The Critical Role Ethics Plays in Modern Marketing

Caroline Forsey

Published: September 02, 2020

As much as it might be difficult to define what "ethics" is in relation to marketing, it's easy to define what it isn't.

presentation on ethics of marketing

Take, for instance, a product pricing landing page that gives incorrect information (or, hides the price entirely … ).

Alternatively, consider a social media advertisement that claims a product will do X, Y, and Z — but then, when you order it, you find it can only do X.

These types of disreputable, dishonest, and corrupt marketing strategies are what we mean when we say a company behaved unethically.

Ultimately, while unethical marketing can potentially succeed in the short-term, it's not a good long-term strategy. Over time, customers will distrust your brand as a whole, and you'll find it difficult to find brand advocates who are willing to spread awareness about your product or service through word-of-mouth marketing .

In short, unethical marketing will make your job as a marketer much harder in the long run , not easier.

Here, let's explore the critical role ethics plays in modern marketing (and leadership as a whole), and how you can ensure you're following best practices to create ethical solutions to all your marketing challenges.

Click here to download our free introductory ebook on marketing psychology.

The Role of Ethics in Leadership

To start, let's define what ethics means.

While it's easy to define ethics as "the difference between right and wrong", the truth is a bit more complex than that.

For instance, the concept of "right" and "wrong" is typically a relatively subjective one. What's "right" culturally in the U.S. might be frowned upon in Asia, and vice versa.

The Markkula Center for Applied Ethics defines ethics as two things: "First, ethics refers to well-founded standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues … Ethical standards also include those that enjoin virtues of honesty, compassion, and loyalty."

The Markkula Center for Applied Ethics adds, "Ethics [also] refers to the study and development of one's ethical standards. As mentioned above, feelings, laws, and social norms can deviate from what is ethical. So it is necessary to constantly examine one's standards to ensure that they are reasonable and well-founded."

In the context of marketing, then, ethics refers to the practice of promoting fairness, honesty, and empathy in all marketing activities.

One of the easiest ways to promote ethics in a business sense, of course, is to ensure it's instilled in your company's culture and values.

However, it's important to note, it's not enough just to have a set of values and mission statement. Truly ethical companies need to live out these values every day (as noted in this article about core values by HBR ).

To further investigate what this means in practice, I spoke with Joan Harrington , the Director of Social Sector Ethics at The Markkula Center for Applied Ethics.

Harrington told me, "The key to integrating ethics in organizations is leadership. The leadership must set the example by living the organizational values and incorporating them into all aspects of the business. So having a code of ethics or a set of values in a handbook is not enough to shape an ethical culture."

Harrington adds, "Employees need to be trained on, or at least exposed to, how to make ethical decisions. Ethics is not about what you think is right versus what I think is right. It is how we — in all of our different relationships — ought to behave."

Harrington suggests in an ideal scenario, an entire organization will go through an ethical decision-making training — but, she adds, there are some areas of an organization that are higher-risk for ethical issues than others (like, for instance, engineers working on projects involving AI that might affect millions of people). For those higher-risk groups, these ethical decision-making trainings should be mandatory, not optional.

As Harrington told me, "This is not to say that there may be more than one ethical response, but it is not purely subjective. In training, people need to be exposed to real life situations, relevant to their jobs, so they can really work through how to identify, approach, and decide ethical issues."

To create a truly ethical culture , it's critical leaders model ethical behaviors and values, create a strong community, and design ethical systems in which all employees can thrive.

To do this, Ann Skeet, Senior Director of Leadership Ethics at the Markkula Center, advises leaders to "use goals, mission, and values to make decisions about compensation and other rewards, like promotions."

Ultimately, ethical leadership needs to be baked into the processes, not an "afterthought". This way, it isn't just one person's sole responsibility to raise her hand and say, "That doesn't seem fair to me." Instead, the very foundation of the organization should be built upon ethical pillars, including honesty and fairness, so that each business decision is made with these values top-of-mind.

Next, let's dive into how ethics plays into your role as a marketer.

The Role of Ethics in Marketing

Ethical marketing refers to a marketer's responsibility to ensure all marketing activities adhere to core ethics principles, including integrity, humility, and honesty — both internally, and externally.

To further recognize the difference between internal and external marketing ethics, let's consider an example.

Let's say your marketing team hires a design agency for a new marketing campaign. Halfway through the campaign, your team discovers the agency doesn't treat its workers fairly, and doesn't align well with your values in terms of environmental and social responsibility.

