Introduction

IntroductionThere is a growing trend among academicians and professionals (Indian Marketers and MNCs operating in India started realizing the importance of CSR and ethics in marketing and their role in conducting the business which takes care of the societys interest at the same time optimizing the profit of their organizations.

Corporate social responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. Here society meaning customers and people at large. It is an expression used to describe what some see as a companys obligation to be sensitive to the needs of all the stakeholders in its business operations. A companys stakeholders are all those who are influenced by, or can be influenced by, or can influence, a companys decisions and actions. These can include (but are not limited to): employees, customers, suppliers, community organizations, subsidiaries and affiliates, joint venture partners, local neighborhoods, investors and shareholders (or a sole owner), Government and Media as per the Diagram-1. A variety of terms are used sometimes interchangeably to talk about corporate social responsibility (CSR): business ethics, corporate citizenship, corporate accountability, sustainability. In its simplest terms it is: what you do, how you do it, and when and what you say. Social responsibility and ethics are blended together and applied in various discipline of management such as HR, Finance, computer etc. Here the author is concentrating on CSR and marketing ethics and its impact on the society. Ethics are a collection of principles of right conduct that shape the decisions people or organizations make. Practicing ethics in marketing means deliberately applying standards of fairness, or moral rights and wrongs, to marketing decision making, behavior, and practice in the organization. In a market economy, a business may be expected to act in what it believes to be its own best interest. The purpose of marketing is to create a competitive advantage. An organization achieves an advantage when it does a better job than its competitors at satisfying the product and service requirements of its target markets. Those organizations that develop a competitive advantage are able to satisfy the needs of both customers and the organization.

As our economic system has become more successful at providing for needs and wants, there has been greater focus on organizations' adhering to ethical values rather than simply providing products. This focus has come about for two reasons. First, when an organization behaves ethically, customers develop more positive attitudes about the firm, its products, and its services. When marketing practices depart from standards that society considers acceptable, the market process becomes less efficientsometimes it is even interrupted. Not employing ethical marketing practices may lead to dissatisfied customers, bad publicity, a lack of trust, lost business, or, sometimes, legal action. Thus, most organizations are very sensitive to the needs and opinions of their

Customers and look for ways to protect their long-term interests. Second, ethical abuses frequently lead to pressure (social or government) for institutions to assume greater responsibility for their actions. Since abuses do occur, some people believe that questionable business practices abound. As a result, consumer interest groups, professional associations, and self-regulatory groups exert considerable influence on marketing. Calls for social responsibility have also subjected marketing practices to a wide range of federal and state regulations designed to either protect consumer rights or to stimulate trade. The Federal Trade Commission (FTC) and other federal and state government agencies are charged both with enforcing the laws and creating policies to limit unfair marketing practices. Because regulation cannot be developed to cover every possible abuse, organizations and industry groups often develop codes of ethical conduct or rules for behavior to serve as a guide in decision making. The American Marketing Association, for example, has developed a code of ethics .Self-regulation not only helps a firm avoid extensive government intervention; it also permits it to better respond to changes in market conditions. An organization's long-term success and profitability depends on this ability to respond.

Diagram-1 STAKEHOLDERS OF A FIRM

Marketing Alliances

At the outset, it is critical that we define what we mean by "marketing alliances." A marketing alliance is a formal or informal arrangement between organizations where each seeks through marketing activities gains that would not be available to either without such an alliance. In our view, the term alliances encompass two of the three types of marketing exchange characterized by Gundlach and Murphy (1993). Also the concept of ethics and social responsibility in marketing should be understood by the institutions in the field of academic as well as industry. These authors distinguish among transactional, contractual and relational exchanges. A typical transactional exchange is a one-time event where, for example, A sells to B. A contractual exchange is where A and B agree to a joint undertaking for some fixed period of time, for example, where A and B agree to carry out a six-month promotion of complementary product lines. A relational exchange is one that theoretically has no limits, as when A and B conduct a joint venture to market Product Y in Country Z. The last two may be considered "alliances," differing mainly in their time frame and, by extension, the attitudes, intentions and behaviors of the parties. In the commercial sector and academic sector also such alliances may involve equity investments by one or -- more typically --- all parties (cf. Varadarajan and Cunningham 1995).The concepts of Corporate Social Responsibility (CSR)

CSR is viewed as a comprehensive set of policies, practices and programs that are integrated into business operations, supply chains, and decision-making processes throughout the company wherever the company does business and includes responsibility for current and past actions as well as future impacts. The issues that represent a companys CSR focus vary by business, by size, by sector and even by geographic region. In its broadest categories, CSR typically includes issues related to : business ethics, community investment, environment, governances, human rights, market place and workplace .CSR goes beyond charity and requires that a responsible company take into full account of the impact on all stakeholders and on the environment when making decisions. This requires them to balance the needs of all stake holders with their need to make a profit and reward their shareholders adequately.

For the new generation of corporate leaders, optimization of profits is the key, rather than the maximization of profit. Hence, there is a shift from accountability to share holders to social responsibility to customers and other stake holders. In todays competitive global marketing, ethics play a vital role, because we are dealing with human values and beliefs. Business spreads beyond boundaries. The marketer has to deal with cross country culture. Many MNCS like Mc Donald and Nestle had faced lot of problems because of neglecting ethical issues in their marketing practices. They have incurred billions of dollars in monetary values and above all losing thousands of valuable hybrid customers due to the adaptation of unethical advertising & promotional strategies. According to experts, marketing is viewed as human conduct and is subject to academic analysis and public scrutiny. Ethics is the study of the moral principles that guide the conduct. Historically, there have been two points of view on the study on ethics in marketing. The firs is Let the buyer beware. From these points of view, the rights of the seller are central. A company has little regard for customers needs and wants. The other point of view is let the seller beware. Here, customer satisfaction is taken to an extreme. No matter what the customer does, it is ok. Which position is correct? How do we resolve the inevitable conflicts brought by these competing viewpoints?Corporate Social Responsibility (CSR) and Ethics in Marketing:

Kotler and Levy, in their book, Corporate Social Responsibility define corporate social responsibility as a commitment to improve community well-being through discretionary business practices and contributions of corporate resources.

