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Marketing Culture in Bangladesh: Sustainability Perspectives Tanha Mahjabeen1, Amzad Hossain2 and Dora Marinova3 Marketing strategies based on greed for profiteering, misleading advertising and product adulteration are widely practiced in Bangladesh and are having disastrous effects on the country’s sustainability. The existing anti-corruption legislation is ineffective due to the moral bankruptcy of many civil servants. Informed by the work of Transparency International Bangladesh (TIB) and relevant literature, the paper outlines the effects western capitalism has on the country by causing moral degradation and breeding widespread corruption for profiteering. The destructive aspects of the current marketing culture are highlighted and to role of TIB is analysed. Poor marketing ethics and the lack of sustainability values can aggravate corruption; and education seems to be a sound pathway to address the current situation. Overall, the paper advocates for ethical marketing practices that are appropriate for the socio-economic and cultural conditions of the country. Field of Research: Marketing- Contemporary Issues in Marketing 1. Introduction Marketing management can be defined as “the process of planning and executing the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchanges with target groups that satisfy customers and organisational objectives” (Peter and Donnelly, 2008:13). While many argue that marketing should encourage sustainability practices (e.g. Sargeant, 2005), this is really the case. In fact, standard marketing practices are rarely concerned with issues outside the area of profit making through satisfying customer needs (Peter and Donelly, 2008). With the rise of consumerism in developing economies, including Bangladesh, it appears that marketing management and practices do not perceive any obligation in relation to meeting the essential needs of the people today and in the long run. Consequently many business activities and marketing strategies are being seen as fuelling consumption and encouraging materialism within society leading to over-exploitation and over-extraction of natural resources instead of meeting basic needs (Peter and Donnelly, 2008). 1Curtin University Sustainability Policy (CUSP) Institute, GPO Box U1987, Perth, WA 6845, Australia. Email: [email protected] 2 Curtin University Sustainability Policy (CUSP) Institute, GPO Box U1987, Perth, WA 6845, Australia. Email: [email protected] 3 Curtin University Sustainability Policy (CUSP) Institute, GPO Box U1987, Perth, WA 6845, Australia. Email: [email protected] 1 In its narrow sense, marketing is a way to promote and communicate the attractiveness of a particular product or service within an industrialised market-based economy; however advocating the benefits of certain goods, actions and ways of doing things has been an essential part of any human culture. The history of Bangladesh projected the country as the Paradise of Nations and the land of wealth. The Dutch, Portuguese, British and French went to trade there (Novak, 1993). This ‘golden age’ of marketing was spiritually guided by the Gurus, Sufis and Bauls culture and survived until the middle of the 20th century (Hossain, 2001). Present day marketing however is driven by Western values that are utterly inconsistent with the cultural environment or lifestyle of the people of Bangladesh. In the last 20 years marketing across the world has become an organisational function and a set process for managing customer relationships in ways that largely benefit the organisation and its stakeholders, not its consumers and ordinary people, the majority of whom have a negative opinion about it (Parsons and Maclaran, 2009: 5). There is a growing cynicism about marketing messages and negative sentiments about it being used to create false perceptions and expectations. Schlegelmilch (1998: 109-110) also argues that advertising can create false needs among consumers and this has been the case in Bangladesh instead of focussing on meeting people’s daily needs. Rampant corruption, unsustainable consumerism, greed driven profiteering by means of cheating through misleading advertisement and adulteration have become the norm of the marketing culture of Bangladesh. While green consumerism and the marketing of green alternatives have been the focus of much of the research surrounding sustainable marketing in the West, the situation in Bangladesh where the majority of people still live in poverty is very different. The country’s developing economy and emerging purchasing power are seen as a new opportunity for making profits and generating company benefits within a very fragile and weak government regulatory system. If this trajectory continues in the future, the social foundations of the Bangladeshi society as well as its ecosystems are likely to be impacted to the point of irreversible changes. The aim of this research is to expose the unsustainability of the current marketing practices in Bangladesh within an environment of rampant corruption. It then looks for solution pathways through the work of Transparency International Bangladesh (TIB, a chapter of the Berlin-based organisation Transparency International, renowned civil society organisation fighting corruption across the globe) and the need for proper marketing education that aims at improving the wellbeing of its people within a socially and culturally appropriate sustainability framework. 