Even if your customers don't know about this alliance, it's still in your best interest to discontinue a working relationship with the agency as soon as possible, and re-align yourself with agencies that uphold the same standards you've set for your own team internally.

Equally importantly, of course, is the public-facing component of ethical marketing. This includes ensuring you don't stretch the truth or lie about your product or service (including pricing, functionality, release date, current customers, etc.) to try to attract new customers — lying about Beyonce's use of your product might seem like a good idea in theory, but it won't take long before you're caught out.

Additionally, ethical marketing also means treating workers fairly, using sustainable materials, and doing your part to support environmental or social causes that feel important to your brand.

For instance, consider the brand Toms, which gives away $1 for every $3 it makes , and has given nearly 100 million pairs of shoes to people in need since 2006.

As Harrington notes, "Marketing has its own, built-in, ethical issues. For non-profits, do they do 'storytelling' about their clients in an ethical way when they are engaged in fundraising, i.e., how are they representing their clients? Have they included clients in deciding how to present them? Are they operating from stereotypes?"

Harrington adds, "For all organizations, to figure out whether marketing is ethical, you'll want to ask whether marketers are operating transparently? Is the product accurately described? Is the marketing ahead of the actual product? And is there undue pressure on potential consumers?"

In 2020, ethical marketing is more important than ever.

Consider, for instance, that it costs five to 25 times more to acquire a new customer than to retain an existing one. Brand loyalty is critical for the long-term success of your company.

Additionally, did you know people don't trust businesses nowadays as much as they used to? In fact, 81% trust their friends and family's advice over advice from a business, 69% do not trust advertisements , and 71% do not trust sponsored ads on social networks.

Ultimately, there's only one long-term solution to the ever-growing problem of a distrustful customer base: ethical marketing.

Of course, it's important to remember, ethical marketing needs to influence every aspect of your marketing strategy, not just one or two areas. You need to show honesty, transparency, and integrity across the board — from the Instagram Stories you post, to the new product demos you promote.

To learn more about ethical marketing and how you might apply it to your own team, take a look at The Markkula Center's framework for ethical decision making .

Click here to download our free introductory ebook on marketing psychology.

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Marketing Ethics – Definition, Importance, Role and Examples

March 8, 2023 | By Hitesh Bhasin | Filed Under: Marketing

Marketing ethics is one of the most effective long-term branding , word-of-mouth, and trust-building strategies for optimizing the presence, leads, sales, and conversions of a product or service. Marketing ethics revolves around those principles of ethical marketing and standards that guide acceptable marketing conduct.

Ethical marketing is an integral part of the marketing definition that the American Marketing Association suggests, which is-

Marketing is the activity , set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Here, offering value to customers, partners, clients, and society is the core essence of an ethical marketing campaign .

Table of Contents

What is Marketing Ethics?

Marketing ethics are the marketing practices of promoting fairness, social responsibility , empathy , and honesty by following ethical standards . From marketing tactics to marketing decisions and advertising of products and services, all the ethical marketing practices focus not only on how products would benefit users but also on how they fulfill social responsibility and handle different ethical issues.

A few general examples of marketing ethics include

  • Honesty is key when it comes to marketing – make sure you don’t deceive your audience with false or overstated claims.
  • By providing customers with comprehensive and accurate information, they can make an informed decision that suits their needs.
  • Safeguarding customer data and upholding their privacy is of utmost importance.
  • Refraining from pressuring consumers into buying something they don’t need or want is essential for a successful business .
  • Respecting vulnerable audiences such as minors and those struggling financially by refraining from marketing to them.
  • While making marketing communications and strategies, pay heed to environmental and social responsibility and business ethics .

Consumers reap numerous advantages from this philosophy, whether it be environmental or social. It does more than merely provide a strategy ; it is an instrumental part of the company ’s success as well as its consumers.

Through ethical marketing, organizations deliberately apply different sets of moral rights and fairness standards when marketing their products and services, practices, and behavior in the overall structure. These organizations can then develop a competitive advantage over time, thereby satisfying the organization’s needs and customers.

Two Types of Marketing Ethics

The ethical principles of marketing share striking parallels with those of business, yet they can be divided into two distinct categories –

  • Positive marketing ethics – When evaluating marketing tactics, positive marketing ethics centers on the notion of “what is” and requires that one vigilantly research any fraudulent or dubious advertising they come across. Keeping a log of all violations must be part of this investigation process to ensure ethical standards are met.
  • Normative marketing ethics – Normative marketing ethics is the field of study that evaluates whether moral standards are being properly met when it comes to selling products and services. The same principles used in business ethics, such as duty-based theories as well as virtue ethics, and utilitarianism can help determine if ethical practices are being followed or not. By taking a closer look at how these principles affect marketing decisions and strategies, we can ensure that our approach to promoting businesses remains on firm moral ground.