Some of the benefits of being socially responsible include (a) enhanced company and brand image

(B) Easier to attract and retain employees (c) increased market share (d) lower operating costs and

(E) Easier to attract investors. A socially responsible firm will care about customers, employees, suppliers, the local community, society, and the environment. CSR can be described as an approach by which a company (a) recognizes that its activities have a wide impact on the society and that development in society in turn supports the company to pursue its business successfully and (b) actively manages the economic, social, and environmental and human rights. This approach is derived from the principles of sustainable development and good corporate governance. Marketing managers within different firms will see some social issues as more relevant than others. The relevance of a given social issue is determined by the companys products, promotional efforts, and pricing and distribution policies but also by its philosophy of social responsibility.

Relationship Marketing and Ethics

Nowadays, most ethicists believe that Relationship Marketing is a reasonable practice leading to positive relationships between buyers and sellers. Relationship marketing requires that rules are not necessarily contractual... Relationship marketing allows buyers and sellers to work together. However, there are disadvantages to this approach- relationship marketing requires time to develop a list of expected conduct or rules of behavior. According to a recently published book on this subject, a shift in emphasis in marketing ethics towards buyers interests and away from sellers interests characterizes the new country. If this is true, new challenges are presented for marketing ethics and professionals in the field of marketing who want to conduct business in an ethical way.

Green Marketing and Ethical Issues

The next important area the marketer need to know about what is the relevance of Social Marketing in order to protect the environment and to improve the quality of life and are concerned with issues that include conservation of natural resources, reducing environmental pollution, protecting endangered species, and control of land use. The three Rs of environmentalism are Reduce, Reuse, and Recycle. Many companies are finding that consumers are willing to pay more for a green product. Toyota has become quite successful with their hybrid cars. Green marketing refers to the development and distribution of ecologically-safe products. It refers to products and packages that have one or more of the following characteristics: (1) are less toxic, (2) are more durable, (3) contain reusable materials, or (4) are made of recyclable material. In short, these are products considered environmentally responsible. To sight an example One Canadian Executive stated that Any marketing executive who does not put a green filter on their strategies is looking at losing market share. The whole idea of disposal is going to become unacceptable. In West Germany and Canada, Procter & Gamble has found high consumer acceptance of pouches of liquid detergents and fabric softeners so consumers can refill rather than discard large plastic bottles.

Cause Related Marketing and Ethics

Cause-related marketing should not be confused with social marketing. A key difference is that a major purpose of cause-related marketing is to help a business. It might be used to improve the image of the firm or to increase market share. The technique involves associating a business with a cause. Social marketing, on the other hand, is generally not associated with any company and issued solely to help society by dealing with a social problem. Cause-related marketing has to be done correctly or it can hurt a company. A firm may look like it is exploiting a charity. It is important for the firm to be transparent and honest about what it is doing. There should also be a fit between the company and the cause. A good fit would be, for example, might be a bottled water company and a cause, it deals with providing clean water for poor people in Asia and Africa. Social Marketing and Ethics

Social Marketing is defined as the use of marketing principles and techniques to influence a target audience to voluntarily accept, reject, modify, or abandon behaviour for the benefit of individuals, groups or society as a whole. Social marketing is usually done by a non-profit organization, government, or quasi-government agency. The goal is either to steer the public away from products that are harmful to them and / or society (e.g., illegal drugs, tobacco, alcohol, etc.) or to direct them towards behaviors or products that are helpful to them and / or society (e.g., having family meals, praying together, etc.).

Ethnic Marketing and Ethics

Another aspect the marketer has to know about Ethnic Issues while going for global marketing and still take care of Ethics. Culture plays an important role in defining ethical standards because dissimilar cultures socialize their people differently, according to what is acceptable behavior. The potential significance of ethnic groups for marketing justifies inquiry into the moral judgments, standards, and rules of conduct exercised in marketing decisions and situations arising from decisions whether or not to focus on individual ethnic groups within an economy. Identifying and targeting ethnic groups for marketing purposes are tasks fraught with many ethical difficulties. In a multicultural society consisting of a dominant group and many diverse, minority groups defined by ethnicity, these problems can be expected to increase substantially. Consequently, marketers may include minority ethnic consumers in their mainstream marketing programs. In itself, this has ethical consequences. Alternatively, if marketers seek to target individual minority ethnic groups within the same economy a further set of ethical consequences needs to be considered. The international environment is recognized as attracting more difficulties for marketers (Kotler et sl., 1998, p. 833) because their ethics parameters may not match the notion of good in the foreign country where they wish to operate. This is a problem because it may compromise successful international market penetration, that is, a firms ability to compete in the international market. To the extent that international operations are part of an overall competitive strategy (either because of a firms need to have a presence where its main customers operate, or because the firm must/needs to follow its competitors) this also can influence a firms ultimate survival in its domestic market. Ethical concerns are thus clearly important both in the parent country and also in the host country.. One possible approach to ethnic marketing ethics within one country, understood as ethics applied to marketing practice targeting minority ethnic groups, is to apply the same procedures that firms use to deal with ethics problems in the international context (Kotler et al., 1998). Ethnic minority consumers, particularly in their first time of settlement in a new country, may be inexperienced in relation to what is available, where, and for how much, as well as being unaware of market dos and donts. This justifies their possible reliance on referral or recommendation by others they trust, eventually their minority ethnic group of affiliation, particularly when communication difficulties limit the number and range of accessible secondary sources. Within such a scenario, ethnic minority consumers may be perceived as disadvantaged because they are arguably more vulnerable to be taken advantage of through deceptive practices (Kotler et al., 1998). Targeting of minority ethnic consumers with ethically unsound strategies may lead to alienation of the ethnic markets. Careful consideration needs to be exercised before ethnic marketing strategies are developed and implemented.

