Is that ethical? What about companies that hire suppliers abroad, putting U.S. Walmart has a reputation for using its market power to squeeze its suppliers for the best deals possible, in some cases putting them out of business.
However, what is ethical and what is not is often not clear-cut. What Dean Foods and Intel did might strike you as being wrong. (Does that make you feel less warm and fuzzy about the “Intel Inside” campaign?)
#PRINCIPLES OF MARKETING ETHICS PC#
Some grocers dropped the entire Silk lineup of products (Waters, 2009).Īnd remember Intel’s strategy to increase the demand for its chips by insisting that PC makers use “Intel Inside” stickers? Recently Intel paid a competitor more than a billion dollars to settle a court case contending that it strong-armed PC makers into doing business exclusively with Intel.
Many stores and consumers felt as though they had been duped. So stores kept ordering what they thought was the same product-making a straight rebuy-but it wasn’t. But Dean didn’t change the barcode for the product, the packaging of the product, or the price much. Recently, Dean Foods, which manufactures the Silk brand of soy milk, experienced a lot of negative press after the company changed the word “organic” to “natural” on the labels of its milk, and quietly switched to conventional soybeans, which are often grown with pesticides. Recall that in a straight rebuy, buyers repurchase products automatically. Or take, for example, the straight-rebuy situation we discussed earlier. Source: “Emerging economic giants show high levels of corporate bribery overseas,”, London and Berlin, 2008. The top five countries are shown in Table 4.3 “Transparency International’s Bribe Payers Index”. (The United States is one such country.) Which countries have a penchant for bribery? In a report called the “Bribe Payers Index,” Transparency International, a watchdog organization, annually ranks the likelihood of firms from the world’s industrialized countries to bribe abroad. And firms pay them, even though some countries prohibit them. In many foreign countries, business and government buyers not only expect perks such as these but also actually demand bribes be paid if you want to do business with them.
#PRINCIPLES OF MARKETING ETHICS FREE#
Take procurement, for example: unlike B2C markets, offering customers free dinners, golf games, and so forth is very common in B2B settings. It’s likely that every topic we have talked about so far in this chapter has an ethical dimension to it. Outline the measures companies take to encourage their employees and executives to act in ethical ways.Explain how the ethical dilemmas B2B marketers face differ from the ethical dilemmas B2C marketers face.
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