Ethical, Regulatory and Environmental Issues in MarComs and Promotional Practice Week 1 Lecture 2 Chapter 3

Ethics Moral principles and values which guide thinking, decision making and action.

Ethical Concerns Misleading or false advertising Targeting to children and teenagers Targeting Economically Disadvantaged People Shocking, tasteless or indecent material High pressure sales techniques Intrusion on personal privacy (telesales) Payment of bribes to win business Reward schemes for selling Hospitality to clients Vulnerable clients

Is it Justifiable? To target poorer segments with cigarettes and alcohol Use of stereotypes in advertising Women, men, families, ethnic minorities. Is branding fraudulent

Basic Consumer Rights The right to safety The right to be informed The right to choose The right to be heard

Ethical Decision-Making Models Smith’s Three Questions Consumer capability Is the target market vulnerable in ways that limit consumer decision making? Information Are consumer expectations at purchase likely to be realised? Do consumers have sufficient information to judge? Choice Can consumers go elsewhere? Would they incur substantial costs or inconvenience in transferring their loyalty? (Smith, 1995)

Ethical Decision Making Models The golden rule Act in a way that you would expect others to act towards you The professional ethic take only actions which would be viewed as proper by a panel of your profession. The TV test would I feel comfortable explaining this action to the general public on the TV?

Regulatory Aspects Voluntary Codes of Practise Statutory Laws Honest, Legal and Decent Protect vulnerable groups – children

Social Responsibility Focuses on the responsibilities of the organisation towards the general public – not only its customers and other connected stakeholders.

Environmental Issues Not encouraging abuse of the environment. – waste, excess behaviour Triple bottom line People Planet Profit Corporate Social Responsibility

Corporate Respnsibility Three driving forces Increased awareness of how production and consumption of resources affect the environment and the organisation is part of the cycle Recognition and acceptance that organisations need to cooperate and collaborate with other orgs. in order to have a strategic advantage Consumers are having increasing influence in terms of their rights and views of business

Corporate Responsibility Three concepts Profit responsibility Maximise profits while sticking to the rules Stakeholder responsibility Meeting obligations to those who can affect the achievement of the organisation’s objectives Societal responsibility Making a positive impact on society

Corporate Responsibility The TRIPLE BOTTOM LINE PROFIT PEOPLE PLANET