Ethical Norms and Values for Marketers

Professional associations and accrediting bodies have identified guidelines for ethics in marketing. According to one of those associations, the American Marketing Association, the following rules guide marketing behavior. The American Marketing Association commits itself to promoting the highest standard of professional ethical norms and values for its members. Norms are established standards of conduct that are expected and maintained by society and / or professional organizations. Values represent the collective conception of what people find desirable, important and morally proper. Values serve as the criteria for evaluating the actions of others. Marketing practitioners must recognize that they not only serve their enterprises but also act as stewards of society in creating, facilitating and executing the efficient and effective transactions that are part of the greater economy. In this role Marketers should embrace the highest ethical norms of practicing professionals and the ethical values implied by their responsibility toward stakeholders (e.g., customers, employees, investors, channel members, regulators and the host community).

Responsibility of the marketer. Marketers must accept responsibility for the consequences of their activities and make every effort to ensure that their decisions, recommendations, and actions function to identify, serve, and satisfy all relevant publics: customers, organizations and society

Honesty, Integrity and Quality are far more important than quick profits (Shel Horowitz)

Rights and duties in the marketing exchange process: - Participants should be able to expect that products and services are safe and fit for intended uses; that communications about offered products and services are not deceptive; that all parties intend to discharge their obligations, financial and otherwise, in good faith; and that appropriate internal methods exist for equitable adjustment and / or redress of grievances concerning purchases

Organizational relationships: - Marketers should be aware of how their behavior influences the behavior of others in organizational relationships. They should not demand, encourage, or apply coercion to encourage unethical behavior in their relationships with others.

Conduct your business so as to build long term loyalty. When you get a customer, you want to keep that customer and build a sales relationship that can not only last years, but also create a stream of referral business. (Shel Horowitz)

Marketers must do no harm. This means doing work for which they are appropriately trained or experienced so that they can actively add value to their organizations and customers. It also means adhering to all applicable laws and regulations and embodying high ethical standards in the choices they make.

Marketers must foster trust in the marketing system. This means that products are appropriate for their intended and promoted uses. It requires that marketing communications about goods and services are not intentionally deceptive or misleading. It suggests building relationships that provide for the equitable adjustment and / or redress of customer grievances. It implies striving for good faith and fair dealing so as to contribute toward the efficacy of the exchange process.

Marketers must embrace, communicate and practice the fundamental ethical values that will improve consumer confidence in the integrity of the marketing exchange system. These basic values are intentionally aspiration and include honesty, responsibility, fairness, respect, openness and citizenship. Education and Ethics

Ethics and values become an important concern in the US in the 80s. In US there are about 500 courses offered in the field of Ethics by various universities. Hayward Business School earmarked USD 30 Million in 1987 to focus on teaching Business ethics to MBAs. In India AICTE (The All India Council for Technical Education ) recommended the inclusion of Business ethics as a course in MBA curriculum in 1995. The aim of teaching Ethics or Ethics in marketing particular is to provide the budding marketing managers / managers to

a) Share knowledge, build skills and develop minds of the young entrepreneurial managers of tomorrow

b) To provide and clarify and insights into concepts of business so that young managers avoid Business misconduct, when they really go and conduct the business.

c) To create High level of integrity moral and social awareness so that they can decide when faced with business dilemma.

(These points substantiated researchers first objective). IIM Luck now has started a course that seeks to provide students with an understanding of changing relationship between business and environmental management (As per February 2007, Economic Times). The budding managers should be imparted with the knowledge of social responsibility and ethics. IIM-C is already having a Management centre for Human Values, and they are publishing a journal on Human values. They are also offering a course on Ethics and Values in Business.

Role of Social Responsibility in Indian companies:

In a global CSR study undertaken in 7 countries (viz. India, South Korea, Thailand, Singapore, Malaysia, The Philippines and Indonesia) by the U.K. based International Centre for CSR in 2003, India has been ranked second in the list. This ideally shows the value that is important to customers in India. Bharat Petroleum and Maruthi Udyog have been ranked as the best companies in the country. The next comes in the list are Tata Motors and Hero Honda. Canara Bank, Indal, Gujarat Ambuja and Wipro are involved in community development work of building roads, running schools and hospitals. ACC has been rendering social service for over Five decades. They are setting up schools, health centers, agro-based industries and improving the quality of rural life. BHEL is actively involved in the Welfare of the surrounding communities is helping the organization to earn good will of the local people BHEL is also providing drinking water facilities, construction of roads and culverts, provision of health facilities, educational facilities, and so on companies like ONGCs are encouraging sports by placing good players on their pay rolls. TISCO, TELCO and HINDALCO won the award for excelling in CSR, jointly given by FICCI and Business world for the 2003. ONGC has also committed resources by adopting a few villages to implement president Dr. Abdul Kalams idea of PURA (Provision of Urban Amenities in Rural Areas). NTPC has established a trust to work for the cause of the physically challenged people. Similarly in the private sectors like Infosys, Wipro and Reliance are believed to be most socially responsible corporations. In 1999 Kofi Annan of the United Nations invited corporate leaders for a Global Compact to promote nine principles covering three areas: human rights, labor rights, and sustainable development. Today, India can be legitimately proud to have had the second largest number of companies from any country subscribing to the Global Compact. Several public sector companies have joined together to form the Global Compact Society of India. SOCIAL RESPONSIBILITY OF BUSINESS BY MULTINATIONAL COMPANIES IN INDIA