2. Methodology This research is based on publically available secondary sources and relevant literature in the areas of marketing, globalisation and sustainability. It also draws on personal observations and interviews with key informants from TIB conducted in 2011 under the Human Research Ethics approval obtained at Curtin University. It is not our intention to seek a statistical generalisation of 2 the findings as the qualitative interpretation of the data already shows that the same themes of corruption and unsustainability permeate the social life of Bangladesh. Instead of statistically proving something that has already become common knowledge and practice in the country, the approach we have taken is to look for possible solutions. The remainder of the paper is organised as follows. Sections 3 and 4 describe respectively the contemporary marketing culture and perceived corruption practices in Bangladesh while section 5 puts forward the argument for marketing education grounded within the country’s cultural heritage. The concluding remarks emphasise the need for socio-economic and spiritual integrity in any marketing that can assist the country’s sustainability. 3. Marketing Culture in Bangladesh The pre-globalisation marketing culture in Bangladesh was sustainable because the production and supply of goods and services were determined as per people’s need-based demand. Competition was primarily based on the quality and price of products. Profit was conceived as a by-product of sale. On the contrary, the key characteristics of the contemporary marketing era are represented by supply exceeding demand. This results in intense competition, extensive product lines, creating demand for new products that do not relate to need and a wide range of unethical marketing activities – all aimed at profit maximisation (Ellis et al., 2011: 20). In many cases advertising is not only untrue but is also grievous in nature (Schlegelmilch (1998: 109110). According to Brenkert (2008: 2), marketing has been criticised for being frequently wasteful. The marketers spend large amounts of money to promote products that people actually do not need. They allure people to want things, including technologies, they cannot even afford. Since the 1971 independence of the country, these marketing practices have gradually penetrated Bangladesh with the advertisement-driven culture now thriving. Adulterated food and fertilisers that are often health threatening are freely being advertised and marketed. Reports about this appear frequently in the country’s printed and electronic media: “Uncontrolled use of hazardous chemicals by traders to preserve, colour or make food items attractive now poses a deadly threat to public health” (The Daily Star, 12.08.2012); “The Rapid Action Battalion has unearthed an illegal factory producing adulterated fertilisers and insecticides in Jhenidah district of Bangladesh” (bdnews.com 07.01.2011); “About half of 300 samples of randomly collected edible oil have been found adulterated, according to sources in the Public Health Institute (PHI). Experts also tested cooked foods from restaurants registered with the Dhaka City Corporation (DCC) and were appalled by the extent of contamination” (Daily Star, 05.02.2003); “Sales of adulterated, stale, substandard and harmful foods, vegetables and fruits are going on unabated in the capital, as elsewhere in the country, due to lack of proper monitoring, necessary punitive measures and business ethics” (The Financial Express, 29.05.2011). 3 The contemporary marketing culture is facilitated by the lack of strict government regulations and control as well as by thriving corruption. Utterly this leads to the increasing sustainability crisis in the country. 