Download Analysis on Dynamics of Ethical Construction in Business Marketing

Analysis on Dynamics of Ethical Construction in Business Marketing
LIU Chunyuan
Department of Social Science Harbin University of Commerce,China, 150020
[email protected]
Abstract: With the constant development of market economy, issues on marketing ethical misconduct in
business marketing are also increasingly exposed, for which there are not only reasons outside the
enterprise, but also internal factors. Therefore, we must build the model of dynamics of ethical
construction in business marketing from aspects of inside and outside enterprises and understand its
operation principle in order to give full play to the government, society and the industry.
Keywords: enterprise, marketing ethical construction, dynamics
1 Introduction
Marketing ethics is used to determine whether the marketing activities are correct or not as the ethical
standards, that is to say, to determine whether the enterprise marketing activities is in line with interests
of consumers and society and whether they can bring greatest happiness to consumers and society. There
are two kinds of theories for ethical marketing standards in the western ethical community: the first one
is utilitarianism, which is to mainly judge the rationality of the behavior from consequences of the
behavior. The behavior is moral otherwise it is of problem or immoral. The other one is deontology,
which is to mainly judge whether it is moral from the motivation of the handling. And the
responsibilities and obligations which are to be fulfilled are concluded from intuition and experience.
On basis of the implementation of the responsibilities and obligations, the behavior will be judged.
2 Performance of the Anomie of Business Marketing Ethics Currently
The behaviors of the anomie of business marketing ethics are shown in all aspects of the business
marketing activities, such as counterfeiting, false advertising, lack of integrity, bribery, environmental
pollution and so on. In summary, the main anomies of business marketing ethics are in the following
areas:
2.1 The performance of the anomie in the relation between enterprise and customer
The enterprises make the exaggeration in the marketing and promotion, with high-tech means of
packaging for conception hype to fool and deceive consumers and make production of unsafe or
unhealthy products; Even though they know that the product contains ingredients which are harmful to
human health, the enterprise deliberately withhold the truth in order to reduce costs, only to promote the
beneficial aspects for the consumer.
2.2 The performance of the anomie in the relation between enterprise and competitor
The enterprises make the products with the counterfeiting trademarks, packaging, size of the goods of
others, invade commercial secrets of others to damage business reputation of competitors and are
indifference of the market rules. In the credit relationship, some enterprises do not keep the credibility
with competitors to make mutual arrears and repudiation, thus leading to disorder in market transactions
and credit crisis.
2.3 The performance of the anomie in the relation between enterprise and staff
Some enterprises make the blind pursuit of profits, regardless of living and working environment of
employees, leading to the damage to personal safety and health and take sex and racial discrimination
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and invasion of privacy in the recruitment, promotion and remuneration; Some enterprises with lower
technical requirements reduce the cost of human resources through continuous recruitment and
dismission of personnel.
2.4 The performance of the anomie in the relation between enterprise and society
In China, many enterprises do not establish the modern marketing concept - the ideas of social
marketing, green marketing, ecological marketing. For example, excessive consumption exploitation
and waste led to the destruction of ecological balance; Enterprises pay attention to the material and
ignore the people’s value, making the enterprise employees and other stakeholders can not get the least
respect of the dignity, value and legal rights.
3 Reasons for the Anomie of Business Marketing Ethics Currently in China
There are many factors explaining the marketing demoralization in our enterprises. Generally speaking,
it can be analyzed from two aspects, including the external environment and the enterprise itself: The
first factor is the external environment, such as market, government and consumer. The other one is the
internal factor of the enterprise, such as the philosophy of the leadership, the corporate culture and the
quality of staff.
3.1 Reasons of the enterprise’s external environment
3.1.1 The development of the market economy is in a low level
China’s market economy is transformed from planned economy. So the development of the commodity
economy is in the initial stage and its overall level is still low. The marketing is not normal enough and
the moral restraint of market behavior is relatively low, leading to some unscrupulous phenomena that
some enterprises do whatever they can want according to moral standards and laws of the market in the
pursuit of profit.
