Most ethical isuues in marketing

Ethics

Most ethical isuues in marketing

Ethics are a code of values and ethics that govern the actions of a person regarding what is right versus what is wrong. They determine our behaviour when we are faced with a moral dilemma and are subjective, in which they vary from person to person depending on their point of view. Because they’re particular, ethical standards differ internally.

Ethical practices, as well as unethical practices, can have an effect on marketing, and in some instances, unethical behaviour can lead to government interference because the ethical choices and moral philosophy are relative to marketing practices.

 An ethical issue in marketing arises when a problem or situation requires an ethical decision or when customers are cheated or felt manipulated. Marketers must be able to resolution ethical decisions effectively.

ETHICAL ISSUES

Ethical issues can be arising from product, price, place and promotion:

Product-related issues– Businesses have to account for ethical issues regarding their products/services. Issues include fake information about the product, the value of the product, and its functions.

Other unethical practices concerning the product are hiding information, duplicating products, duplicating brand, bad quality, and holding products for profit. Marketers must take into consideration-

Product safety and impact on culture.

Environmental concerns.

The value of the product.

 

Price-related issues– The common ethical concern is whether pricing is fair or is the consumer getting what he has paid for. Though marketers have the correct to price products to generate revenue, pricing becomes an unethical issue when customers are broken in the process of making higher profits. The major issues are:

 Price fixing– It occurs when competitors agree to raise or lower prices within the market. It is an illegal activity undertaken by competitors and a major concern of government antitrust implementation.

 Price discrimination– It occurs when a business charges different prices to different customer groups for the similar product or services. Though this is related to segmentation and not an unethical practice, it becomes questionable when price discrimination occurs even the product value and quality is the same.

Other issues are manipulating pricing, price skimming, deceptive pricing and penetration.

Place related issues– Ethical issues in distribution impact relationships between producers and the middleman. The role of the middleman is the ensure that products have successfully reached the end consumer. All intermediaries involved in the selling process must work in the agreement set by the business. They approve to certain rights, responsibilities and they must not breach their contracts. Ethical concerns rise when intermediaries exploit further intermediaries for personal gain. Such issues are:

Price Concessions– Intermediaries are under agreements and must not have any effect on the price of products. Some businesses allow intermediaries minimum and maximum dimensions. This is known as retail price maintenance. Some intermediaries set idealistic prices and conditions which means the end consumer suffers.

Trying Arrangement– It occurs when manufacturers demand that retailer’s stock least popular, or competitor products along with their products. The purpose is too generous more sales, however, the intermediary has to incur further costs as they must sell products which are difficult to sell. Exclusively arrangements occur when manufacturers demand that only their products are sold by retailers.

Other issues are high-cost spreading, storage of product, geographical differences.

Promotion-related issues– Advertising is the visual element in marketing and it poses many ethical issues. The promotional aspect has an effect on consumers and how they are influenced by the purchase making result. Ethical issues arise when a customer becomes victims of false or misleading publicity tactics to increase sales. Such issues are-

Sexual and shock advertising tactics– Promotional effectiveness relies on building an emotional relationship with consumers to gain care. Ethical concerns arise when marketers adopt sensual themes to promote products or services. There are cultural suggestions for using sexual appeal, it may be acceptable in some countries or for the same products. An ethical consideration get up when the level of shock is used, it may not be necessary.

 Children and vulnerability– Children are increasingly attractive victims of promotional campaigns. Forceful marketing campaigns directed at children means that parents are losing control of the type of marketing directed at their children. The internet at a marketing means has an influence on the type of content children are exposed to. That becomes unethical which are damaging to children.

  Other unethical issues are false claim, misleading claim, replacement advertising, high pressure to sell.

WAYS TO AVOID ETHICAL ISSUES

Some measures for curbing unsocial and unethical marketing related to advertising are:

1. A Statute designed to discourage fraud in advertising.

2. A better Business Bureau, an organization of businessmen, for the drive of discouraging unfair commercial practices.

3. Code to govern advertising duplicate by Association of National Advertisers.

4. Several reputed publishers in design media should keep a strict vigil over their advertisements.

5. The Information & Broadcasting Ministry should also preserve a close watch over the advertisements on radio and television.

CONCLUSION

Ethical business practices are important in every industry, as well as marketing. Consumers are often distrustful. The public doesn’t forget the past ads that they supposed were too good to be true that turned out to be less than truthful. Likely due to bad marketing practices, many of today’s consumers expect slide in marketing - the assurance that companies firmly stand behind their claims. Our core beliefs are ashore in our personal ethics and extend into our work practices.

In marketing, it’s less of whether we think our marketing practices are ethical and more of whether consumers believe they’re ethical. So, ethical marketing means any company should make honest claims to attract potential customers. When customers perceive the marketing performs to be honest and genuine, they can begin to faith in the brand. Mutual trust works to develop brand trustworthiness, which keeps customers coming back and inspires them to spread the word about the business. Customers expect transparency, and newer technology will give them access to it. It’s time for us to rise to the occasion and quit pretending unethical practices are acceptable.

