Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)

Section 2
A) Indian Perspective of Ethics
1. Purusharthas: Dharma, Artha, Kama, Moksha
2. Concept of Dharma
B) Ethics: A Global Perspective:
1. Ethics in Global Marketin ! A"#ertisin
2. Ethical perspecti#e in Emplo$ment inclu"in the international labour
%rani&ation St"'
3. Ethics an" (): E*commerce, Pri#ac$ Co"es'
4. En#ironmental Ethics: (n"ian an" +estern perspecti#es
5. Ethics an" Cross* culture in,uences
6. Ethical issues an" functional aspects of business
A- Indian Perspective of Ethics
1. Purusharthas: Dharma, Artha, ama, !o"sha
#. $oncept of Dharma
Purusha means either Go" or a human bein'
Artha means an ob.ect or ob.ecti#e' /Purusharthas/ means ob.ecti#es
of a human bein' Purusha "oes not mean male in the ph$sical sense,
but an$ soul in its "i0erentiate" aspect'
So the purusharthas are applicable to both men an" 1omen e2uall$'
)he purusharthas ser#e as pointers in the life of a human bein' )he$ are
base" on the #ision of Go" 1hich is e#i"ent in the creation 3e manifeste"
an" 1hich can be follo1e" b$ man to be part of that #ision an" in
harmon$ 1ith 3is aims' 3is 1orl"s are establishe" on the principles of
"harma' )he$ are 4lle" 1ith the abun"ance of material an" spiritual
beins an" eneries, 1ho seek ful4llment b$ achie#in their "esires an"
liberation' Since man is Go" in his microcosmic aspect, he too shoul"
emulate Go" an" manifest the same realit$ in his o1n little 1orl"' 3e
shoul" pursue the same aims, e5perience life in its fullness an" be an
instrument of Go" b$ ser#in the purpose for 1hich he has been create"'
)he four chief aims or purusharthas are:
1. Dharma %ri&hteousness),
#. Artha %'ealth),
(. ama %desire) and
). !o"sha %salvation or liberation)
)he rationale behin" these purusharthas becomes clear 1hen
1e consi"er the basic tenets of 3in"uism' Man is an aspect of Go"' 3e
is Go"6s ob.ecti#e realit$ in creation' 3e e5ists in relationship 1ith Go"
like a re,ection in the mirror that is some1hat "i0erent $et inseparable
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Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
an" some1hat similar' 7eile" in him is the true self b$ the in,uence
an" in#ol#ement of Prakriti or primor"ial nature'
)he purpose of his life upon earth is to follo1 the la1 8"harma- of Go"
an" achie#e sal#ation 8moksha- or free"om from his false self
8ahamkara- b$ lea"in a balance" life in 1hich both material comforts
an" human passions ha#e their o1n place an" leitimac$'
Man cannot simpl$ take birth on earth an" start 1orkin for his sal#ation
riht a1a$ b$ means of .ust "harma alone' (f that is so man 1oul" ne#er
reali&e 1h$ he 1oul" ha#e to seek liberation in the 4rst place' As he
passes throuh the riors of life an" e5periences the problem of human
su0erin, he learns to appreciate the #alue of liberation' 3e becomes
sincere in his 2uest for sal#ation' So 1e ha#e the four oals, instea" of
.ust one, 1hose pursuit pro#i"es us 1ith an opportunit$ to learn important
lessons an" mo#e for1ar" on the spiritual path' +hat the purusharthas
characteri&e is not a life of self*neation, but of balance, comple5it$,
richness, opportunities an" mo"eration in a cosmic "rama of immense
proportions in 1hich man ultimatel$ en#isions an" e5periences his true
ran"eur an" ful4lls the #er$ purpose of his creation'
E#er$ in"i#i"ual in 3in"u societ$ is e5pecte" to achie#e these four
ob.ecti#es 1ith "etachment, 1ithout an$ e5pectation an" as a sacri4cial
o0erin to Go" in the ritual of human life' )he$ ha#e to be pursue"
sel,essl$ for a hiher an" reater cause' Depen"in upon the attitu"e an"
the manner in 1hich 1e pursue them, the$ either set us free or entanle
us "eeper 1ith the allurements of human life'
Dharma
)he 4rst of the oals is "harma, a 1or" 1hich is "i9cult to translate in
Enlish' Since the same 1or" is use" in man$ eastern reliions, it means
man$ thins to man$ people an" elu"es a true "e4nition' (t has been
#ariousl$ translate" as "ut$, faith, reliion, rihteousness, sacre" la1, .ustice,
ethics, an" moralit$ an" so on' Accor"in to one school of 3in"uism, "harma
is an obliator$ "ut$ as prescribe" b$ the 7e"as to be performe" b$ an
in"i#i"ual in accor"ance 1ith the rules prescribe" for the caste to 1hich he or
she belons' Go" is an uphol"er of "harma because he performs 3is "uties
e#en thouh the$ are not obliator$ an" 3e is 1ithout "esire or preference'
)here is no 1or" in :atin or Enlish that can trul$ e5plain the comple5
meanin of "harma' (ts 4rst letter /"ha/ is also the 4rst letter of "haritri, the
earth, 1hich is suesti#e of its connection 1ith the earth or earthl$ life' (n a
1i"er sense, "harma is the secret lue, the bin"in force, 1hich uphol"s an"
reulates this entire creation .ust as the ra#itational force controls an" hol"s
the entire material uni#erse as one piece' (t is the "i#ine constitution that
