Archive for June, 2009
In recent years, headlines have publicized unethical conduct by several well-known businesses. In 1999, Microsoft Corp., which owns more than 90 percent of the PC operating-systems software market, was convicted of violating antitrtist laws by abusing its monopoly to stifle competition and harm consumers. Magazine subscription offers from such direct-marketing giants as American Family Publishers and Publishers Clearing House containing announcements like “You’re our newest winner!” confused a number of recipients, prompting a series of lawsuits and investigations by government agencies, and led to more stringent regulations of such sweepstakes. The U.S. Department ofJustice investigated allegations of global price fixing and other illegal activities by agribusiness giant Archer-Daniels-Midland. Despite these and other alleged breaches of ethical standards, most businesspeople do follow ethical practices. Over half of all major corporations now offer ethics training to employees, and most corporate mission statements include pledges to protect the environment, contribute to communities, and improve workers’ lives. In some cases, only media attention and pressure from consumers motivate companies to implement social responsibility programs.
Such programs often produce such benefits as improved customer relationships, increased employee loyalty, marketplace success, and improved financial performance. Technology is also playing a role in helping companies like Ford Motor Co. do the right thing. Every Ford vehicle is made from 75 percent recycled materials, ranging from old soda bottles and beer cans to telephones and tires—even old personal computers. They are melted down into brand-new parts like splash shields, lamp bodies, and battery housings. The steel Ford recycles would build 200 Eiffel towers a year, and the 2-liter bottles it converts would fill a 400 acre lake. Ford believes it makes good business sense, but saving money is secondary to saving the planet.
Many companies of all types and sizes sponsor community-based programs. Phillips Petroleum’s commitment to reducing air pollution is illustrated in Figure 1.10 in which they show that by reducing sulfur emissions, not only does the human race benefit, but so do animals and vegetation. Because ethics and social responsibility are important topics to marketers, each chapter in this book includes an experiential exercise called “Solving an Ethical Controversy.” For example, this chapter’s feature presents pro and con arguments about whether marketers should use hidden cameras at public events to assess shopping habits of prospective customers.