In the last twenty years, MNCs have played a key role in defining markets and influencing the behavior of a large number of consumers. Globalization and liberalization have provided a great opportunity for corporations to be globally competitive by expanding their production base and market share. Recent years have seen many progressive organizations in our country keenly playing a social role. In some of these organizations the approach has been to take up only business-centric activities, i.e., which are directly relevant to their business. The guiding philosophy in these organizations is that social reasonability is good only if it pays. This approach benefits both the organization and the stake-holder. Thus, ITC has been afforesting private degraded land to augment the supply of raw material for its paper factory. Similarly, Hindustan Lever which requires good quality water for the manufacture of its food products has been improving the quality of water in many communities. Companies like Cadbury India, Glaxo and Richardson Hindustan are helping farmers to grow crops which serve as raw materials for them. Lipton in Eath district of Uttar Pradesh has started veterinary hospitals in the region from where it buys milk. British Gas (which sells compressed natural gas to India) has recently started teaching unemployed youngsters how to become mechanics for gas-based auto-rickshaws in Delhi. In some other organizations the approach has been to take up such philanthropic activities in which they can make a difference. Case study:Coca Cola

As one of the largest and most global companies in the world, Coca Cola took seriously its ability and responsibility to positively affect the communities in which it operated. The companys mission statement, called the Coca-Cola Promise, stated: The Coca-Cola Company exists to benefit and refresh everyone who is touched by our business. The Company has made efforts towards good citizenship in the areas of community, by improving the quality of life in the communities in which they operate, and the environment, by addressing water, climate change and waste management initiatives. Their activities also included The Coca Cola Africa Foundation created to combat the spread of HIV / AIDS through partnership with governments, UNAIDS, and other NGOs, and The Coca Cola Foundation, focused on higher education as a vehicle to build strong communities and enhance individual opportunity Coca Colas footprint in India was significant as well. The Company employed 7000 citizens and believed that for every direct job, 30 40 more were created in the supply chain. Like its parent, Coke Indias Corporate Social Responsibility (CSR) initiatives were both community and environment focused. Priorities included education, where primary education projects had been set up to benefit children in slums and villages, water conservation, where the Company supported community based rainwater harvesting projects to restore water levels and promote conservation education, and health..

QUESTION:1. WHAT WAS THE REASON FOR COCA COLA TO TAKE SUCH A MEASURE?

2. WHAT WAS THE MEASURE TAKEN BY THEM?

3. WHAT WAS THE EFFECTS AFTER ALL THESE MEASURE?Ethical Conflict faced by the Marketers:

Marketers must be aware of ethical standards and acceptable behavior. This awareness means that marketers must recognize the viewpoints of three key players: the company, the industry, and society. Since these three groups almost always have different needs and wants, ethical conflicts are likely to arise. Ethical conflicts in marketing arise in two contexts: First, when there is a difference between the needs of the three aforementioned groups (the company, the industry, and society) a conflict may arise. Second and ethical conflict may arise when ones personal values conflict with the organization. In either case, a conflict of interest is a possible outcome. An example of the first type of conflict is the tobacco industry. Cigarettes have for many decades been a lucrative business. So, cigarette and tobacco marketing have been for companies and good for the tobacco industry. Many thousands of people around the world are employed in the tobacco industry. So, the world economy has been somewhat dependent on cigarettes and tobacco. However, cigarettes are harmful to society. There is documented proof that cigarette smoking is harmful to health. This is an ethical conflict for cigarette marketers. An example of the second type of conflict, when ones personal values conflict with the organizations occurs when a leader in the company seeks personal gain (usually financial profit) from false advertising. Cures for fatal diseases are one type of product that falls into this category of ethical conflict: In their greed to make a profit, a marketer convinces those who may be dying from an incurable disease to buy a product that may not be a cure, but which a desperately ill person (or members of his or her family) may choose to purchase in an effort to save the dying family member suffering. Promoting and marketing such products violates rules of marketing ethics. Ethical dilemmas facing marketing professionals today fall into one of three categories: tobacco and alcohol promoting, consumer privacy, and green marketing. Standards for ethical marketing guide business in efforts to do the right thing. Such standards have four functions: to help identify acceptable practices, foster internal control, avoid confusion, and facilitate a basis for discussion.

Consumerism

Consumerism is concerned with broadening the rights of consumers. The concepts of social responsibility and consumerism go hand-in-hand. If every organization practiced a high level of social responsibility the consumer movement might never have begun. Consumerism is a struggle for power between buyers and sellers; specifically, it is a social movement seeking to increase the rights and powers of buyers in relation to sellers. Sellers rights and powers are presented in the following list: To introduce any product in any size and style they wish into the marketplace, so long as it is

not hazardous to personal health or safety or if it is hazardous, to introduce it with the proper warnings and controls To price the product at any level they wish, provided there is no discrimination among similar classes of buyers To spend any amount of money they wish to promote the product, so long as the promotion is not defined as unfair competition To formulate any message they wish about the product provided that it is misleading or

dishonest in content or execution To introduce any buying incentive schemes they wish In contrast, here are buyers rights and power: To refuse to buy a product that is offered to them To except the product to be safe To expect the product to essentially match how the seller represented it To receive adequate information about the product It is in the best interest of marketers to understand the level of consumer standards and the nature of consumer perceptions, as well as what is required to foster realism and accuracy among consumers. Marketing and the Natural Environment

Another significant area of social concern is the environment. Marketing is ultimately dependent on the use of scarce resources to fulfill human needs, without harming or unnecessarily using scare resources. Marketing managers should help to determine which products are produced, and which products are indirectly affecting the environment.UNFAIR OR DECEPTIVE MARKETING PRACTICES

Marketing practices are deceptive if customers believe they will get more value from a product or service than they actually receive. Deception, which can take the form of a misrepresentation, omission, or misleading practice, can occur when working with any element of the marketing mix. Because consumers are exposed to great quantities of information about products and firms, they often become skeptical of marketing claims and selling messages and act to protect themselves from being deceived. Thus, when a product or service does not provide expected value, customers will often seek a different source.