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Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
"e4nes our roles an" responsibilities, our social an" moral or"er, our purpose
an" oals an" the re1ar"s an" punishments that are appropriate for our
actions' (t is the la1 of Go" that is sacre", in#iolable an" per#asi#e' (t is
responsible for or"er, reularit$, harmon$, control, pre"ictabilit$ an"
accountabilit$' Accor"in to Manusmriti, "harma is four foote" in the Krita ae
an" loses one le in each successi#e ae' )hus in the fourth an" last ae of
Kali, it becomes cripple" an" rests upon .ust one le'
Dharma e5ists in all planes, in all aspects an" at all le#els of creation' (n the
conte5t of human life, "harma consists of all that an in"i#i"ual un"ertakes in
harmon$ 1ith "i#ine in.unctions an" his o1n sense of moralit$ an" .ustice'
3o1e#er to comprehen" the true nature of "harma is not an eas$ task' )he
1orl" is en#elope" in illusion as our human min"s are' +hat 1e see in the
1orl" an" learn from it ma$ not be true an" reliable' +hat 1e consi"er as
riht an" 1ron or "harma an" a"harma ma$ not stan" the test of truth'
3ence to practice "harma 1e are a"#ise" to rel$ upon the scriptures an"
follo1 the in.unctions containe" there in'
)he sources of "harma are the 7e"as, the 7e"anas, the Sutra literature of
1hich the most important are the Dharmashastras, an" scriptures such as the
;haa#a"ita' (n ancient (n"ia "harmashastras 8la1 books- pla$e" an
important role in ui"in people on the path of "harma' (t is ho1e#er "i9cult
to sa$ ho1 far the$ are rele#ant in the present ae' %ne shoul" also
remember that "harma shoul" not be #ie1e" as en" in itself but the means
to a still hiher en", liberation'
Artha
Artha means 1ealth' 3in"uism reconi&es the importance of material 1ealth
for the o#erall happiness an" 1ell bein of an in"i#i"ual' A house hol"er
re2uires 1ealth, because he has to perform man$ "uties to uphol" "harma
an" take care of the nee"s of his famil$ an" societ$' A person shoul" not seek
1ealth for 1ealth sake but to uphol" "harma an" help the members of his
famil$ an" societ$ achie#e their oals' 3in"uism therefore rihtl$ places
material 1ealth as the secon" most important ob.ecti#e in human life' +hile
"harma an" moksha are meant for oneself, 1ealth an" se5 are to be pursue"
for the sake of others' :or" 7ishnu is the best role mo"el for an$
househol"er' 3e lea"s a lu5urious life, ser#e" b$ the o""ess of 1ealth
herself, but is #er$ "utiful, helpful, responsi#e an" rihteous' So 1as :or"
Krishna 1hile he 1as in human form' 3e li#e" a #er$ lu5urious life, but 1as
rihteous, "etache" an" balance"'
3in"uism a"#ocates austerit$, simplicit$ an" "etachment, but "oes not
lorif$ po#ert$' +ealth is not an impe"iment to self*reali&ation, but
attachment to 1ealth is' Desire for 1ealth is "i0erent from ree" for 1ealth'
Sel,ess "esire for 1ealth is preferable to sel4sh "esire for 1ealth' Mone$ an"
1ealth are a form of "i#ine ener$' Go" is abun"ance' 3e is en"o1e" 1ith
eiht kin"s of 1ealth' ;ut as Sri Aurobin"o pointe" out 1e ha#e neati#e
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Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
attitu"e mostl$ about 1ealth because hostile an" neati#e forces 1ant us
belie#e so an" thereb$ pre#ent its use for rihteous reasons'
Seekin 1ealth throuh human actions is not "iscourae" in 3in"uism' )he
#e"ic h$mns are mostl$ in#ocations a""resse" to o"s an" o""esses b$
men "esirin 1ealth an" prosperit$' 3o1e#er the$ also emphasi&e the nee"
for riht intention, riht means an" mo"eration in the pursuit of 1ealth'
Aimin for 1ealth is a #irtue, but ree" is not' Amassin 1ealth for the famil$
an" for the 1elfare of oneself is not sinful, but takin 1hat "oes not belon to
one is' 3in"uism, <ainism an" ;u""hism bene4te" reatl$ in the past b$ the
in"i#i"ual contribution of rich merchants, their 1i#es an" chil"ren'
Po#ert$ has become a rotes2ue realit$ in present "a$ 3in"u societ$ an"
erroneousl$ consi"ere" b$ man$ as a #irtue' )his is a Christian in,uence'
3in"us ha#e become so po#ert$ conscious that if a saint or a sae lea"s a
comfortable life, the$ sco0 at him, sa$in that he is not a true $oi' )he$
ha#e to remin" themsel#es of the simple fact that none of the 3in"u o"s
an" o""esses are reall$ poor' +hile the$ al1a$s help the poor an" the
nee"$, none of them lorif$ po#ert$ as a #irtue' Accor"in to 3in"uism all
e5periences are self create" an" pro#i"e an opportunit$ to learn' So is
po#ert$ an" so is 1ealth' =enunciation "oes not mean to lea#e asi"e 1ealth
or "enounce the 1ealth$' (t means "etachment from 1ealth' )o become
in"i0erent to the comforts an" "iscomforts of life cause" b$ 1ealth'
3in"uism a"#ocates mo"eration an" balance in the pursuit of material an"
spiritual oals' Some 3in"us think other1ise, inorin the fact that 1hat is