 

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Environmental Audit - Toshiba

 

Introduction of Toshiba

Toshiba corporation is a Japanese multinational company, headquartered located in Tokyo, Japan. Toshiba was founded in July 1875 (144 years ago) by Tanaka Seisakusho having a net income of ¥1.01 trillion in the year 2019. Toshiba is listed in Tokyo Stock Exchange. Toshiba Corporation is manufacturer of computers and electronic devices for consumers and industry.

Toshiba is organized into four groupings that is the Digital Products Group, the Electronic Devices Group, the Home Appliances Group and the Social Infrastructure Group. Midea Group, a Chinese company, bought a controlling 80.1% stake in the Toshiba Home Appliances Group of Toshiba.

Toshiba is the ninth largest semi-conductor manufacturer company in the world. Semi-conductor means a material that in some cases will conduct electricity. Good electrical conductors, like copper or silver, easily allow electricity to flow through them.

From the point of view of environmental audit

Toshiba corporation conducting environmental audits for the first time in 1989, as it deals with electronic items. So, there is maximum chances of pollution. Toshiba Group developed a full environmental audit system and has been using the system since Financial Year 1993 to conduct audits based on standards established by the group. From 1989 to 2019, Toshiba Group conduct environment audit in different areas. The audit system originally developed was composed of four categories: 

(1)  Management system audits (environmental promotion systems)

(2)  On-Site audits (levels of compliance with rules regarding environmental facilities)

(3)  Virtual provider edge (VPE) audits (levels of achievement of goals set in the voluntary plan) 

(4)  Technology audits (product environment management system, environmental performance) 

Toshiba Environmental Audits were conducted over two days to check these items during first time. The most unique approach of these categories was on-site audits, reflecting the shop-floor approach.  

On-Site Audit means meeting of the team with the appropriate personnel of the unit to record and documentation review, interview with staff and physical inspection of the facilities.

Specific areas where Toshiba doing Environmental Auditing

 The chairman and president of Toshiba conducted the Environment Auditing in Key group companies (Subsidiaries) having 40 divisions and 80 sites, sites consist of factories and building.

Toshiba Group’s Environment Audit System dividing into three types.

1.)    Environmental Management Audit which covering Key group companies.

2.)    Environmental Technology Audit of Products which covering of 40 division of Toshiba.

3.)    Environmental Audit of sites which covering of 80 sites consist of factory and buildings. Also, Production sites and Non-Production sites that consume large amounts of power.

During Financial Year 2012 to Financial Year 2016, Toshiba evaluated the level of

environmental management based on audit items linked to the goals of the Fifth Environmental Action Plan. The Fifth Environmental Action Plan consist of

 

a)      To maintain the overall quality of life

b)      To maintain continuing access to natural resources 

c)      To avoid lasting environmental damage

d)      To consider as sustainable a development which meets the needs of the present without compromising the ability of future generations to meet their own needs

e)      Legislation to set environmental standards for company.

 Toshiba Group’s do Environmental Management Audit as a part of Environment Audit in key group companies (Subsidiaries) respectively as follow sector

I.                  Environmental policies and systems

II.               Legal compliance and risk management

III.            Business processes

IV.            Products and services

V.              Information disclosure and communication

Toshiba Group’s do Environmental Technology Audit of Products as a part of Environment

Audit in 40 division respectively as follow sector

I.               Energy Systems

II.            Infrastructure Systems

III.         Storage & Electronic Devices Solutions IV. Retail & Printing Solutions

Objectives to Environmental Auditing in Toshiba

As Toshiba Corporation is manufacturer of computers and electronic devices for consumers and industry. In order to manufacture electronic items, there is lot of uses of plastic and toxic material. So, there is maximum chances of pollution. For following directions Toshiba Corporation do Environmental Auditing.

1.)    Toshiba Corporation do all kinds of environmental audit programmed which is properly designed and implemented in the organization to improve environmental performance.

2.)    Toshiba corporation is regularly monitoring the optimum utilization of the resources to achieve its organization goals and evaluating the Toshiba corporation at national and international level.

3.)    Toshiba corporation as a manufacture of solar panel also using alternative energy with the name of private use solar power demonstration facility.

Conclusion

Thus, I would like to conclude that Environment audit is provide suggestion to company management about how environmental organization system and equipment are performing. Toshiba is the world top leading semi-conductor manufacturer company which release many toxic and harmful material in the environment while manufacturing. So, in order to check the environmental condition in the surrounding, Toshiba do repeatedly Environmental audit and adopting the method to control the pollution in the environment whether it can be air pollution, water pollution, soil pollution and noise pollution.

In the last I would like to says that it is not the responsibility of companies or government to check the pollution in the cities. It is the responsibilities of every citizens to control the pollution for better future. 

India is the first country in the world to make environmental audits compulsory. The government of India, show its gazette notification on 13 March 1992, made it mandatory for all industries to provide annual environmental audit reports.

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