Deceptive pricing practices cause customers to believe that the price they pay for some unit of value in a product or service is lower than it really is. The deception might take the form of making false price comparisons, providing misleading suggested selling prices, omitting important conditions of the sale, or making very low price offers available only when other items are purchased as well. Promotion practices are deceptive when the seller intentionally misstates how a product is constructed or performs, fails to disclose information regarding pyramid sales (a sales technique in which a person is recruited into a plan and then expects to make money by recruiting other people), or employs bait-and-switch selling techniques (a technique in which a business offers to sell a product or service, often at a lower price, in order to attract customers who are then encouraged to purchase a more expensive item). False or greatly exaggerated product or service claims are also deceptive. When packages are intentionally mislabeled as to contents, size, weight, or use information, that constitutes deceptive packaging. Selling hazardous or defective products without disclosing the dangers, failing to perform promised services, and not honoring warranty obligations are also considered deception.OFFENSIVE MATERIALS AND OBJECTIONABLE MARKETING PRACTICES

Marketers control what they say to customers as well as and how and where they say it. When events, television or radio programming, or publications sponsored by a marketer, in addition to products or promotional materials, are perceived as offensive, they often create strong negative reactions. For example, some people find advertising for all products promoting sexual potency to be offensive. Others may be offended when a promotion employs stereotypical images or uses sex as an appeal. This is particularly true when a product is being marketed in other countries, where words and images may carry different meanings than they do in the host country.

When people feel that products or appeals are offensive, they may pressure vendors to stop carrying the product. Thus, all promotional messages must be carefully screened and tested, and communication media, programming, and editorial content selected to match the tastes and interests of targeted customers. Beyond the target audience, however, marketers should understand that there are others who are not customers who might receive their appeals and see their images and be offended.

Direct marketing is also undergoing closer examination. Objectionable practices range from minor irritants, such as the timing and frequency of sales letters or commercials, to those that are offensive or even illegal. Among examples of practices that may raise ethical questions are persistent and high-pressure selling, annoying telemarketing calls, and television commercials that are too long or run too frequently. Marketing appeals created to take advantage of young or inexperienced consumers or senior citizens including advertisements, sales appeals disguised as contests, junk mail (including electronic mail), and the use and exchange of mailing listsmay also pose ethical questions. In addition to being subject to consumer-protection laws and regulations, the Direct Marketing Association provides a list of voluntary ethical guidelines for companies engaged in direct marketing

ETHICAL PRODUCT AND DISTRIBUTION PRACTICES

Several product-related issues raise questions about ethics in marketing, most often concerning the quality of products and services provided. Among the most frequently voiced complaints are ones about products that are unsafe, that are of poor quality in construction or content, that do not contain what is promoted, or that go out of style or become obsolete before they actually need replacing. An organization that markets poor-quality or unsafe products is taking the chance that it will develop a reputation for poor products or service. In addition, it may be putting itself in jeopardy for product claims or legal action. Sometimes, however, frequent changes in product features or performance, such as those that often occur in the computer industry, make previous models of products obsolete. Such changes can be misinterpreted as planned obsolescence.

Ethical questions may also arise in the distribution process. Because sales performance is the most common way in which marketing representatives and sales personnel are evaluated, performance pressures exist that may lead to ethical dilemmas. For example, pressuring vendors to buy more than they need and pushing items that will result in higher commissions are temptations. Exerting influence to cause vendors to reduce display space for competitors' products, promising shipment when knowing delivery is not possible by the promised date, or paying vendors to carry a firm's product rather than one of its competitors are also unethical.

Research is another area in which ethical is sues may arise. Information gathered from research can be important to the successful marketing of products or services. Consumers, however, may view organizations' efforts to gather data from them as invading their privacy. They are resistant to give out personal information that might cause them to become a marketing target or to receive product or sales information. When data about products or consumers are exaggerated to make a selling point, or research questions are written to obtain a specific result, consumers are misled. Without self-imposed ethical standards in the research process, management will likely make decisions based on inaccurate information.

DOES MARKETING OVERFOCUS ON MATERIALISM?

Consumers develop an identity in the market place that is shaped both by who they are and by what they see themselves as becoming. There is evidence that the way consumers view themselves influences their purchasing behavior. This identity is often reflected in the brands or products they consume or the way in which they lead their lives.

The proliferation of information about products and services complicates decision making. Sometimes consumer desires to achieve or maintain a certain lifestyle or image results in their purchasing more than they need or can afford. Does marketing create these wants? Clearly, appeals exist that are designed to cause people to purchase more than they need or can afford. Unsolicited offers of credit cards with high limits or high interest rates, advertising appeals touting the psychological benefits of conspicuous consumption, and promotions that seek to stimulate unrecognized needs are often cited as examples of these excesses.

SPECIAL ETHICAL ISSUES IN MARKETING TO CHILDREN

Children are an important marketing target for certain products. Because their knowledge about products, the media, and selling strategies is usually not as well developed as that of adults, children are likely to be more vulnerable to psychological appeals and strong images. Thus, ethical questions sometimes arise when they are exposed to questionable marketing tactics and messages. For example, studies linking relationships between tobacco and alcohol marketing with youth consumption resulted in increased public pressure directly leading to the regulation of marketing for those products.

The proliferation of direct marketing and use of the Internet to market to children also raises ethical issues. Sometimes a few unscrupulous marketers design sites so that children are able to bypass adult supervision or control; sometimes they present objectionable materials to underage consumers or pressure them to buy items or provide credit card numbers. When this happens, it is likely that social pressure and subsequent regulation will result. Likewise, programming for children and youth in the mass media has been under scrutiny for many years.

In the United States, marketing to children is closely controlled. Federal regulations place limits on the types of marketing that can be directed to children, and marketing activities are monitored by the Better Business Bureau, the Federal Trade Commission, consumer and parental groups, and the broadcast networks. These guidelines provide clear direction to marketers.ETHICAL ISSUES IN MARKETING TO MINORITIES

The United States is a society of ever-increasing diversity. Markets are broken into segments in which people share some similar characteristics. Ethical issues arise when marketing tactics are designed specifically to exploit or manipulate a minority market segment. Offensive practices may take the form of negative or stereotypical representations of minorities, associating the consumption of harmful or questionable products with a particular minority segment, and demeaning portrayals of a race or group. Ethical questions may also arise when high-pressure selling is directed at a group, when higher prices are charged for products sold to minorities, or even when stores provide poorer service in neighborhoods with a high population of minority customers. Such practices will likely result in a bad public image and lost sales for the marketer.