applicable to an ascetic "oes not appl$ to a househol"er' S1ami 7i#ekanan"a
rihtl$ sai" that reliion 1as not for the empt$ stomachs' +hen a person is
beset 1ith sur#i#al problems, he 1oul" har"l$ 4n" an$ solace in reliion'
Soothin 1or"s 1oul" not comfort a hunr$ soul as much as a morsel of
foo"'
Kama
Kama in a broa"er sense means "esire' Both 3in"uism an" ;u""hism
consi"er "esire as the root cause of human su0erin' Accor"in to the
;haa#a"ita, "esire lea"s "elusion an" bon"ae to the c$cle of births an"
"eaths' )he 1a$ out of su0erin is to become "etache" from the sense
ob.ects throuh such practices as $oa an" me"itation an" perform
"esireless actions as sacri4cial o0erins to Go" 1ith a sense of "ut$,
acceptin Go" as the "oer an" 1ithout hankerin after the fruit of one6s
actions' Accor"in to Manusmriti man performs sacri4ces because of the
"esire for re1ar"s, 1ith the e5pectation that his actions 1ill bear fruit' >ot a
sinle act of him here on earth appears e#er to be "one b$ a man free from
"esire' So he 1ho performs his prescribe" "uties out of "esire in the riht
manner 1ill obtain the ful4llment of all the "esires an" reach the "eathless
state or e#en be$on"' As 1e can see the riht 1a$ to ful4ll one6s "esire is b$
performin one6s obliator$ "uties in the riht manner but not b$ nelectin
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Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
them so that the 1a$ of the "harma also becomes the 1a$ of ful4llment of
"esires'
Moksha
)he pursuit of "harma reulates the life of a human bein an" keeps him on
the rihteous path' )he pursuit of artha an" kama enrich his e5perience an"
impart to him #aluable lesson' )he pursuit of moksha or sal#ation liberates
him an" lea"s him to the 1orl" ;rahman' )he pursuit of "harma usuall$
beins in the earl$ ae 1hen one is initiate" into reliious stu"ies' )he
pursuit of artha an" kama beins in most cases after one becomes a
househol"er' )he pursuit of moksha ho1e#er is the most important of all aims
an" can bein at an$ time' )he other aims are preparator$ for this 4nal aim'
3o1e#er, in most cases, thouh not correctl$, moksha becomes an important
pursuit in the ol" ae "urin #anaprastha or the ae of retirement' Moksha is
both a purushartha an" a paramartha 8transcen"ental aim-, 1hich is
important not onl$ for men but also for the "i#ine beins'
Moksha actuall$ means absence of moha or "elusion' Delusion is cause" b$
the inter pla$ of the triple unas, the acti#it$ of the senses, attachment 1ith
an" "esire for sense ob.ects' A person achie#es liberation 1hen he increases
the 2ualit$ of satt#a, suppressin ra.as an" tamas an" o#ercomes his "esire
for sense ob.ects b$ "etachment, self control, surren"er to o" an" o0erin
of one6s actions to Go"' )here are man$ paths to sal#ation an" all of them
lea" to Go"' )he main paths are the path of kno1le"e, of action, of "e#otion
an" of renunciation' Each path has its o1n a"#antaes an" "isa"#antaes'
1hate#er ma$ be the path, the help an" ui"ance of a uru is in"ispensable
to one6s spiritual .ourne$' A uru is Go" in human form 1hose his chief
purpose is to remo#e the "arkness hi""en in the hearts an" min"s of his
"isciples an" help them 4n" their true sel#es'
)he purpose of purusharthas is to ensure that people 1oul" not nelect their
obliator$ "uties in their "elu"e" state b$ becomin obsesse" 1ith particular
"esires that ma$ lea" to moral an" social "eca"ence an" "estruction of
famil$ #alues' )he four Purusharthas are responsible for balance in human
life' )he$ make life a re1ar"in an" enrichin e5perience' )he$ cater to the
spiritual an" material aspirations of human beins an" lea" them in the riht
"irection on the path of liberation' )he e5emplif$ the #er$ functionin of Go"
1ho, 1ithout an$ particular aim or "esire, "etache", seeks to establish these
four aims in the entire manifest creation throuh his trinit$ of ;rahma, 7ishnu
an" Mahesha an" 3imself as the hihest an" supreme aim of all' )hus b$
1orshippin ;rahma 1e can ain the kno1le"e of "harma an" perform our
obliator$ "uties 1ith precision an" perfection' ;$ 1orshippin 7ishnu 1e can
ain material an" spiritual 1ealth an" 1ork for the 1elfare of our families an"
societ$' ;$ 1orshippin Si#a 1e can seek the ful4llment of our "esires an"
o#ercome our "elusion an" 4nall$ b$ pursuin ;rahman, or an$ of these o"s
as ;rahman, 1e can achie#e liberation b$ becomin ;rahman 3imself'
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Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
*he $oncept of Dharma:
Dharma is the path of righteousness and living one's life according to the
codes of conduct as described by the Hindu scriptures.
Dharma is a term that is frequently used in Indian spiritual thought. Though it is a
term with wide and far reaching ramifications, it essentially signifies a sense of
duty, a sense of obligation or a sense of responsibility.
