Project Merlion

1
Work Ready Project Codes of Ethics in
Marketing(Intermediate) Generic learning
activity designed by Skye Nettleton based on the
work of the Australian Marketing Institute,
Miller, K., Layton, R., Etzel, M., Walker, B.
Stanton, W. (2001) Fundamentals of Marketing 4e,
McGraw-Hill Australia, pp.19-23 559
Source Chris Bennett
Source Clipart
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Reasons for Ethical Behaviour in Marketing

• Because it is morally correct
• To boost public confidence in marketing
• To avoid increases in government regulation
• To retain power granted by society
• To protect the image of the organisation

Source Miller, K., Layton, R., Etzel, M.,
Walker, B. Stanton, W. (2001) Fundamentals of
Marketing 4e, McGraw-Hill Australia, pp.19-23
3
Instilling an Ethical Orientation

• Many Australian firms have codes of ethics for
  employees
• Ethical failures can occur where there are
  conflicting goals
• Some steps to creating an ethical environment
• Ensuring demands on employees to perform are
  reasonablee.g. Citicorp fired several senior
  executives in a credit card-processing division
  for overstating revenues. The question is why
  did they feel compelled to falsify the
  information?
• Communicating the organisations standardse.g.
  Texas Instruments includes a weekly column on
  ethics in its international electronic news
  service and answers to specific ethical issues
  raised by employees
• Rewarding ethical performance

Source Miller, K., Layton, R., Etzel, M.,
Walker, B. Stanton, W. (2001) Fundamentals of
Marketing 4e, McGraw-Hill Australia, pp.19-23
4
Benefits of Ethical Behaviour

• Business is built on relationships with
  suppliers, customers, employees and other groups
• The strength of those relationships is largely a
  function of the trust people have in each other
• Unethical behaviour undermines trust and destroys
  relationships
• E.g. Johnson Johnson is often cited as an
  example of an ethical firm. Its corporate code
  of ethics was written in 1932. Its handling of
  the Tylenol crisis in 1982, when 8 people died as
  a result of products that had been tampered with,
  is considered a good example of ethical behaviour
• The Australian Marketing Institute provides
  ethical guidance for marketers, committing
  members to a recognised level of business
  integrity and ethical behaviour.

Source Miller, K., Layton, R., Etzel, M.,
Walker, B. Stanton, W. (2001) Fundamentals of
Marketing 4e, McGraw-Hill Australia, pp.19-23
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AMI Code of Professional Conduct

• Members shall conduct their professional
  activities with respect for the public interest.
• Members shall at all times act with integrity in
  dealing with clients or employers, past and
  present, with their fellow members and with the
  general public.
• Members shall not intentionally disseminate false
  and misleading information, whether written,
  spoken or implied nor conceal any relevant fact.
  They have a duty to maintain truth, accuracy and
  good taste in advertising, sales promotion and
  all other aspects of marketing.
• Members shall not represent conflicting or
  competing interests except with the express
  consent of those concerned given only after full
  disclosure of the facts to all interested
  parties.
• Members, in performing services for a client or
  employer, shall not accept fees, commissions or
  any other valuable consideration in connection
  with those services from any other than their
  client or employer except with the consent
  (express or implied) of both.
• Members shall refrain from knowingly associating
  with any enterprise which uses improper or
  illegal methods in obtaining business.

Source Australian Marketing Institute
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AMI Code of Professional Conduct

• Members shall not intentionally injure the
  professional reputation or practice of another
  member.
• If a member has evidence that another member has
  been guilty of unethical practices it shall be
  their duty to inform the Institute.
• Members have a responsibility to continue the
  acquisition of professional skills in marketing
  and to encourage the development of these skills
  in those who are desirous of entry into, or
  continuing in, the profession of marketing
  management.
• Members shall help to improve the body of
  knowledge of the profession by exchanging
  information and experience with fellow members
  and by applying their special skill and training
  for the benefit of others.
• Members shall refrain from using their
  relationship with the Institute in such a manner
  as to state or imply an official accreditation or
  approval beyond the scope of membership of the
  Institute and its aims, rules and policies.
• The use of the Institute's distinguishing letters
  must be confined to Institute activities, or the
  statement of name and business address on a card,
  letterhead and published articles.
• Members shall co-operate with fellow members in
  upholding and enforcing the Code.

Source Australian Marketing Institute
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An ethical dilemma?
In one popular comic book for children, Kyosho
remote-controlled toys are the focus of an entire
story. Kyosho paid the publisher a licensing fee
to feature its products. The objective is to
represent Kyosho toys to potential customers in a
non-commercial setting. There is no indication
in the publication that this exposure has been
paid for. If you produced the comic books,
would you consider this kind of licensing
agreement ethical? Does it conflict with any of
AMIs commitments?
Source Miller, K., Layton, R., Etzel, M.,
Walker, B. Stanton, W. (2001) Fundamentals of
Marketing 4e, McGraw-Hill Australia, p.559