4. Corruption and Marketing Though there is no country totally free from corruption (Iftekharuzzaman, 2011), it takes place pervasively among under-developed and developing countries (Gray and Kaufmann, 1998). According to Klitgaard (1991), the presence of both monopoly and inequality with the simultaneous absence of accountability pre-condition corruption which Iftekharuzzaman (2011) defines as abuse of power to achieve private gains. Bangladesh is an example of this. A very few powerful people have monopoly power over the market (Ahmad, 2005); income and the ability of purchase vary with large differences (Deb et al., 2008) and there is no or very little scope for accountability in the case of quality control of a product while marketing as the law and order enforcement bodies themselves are not working properly (Azmat and Coghill, 2005). Some argue that the germs of corruption have contaminated the business environment of Bangladesh since the country’s birth in 1971 (Hasan, 2007) when a political vacuum occurred and those who had power captured the market regardless of any rule or law. Since then neither government has been able to take effective actions to address the systemic issues which allow corruption to flourish in marketing despite many political leaders condemning its high incidence (Alam, 1996). Corruption takes place in basically two ways. Firstly, the politicians themselves are involved in market manipulation for the benefits of their own businesses. Secondly, they receive bribes from other business people who support their political parties but in return expect protection despite misdeeds in marketing policy. The high competitiveness of international markets also provides multinational companies of various sizes with an incentive to offer bribes to gain an advantage (Khan, 2004). In both situations, the politicians’ power plays over the law assisted by the administration. According to Transparency International Bangladesh (TIB, 2012), 71% of the members of the Parliament are involved in different types of corruption, market manipulation being one of them. With the existence of such corruption-prone marketing culture, consumers – the unfortunate tax payers and ordinary citizens, especially the poor, are the ones who suffer the most, particularly as their rights are not protected. The Consumer Protection Act was enacted in 2008 (BOI, no date) but is slow to be properly implemented (Siddiqui, 2009). In spite of various attempts by the Consumers Association of Bangladesh (a non-profit NGO established in 1978) to promote consumer rights and ensure the availability of quality products in the market, their efforts remain ineffective (Chowdhury and Mallin, 2012). Corrupt multinational corporations cover their illegal acts and socially irresponsible business practices through “Corporate social responsibility” – voluntary donations and other rent-seeking behaviour (Azmat, 2008). The in-depth interviews with different stakeholders of TIB revealed that the current trend in marketing policy in Bangladesh is to promote consumerism 4 among people which also creates a sense of competition between them. Everyone wants a better product than what the other has in order to keep their status within society. Alluring and attractive advertisements in the print and electronic media encourage this way of thinking. The media themselves are also boosting this up with their programs and features that show different luxury items as basic daily necessities. As a result, many people become interested in spending more money than they actually earn. This also leads them to get involved in corruption by misusing their power to earn illegal money. In such a way, the wrong marketing policy along with the media helps the greed-based corruption to take control over the society. The contribution of civil society and the media in exposing corrupt acts of companies, creating public opinion and awareness is widely acknowledged (OECD, 2003). According to TIB’s Executive Director: “A culture of economic and business integrity is needed to be introduced with the help of government, private sector, consumers and all other stakeholders” (Waves, 2009a: 15). According to TIB, although the primary goal of any business is to make profit, for its long-term viability the role of transparency, honesty and accountability cannot be avoided. Hence, promoting anti-corruption mechanisms in a company’s operations, including its marketing policy, is integral for a better future (Waves, 2009a). This does not mean that practicing anti-corruption measures in the marketing policy will harm profit making. The Barometer, a global public opinion survey of 69 countries also found that half of respondents were willing to buy products from corruption-free companies even if the price was higher (Waves, 2009b). Marketing as part of the supply chain in our interconnected globalised world is embedded in social and ecological networks. The western materialistic values combined with corruption in marketing practices have synergistically resulted in weakening people’s moral strength. In such a situation, only the revival of high social and environmental consciousness by the general public can lead the efforts for things to change. Traditional values are therefore likely to play a much better role than western values in generating national marketing strategies that promote sustainability in Bangladesh. 