Why is Marketing Ethics Important?

As per stats, 90+% of millennial consumers prefer buying products from ethical companies. Also, more than 80% of those users think that ethical brands outperform other market players that do follow ethical marketing.

Ethical marketing communications and strategies are essential to the overall growth and development of an organization over time. The applied set of guidelines and rules paves the way for a morally good, organized roadmap for everyone to follow. These sometimes overlap with media ethics since they are closely related in terms of definition and functioning.

The following are the reasons why ethical marketing is an integral part of the life of an organization:

1. Long-term gains

The foundation of a company or organization is not just based on its ability to survive the present, but to plan a bright future.

With the adoption of proper marketing ethics, brands can employ prospects with high credibility, loyalty to customers, significant market share , increased brand value, better sales, and better revenue.

These ethical practices will put their right on their way towards the accomplishment of both short-term and long-term goals with perfection.

2. Customer Loyalty

This is one of the most important factors in ethical marketing .

With the proper adoption of ethics in terms of business and operation, ethical marketing teams can win the loyalty, trust, and confidence of their consumers which can go a long way into the future.

The natural human tendency to go after the genuine brand surely gives them promising gains, both in the present and in the future.

3. Increased credibility

When the organization looks forward to keeping its promises surrounding its services and products on a continuous and consistent basis, it slowly and steadily goes towards the path of carving itself into an authentic and genuine brand in the market and customers’ minds.

This is not just limited to these two, and a good process can even build good respect in front of investors, peers, competitors, stakeholders , etc.

4. Increased Leadership qualities

When a company follows ethical practices of ethics for an extended period, it gradually stations itself as a leader, one who can benchmark its policies and strategies that surround the company’s structure and functioning.

This eventually gives rise to numerous benefits like increased share in the market, higher sales, inspiration for others, respect, mutual benefits, etc.

5. The satisfaction of basic human wants and needs

Once an organization is on course for the proper marketing ethics, it solves the basic needs and wants of its consumers in the form of integrity, trust, and honesty.

When this is displayed for a long time, various other benefits follow.

6. Display of a rich culture

Not only does such a structure give a positive outlook when seen from the outside, but it also paves the way for a good structure and environment within the hierarchy internally.

This gives rise to higher production owing to a confident and highly motivated staff.

7. The attraction of the right talent at the right place

Once the company can create brand value in the market, it becomes a beacon for prominent individuals for the association.

Various people like prospective employees , consultants, vendors, etc. look forward to associating and working with ethical brands that boost them exponentially. This further helps them in achieving their goals in a short period successfully.

8. Reaching financial goals

To function smoothly for more extended periods, the company has to have good financial partners who can help them grow and make significant strides in the market.

Once the brand follows a proper set of rules and ethical guidelines, it helps them earn the moral ground necessary to attract such people.

9. Enhancement of brand value in the market

Once a proper code concerning ethical marketing is followed by the organization, the public in the form of customers, competitors, stakeholders, etc. look up to such organizations. They follow such brands with religious dedication, giving them a sufficient boost to mark the market.

Here is a video by Marketing91 on Marketing Ethics.

Principles of Ethical Marketing

When it comes to ethical marketing, the rules may vary depending on a business’s values and overall objectives. Here are some of the most common ethical marketing principles you should be aware of –

Honesty is paramount in ethical marketing, and it is the responsibility of company leaders and marketers to ensure they are being forthright when communicating about their products or services. As one of the core ethical principles, it protects consumers by safeguarding their health, well-being, and rights.

2) Transparency

Transparency is an integral part of marketing ethics, especially the notion of disclosing the elements behind company activities and practices. Furthermore, it necessitates maintaining frank conversations about ethical behavior.

3) Health and Safety

Consumer safety is paramount for any ethical marketing team . As marketers, we must take it upon ourselves to not only educate and inform customers about their rights and privacy but also demonstrate respect towards them to uphold this principle.

4) Legality

Adhering to environmental regulations, industry standards, and governmental laws is an integral part of ethical marketing; it shows customers that a company is committed to cultivating the highest quality products and services.

5) Conscious practices

Companies can choose to make conscious decisions that benefit both the surrounding community and the environment. Popular initiatives include fair wages, as well as eco-friendly production processes.