Unlike the legal protections in place to protect children from harmful practices, there have been few efforts to protect minority customers. When targeting minorities, firms must evaluate whether the targeted population is susceptible to appeals because of their minority status. The firm must assess marketing efforts to determine whether ethical behavior would cause them to change their marketing practices.

ETHICAL ISSUES SURROUNDING THE PORTRAYAL OF WOMEN IN MARKETING EFFORTS

As society changes, so do the images of and roles assumed by people, regardless of race, sex, or occupation. Women have been portrayed in a variety of ways over the years. When marketers present those images as overly conventional, formulaic, or oversimplified, people may view them as stereotypical and offensive.

Examples of demeaning stereotypes include those in which women are presented as less intelligent, submissive to or obsessed with men, unable to assume leadership roles or make decisions, or skimpily dressed in order to appeal to the sexual interests of males. Harmful stereotypes include those portraying women as obsessed with their appearance or conforming to some ideal of size, weight, or beauty. When images are considered demeaning or harmful, they will work to the detriment of the organization. Advertisements, in particular, should be evaluated to be sure that the images projected are not offensive.

Ethical Issues in International Marketing

A. History of Ethics Ethics is a branch of philosophy that studies morals and values. Interest in ethics and ethical codes has been around for a long time. Centuries ago, Aristotle referred to character, which he called ethos, as the most potent means of persuasion (Lane Cooper, 1960). He also identified elements of virtue as justice, courage, temperance, magnificence, magnanimity, liberality, gentleness, prudence, and wisdom. In Roman times, the emperor Justinian was the first to incorporate ethics into the legal system and to establish schools to educate lawyers concerning ethics morality, and law. Napoleon established a code of thirty-six statutes based on the concept that all citizens, regardless of circumstances of birth or social stature, should be treated fairly and equally. Indeed, every civilization has recognized the need for establishing laws and codes to guide human relationship and behavior (Metcalfe, 2003: 74).

Ethics studies the differences between right and wrong, and through these studies philosophers have developed several theories. Some major ethical theories are egoism, intuitionism, emotivism, rationalism, and utilitarianism. Egoism is the belief that people should only look at how the consequences of an action affect them. Intuitionism is the belief in an immediate awareness of moral value. Emotivism is the belief that ethical decisions are expressions of emotion. Rationalism focuses on the metaphysical aspects of ethics. Utilitarianism in ethics considers how moral actions produce the greatest overall good for everyone (www.questia.com).

B. Ethical Universals and National Cultures

1. What Is Culture? Academics and researchers have never been to agree on a simple definition of culture. In the 1870s, the anthropologist Edward Taylor defined culture as that complex whole which includes knowledge, belief, art, morals, law, custom, and other capabilities acquired by man as a member of society (Taylor, 1871). As other capabilities, we can include economic and political philosophy, religion, language and education systems.

Especially, religion is very important in shaping ethical systems refer to a set of moral principles, values, that are used to guide and shape behavior. Most of the world`s ethical systems are the product of religions (Hill, ibid: 105).

Dutch Management Professor Geert Hofstede refers to culture as the software of the mind and argues that it provides a guide for humans on how to think and behave; it is a problem-solving tool (Hofstede, 1984: 21). Business consultant E. Hall gives a better definition for international marketers: The people we were advising kept bumping their heads against an invisible barrier...We knew that what they were up against was a completely different way of organizing life, of thinking and of conceiving the underlying assumptions about the family and the state, the economic system, and the man himself (Hofstede, ibid: 21).

Most traditional definitions of culture center around the notion that culture is the sum of the values, rituals, symbols, beliefs and thought processes that are learned, shared by a group of people, and transmitted from generation to generation (Herskovitz,1952: 634). Values mean abstract ideas about what a group believes to be good, right, and desirable. If we put it differently, values are shared assumptions about how things ought to be (Mead, 1994: 7). On the other hand, values are rules and guidelines that prescribe appropriate behavior in particular situations. 2. Ethical Perceptions and Culture A research conducted by Armstrong reveals that there is a relationship between the cultural environment (Australia, Singapore and Malaysia) and the perceived ethical problems. In another study, Armstrong finds out the most frequently cited problem of Australian International Business Managers is gifts/favours/entertainment and that this problem may be related to the culture where the international business is being conducted. And the most important ethical problem to Australian international managers is large-scale bribery (Armstrong, 1992).

Although, different cultural environments result in different ethical perceptions in international marketing, for the sake of ethical consistency, it is necessary to generate internationally applicable ethical rules and regulations. As a matter of fact, a finding of an empirical research conducted by Armstrong proposes that The Australian general managers disagreed that it is necessary to compromise one`s ethics to succeed in international marketing (Armstrong, ibid: 161).

C. Ethical Approaches in International Marketing Due to the globalization of markets and production, ever increasing number of international marketing personnel have to deal with ethical issues in cross-cultural settings. Murphy and Laczniak (1981: 58) asserted two decades ago that as more firms move into multinational marketing, ethical issues tend to increase.Actually, international marketers are often criticized for ethical misconduct (Armstrong et al., 1990: 6-15). In a cross-cultural environment, marketers are exposed to different values and ethical norms (Nill, 2003: 90-104). Which ethical position should marketers take when acting in a foreign culture? In other words, whose ethics do we use in international marketing? is very important to be answered. DeGeorge answers this question as our ethics; our ethical values are not like a coat that we put on in certain seasons and places throw off elsewhere. We cannot leave our ethics behind as we venture around globe. If we think we can, or if we have no ethics, then, of course, the question is beside the point (DeGeorge, Business Credit, 2000: 50).

