Ethical vs Unethical in Marketing

Ethical Marketing:

Ethical marketing is less of a marketing strategy and more of a philosophy that informs all marketing efforts. It seeks to promote honesty, fairness, and responsibility in all advertising. Ethics is a notoriously difficult subject because everyone has subjective judgments about what is “right” and what is “wrong.” For this reason, ethical marketing is not a hard and fast list of rules, but a general set of guidelines to assist companies as they evaluate new marketing strategies.

Characteristics of ethical Marketing:

1. They know there is a process and they are ready to follow the process.
2. They know the importance of trust and are ready to build it.
3. They do care about the consumers and they love to give value than make money.
4. They over deliver.

Characteristics of unethical Marketing:

1. The are stupid! Yeah! Very stupid! They are stupid because they might even begin to abuse and rain curses on you for not patronizing them.
2. They hard sell. I have seen somebody trying to teach newbies how to make money online telling them to build a list and schedule 14 auto responders messages to go out everyday promoting the same offer – How can you promote an offer for 14 days, sending out a promotion email every day – you are triggering the curse of email marketing.
3. They want everything now! Wanting everything now will lead you to doing unethical things.
4. They don’t care, all that matters is the money.

Benefits of ethical marketing :

• It pays.
• You build trust.
• You make more money.
• You build more relationship with people whose lives you are making better.
• It causes about an effect of viral marketing.
• You are happy – because you made others happy.

 Example:

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.

Ethical vs Unethical in Financial Management

 What is ethics?

Ethics, also called moral philosophy, the discipline concerned with what is morally good and bad and morally right and wrong. The term is also applied to any system or theory of moral values or principles.

                                                                         or                                           

That branch of philosophy dealing with values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions.

Financial Management:

Financial management means planning,organizing, directing and Controlling the financial activities such as procurement and utilization of funds of the enterprise. it means applying general management principles to the financial resources of the enterprise.

Ethical Issues:

• Act with honesty and integrity.
• Avoid conflicts of interest in professional relationships. Also, avoid the appearance of such conflicts.
• Provide people with accurate, objective, understandable information. Disclose all relevant information, positive and negative, so that your listeners have an accurate picture.
• Comply with all rules and regulations governing your position and your company.
• Act with good faith and independent judgment. Don't allow self-interest or other factors to sway your recommendations.
• Never share confidential information or use it for personal gain.
• Maintain an internal controls system to guard against unethical behavior.
• Report anyone you see violating the code. 

Unethical issues :

• Deliberate abnormal delays in payments to (a) Vendors, (b) Dealers commissions and promotion costs.
• Delays in paying wages, interest to financiers, incentive, bonus to employees.
• Holding up bills of vendors on silly reasons and ultimately buying from others to avoid payment to earlier vendors.
• Not prompt in statutory payments of ESI, PF, Sales Tax and Excise Duties.
• heating employees of their dues towards medical expenses, leave travel assistance, children education fees etc.
• Opening of current accounts in different banks to avoid adjustments against loans by earlier banker.
• Creating bogus bills of purchase to show higher costs and hence losses to avoid bonus payment to employees.
• Collecting loans from private financiers at higher rate of interest to help kith and kin and to get kick-backs.
• Quick release of payments to known or adjustment parties and delaying payment to others.

Ethical vs Unethical in Human Resource Management

Ethics in Human Resources Management

Human resource management deals with manpower planning and development related activities in an organization.It concerns human issues specially those of compensation, development, industrial relations and health and safety issues. 

MEANING OF HRM

HRM can be understood in simple terms as employing people , developing their resources , utilizing ,  maintaining and compensating their services in tune with the job and organizational requirements with the view to contribute to the goal of the organization , individual and the society.

                                                                      'OR'

HRM is the process of planning , organizing , directing and controlling human activities to achieve the organization goal and individual goals.

MEANING OF ETHICS 

Ethics are those values, which has been imbibed within an individual on reinforced externally that help him to distinguish between right and wrong and to act accordingly .

 

Human resource management deals with manpower planning and development related activities in an organization.It concerns human issues specially those of compensation, development, industrial relations and health and safety issue.

    Ethical issues

• Employment Issues: HR professionals are likely to face maximum ethical dilemmas in the area of hiring of employees.
• Employees Discrimination: A framework of laws and regulation has been evolved to avoid the practices of treatment of employees on the basis of their caste, sex, religion, disability, age etc .
• Performance Appraisal : Ethics should be the basis of performance evaluation. highly ethical performance appraisal demands that there should be an honest assessment demands that there should be an honest assessment of the performance and step should be taken to improve the effectiveness of employees. however , HR managers, sometimes, face the dilemma of assigning higher rates to employees who are not deserving them ; based on some unrelated factors .
• Privacy: The private life of an employee which is not affecting his professional life should be free from intrusive and unwarranted actions.
• Safety and health : Industrial work is often hazardous to the safety and health of the employees. legislations have been created making it mandatory on the organization and managers to compensate the victims of occupational hazards .                                           

Unethical issues

• Employers: (i) Creating split in union leader by inducing regionalism , casteism or ego problems.(ii) not caring for just demands of the trade union and not behaving respectfully with union leaders.
• Employees: (i) False claim of age , qualification and experience . some even forge marks cards to claim certain qualifications.(ii) Taking decision very slow or very fast to suit conveniences of own kith and kin.
• Government Agencies : Functioning of government employment offices is not transparent , not reliable and in fact its purpose is not well served .
• Manpower Consultants: By and large manpower consultants do a good job as mostly they are hired by the private organizations. moreover their services are mostly for official posts and there is no statute to follow rules of reservations.
• Discrimination: Discrimination is one of the oldest unfair practices going on all over the world in both formal and informal way of working. it is practices in organisations covers unequal treatment between individuals and groups and men and women .