The choice between ethical decisions and greater profit has always been a tough call for companies. It is a general knowledge that some organizations opt for customer offense and severe violations in pursuit of higher profit. Some crimes are still undetected, but due to the vast publicity, it becomes harder to conceal dishonesty.
With every passing day, contemporary marketing is released from tricky business as more and more companies go for ethical marketing.
What is ethical marketing?
Ethics, in general, is a controversial topic. In its broader definition, it is a branch of philosophy that defines the concepts of right and wrong conduct. However, the notions of right and wrong, good and bad are somewhat subjective. They depend on the religious, national, and social background of the concrete person.
When it comes to the definition of social and ethical marketing, it becomes a bit more straightforward. Ethical marketing means analyzing particular marketing issues from the standpoint of moral values and making the most efficient decisions. Ethical marketing is aimed at the benefit of society as a whole.
The advantages of ethical marketing
Ethical principles in business result is the more responsible organization and more sensible working community. Let’s delve into these advantages:
Build Customer Loyalty
Customers return to the companies that have demonstrated their credibility and honesty. Deceived customer will not become loyal. That said, having a loyal customer base is a code for long-lasting business success. Keep in mind that having some returning clients release companies from excessive marketing expenses.
Retain Good Employees
The most talented employees tend to stay in companies with transparent management. They will be much more dedicated to the organization which treats them fairly and keeps updated with all the changes in working process.
Positive Work Environment
Since all the employees have to meet all the ethical standards, they form a kind and friendly collective. Honest and open employees build a close relationship with their coworkers. What is more, managers can entrust more responsible tasks to such workers.
Avoid Legal Problems
At times deviating from some prohibitions, should it be labor law or environmental regulations, may lead to illegal profits. The penalties may turn harsh; however, the subsequent blow to the reputation can be even more harmful to the company’s prosperity.
Thus, the ethical marketing is a philosophy that defines the conduct of particular organization in every sector of interest. Principles of ethical marketing include giving opportunities for disadvantaged producers, transparency, fair trade and fair payment, no child labor and forced labor, no discrimination, good working conditions, and respect for the environment. Are you familiar with three levels of ethic development in marketing?
3 Examples of ethical marketing
As can be seen, ethical marketing is not an easy way to go, but it gives an impressive result which is worth devoting all efforts. It is a tried-and-true method of sound and effective functioning. Let’s take a look at companies that achieved success through ethical marketing.
- At first view, TOMS slip-on is the very usual slip-on. As any modern footwear, TOMS’ shoes are comfortable, good-looking, and high-quality. However, as distinct from others, TOMS’ shoes are socially useful. Since the moment of launching, TOMS has donated more than 60 million pairs of footwear to people all over the world. The company continually extends activities, providing people not only with shoes but with birthing kits, pairs of glasses, and drinking water.
- Despite the wide variety of cleaning products on the American market, the Dr. Bonners soap considerably stands out from the competitors. The product owes its popularity to the excellent packaging designed by the founder. Emanuel Broner himself was the author of “Cosmic Principles,” 30,000-word tract which can be found on the bottles of the company’s products. Dr. Bonner's business not only distributes information on current environmental and social issues but produces organic cleansers and has wisely organized compensation structures for workers.
- No other drink is so praised in modern society as coffee. However, coffee production faces severe difficulties due to the climate change. Conscious Coffee is the company famous for its efforts to improve conditions for coffee producers around the globe. The company operations include CAFE Livelihoods Program which encourages people in different countries to run private coffee businesses and provides them with guidance and support. Another guidance program of the company is known as a Farmer-to-Farmer initiative. The Conscious Coffee is a perfect example of a company the actions of which comply with its ethical principles.