In International Marketing, ethical decision- making process can be influenced by many ethical approaches. These approaches can be classified descriptive-prescriptive and communicative approach (Nill, 2003: 90), and normative (prescriptive), and descriptive (positive) theory of marketing ethics approach (Hunt and Vitel.1986: 5-15). 1. Descriptive Approach Descriptive ethics describe the values and moral reasoning of individuals and groups and attempt to provide an understanding of the ethical decision-making process (Schopenhauer, 1979). It is assumed that the ethical decision-making process affected by a variety of individual, situational, and contextual factors such as personal experiences, opportunity, the organizational environment and the cultural environment (Nill, ibid: 91). 2. Normative Approach Normative ethics suggest an answer to the general moral question of what ought to do (Schlegelmilch, 1998; Murphy and Laczniak, 1981, Chonko, 1995). These researchers are concerned with the justification of moral norms and ethical values. It has been debated for many years whether moral responsibility can be attributed to business organizations. Some years ago, ethics have nothing to do with international business; then, normative ethics cannot be a concern for business corporations. Some scholars discuss that business organizations cannot assume moral responsibility. Only individuals acting on behalf of the corporation are morally motivated, have intensions, and can be held accountable (Ranken, 1987: 633-37).

On the other hand, some scholars argue that some aspects of the organization are not reconcilable with moral responsibility. Organizations serve a purpose and in that sense are not entirely autonomous. Organizations can never ends in themselves; they have been created for a specific purpose. The organization cannot be held responsible for actions that go beyond or against that purpose (Wilmot, 2001: 161-169).

Normative approaches can be classified as deontological theories and teleological theories. One of the purposes of these theories is to develop guidelines or rules to assist international marketers in their efforts to behave in an ethical fashion (Hunt and Vitell, 1986: 5-15). Fundamental difference between these theories is that deontological theories focus on the specific actions or behaviors of an individual, whereas teleological theories focus on the consequences of the actions or behaviors.

a. Deontological Evaluations Deontologists believe that certain features of the act itself other than the value it brings into existence make an action or rule right (Frankena, 1963). Deontological views have a rich intellectual history dating back at least as far as Socrates. For them the problem has been to determine the best set of rules to live by. Examples proposed have been the golden rule of doing unto others as you would have them do unto you (Sidgwick, 1907). According to Laczniak; international marketers have certain duties, under most circumstances, constitute moral obligations that include the duties of fidelity, gratitude, justice, beneficence, self-improvement and noninjury.

b. Teleological Evaluation Teleologists suggest that people ought to determine the results of various behaviors in a situation and evaluate the goodness or badness of all the consequences. A behavior is then ethical if it produces a greater balance of good over evil than any available alternative (Nill, Ibid). Teleology can be divided into two subcategories as egoism and utilitarianism (Ferrell et al., 1989: 55-64).

(1). Egoism Egoism defines rightness in terms of the consequences for the individual (Meng, 1998: 333-352). It postulates that one should choose actions that result in the maximum of good for oneself (Rosen, 1978). (2). Utilitarianism In contrast to the egoist,the utilitarian does not minimize bad or maximize his/her own good in general. Ethical universalism (utilitarianism) holds that an act is right only if it creates the greatest good for the greatest number. Hobbes and Nietzsche were ethical egoists but such philosophers as G.E. Moore and John Stuart Mill were ethical Universalists. If we explain these theories with an example; deontologists do not tell a lie and they do not consider the results of the action, on the other hand, teleologists could tell a lie if they save a life, or when telling the truth hurts another person.3. Dialogic Approach As a third approach proposed by Nill and Shultz (1997: 4) is communicative approach as an alternative ethical framework for macro marketers. Dialogic idealism combines moral universalism with moral relativism by suggesting universally valid rules that prescribe how an ideal dialogue is to be conducted without imposing moral core values or hyper norms. Thus, the actual outcome of the dialogue will depend on its participants. Only the way in which the dialogue should be conducted can be seen as a universal obligation for everyone who is truly motivated in participating in the dialogue.

Depending on the nature of the ethical problem and specific situational requirements a dialogic approach could be a helpful tool for marketers. Nill (2003: 92-97) argues that more work is needed to find out how a communicative approach can be implemented as a real-world corporate ethical responsibility approach. D. Ethical Problems in International Marketing The moral question of what is right or appropriate poses many dilemmas for domestic marketers. Even within a country, ethical standards are frequently not defined or always clear (Cateora and Graham: 142). The problem of business ethics is infinitely more complex in international marketplace, because value judgments differ widely among culturally diverse groups. That which is commonly accepted as right on one country may be completely unacceptable in another. Giving business gifts of high value, for example, is generally condemned in the United States, but in many countries of the world gifts are not only accepted but also expected (www.business-ethics.org).

Upon examination of existing ethical frameworks in the field of international marketing from a macro marketing perspective, it is argued that marketers cannot always rely on universally accepted ethical norms, such as hyper norms or core values that have been suggested by a deluge of marketing literature (Dunfee, 1995; Dunfee, Smith, and Ross, 1999: 14; DeGeorge, 2000). Some basic moral values could be used in evaluating international marketing ethical issues. Violations of basic moral values in international marketing settings should be accepted as ethical problems.

After studying the literature related to international marketing, it is easily seen that most of the marketing ethics studies involve the use of scenarios as research instruments and relate to the following marketing sub-disciplines (Armstrong, 1992: 167): market research, retail management, purchasing management, advertising management, marketing management, industrial marketing, and marketing education. Few studies relate to International Marketing Ethics have been most prominent (Armstrong and Everett, 1991:61-71; Armstrong, Stening, Ryands, Marks, and Mayo, 1990: 6-15; Armstrong, 1992). Major International Marketing Ethical Problems derived from applied researches by Armstrong (Ibid) are presented with their short definitions as follows:

Traditional Small Scale Bribery- involves the payment of small sums of money, typically to a foreign official in exchange for him/her violating some official duty or responsibility or to speed routine government actions (grease payments, kickbacks).