Goo" Dharma ? Goo" Karma
@Dharma basicall$ means Ato nourishB, Ato uphol"B an" sini4es
1hate#er supports the uni#ersal or"er an" also the in"i#i"ual life in
societ$' Dharma is the basic #alue in life as 1ell as in transactions *
social, reliious, secular an" #ocational' Dharma is the 4rst of the three
normal human purposes, the other t1o bein the ac2uisition of 1ealth
8artha- an" the en.o$ment of pleasures 8kama-' Dharma is
characteri&e" b$ certain common human #alues like truth, enerosit$,
compassion, s$mpath$, self*restraint, fori#eness, non*enmit$,
frien"liness, absence of en#$ an" rectitu"e in con"uct'
)he scriptures sa$ Aatten" to this, the essence of "harma, "o not "o to
others 1hat $ou 1oul" not "o to $ourself' Put $ourself in the position of
others an" then actB' (n other 1or"s, "harma is the inner liht of clear
conscience, min"ful of the 1elfare of all an" minimi&in eo
in#ol#ement an" sel4shness in institutional beha#iour'
'
Dharma is closel$ linke" 1ith the i"ea of oriinal human in"ebte"ness
or inescapable obliation' E#er$ human bein is born 1ith three "ebts'
)he 4rst is to1ar"s his ancestors, the secon" is to1ar"s the saes an"
the thir" is 1hat he o1es to the Go"s'
;$ continuin the famil$ line b$ ha#in his o1n chil"ren, he "ischares
his "ebts to1ar"s his ancestors, b$ stu"$in, un"erstan"in the
cultural conte5t an" milieu into 1hich he is born, he "ischares his
"ebt to1ar"s the saes, as the saes ha#e been responsible for the
unbroken cultural heritae of the lan"' ;$ respectin an" 1orshippin
the elemental an" en#ironmental forces like the air, the ri#ers, the
mountains, plants, animals etc, he "ischares his "ebts to the Go"s'
8)he stress on en#ironmental a1areness is to be note" here-' )his
concept of in"ebte"ness is the #er$ source of "harma, 1hich shifts the
focus from "esire rati4cation to "ut$ ful4llment, thus makin human
life meaninful an" 1orth1hile '
)he t1o reat epics of (n"ia, the =ama$ana an" the Mahabharata both
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Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
emphasi&e the role of Dharma in in"i#i"ual life as 1ell as in collecti#e
e5istence' (f the =ama$ana illustrates the nee" to subor"inate 1ealth
an" en.o$ment to "harma, thus makin it the mirror of (n"ian culture,
the Mahabharata e5poun"s on the challenes that "harma faces from
ree" an" 1ealth in personal an" public life an" ho1 real "harma is
sabotae" b$ surroates an" counterfeits'C )his is Dharma, the
be"rock of human e5istence'
++++++++++++++++++++++++++++++++++++
++++++++++++++++++++++++
B) Ethics: A Global Perspective:
1. Ethics in Global Marketing & Advertising
. Ethical perspective in E!ploy!ent including in the international labour
"rgani#ation Std.
$. Ethics and %&' E(co!!erce) *rivacy Codes.
+. Environ!ental Ethics' %ndian and ,estern perspectives
-. Ethics and Cross( culture in.luences
/. Ethical issues and .unctional aspects o. business

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Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
1) Ethics in Global Marketing & A!ertising"
"A customer is the most important
visitor of our premises.
He is not dependent on us -
we are dependent on him.

He is not an interruption on our work -
he is the purpose of it.
He is not an outsider on our business -
he is a part of it.
We are not doing him a favour
by serving him -

He is doing us a favour by giving us
an opportunity to do so."
- Mahatma Ganhi
)he %5for" Dni#ersit$ Press "e4nes &lobal mar"etin& as @marketin
on a 1orl"1i"e scale reconcilin or takin commercial a"#antae of
lobal operational "i0erences, similarities an" opportunities in or"er to
meet lobal ob.ecti#es'C
* ,-ford .niversit/ Press0 Glossar/ of !ar"etin& *erms
Marketin ethics is the area of applie" ethics 1hich "eals 1ith the
moral principles behin" the operation an" reulation of marketin'
Some areas of marketin ethics 8ethics of a"#ertisin an" promotion-
o#erlap 1ith me"ia ethics'
1undamental Issues in the Ethics of !ar"etin&
1rame'or"s of anal/sis for ethical mar"etin& 2
Possible frame'or"s:
7alue*oriente" frame1ork, anal$&in ethical problems on the
basis of the #alues 1hich the$ infrine 8e'' honest$, autonom$,
pri#ac$, transparenc$-' An e5ample of such an approach is the
AMA Statement of Ethics'
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Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
Stakehol"er*oriente" frame1ork, anal$sin ethical problems on
the basis of 1homsoe#er the$ a0ect 8e'' consumers,
competitors, societ$ as a 1hole-'
Process*oriente" frame1ork, anal$sin ethical problems in terms
of the cateories use" b$ marketin specialists 8e'' research,
price, promotion, placement-'
>one of these frame1orks allo1s, b$ itself, a con#enient an" complete
cateori&ation of the reat #ariet$ of issues in marketin ethics'
3ature and 4cope of !ar"etin& Ethics
Marketin ethics is #ie1e" as important because of marketinBs
interface 1ith man$ "i#erse stakehol"ers' Marketin is a ke$ functional
area in the business orani&ation that pro#i"es a #isible interface 1ith
not onl$ customers, but other stakehol"ers such as the me"ia,
in#estors, reulator$ aencies, channel members, tra"e associations,
as 1ell as others' (t is important 1hen a""ressin marketin ethics to
reconi&e that it shoul" be e5amine" from an in"i#i"ual,
orani&ational, an" societal perspecti#e' E5aminin marketin ethics
from a narro1 issue perspecti#e "oes not pro#i"e foun"ational
backroun" that pro#i"es a complete un"erstan"in of the "omain of
marketin ethics' )he purpose is to "e4ne, e5amine the nature an"