6) Personal behavior

Each member of a marketing team must adhere to strong moral principles. Although these may be somewhat subjective, companies must establish stringent guidelines mandating respect for the rights and autonomy of others. Such standards represent an integral part of ethical marketing practices.

Role of Ethics in Marketing

With time, our economic system has become sufficient for providing the wants and needs of the public.

This has shifted the main focus of the market with an inclination towards ethical values while serving the needs of customers. This is primarily due to two reasons:

When there is ethical behavior from the organization’s side, there is a more significant positive public attitude to the variety of services and goods they offer. They have to adhere to specific marketing standards to render their efforts valid to the general public.

In addition to this, ethical bodies and organizations tend to pressurize and hold organizations and companies accountable for their actions. There is a lot of questioning and sets of guidelines, which have to be strictly followed.

Ethics in marketing plays a key role in ethical decision making crucial for the optimized presence of a product or service in their target niche.

An ethical marketing strategy is responsible for paying heed to different factors such as

  • Organizational factors such as culture , norms, values, and opportunity
  • Individual factors such as moral philosophies and values
  • Stakeholder interests and concerns
  • The intensity of ethical issues in marketing and organization setup
  • Ethical decision making
  • Evaluation of ethical outcomes

Ethical Marketing Examples

Over the years, companies have been adopting different marketing practices that ethically and morally appeal to the general public. These are a few examples of the same:

1. Dr. Bronner’s Activist Soap

Dr. Bronner’s marketing strategy is sort of activist marketing, as they are involved in ethical marketing campaigns associated with income equality, regenerative organic agriculture, drug policy reform, and animal advocacy.

2. People Tree’s ‘Our Blue Planet’ Collection

People Tree’s ‘Our Blue Planet’ collection is one of the best examples of ethical marketing campaigns in which two companies collaborated for an ethical cause. People Tree collaborated with BBC Earth for emphasizing the importance of our oceans and marine conservation.

3. Lucy & Yak’s Transparent Supply Chain

As a bespoke fashion company, Lucy & Yak’s Transparent Supply Chain is fully dedicated to fighting the ethical issues caused by fast fashion. They let users see their whole production process which makes them fully transparent with their product or service.

Issues in Marketing Ethics

Market Research

There are some disagreements and conflicts that give rise to ethical issues in many companies concerning marketing.

There is a fixed set of expectations regarding the business and its transactions and how they have to be carried out. The following domains have ethical issues concerning their functioning:

1. Market Research

It revolves around the collection and analysis of information about consumers as well as competitors and the effectiveness of marketing campaigns. Ethical issues that might arise during the process are an invasion of privacy and stereotyping.

2. Market Audience

Excluding potential market sectors like LGBTs, ethnic minorities, etc. are some of the ethical marketing issues associated with the market audience. Also targeting vulnerable audiences with a marketing campaign is also an ethical marketing issue.

3.  Advertising and Promotion

Shaming rivals’ products or services are considered unethical in advertising and promotion. Other ethical issues in advertising and marketing campaigns may be the mistreatment of women or any human being, misleading advertising, issues related to trust, honesty, violence, profanity, sex, taste, and controversy that may lead to the ethical decline of society.

4. Pricing Ethics

Different unethical pricing strategies that are considered issues in ethical marketing campaigns are-

  • Bid rigging
  • Dumping (pricing policy)
  • Predatory pricing
  • Price gouging
  • Price fixing
  • Supra competitive pricing
  • Price discrimination
  • Price skimming
  • Variable pricing

On a concluding note, we can define marketing ethics as an area of applied ethics that is associated with moral principles behind the operation and regulation of marketing that ethical companies use to differentiate between right and wrong marketing decisions and their implementations.

Many companies that use unethical marketing strategies do not care what is right and wrong on ethical grounds, and ultimately lose the trust of their audiences. Therefore, opting for unethical practices is never suggested by market leaders .

How would you differentiate ethical and unethical marketing practices?

What kind of marketing strategies would you prefer in your ethical marketing campaign?

Liked this post? Check out the complete series on Marketing

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About Hitesh Bhasin

Hitesh Bhasin is the CEO of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

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How to Illustrate Ethics in a Presentation

How to Illustrate Ethics in a Presentation [concept visualization]

Last Updated on September 7, 2020 by infodiagram

Understanding and following the ethics concept in communication is a way to successful business relations. Ethics concept comes in many forms – from how you choose projects to how you work with clients. Here we want to introduce the illustrations of ethics concepts that help you get creative in your presentations.