5. Marketing Education Murphy et al. (2012: 4) argue that sustainable marketing education refers to teaching responsible practices embedding transparent and trustworthy marketing that can exhibit integrity as well as fairness to consumers, other stakeholders including those who are directly engaged in primary production. It inspires people to practice sustainability activities in their daily personal and professional lives. These values are essential for developing a more sustainable world where the marketing profession also takes responsibility for the effects of its actions on other people today and in the future. Popular Islam, Hinduism and Buddhism encourage sustainable levels of consumption: “It is difficult for a man laden with riches to climb the steep path that leads to bliss”; “Riches are not from an abundance of worldly goods, but from a contented mind” are popular statements from Islam; “When you have 5 the golden gift of contentment, you have everything” expresses the Hindu spirit; and “By the thirst of riches, the foolish man destroys himself as if he were his own enemy” believe the Buddhists (Jackson, 2006: 31). These are the foundations of the Bangladeshi society and they should not be destroyed. Only marketing practices that (1) encourage self-reliance and (2) reinforce virtue values can build a sustainability future for the country. Such an approach to marketing is likely to be more beneficial not only for Bangladesh but also for the globe. There is need to restore sustainability principles in marketing that can preserve nature’s resources as well as lift people’s quality of life. Improved living standards embed self-reliance, simplicity, responsibility, respect for other human beings and nature, commitment to doing good things, creativity and resilience (Marinova et al., 2006). Values education is necessary for citizens to understand the past and envision the sustainable common futures for the coming generations of their country (Aspin, 2002). Alom and Haque (2011) explain that the philosophy of Islamic marketing including marketing education is rooted in the creation of humankind and purpose. For Islam marketing is not confined with buying and selling goods and services for profits only, it is the process and strategy (Hikmah) of fulfilling need. Murphy and Laczniak (2006: 29) observe that Hinduism, Buddhism and Islam all have ethical precepts at their core and have much in common to offer in terms of ethical guidance to marketers for marketing. This will also preserve the Bangladeshi traditional marketing culture driven by needs, honesty, modesty and sustainability. 6. Conclusion Bangladeshi produce and resources were the cheapest in the world prior to the 1970s (Hossain, 2001). People had little worries about the purity and quality of the commodities they used to buy at the market. Advertisements were minimal and factual. Those engaged in marketing were reliable, for “honesty is the best policy” was the driving force of the marketing culture of Bangladesh. The situation is opposite today. The use of chemicals such as formalin to keep perishable goods, e.g. meat, fish, vegetables and fruits fresh, and carbide for ripening of immature fruits, e.g. mangos, pawpaw and bananas are rampant (The Daily Star, 14.07.2012). According to media reports (e.g. The Daily Financial Express Dhaka, 24.08.2012) and personal experience, there is no guarantee of purity or freshness of any commodity, including medication. Advertisements and marketers’ advocacies are utterly unreliable and deceptive (Ahmad, 2005). The culture of marketing for profit maximisation through corruption in terms of falls advertising and product adulteration has replaced the traditional socioeconomic and spiritual integrity. A national vision is urgently needed to stand firm about restoring the country’s historical state of marketing culture built on local wisdom. The western economic model and marketing culture are perceived by the spiritual guides (Gurus, Pirs and Bauls) as devastating for the environment and people of Bangladesh. 6 An integrated education for improving the marketing ethic can (re)achieve the traditional need-based marketing culture that supports a modest and selfreliant lifestyle and is ever sustainable. This will however need to adopt a strong spiritual stance which can be achieved through the integration of sustainability education for marketing. Thus, sustainability requires the development of business to be self-regulating, constrained by principles, and that the marketing of products and services to be assessed in terms of their validity in relation to the sustainability needs of present and future generations in the context of the natural resources endowments of the earth (Huckle and Sterling, 1996). References Ahmad, A.K.M.W.U. 2005, Trade and Competition Policy in Bangladesh, Institute of Developing Economies, Chiba, Japan. Alam, M.S. 1996, “Corruption in Administration”, Bangla Bazar Patrika (a vernacular daily newspaper), January 28 and 29. Alom, M.M. and Haque, M.S. 2011, “Marketing: an Islamic perspective”, World Journal of Social Sciences, Vol. 1, no. 3, pp. 71-81. Aspin, D., 2002, “An ontology of values and the humanisation of education”, in Pascoe, S. 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