Large Scale Bribery- a relatively large payment intended to allow a violation of the law or designed to influence policy directly or indirectly (eg, political contribution).

Gifts/Favours/Entertainment- includes a range of items such as: lavish physical gifts, call girls, opportunities for personal travel at the company`s expense, gifts received after the completion of transaction and other extravagant expensive entertainment.

Pricing - includes unfair differential pricing, questionable invoicing where the buyer requests a written invoice showing a price other than the actual price paid, pricing to force out local competition, dumping products at prices well below that in the home country, pricing practices that are illegal in the home country but legal in host country (e.g., price fixing agreements).

Products/Technology - includes products and technology that are banned for use in the home country but permitted in the host country and/or appear unsuitable or inappropriate for use by the people of the host country.

Tax Evasion Practices - used specifically to evade tax such as transfer pricing (i.e., where prices paid between affiliates and/or parent company adjusted to affect profit allocation) including the use of tax havens, where any profit made is in low tax jurisdiction, adjustedInternet marketing ethics issues

There is great importance of the internet marketing or advertising ethical issues. The ethics are the cultural values of the society. It is the internet marketing in a society where legal and ethical limits are pushed to the max and how the attitude pervades those around us that if there are no rules against something then it is ok to do, why even ask about ethics and values on the Web? Because, it affects you; The Internet is a growing and a continually evolving creature that will live on in perpetuity. As such, it would be wise to ponder the e business legal and Internet marketing ethical issues.

Whatever is written and published online will be there forever. Imagine the billions upon billions of text information pages that are and will be stored for a long time. There is even a site where you can go Way Back to check out archives of other websites and view pages that were created at the beginning of their infancy. Additionally, video, films, movies, and audio in various applications formats are also viewable. Now, with the new wireless web mail from cell phones and other communication devices, the Internet will be affecting more lives than ever before. Security and privacy concerns along with e-business regulatory issues will become more prevalent.

It will become more difficult to figure out who you can trust online; with all the unethical, illegal, and Internet marketing and online advertising frauds and E-business email scams. If you are writing copy and maintaining a client's e-business or ecommerce website consider the following consumer privacy and legal matters: What you say when copywriting and publishing for a client is a reflection of how they are viewed to the rest of the world.

Additionally, consider carefully what is published on blogs for short. A blog is simply a website where daily, weekly, or monthly personal or corporate thoughts, ideas, and happenings can be published and shared with others. When dealing with ethics in a B2B company and B2C clients there is a major degree of trust and responsibility that is imparted to a person or group that maintains the Web site. There are many legal and web site regulatory issues involved. Electronic copyright, e-commerce, credit/cash policies, international trade, tariffs, privacy, digital media offers, and security are a few of the items to be considered. CONCLUSIONBecause marketing decisions often require specialized knowledge, ethical issues are often more complicated than those faced in personal life and effective decision making requires consistency. Because each business situation is different, and not all decisions are simple, many organizations have embraced ethical codes of conduct and rules of professional ethics to guide managers and employees. However, sometimes self-regulation proves insufficient to protect the interest of customers, organizations, or society. At that point, pressures for regulation and enactment of legislation to protect the interests of all parties in the exchange process will likely occur. Several forces are driving companies to practice a higher level of corporate social responsibility: rising customer expectations, changing employee expectations, government legislation and pressure, the inclusion of social criteria by investors, and changing business procurement practices. Companies need to evaluate whether they are truly practicing ethical and socially responsible marketing. Business success and continually satisfying the customer and other stakeholders are closely tied to adoption and implementation of high standards of business and marketing conduct. The most admired companies in the world abide by a code of serving peoples interests, not only their own. The following are the suggestions that the society must use the law to define, as clearly as possible, those practices that are illegal, anti-social, or anticompetitive. Next, companies must adopt and disseminate a written code of ethics, build a company tradition of ethical behavior, and hold its people fully responsible for observing ethical and legal guidelines. And, individual marketers must practice a social conscience in their specific dealings with customers and various stakeholders. The future holds a wealth of opportunities for companies. Technological advances in solar energy, online networks, cable and satellite television, biotechnology, and telecommunications promise to change the world as we know it. As the same time, forces in the socioeconomic, cultural, and natural environments will impose new limits on marketing and business practices. Companies that are able to innovate new solutions and values in a socially responsible way are the most likely to succeed. It is my belief that good marketing is ethical marketing. Good marketing is about satisfying and developing a long-term relationship with our customers. Caring about your customers not only results in profits (or achieving your organizations objectives if an organization is not-for-profit), it is the ethical thing to do. Deceiving customers may help a firms profits in the short-run, but is not the way to build a successful business. The same goes for social responsibility. A firm has to care about all stakeholders: customers, employees, suppliers and distributors, local communities in which they do business, society, and the environment. BIBLIOGRAPHYThe above all the information we got it from:

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BUSINESS ENVIRONMENT PREFACEWHAT IS ETHICS?The terms ethics, refers to a code of conduct that guides an individual while dealing with others. Ethics means the rules or principles that define right and wrong conduct. It is a study of individual and collective moral awareness, judgment, character and conduct. It relates to the social rules and cardinal vales that motivate people to be honest in dealing with others. Such ethical rules (code of conduct) are determined largely by customs traditions and prevailing environment. Certain ethical vales such as honesty and fairness are universal and stable over centuries. Ethical rules of conduct provide guidelines for human behavior that will preserve a societys, a groups or an individual persons notion of morality.

Ethics directs human behavior and also differentiates between good and bad, right and wrong and between fair and unfair human behavior or actions. It creates decency, decorum and discipline in the behavior of individuals and also in the society.

The term Ethics is derived from the Greek word ethos which refers to character. According to Webster dictionary ethical means conforming to professional standard of conduct. Ethical action means an action which is socially and morally good. Such actions are fair and not harmful to others. According to Hurtly, ethics can be defined as a system of moral values. It is concerned with that branch of philosophy which deals with values relating to human conduct\behaviour.