scope, i"entif$ issues, pro#i"e a "ecision*makin frame1ork, an" trace
the historical "e#elopment of marketin ethics from a practice an"
aca"emic perspecti#e'
DE1I3I*I,3 ,1 !A5E*I3G E*6I$4
Ethics has been terme" the stu"$ an" philosoph$ of human
con"uct, 1ith an emphasis on the "etermination of riht an" 1ron'
Eor marketers, ethics in the 1orkplace refers to rules 8stan"ar"s,
principles- o#ernin the con"uct of orani&ational members an" the
conse2uences of marketin "ecisions' )herefore, ethical marketin
from a normati#e perspecti#e approach is "e4ne" as @practices that
emphasi&e transparent, trust1orth$, an" responsible personal an"
orani&ational marketin policies an" actions that e5hibit interit$ as
1ell as fairness to consumers an" other stakehol"ers' Marketin ethics
focuses on principles an" stan"ar"s that "e4ne acceptable marketin
con"uct, as "etermine" b$ #arious stakehol"ers an" the orani&ation
responsible for marketin acti#ities'
+hile man$ of the basic principles ha#e been co"i4e" as la1s an"
reulations to re2uire marketers to conform to societ$Bs e5pectations
of con"uct, marketin ethics oes be$on" leal an" reulator$ issues'
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Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
Ethical marketin practices an" principles are core buil"in blocks in
establishin trust, 1hich help buil" lon*term marketin relationships'
(n a""ition, the boun"ar$*spannin nature of marketin 8i'e' sales,
a"#ertisin, an" "istribution- presents man$ of the ethical issues face"
in business to"a$'
;oth marketin practitioners an" marketin professors approach
ethics from "i0erent perspecti#es' Eor e5ample, one perspecti#e is that
ethics is about bein a moral in"i#i"ual an" that personal #alues an"
moral philosophies are the ke$ to ethical "ecisions in marketin'
7irtues such as honest$, fairness, responsibilit$, an" citi&enship are
assume" to be #alues that can ui"e comple5 marketin "ecisions in
the conte5t of an orani&ation' %n the other han", approachin ethics
from an orani&ational perspecti#e assumes that establishin
orani&ational #alues, co"es, an" trainin is necessar$ to pro#i"e
consistent an" share" approaches to makin ethical "ecisions'
Key Issues in Marketing Ethics
;$ its #er$ nature, marketin ethics is contro#ersial, an" there is no
uni#ersall$ accepte" approach for resol#in 2uestions' Ethical issues
a""ress a problem, situation, or opportunit$ that re2uires an in"i#i"ual,
roup, or orani&ation to choose amon se#eral actions that must be
e#aluate" as riht or 1ron' )he orani&ation an" stakehol"ers "e4ne
marketin ethical issues that must be i"enti4e" an" resol#e" to buil"
trust an" e0ecti#e relationships 1ith stakehol"ers' ;ecause marketin
ethics sometimes "eals 1ith sub.ecti#e moral choices, this re2uires
"ecisions about the moral stan"ar"s to appl$ an" the "e4nition of
ethical issues' 3o1e#er, man$ roups in societ$, inclu"in
o#ernment, are "e4nin ethical an" leal issues an" proacti#e
approaches to "eal 1ith these issues' Eor e5ample, millions of blos or
personal 1eb los e5ist on the (nternet 1ithout an$ formal co"e of
ethics or reulation' Man$ 4rms, such as Au"i, ha#e their o1n blos
1ith man$ stakehol"ers re2uestin the formation of an ethics
committee to create uni4e" stan"ar"s' %rani&ations are bein aske"
to pre#ent an" control miscon"uct b$ implementin ethical compliance
prorams' Ethics brins man$ re1ar"s to orani&ations that nurture it,
but manain ethics re2uires acti#it$ an" attention on se#eral le#elsF
compl$in 1ith the la1, settin ethical stan"ar"s, an" "ealin 1ith the
comple5 "ecisions relate" to tra"e*o0s bet1een the bottom line an"
ethical con"uct'
3ih ethical stan"ar"s re2uire both orani&ations an" in"i#i"uals to
conform to soun" moral principles' Eair )ra"e has emere" to link
ethicall$ min"e" consumers 1ith marketers concerne" 1ith
10
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
"isa"#antae" pro"ucers in "e#elopin nations' Starbucks 1orks to
treat co0ee farmers fairl$ in their business relationships b$ pa$in
premium prices, lon*term contracts, a0or"able cre"it, "irect
purchasin, an" in#estin in social pro.ects in co0ee communities
'
3o1e#er, eneral special factors must be consi"ere" 1hen appl$in
ethics to marketin' Eirst, to sur#i#e, marketers must contribute to
pro4ts or other orani&ational ob.ecti#es' Secon", marketers must
balance their "esire for success aainst the nee"s an" "esires of
societ$' Maintainin this balance often re2uires compromises or
tra"eo0s' )o a""ress these uni2ue aspects, societ$ has "e#elope"
rulesFboth leal an" implicitFto ui"e marketers in their e0orts to
reach their ob.ecti#es in 1a$s that "o not harm in"i#i"uals or societ$
as a 1hole'
E5ternal stakehol"ersB interests, concerns, or "ilemmas help
trier ethical issue intensit$' Eor e5ample, the >ational Do*>ot Call
=eistr$ has tremen"ous impact on telemarketersB business practices'
%rani&ational culture 8internal stakehol"ers- an" in"i#i"ual moral
philosophies an" #alues in,uence the reconition of ethical issues an"
marketin ethics "ecisions' >e1 ;eluim ;re1in Compan$, the thir"
larest craft beer bre1er in the Dnite" States, uses onl$ 1in" ener$
an" co*eneration as 1ell as a #iorous rec$clin initiati#e' (n a""ition,
the compan$ practices open*book manaement' )he "ecisions or
outcomes are e#aluate" b$ both internal an" e5ternal stakehol"ers'
Marketin ethics relates to issues such as honest$ an" fairness,
con,icts of interest, "iscrimination, pri#ac$, an" frau"' Go#ernment
reulator$ aencies an" self*reulator$ roups such as the ;etter
;usiness ;ureau ha#e "e#elope" formal mechanisms to "eal 1ith