If you want to make your slides look professional, we advise you to follow one style and incorporate relevant graphics to support your presentation. The challenge is how to simplify your concept PPT, but to keep the audience inspired and involved. Here we share some hints for illustrating ethics concept ideas.  

Expressing the ethics concept ideas with outline simple style

Ethnics concept icons symbols outline for PowerPoint

Above we suggest several icon examples from our outline icons collection. Use them to make your presentation more visual. Here’s an index of ethnics concept ideas:

  • pictograms describing customer care and teamwork values 
  • h uman head icon full of emotions  
  • interpersonal communication as a key to business ethic: idea change symbol , or persuasion process  
  • weighing scale as a main ethnic principal 
  • ethical communication icon of groups of people
  • graphics of ethical feelings as love , care
  • general ethical business principal metaphors: male leader figure , compass 

Design-neutral ethics concept graphics

Ethnics concept icons symbols design-neutral flat for PowerPoint

Flat style icons will suit any presentation slide. You can change colors to suit your brand style. Here’s how you can illustrate  the ethnics concept using flat symbols: 

  • hammer symbol highlighting law principles 
  • basic principles of ethical communication: interpersonal negotiation and idea changing icons
  • work ethics icon showing team job
  • feelings as one of the most important resources for guiding ethical conduct – trust , love and admiration icons
  • business ethical development stages – growing plant metaphor
  • protection shield icon showing the basic ethical principle 

Creative unique hand drawn ethics icons collection

Ethnics concept icons symbols scribble for PowerPoint

If you want to be more creative and personal, use hand-drawn symbols for showing the ethics principles. See the specific visual ideas below:

  • justice and ethics in the contemporary world: layer icon , law hammer , and justice scale
  • professional activities icons: male figure during reading
  • male figure expressing emotions 
  • global business ethics shaped with the compass

I hope you will find some inspiration from those icon ideas to express the Ethics concept. What’s your biggest presentation challenge? Let us know in the comments and we’ll be happy to share our quick design advice.

If you like the suggested icons, you can get them from infoDiagram library. The best way to get them is by  joining subscription access to PPT graphics here . It will allow you to download these symbols, and graphics from any presentation deck you find on the website.

More concept icons ideas

Need to show another concept in a presentation? Leadership, Urgency, Status, Growth you name it. See our blog  Ultimate List of Business Concepts Visualization  to get inspired.

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Ethics and Marketing Research

Aug 08, 2014

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Ethics and Marketing Research. Ethics: may be defined as a field of inquiry in to what behaviors are deemed appropriate under certain circumstances as prescribed by codes of behavior that are set by society. Society determines what is ethical and not ethical.

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Ethics and Marketing Research • Ethics:may be defined as a field of inquiry in to what behaviors are deemed appropriate under certain circumstances as prescribed by codes of behavior that are set by society. • Society determines what is ethical and not ethical.

Ethical Issues Arise in Many Aspects of Marketing Research • Marketing researchers should not work for competing clients • Marketing researchers should not divulge any aspects of the research to third parties

Ethical Issues Arise in Many Aspects of Marketing Research cont. • Marketing researchers should not suggest research that is not needed by the client • Take a look at the MRA’s Code of Ethics at mra-net.org

Your Ethical Views are Shaped by Your Philosophy • Deontology: is concerned with the rights of the individual. • If the rights of the individual are violated, then the behavior is not ethical. • Teleology: analyzes a particular behavior in terms of its benefits and costs to society. • If there are individual costs, but group benefits are greater, then there are net gains and the behavior is judged to be ethical.

Ethical Behavior in Marketing Research • Other Marketing Research Organizations having Codes of Ethics are: • Council of American Survey Research Organizations (CASRO) See: CASRO • MRIA (Canada) See: mria-arim • ESOMAR (Europe) See: esomar

Codes of Ethics: Some Issues • Sugging • Frugging • Misrepresentation and omission of pertinent research data • Treating clients, suppliers & the public unfairly • Respondent Fairness See CMOR’s Rights of the Survey Respondent: • cmor.org

Ethical Issues With Respondents • Respondent cooperation has been going down • Marketing researchers should: • Eliminate or keep deception to a minimum • If promised, guarantee anonymity or confidentiality • Fight invasions of privacy such as telemarketing and SPAM

Panels • Marketing research companies are making greater use of panels • Recruiting respondents who agree to participate in future studies • Panel Equity, the value of having access to a large number of consumers willing to cooperate in studies, will increase in the future

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