3.1.2 The supervision and punishment by the government to marketing immoralities is inadequate
Imperfect laws and regulations have resulted in an irregular behavior which it is hard to do away with by
the government. In addition, because the credit rating system and unified credit registration system in
China has not been established, we are lack of the effective supervise to the enterprise’s marketing
demoralization.
3.1.3 Consumers have little awareness of self-protection
Consumers are lack of the necessary information about the products which they want to purchase and
consume, and the rational analysis on sales strategy about all kinds of sales promotion of enterprise
making they regret being tricked. So largely it is to indulge the behavior of marketing demoralization.
3.1.4 The industrial moral code has a little restrained effect
At present, the whole system of the industrial moral code has not been established in China. Although
we have already set up some professional and full associations on marketing theory and practice, there is
no clear effect on promoting the construction of the industrial moral code.
3.2 Internal reasons
3.2.1 There are some errors in business philosophy
Lacking of marketing moral is essentially the pursuit of profits, and it is the result of taking the profit
maximization as the only goal and business philosophy. In this direction of business philosophy, there
are something happening like obtaining quick success at the expense of the interests of consumers and
society and undertaking the risks by going against the morals and laws.
3.2.2 Enterprises are lack of their own culture
Enterprise culture is an unique entrepreneurial values, entrepreneurial spirits and on these basis it
generates the code of conduct, moral standards, entrepreneurial styles and customs, traditions, business
philosophy and business strategy formed gradually in the long-term production and business, which will
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unconsciously influence leaders and staffs.
3.2.3 Leaders are with the uneven moral qualities
Leaders’ business thought and philosophy will be integrated into every decision-making, and it will
directly affect their behavior whether it fits or goes against the moral standards. At present, some leaders
with a low moral quality often make the immoral decisions for their own profits or their own enterprise
profits in the marketing, and it is harmful to the whole society and the interests of consumers.
3.2.4 Some marketing staffs have a low moral quality
In some enterprises, a lot of marketing staffs have not trained systematically, with poor quality. In the
marketing, they are not the consumer-oriented, while they think that marketing is to sell out the
company’s products. Therefore, they do not hesitate to hurt the interests of people to take the anomie, or
even break the law to carry out marketing activities.
4 Business Marketing Ethical Construction Model
4.1 Constitution of marketing ethical mode
The development of socialist economic and the expansion of marketing need to greatly strengthen the
marketing ethics. According to the present and reason analysis of the anomie of business marketing
ethics it can be divided into external and internal moral construction to form the external power and
internal power in order to promote the improvement of marketing ethics.
External forces mean the power outside the enterprise, including the drive of business marketing
construction from society, government and industry. Internal forces mean the drive of business
marketing construction from the internal stakeholders, which are formed by its own self-formation
initiatives. Enterprises improve their own moral standards by external forces and their own requirement,
while the improvement of business ethics will feedback to the community, government and industry to
improve the whole environmental and ethical standards. Accordingly, the establishment of dynamic
model of marketing ethics is shown in Figure 1.
Society
Consumer
Community
Academia
Media
Government
Industry
Company
Owner
Leader
Worker
Industry
Association
Competitor
Partners
The Ethical Construction in Business Marketing
Figure 1 The Dynamics of Ethical Construction in Business Marketing
4.2 Approaches of business marketing ethical system construction
According to dynamics of ethical construction in business marketing it is necessary to establish the
dynamics from external and internal aspects in business marketing system.
4.2.1 The external construction of business marketing system
4.2.1.1 Government
From the aspect of it, the government can hardly absolve itself to the blame for the anomie of business
marketing ethics. First, the government should further improve and perfect the relevant laws. Second,
the government should strictly enforce the law and increase the punishment degree of unethical
corporate marketing behavior. Third, the government should establish a credit system covering the
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whole of society, for users clicking on check in order to strengthen management by the ethical
management.
4.2.1.2 Society
Good social environment of morality helps companies to make ethical decisions. According to the
relevant of the marketing ethical construction, social factors include consumers, the public, community
pressure groups, academia, media, etc. First, from the consumer side, consumers have to establish the
concept of rational consumption. Second, it is better to use some social groups or organized social
groups to form a pressure group. Third, for non-ethical marketing conduct it is better to take advantage
of the media to be the role of supervision and restraint.
