ethical issues in retailing

8/2/2019 Ethical Issues in Retailing

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Although being customer focused is an absolute

credo for most retailers, customers' want and needscan and often do conflict with society's long-terminterest.

ETHICAL ISSUES IN RETAILING


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Loyalty: Ethical executives who are trustworthy demonstratefidelity and loyalty to persons and institutions by friendship inadversity, support and devotion to duty; they do not use ordisclose information learned in confidence for professionaladvantage.

Fairness: Ethical executives are fair and just in all dealings.They do not exercise power arbitrarily and do not use

overreaching or indecent means to gain or maintain anyadvantage or take undue advantage of another's mistakes ordifficulties.

Concern for Others: Ethical executives are caring,

compassionate, benevolent and kind. They live by the "GoldenRule". They help those in need and seek to accomplish theirbusiness objectives in a manner that causes the least harmand the greatest positive good.


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"Values" are core beliefs or desires which guide ormotivate attitudes and actions. Not all values involveethics.

Ethical values such as honesty, fairness, and loyalty

involve the notion of moral duty and 'reflect attitudesabout what is right, good and proper rather thanwhat is pleasurable, useful or desirable.

Values such as happiness, fulfillment, pleasure,

personal freedom and being liked and respected areall ethically neutral because they deal with mattersother than moral duty and obligation.

ETHICAL STANDARDS


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Relative StandardsIt is important for you to understand that in using relativestandards, the retailer judges the morality of an act on thebasis of the particular circumstances surrounding the action

Absolute Standards

These are standards which have rigid rules that clearlystate whether an act is right or wrong; using thesestandards constitutes ethical behavior and is clearregardless of the circumstances surrounding the situation.


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ETHICAL CODES

Codes of ethics must be more than legal or publicrelation shows

These codes to be useful, understandable and practical.

Visible signs of support for ethical practices must be

forth coming from management, with the moral tone ofcorporate conduct being set at the top.

There is no single approach to business ethics that isideally suited to a particular organization.

The top management must champion its demand for thehighest ethical posture for its company.


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ETHICAL RESPONSIBILITIES OF THERETAILER

A retailer's professional conduct must be guided by thefollowing:

The basic rule of professional ethics, notknowingly to do harm. The adherence to all applicable laws andregulations. The accurate representation of their education,

training and experienceThe active support, practice and promotion of thecode of ethics.


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Honesty and Fairness

Further marketers shall uphold and advance theintegrity, honor and dignity of the retailingprofession by:

Being honest in serving consumers, clients,

employees suppliers, distributors and the

public.

Not knowingly participate in conflict of interest

without prior notice to all parties involved.

Establishing equitable fees schedules

including the payment or receipt of usual,customary and legal compensation formarketing exchanges.


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Rights and Duties of Parties in the MarketingExchange Process

Participants in the marketing exchange process should be able toexpect that:

Services offered are safe and fit for their intended uses.

Communication about offered products and services are notdeceptive.

Ensure that both parties discharge their obligations-financial andotherwise in good faith.

Appropriate internal methods exist for equitable adjustment

and/or redressal of grievances concerning purchases.


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Product development and management

Disclosure of all substantial risks associated with

the product or service usage to the consumer.

Identification of any product component

substitution that might materially change theproduct.

Identification of extra-cost added features.


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Promotions Avoidance of false and misleading advertising Rejection of high pressure manipulations or misleading

sales tactics. Avoidance of sales promotions that use deception or

manipulation.

Distribution

Not manipulating the availability of a product for purposeof exploitation. Not using coercion in the marketing channel.

Not exerting undue influence over the resellers choice to

handle a product.


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Ethical Challenges

Challenges fall into three broad categories:

Ethics relates to moral principles andvalues.

Social Responsibility involves actsbenefiting society.

Consumerism entails protection ofconsumer rights.


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Best Practices inRetailing

Base decisions oncustomers wants

Think according toCustomers

Improve customerExperience

Reward Workers

Train employees tocope with

emotional costs

Create strongCustomer

Orientation

Correct mistakes toAvoid future problems

Empower Customerparticipation

Train Employees to Lead

As a team

Treat all customers asGuests

ethical issues in retailing

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