ethical issues relate" to marketin' )he Ee"eral )ra"e Commission
8E)C- enforces consumer protection la1s' +ithin this aenc$, the
;ureau of Consumer Protection 1orks to protect consumers aainst
unfair, "ecepti#e, or frau"ulent practices' (n a""ition to the E)C, other
fe"eral aencies such as the Eoo" an" Dru A"ministration, the
Consumer Pro"uct Safet$ Commission, an" the Ee"eral
Communications Commission tr$ to assist consumers in a""ressin
"ecepti#e, frau"ulent, or "amain con"uct' At the state le#el,
consumer protection statutes e5ist, an" "ecepti#e tra"e practices la1s
e5ist in most states' (n >e1 <erse$, the Attorne$ GeneralBs o9ce has
4le" a la1suit aainst ;lockbuster, (nc' for not properl$ "isclosin
terms associate" 1ith its @>o More :ate EeesC polic$' %#er"ue rentals
are automaticall$ con#erte" to sales on the eihth "a$ after the "ue
"ate' )he >e1 <erse$ Consumer Erau" Act coul" result in ;lockbuster
pa$in ci#il penalties of up to GHI,III for each #iolation 8Merritt,
2IIJ-' )hese reulator$ aencies help "e4ne man$ of the issues that
11
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
shoul" be an ethical concern for marketers' E5amples of issues inclu"e
marketin communications that are false an" mislea"in, material
misrepresentations in e5ternal an" internal communications, an" the
use of telecommunications to "ecei#e customers' Antitrust, "eception
in pricin, pro"uct liabilit$, an" marketin channel relationships all
encompass ethical "ecisions'
A Framework for Understanding Ethical Decision
Making In Marketing
Ethical "ecision makin in marketin parallels ethical "ecision
makin across all orani&ational "omains' )here is much o#erlap
bet1een marketin ethics an" business ethics because the basic
frame1orks that "escribe ethical "ecision makin in an orani&ation
inclu"e "ecisions that encompass marketin' (n other 1or"s, 1ithin the
conte5t of an orani&ation, there is an ethical component to business
"ecisions, rear"less of 1hether it is marketin or some other
functional area component' E5ternal stakehol"er interests, concerns or
"ilemmas help trier ethical issue intensit$' Eor e5ample, PE)A has
encourae" KEC an" other fast*foo" restaurants to make the ethical
treatment of animals a priorit$' %rani&ational culture 8internal
stakehol"ers- an" in"i#i"ual moral philosophies an" #alues in,uence
the reconition of ethical issues an" marketin ethics "ecisions' )he
"ecisions or outcomes are e#aluate" b$ both internal an" e5ternal
stakehol"ers' +hile it is impossible to "escribe precisel$ ho1 or 1h$ an
in"i#i"ual or a 1ork roup ma$ make a speci4c "ecision, 1e can
enerali&e about a#erae or t$pical beha#ior patterns 1ithin
orani&ations'
Eirst, as pre#iousl$ "iscusse", marketin can i"entif$ the
importance of stakehol"ers, stakehol"er issues, an" ather information
to respon" to sini4cant in"i#i"uals, roups, an" communities' >e5t, in
the "ecision*makin process, marketers shoul" i"entif$ the importance
or rele#ance of a percei#e" issue i'e', the intensit$ of the issue 8<ones,
HKKH-' )he fast foo" in"ustr$ is bein pressure" b$ o#ernment
aencies, consumers, an" special interest roups to o0er healthier
menu options, particularl$ for chil"ren' )he intensit$ of a particular
issue is likel$ to #ar$ o#er time an" amon in"i#i"uals an" is
in,uence" b$ the orani&ational culture, #alues an" normsL the special
characteristics of the situationL an" the personal pressures 1eihin on
the "ecision' McDonal"Bs restaurants 1ere the tarets of neati#e
publicit$ associate" 1ith the release of the mo#ie Super Size Me' (n
response, the compan$ intro"uce" more sala"s an" healthful portions
12
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
an" alternati#es' (n"i#i"ual factors are ob#iousl$ important in the
e#aluation an" resolution of ethical issues, an" familiarit$ 1ith
principal, theoretical frame1orks from the 4el" of moral philosoph$ is
helpful in "eterminin ethical "ecision makin in marketin 8Murph$,
:ac&niak, ;o1ie, an" Klein, 2IIJ-' Personal moral "e#elopment an"
philosoph$, orani&ational culture, an" co1orkers, "etermine 1h$
"i0erent people percei#e issues 1ith #ar$in intensit$'
)he ethical climate of an orani&ation is a sini4cant element of
orani&ational culture' +hereas a 4rmBs o#erall culture establishes
i"eals that ui"e a 1i"e rane of beha#iors for members of the
orani&ation, its ethical climate focuses speci4call$ on issues of riht
an" 1ron' )he ethical climate is the orani&ationBs character or
conscience' Co"es of con"uct an" ethics policies, top manaementBs
actions on ethical issues, the #alues an" moral "e#elopment an"
philosophies of co1orkers, an" the opportunit$ for miscon"uct all
contribute to an orani&ationBs ethical climate' (n fact, the ethical
climate actuall$ "etermines 1hether or not certain "ilemmas are
percei#e" as ha#in an ethical intensit$ le#el that re2uires a "ecision'
%pportunit$ usuall$ relates to emplo$eesB imme"iate .ob conte5t
F1here the$ 1ork, 1ith 1hom the$ 1ork, an" the nature of the 1ork'
)he speci4c 1ork situation inclu"es the moti#ational @carrots an"
sticksC that superiors can use to in,uence emplo$ee beha#ior' Pa$
raises, bonuses, an" public reconition are carrots, or positi#e
reinforcement, 1hereas repriman"s, pa$ penalties, "emotions, an"
e#en 4rins act as sticks, the neati#e reinforcement' Eor e5ample, a
salesperson 1ho is publicl$ reconi&e" an" i#en a lare bonus for
makin a #aluable sale that he or she obtaine" throuh unethical
tactics 1ill probabl$ be moti#ate" to use unethical sales tactics in the
future, e#en if such beha#ior oes aainst oneBs personal #alue
