BY :GOKILAMANI T.

MARKETING ETHICS:

Ethics refers to the moral principles or values that generally govern the conduct of an individual or a group.

Marketing ethics is an area of applied ethics which deals with the moral principles behind the operation and regulation of marketing.

ETHICAL MARKETING:

Ethical marketing refers to the application of marketing ethics into the marketing process

Marketing ethics has the potential to benefit society as a whole, both in the short- and long-term.

Marketing ethics has influenced companies and their response is to market their products in a more socially responsible way.

The increasing trend of fair trade is an example of the impact of ethical marketing.

Ethical marketing should not be confused with government regulations brought into force to improve consumer welfare

Marketing ethics includes…

Marketing effectiveness

Market research

Market segmentation

Marketing strategy

Marketing management

Market dominance

SOCIAL RESPONSIBILITY: Social responsibility is an ethical framework which

suggests that an entity, be it an organization or individual, has an obligation to act for the benefit of society at large.

Social responsibility is a duty every individual has to perform so as to maintain a balance between the economy and the ecosystems.

Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders

INDUSTRIES:

ITC NIRMA HIMALAYA PARLE PROCTOR & GAMBLE

ITC – PRODUCTS: Cigarettes FoodsLifestyle apparel Personal care products  Stationery Safety Matches and Agarbattis Paperboard Packaging and Printing Information Technology Hotels

ITC’S SOCIAL RESPONSIBILITY:

ENVIRONMENT: Carbon Positive : 9 Consecutive years Water Positive : 12 years in a row Solid Waste Recycling Positive : for the last 7 years Soil & Moisture conservation to 1,49,000 hectares ITC’s Watershed Development initiative brings precious

water to 1,49,000 hectares of moisture-stressed areas

ITC….SOCIAL: Strengthening the Agri production base of nearly 4 lakh farmers ITC’s Primary Education initiative has educated over 3,00,000

children ITC’s globally acknowledged e-Choupal initiative is the

world’s largest rural digital infrastructure benefitting over 4 million farmers

ITC’s Women’s Empowerment initiative has created nearly 40,000 sustainable livelihoods

ITC’s Livestock Development initiative has provided animal husbandry services to over 10,00,000 milch animals

ITC’s Social and Farm Forestry initiative has generated over 70 million person-days of employment Economic S

NIRMA: Nirma is a customer-focused company committed to consistently offer

better quality products and services that maximise value to the customer .This customer-centric philosophy has been well emphasised at Nirma

through: Continuously exploring & developing new products & processes. Laying emphasis on cost effectiveness. Maintaining effective Quality Management System. Complying with safety, environment and social obligations. Imparting training to all involved on a continuous basis. Teamwork and active participation all around. Demonstrating belongingness and exemplary behaviour towards organisation, its goals and objectives.

NIRMA – SOCIAL RESPONSIBILITY:

Nirma's vision visualises itself as a vibrant, pro-active and widely admired, ethical corporate citizen.

Nirma believes, that exemplary achievements on the business points are not enough in the making of a good corporate citizen.

In fulfilment of this role as a responsible part of the society and environment in which one operates, Nirma has undertaken a host of activities in the educational and social development areas.

Realising the significant role of education - especially technical and managerial in socio-economic development of the nation, Nirma played a vital role by establishing the Nirma Education & Research Foundation (NERF) in 1994. 

Nirma Memorial Trust and Nirma Foundation - Nirma Memorial Trust looks after deprived women in Gujarat

HIMALAYA :-

 Himalaya brand is synonymous with safe and efficacious herbal products. Starting off operations in Dehradun way back in the 1930s, the company later spread its wings to Mumbai and across the country.

In 1975, the company set up an advanced manufacturing facility in Makali, Bangalore, India. In 1991, the company relocated its R&D facility to Bangalore.

Operating in over 90 countries,Himalaya products are prescribed by 400,000 doctors worldwide, and millions of customers trust for their health and personal care needs. 

Himalaya Global Holdings Ltd. (HGH) is the parent of all Himalaya subsidiaries.

HIMALAYA POLICIES AND PRODUCTS:

POLICIES: Integrity Accountability Fairness Transparency Innovation

PRODUCTS: Pharmaceuticals Skin care Animal care Baby care Nutrition and health care

HIMALAYA SOCIAL RESPONSIBILITY: Himalaya has received the ISO 14001:2004 certification, the

most recognized global standard for excellence in environmental management.

Himalaya is working with the local prison authorities in the states of Karnataka and Andhra Pradesh in India, to rehabilitate inmates.

To make greener products, Himalaya has reduced the amount of packaging materials used so less waste is generated. 

All types of waste generated are properly segregated and systematically handled.

Energy saving initiatives have helped in reducing carbon emissions by 128,366 kilograms thus far.

HIMALAYA SOCIAL

RESPONSIBILITIES

PARLE: Parle Products has been India's largest manufacturer of biscuits and

confectionery for almost 80 years. Makers of the world's largest selling biscuit, Parle-G, and a host of other

very popular brands, the Parle name symbolizes quality, nutrition and great taste.

Many of the Parle products - biscuits or confectioneries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971.