4.2.1.3 Industrial associations and stakeholders
First, industrial organizations should draw up good moral standards of the industrial marketing, give full
recognition of the outstanding enterprises and exhort backward enterprises to help their rectification.
Second, it is better to promote fair competition between competitors. Third, it better to promote good
faith cooperation between upstream and downstream.
4.2.2 The internal construction of business marketing system
From the business side, the main reason for the anomie of business marketing ethics is the enterprise
itself. And to strengthen the moral construction of enterprise marketing, it is necessary to do the
following tasks:
4.2.2.1 It is good to establish the consumer oriented marketing philosophy and uphold the “honesty and
profit” business development value, which is fundamental to strengthen the building of enterprise
marketing ethics. The enterprises are not only in the pursuit of economic interests but also
conscientiously fulfill their moral obligations and social responsibility.
4.2.2.2 It is good to enhance the construction of corporate marketing ethics and require business leaders
to set an example, which is the key to strengthen the moral construction of corporate marketing. The
improvement of business leaders’ moral qualities is the source to effectively avoid immoral behavior of
enterprises as an important aspect.
4.2.2.3 To strengthen the construction of enterprise marketing ethics, it must make the continuing ethical
education for the majority of the corporate marketing staff in order to improve their professional ethics,
which is the main body to strengthen the construction of corporate marketing ethics.
4.2.2.4 The fundamental emphasis on building enterprise marketing ethics is to strengthen the
construction of enterprise culture. The core of corporate culture is enterprise values and
entrepreneurship. Corporate conduct and guideline codes are an important carrier of enterprise culture.
To strengthen corporate culture must start from these two areas.
4.2.3 Operation mode of dynamics of marketing ethics
Dynamics of marketing ethics is not a one-way function. With the promotion from the society the
business marketing ethical level has been improved continuously. At the same time, marketing ethics
can make reaction to the society. And the improvement of ethical consciousness and social ethical level
must result in the higher requirement of business marketing ethics, which forms such a virtuous circle.
The increase of business marketing ethical level will attract more consumers, lead consumer spending
ethics and enhance consumer confidence. And enterprises should gain advantage in the competition,
make pressure to competitors and promote competitors’ moral development. Besides, it also can attract
more outstanding partners in the up and down stream, have won public recognition, social reputation
and praise from the social groups and industry associations, as the esteem for the profession. It will
provide excellent case for the academic study to promote the academic development in order to facilitate
better guide practice, which has the positive media coverage information and improves the reputation
and social image. Enterprises are the largest direct beneficiaries of marketing moral construction.
Therefore, the ethical construction has the inherently dynamic.
Enterprises will have effects from the society, industry and government which can promote the business
marketing ethical construction jointly. Community’s concerning about marketing ethics will promote the
government’s legislation and the industry’s supervision, while government policies can guide social
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awareness, urging industrial associations set up a standard. Industry associations help the government to
develop industrial standards to promote community understanding of the industry and supervision. As
the center of marketing ethical construction, enterprises have the supervision and management from the
society, government, industry. But the development of enterprises also leads to changes in the concept of
social consumption and reforms in government policy and management to enhance the reputation of the
industry and so on. The interaction among the four items forms the impetus for a virtuous cycle, shown
in Figure 2.
Society
Company
Government
Industry
Figure 2 The Dynamic Model
Marketing ethical construction with fruitful results will provide a competitive advantage, the social
reputation, brand value and ultimately profitable growth, which is not contrary to the nature of the
interests of enterprises. It also increases the general welfare which is the goal of social development.
5. Conclusion
The reasons for the anomie of business marketing ethics contain the external and internal factors. It is a
systematic project to strengthen the marketing ethics, which needs the joint efforts of all stakeholders. It
is better to analyze the power construction of business marketing ethics and know the principles and
operation model of these forces promoting business marketing ethical construction. And in that case the
method to establish the business marketing ethical construction can be brought out, which plays an
important role for the business marketing ethical construction.
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