s$stem' =esearch has sho1n that there is a eneral ten"enc$ to
"iscipline top sales performers more lenientl$ than poor sales
performers for enain in i"entical forms of unethical sellin beha#ior
8;elli&&i an" 3ast$, 2IIM-' >either a compan$ polic$ statin that the
beha#ior in 2uestion 1as unacceptable nor a repeate" pattern of
unethical beha#ior o0sets the eneral ten"enc$ to fa#or the top sales
performers' A superior sales recor" appears to in"uce more lenient
forms of "iscipline "espite manaerial actions that are speci4call$
institute" to pro"uce more e2ual forms of "iscipline' ;ase" on their
research, ;elli&&i an" 3ast$ conclu"e" that an opportunit$ e5ists for
top sales performers to be more unethical than poor sales performers'
(n 2IIN, the American Marketin Association appro#e" a ne1
co"e of ethics entitle"L @Ethical >orms an" 7alues for MarketersC' )he
AMA co"e pro#i"es #alues 1hich are assumptions about appropriate
beha#ior, as 1ell as norms that pro#i"e sueste" beha#iors' )he AMA
13
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
reconi&es the "i#ersit$ of marketin, an" encouraes members to
access co"es of ethics that a""ress speci4c functional areas such as
marketin research, "irect sellin, "irect marketin, an" a"#ertisin'
A!A $ode of Ethics
!embers of the American !ar"etin& Association are committed to
ethical professional conduct. *he/ have 7oined to&ether in
subscribin& to this $ode of Ethics embracin& the follo'in& topics:
5esponsibilit/ of the !ar"eter
Marketers must accept responsibilit$ for the conse2uences of their acti#ities
an" make e#er$ e0ort to ensure that their "ecisions, recommen"ations an"
actions function to i"entif$, ser#e an" satisf$ all rele#ant publics: customers,
orani&ations an" societ$'
!ar"eters0 Professional $onduct must be &uided b/:
H' )he basic rule of professional ethics: not kno1inl$ to "o harmL
2' )he a"herence to all applicable la1s an" reulationsL
M' )he accurate representation of their e"ucation, trainin an" e5perienceL
an"
N' )he acti#e support, practice an" promotion of this Co"e of Ethics'
6onest/ and 1airness
Marketers shall uphol" an" a"#ance the interit$, honor an" "init$ of the
marketin profession b$:
H' ;ein honest in ser#in consumers, clients, emplo$ees, suppliers,
"istributors an" the publicL
2' >ot kno1inl$ participatin in con,ict of interest 1ithout prior notice to all
parties in#ol#e"L an"
M' Establishin e2uitable fee sche"ules inclu"in the pa$ment or receipt of
usual, customar$ an"Oor leal compensation for marketin e5chanes'
5i&hts and Duties of Parties in the !ar"etin& E-chan&e Process
Participants in the marketin e5chane process shoul" be able to e5pect that

H' Pro"ucts an" ser#ices o0ere" are safe an" 4t for their inten"e" usesL
2' Communications about o0ere" pro"ucts an" ser#ices are not "ecepti#eL
M' All parties inten" to "ischare their obliations, 4nancial an" other1ise, in
oo" faithL an"
N' Appropriate internal metho"s e5ist for e2uitable a".ustment an"Oor re"ress
of rie#ances
concernin purchases'
14
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
(t is un"erstoo" that the abo#e 1oul" inclu"e, but is not limite" to, the
follo1in responsibilities of the marketer:
In the area of product development and mana&ement:
P "isclosure of all substantial risks associate" 1ith pro"uct or ser#ice usaeL
P i"enti4cation of an$ pro"uct component substitution that miht materiall$
chane the pro"uct or impact on the bu$erBs purchase "ecisionL
P i"enti4cation of e5tra cost*a""e" features'
In the area of promotions:
P a#oi"ance of false an" mislea"in a"#ertisinL
P re.ection of hih*pressure manipulations, or mislea"in sales tacticsL
P a#oi"ance of sales promotions that use "eception or manipulations'
(n the area of distribution:
P not manipulatin the a#ailabilit$ of a pro"uct for the purpose of
e5ploitationL
P not usin coercion in the marketin channelL
P not e5ertin un"ue in,uence o#er the resellerBs choice to han"le a pro"uct'
In the area of pricin&:
P not enain in price 45inL
P not practicin pre"ator$ pricinL
P "isclosin the full price associate" 1ith an$ purchase'
In the area of mar"etin& research:
P prohibitin sellin or fun"raisin un"er the uise of con"uctin researchL
P maintainin research interit$ b$ a#oi"in misrepresentation an" omission
of pertinent research "ataL
P treatin outsi"e client an" suppliers fairl$'
,r&ani8ational 5elationships
Marketers shoul" be a1are of ho1 their beha#ior ma$ in,uence or impact the
beha#ior of others in orani&ational relationships' )he$ shoul" not "eman",
encourae or appl$ coercion to obtain unethical beha#ior in their
relationships 1ith others, such as emplo$ees, suppliers, or customers'
H' Appl$ con4"entialit$ an" anon$mit$ in professional relationships 1ith
rear" to pri#ilee" informationL
2' Meet their obliations an" responsibilities in contracts an" mutual
areements in a timel$ mannerL
M' A#oi" takin the 1ork of others, in 1hole, or in part, an" representin this
1ork as their o1n or "irectl$ bene4tin from it 1ithout compensation or
consent of the oriinator or o1nersL an"
N A#oi" manipulation to take a"#antae of situations to ma5imi&e personal
15
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
1elfare in a 1a$ that unfairl$ "epri#es or "amaes the orani&ation of others'
An$ AMA member foun" to be in #iolation of an$ pro#ision of this Co"e of
Ethics ma$ ha#e his or her Association membership suspen"e" or re#oke"'
Preamble
)he (nternet, inclu"in online computer communications, has become
increasinl$ important to marketersB acti#ities, as the$ pro#i"e e5chanes
an" access to markets 1orl"1i"e' )he abilit$ to interact 1ith stakehol"ers