While to the consumers it's a beacon of faith and trust, competitors look upon Parle as an example of marketing brilliance.

PARLE- SOCIAL RESPONSIBILITY:

Parle Centre of Excellence has been keenly involved in the promotion of programmes to facilitate the all-round development of children.

Parle Saraswati Vandana, one of its initiatives, is an inter-school contest based on the Saraswati Puja celebrations. It gives the children an opportunity to exhibit their creative skills and makes the celebrations even more special in the process. Interaction and distribution of gifts to children from Mother Teresa

Foundation. Distribution of stationery and notes to students. Interaction and donation of items to Home for Aged Women. Donation of stationery to children from 12 Gram Panchayat Schools. Empowering women by teaching them new skills. Tree plantation drive for students.

PROCTOR & GAMBLE:

Procter & Gamble Co., also known as P&G, is an American multinational consumer goodscompany headquartered in downtown Cincinnati , Ohio, United States, founded by William Procter and James Gamble, both from the United Kingdom.

Its products include cleaning agents, and personal care products. Prior to the sale of Pringlesto the Kellogg Company its product line included foods and beverages.

P&G SOCIAL RESPONSIBILITY:

Ultimate goal is to completely eliminate animal testing. No deforestation in sourcing of palm oil, palm kernel oil, and

derivatives. Continually strives to improve the environmental quality of its

products, packaging, and operations around the world. P&G’s Parivartan (Transformation) Program has been protecting

millions of adolescent girls in India from getting trapped in traditional practices of using unhygienic cloth for sanitary protection, by providing timely menstrual education.

Shiksha aims to build the educational future of India ‘Brick – by – Brick’ by addressing the need for better educational infrastructure and building the tangible asset of schools. 

UNETHICAL MARKETING:

Misleading advertising Exploitation Tax loopholes Overbilling Dumping toxins

COCA- COLA: Coca-Cola bottling plant in Kala Dera continues extracts the most water, making already existing

water shortages even worse. Coca-Cola started rainwater harvesting to overcome response to the growing campaigns against its water mismanagement. Coca-Cola was bluffing people with its rainwater

harvesting. For farmers, loss of groundwater translated directly into loss of income. For many children it meant leaving schools to provide a much needed

helping hand in household since the women had additional burdens.

FAIR AND LOVELY:

A recent research by Electronic Journal of Business Ethics and Organization Studies has revealed that fairness cream sellers overstate product benefits.

Illiterate and poor segment of our society actually buys their false and misleading statements.These creams play with customers‟ emotions.

Contain ingredients such as steroids, bleaching agents,mercury and many more harmful products.

According to a research, these creams can lighten the skin colour up to 20% but not more than that.

CADBURY:

No transparency on some cocoa sourcing – unfair trade practice

No public timetabled commitment for future cocoa sourcing Acknowledges the use of child labour in the industries

Fined for 'anti-competitive' behaviour – In March 2011 Kraft Foods, were fined US$53.2m for illegally sharing 'competition-relevant information' by German competition authorities.

CADBURY:

Price fixing - In Feb 2013 eleven chocolate companies including Nestle and Kraft were fined over $60m ($82m) for colluding to raise chocolate prices in Germany, while price fixing investigations continue in the US and Canada.

Unethical marketing policies like showing use of cocoa butter instead of palm oil - as harvesting palm oil involves removing palm tree in a forest area which could house wildlife animals which renders them homeless.

This shows that Cadbury had neglected the welfare of animals just for the sake of cutting cost in their manufacturing

NESTLE:

Promoting infant formula with misleading and harmful strategies that violate the International Code of Marketing of Breast milk Substitutes and put babies at risk.

Using suppliers that violate human rights (e.g. purchasingmilk from Mugabe, buying cocoa from suppliers that uses child slaves) and destroy the environment (e.g. palm oilfrom rainforest).

Price fixing - In Feb 2013 Nestle was fined over $60m for colluding to raise chocolate prices in Germany, while price fixing investigations continue in the US and Canada.

 

PEPSICO:

PepsiCo is on a fast track to manufacture an image of itself as a global leader in water conservation, and PepsiCo's claims of returning more water than they use is a public relations exercise by the company to blunt the growing and real criticism of its water management practices in India and elsewhere

Claimed it had achieved“positive water balance” in India. When questioned by The India Resource Centre in 2010,they

were provided with an audit conducted by DeloitteTouché Tohmatsu India Pvt Ltd, based on 2009 figures provided primarily by PepsiCo, and released in 2010.

PepsiCo's claims on water in India are designed primarily to manage the business and reputational risks that the company faces with regard to its water usage in India and globally.

CONCLUSION:

It is clear that advertising and price policies seem to be the most areas in which an unethical practices may often occur. One lesson that we should understand is that most companies seem to be engaged in unethical practices and can therefore misleading the consumer. Many firms even they are assigned to behave ethically but their practices show irregularities and frauds. Many companies believe they have a responsibility to "give back" to society. This focus includes contributions of time and money, a duty to provide environmentally friendly products and services, and a desire to improve the lives of individuals here and around the globe. Such socially responsible companies see to it that this "consciousness" permeates everything they do.