating artificial needs.
Do you actually need another pair of shoes or that expensive shoes?
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42
- 43. Consequences of materialism and artificial needs:
Thrown foods
Source: WRAP (2012). Retrieved from www.wrap.org.uk/content/pictures
© 2014 Berlin Asong. All rights reserved.
43
- 44. In the UK, family household throws
£680
of food a year.
Source: The Telegraph (2012). Retrieved from
www.telegraph.co.uk/finance/personalfinance/consumertips/householdbills/9268980/Families-waste-680-of-food-a-year.html
Source: WRAP (2012). Retrieved from www.wrap.org.uk/content/pictures
© 2014 Berlin Asong. All rights reserved.
44
- 54. "Rogue" Bosses
ENRON
Guilty of accounting
embellishment & fraud.
(L-R) Mr. Jeffrey K. Skilling, former President and CEO of Enron Corporation; Dr. Robert Jaedicke,
Board of Directors Chairman of Audit and Compliance Committee of Enron Corporation; and Mr.
Herbert S. Winokur, Jr., Board of Directors Chairman of the Finance Committee of Enron
Corporation, during the Oversight and Investigation Subcommittee hearing.
© 2014 Berlin Asong. All rights reserved.
54
- 55. "Rogue" Bosses
Worldcom
WorldCom Accounting Scandal Revealed: 3.8 billion in mislabelled expenses had been used to inflate
cash flow and hide losses in 2001 and early 2002. Shown is former Worldcom CEO Bernard Ebbers,
© 2014 Berlin Asong. All rights reserved.
55
- 65. 20 minutes
What are the possible
effects of these criticisms
on organisations?
© 2014 Berlin Asong. All rights reserved.
65
- 66. Effects of "Irresponsible" Marketing on Organisations
Damaged reputation/brand.
Consumer boycott and activism.
Falling sales and profit.
Legal fines.
Loss of shareholder value.
Withdrawal of business license.
Unnecessary distractions.
Etc.
© 2014 Berlin Asong. All rights reserved.
66
- 67. 20 minutes
How should marketing
planners and their organisations
respond to the criticisms?
See slides 17 - 58
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67
- 69. A Schematic Outline of the Influence of Ethics on Marketing Planning
Ethical gathering and use of data | Focus on customer and societal needs.
The 7Ps address legal, societal and environmental concerns.
Employee care | Create, encourage, reinforce
and reward ethical behaviours.
Understand the
marketplace &
consumer needs.
Design
suitable marketing
strategy.
Implement
marketing strategy.
Measure
performance of
marketing strategy.
Value creation
Financial, environmental, societal, customer and employee
metrics are used to assess performance of marketing strategies.
Shared value; fairer value for the customer, company & society.
© 2014 Berlin Asong. All rights reserved.
69
- 70. 1
A growing number of
companies are incorporating
social and environmental issues
into their planning processes.
© 2014 Berlin Asong. All rights reserved.
70
- 77. “In April 2008, we were the first
retailer to launch 1% fat milk, which
retains the same amount of calcium
and vitamin B as semi-skimmed milk
but has nearly half the fat.”
© 2014 Berlin Asong. All rights reserved.
77
- 78. McDonald’s launches new
packaging with QR codes, which
provide nutritional info. to help
health conscious diners make
informed eating decisions.
© 2014 Berlin Asong. All rights reserved.
Picture source: http://news.mcdonalds.com/press-releases/mcdonald-slaunches-new-global-packaging-designs-nyse-mcd-975617
78
- 80. SABMiller
“Making more
beer but using
less water: we've
set ourselves a
target to reduce
our average
water use per
hectolitre of beer
by 25% by 2015”.
© 2014 Berlin Asong. All rights reserved.
Picture Source: cervejaavecesar.blogspot.com
80
- 81. “We are active in
taking steps to discourage
irresponsible drinking”.
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81
- 82. 3
Planners are increasingly seeing…
…ethical issues as sources for new
products, new markets, brand differentiation,
new revenue streams and cost reduction.
For example…
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82
- 83. Toyota’s Prius has been a success with over
3 million
units sold worldwide since it went on sales in1997.
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83
- 84. Kraft Foods has
cut its annual use of
fuel to 680,000 litres.
Source: Kraft annual report 2011
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84
- 89. Criticisms of McDonald's
Food provisions linked to obesity.
Provision of high-carb & fatty foods.
Marketing "unhealthy" meals to children.
Less attractive jobs (McJob).
Cultural imperialism.
Etc.
© 2014 Berlin Asong. All rights reserved.
89
- 90. 20 minutes
How is McDonald’s responding
to the top-three criticisms?
See slide 6
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90
- 94. McDonald’s launches new
packaging with QR codes, to
help diners make informed
dieting choices.—Jan. 2013
© 2014 Berlin Asong. All rights reserved.
Picture source: http://news.mcdonalds.com/press-releases/mcdonald-slaunches-new-global-packaging-designs-nyse-mcd-975617
94
- 97. Picture source: www.wdexpo.org
"One of McDonald’s Europe’s new
principles states that all Happy Meal
advertising that features food will include
fruit or vegetables and drinks with only
naturally occurring or no sugar".
McDonald’s (2013), “Leading by Examples”. [Online] Available from
www.aboutmcdonalds.com/mcd/sustainability/library/best_practices/nutritio
n_and_well_being/leading_by_example.html [accessed 18 October 2013]
© 2014 Berlin Asong. All rights reserved.
97
- 100. The company is criticised for
hiking energy prices at a time many
households are financially tight.
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100
- 102. 20 minutes
How is British Gas responding
to the public uproar?
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102
- 103. 1
British Gas Managing Director Ian
Peters in media interview, explaining
the reasons of raising energy prices.
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103
- 105. 3
British Gas is rolling out smart
energy metres to help customer
manage energy usage and bills.
Picture source: moneysupermarket.com
© 2014 Berlin Asong. All rights reserved.
105
- 106. The Cooperative Group is one of the
world’s most ethical companies, according
to the Ethisphere Institute’s 2013 study.
© 2014 Berlin Asong. All rights reserved.
106
- 107. T appreciate why the Cooperative Group
o
is one of the world’s most ethical organisation,
one has understand its business model.
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107
- 108. The company strives…
“…to be the most
socially responsible
business in the UK”.
The company is delivering on its ethical goal.
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108
- 109. The company is delivering on its ethical goal.
© 2014 Berlin Asong. All rights reserved.
109