It’s becoming more and more important to practice ethics in today’s marketing world. In this article, let’s discover what ethics means in the context of marketing and its ultimate role.
What is ethics in marketing?
Generally, ethics refers to the way in which people behave in a moral manner toward others in all of their interactions. According to Hubspot, in the context of marketing, ethics can be referred to as “the practice of promoting fairness, honesty, and empathy in all marketing activities.” In other words, it describes an approach to marketing in which companies commit to doing the right things and comply with high ethical standards. These standards can be developed by your own company which is in line with your core values as well as be regulated by the law and guidelines of the industry or professional associations.
It is also important to note that ethics in marketing should be implemented both internally and externally. Regarding the external side, the primary rule is ensuring that businesses do not lie about their products and services in every aspect such as pricing, features, promotion, etc. While exaggerating or making false claims can potentially succeed in the short term, it will never be a good long-term strategy. Ethics in marketing also means that you’re always honest with anything you say to the external customers and the internal employees, including but not limited to your value statement, your commitment to the employees, your promise to the customers, etc. Another aspect of ethical marketing is how your business can balance between the profits of the business and the benefits towards society and customers, for instance using sustainable materials, executing your corporate social responsibility and contributing to support environmental or social causes that are important to your brand.
Why is ethics important in modern marketing?
There are many reasons why ethics is an essential part that should be reflected in every aspect of a business’s marketing activities, not just one or two areas.
Consumers seek the truth
Ultimately, practicing ethics in marketing activities is the critical long-term solution to gain trust and credibility from customers. In the past, consumers often trusted salespeople and sought out information from companies. However, in recent years when the Internet became popular, it is not hard to realize that the consumer public is changing their mindset when it comes to advertising and marketing. They are able to have their own evaluation about businesses through their marketing activities, and they don’t trust businesses as much as they used to. If you are not convinced yet, let’s take a look at these statistics (Source: Hubspot):
- 81% trust their friends and family’s advice over advice from a business
- 55% no longer trust the companies they buy from as much as they used to
- 65% do not trust company press releases
- 69% do not trust advertisements, and 71% do not trust sponsored ads on social networks
81%%
Trust their friends and family's advice over advice from a business
65%
Do not trust company press realses
71%%
Do not trust sponsored ads on social networks
55%%
No longer trust the companies they buy from as much as they used to
Businesses should distinguish between leveraging the power of marketing activities and misleading advertising. For instance, some businesses might provide misleading selling prices, make some false price comparisons, or omit important conditions of the sale to attract consumers’ attention. However, these tactics can cause some misleading toward customers and make your business untrustworthy. As consumers are becoming more demanding and more independent, they are now seeking reliable, honest brands that tell the truth and are able to fulfill their commitment towards customers. Thus, businesses should treat them fairly and be honest in their communication.
Consumers expect more from businesses
It costs five to 25 times more to acquire a new customer than to retain an existing one, thus businesses should build good long-term relationships with their customers rather than one-time relationships. Ensuring ethical marketing helps businesses to build brand loyalty and achieve long-term success.
Nowadays, consumers do not only expect high-quality products and services from the companies, but they also want to connect with the brands in a meaningful way. Businesses should ensure that they are fully transparent about their communication with the customers, from key information about the products and services to their statement relating to consumer data and privacy. If consumers have any complaints or concerns relating to the product or service, businesses should also investigate their problems carefully and respond meaningfully to them.
Consumers care about socially responsible businesses
In simple terms, social responsibility means a business’s commitment to pursue achievable and good long-term goals for its society and the world at large. Many research has demonstrated that consumers opt for and stick with companies that aren’t just profit-oriented (Source):
In order to build loyalty towards a brand, consumers now pay close attention to a brand’s social responsibility efforts, and they are willing to support the ethical brands that care about giving back to the society. Businesses can consider diverse CSR aspects, ranging from green initiatives to contribute to social issues, that might fit into your business model and your core values.
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