has create" ne1 marketin opportunities an" risks that are not currentl$
speci4call$ a""resse" in the American Marketin Association Co"e of Ethics'
)he American Marketin Association Co"e of Ethics for (nternet marketin
pro#i"es a""itional ui"ance an" "irection for ethical responsibilit$ in this
"$namic area of marketin' )he American Marketin Association is committe"
to ethical professional con"uct an" has a"opte" these principles for usin the
(nternet, inclu"in on*line marketin acti#ities utili&in net1ork computers'
General 5esponsibilities
(nternet marketers must assess the risks an" take responsibilit$ for the
conse2uences of their acti#ities' (nternet marketersB professional con"uct
must be ui"e" b$:

* Support of professional ethics to a#oi" harm b$ protectin the rihts of
pri#ac$, o1nership an" access'
* A"herence to all applicable la1s an" reulations 1ith no use of (nternet
marketin that 1oul" be illeal, if con"ucte" b$ mail, telephone, fa5 or other
me"ia'
2 A1areness of chanes in reulations relate" to (nternet marketin'
* E0ecti#e communication to orani&ational members on risks an" policies
relate" to (nternet marketin, 1hen appropriate'
* %rani&ational commitment to ethical (nternet practices communicate" to
emplo$ees, customers an" rele#ant stakehol"ers'
Privac/
(nformation collecte" from customers shoul" be con4"ential an" use" onl$ for
e5presse" purposes' All "ata, especiall$ con4"ential customer "ata, shoul"
be safeuar"e" aainst unauthori&e" access' )he e5presse" 1ishes of others
shoul" be respecte" 1ith rear" to the receipt of unsolicite" e*mail
messaes'
,'nership
(nformation obtaine" from the (nternet sources shoul" be properl$ authori&e"
an" "ocumente"' (nformation o1nership shoul" be safeuar"e" an"
respecte"' Marketers shoul" respect the interit$ an" o1nership of computer
an" net1ork s$stems'
16
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
Access
Marketers shoul" treat access to accounts, pass1or"s, an" other information
as con4"ential, an" onl$ e5amine or "isclose content 1hen authori&e" b$ a
responsible part$' )he interit$ of othersB information s$stems shoul" be
respecte" 1ith rear" to placement of information, a"#ertisin or messaes'
$,3$9.4I,34
Much proress has been ma"e in a"#ancin theor$ an" research
in marketin ethics' (n a""ition, the practice of marketin has been
ele#ate" to hiher le#els of ethics from professional co"es of con"uct
pro#i"e" b$ the American Marketin Association, Direct Sellin
Association, Direct Marketin Association, Marketin =esearch
Association, American Ee"eration of A"#ertisin an" the >ational
A"#ertisin Di#ision of the Council of ;etter ;usiness ;ureaus' (n
a""ition, most corporations ha#e "e#elope" comprehensi#e co"es of
con"uct that a""ress speci4c ethical risk areas in marketin practice'
=ecent reulator$ chanes that re2uire boar"s of "irectors to be
responsible for o#ersiht on all ethics issues 1ithin an orani&ation
ele#ate the importance of marketin ethics' (t is clear that marketin
ethics is part of orani&ational responsibilit$ an" in"i#i"uals cannot
make in"epen"ent "ecisions about appropriate con"uct' )here is
reconition throuh aca"emic research an" reulator$ initiati#es that
corporate culture pla$s a ke$ role in impro#in marketin ethics'
Ethics in A!ertising"
People in a"#ertisin spen" a lot of their time "ealin 1ith ethical
choices, an" those choices are almost ne#er black an" 1hite' )he$6re
subtle, sha"es*of*ra$ choices, .uic$ enouh for a Philosoph$ ma.or'
>o1 let6s look at a more subtle sha"e of truth in this infamous 7ol#o
commercial' (n a real*life monster truck sho1, the 7ol#o 1as the onl$
car left uncrushe" * a reat i"ea for a commercialQ ;ut to make the a",
the 4lm compan$ nee"e" to shoot se#eral takes' So the$ reinforce" the
beams insi"e the car to stan" repeate" s2uashin' +hen this came out
in the press, 7ol#o 1as pillorie" an" their a" aenc$ ot 4re",
ultimatel$ oin out of business' Di" it ser#e them rihtR %r 1as it a
bum rapR >o 2uestion the "emo 1as rie"' ;ut 1hat it sho1e" 1as
the truth: if a monster truck runs o#er $ou once, $ou6re safer in the
7ol#o'
17
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
An ethical brainteaser 1e "eal 1ith e#er$ "a$ is: /+hat can $ou
leitimatel$ simulate to illustrate the truthR/ ;efore $ou ans1er
/nothinQC, ask $ourself if a 3iher Purpose 1oul" be ser#e" if Pampers
an" Kote5 commercials sho1e" the real thin instea" of that fake blue
1ater'
A"s for reputable companies almost ne#er lie' )he$ ha#e to be able to
pro#e 1hat the$ sa$ to their o1n corporate counsel, the a" aenc$6s
la1$ers, the net1ork6s appro#al committees an" to an$ number of
reulatin bo"ies like the EDA an" the E)C' +ith at least 4#e "i0erent
o#ernment aencies lookin o#er our shoul"er, the cost of bein
cauht cheatin is simpl$ too hih' (n a""ition, the in"i#i"uals insi"e a
compan$ 1ant to be able to look at themsel#es in the mirror' Some like
to think of business people as belonin to some other species, but
remember that most of them are $ou a fe1 $ears from no1'
So 1e tell the truth ** but not al1a$s the +hole )ruth' :ike la1$ers, our
.ob is to put our clients in the best liht' +hen $ou o on a .ob
inter#ie1 or a 4rst "ate, $ou "on6t assume a false i"entit$ * but $ou
probabl$ "on6t make a full "isclosure either' Chances are $ou keep $our
lactose intolerance an" foot o"or issues in the backroun", an" sa#e
$our Ee"eration Star,eet uniform for later in the relationship * if there
(S a later'
Eor a compan$ tr$in to sell somethin, an a" is like ettin a .ob
inter#ie1 1ith millions of people all at once' )he a" 1ants to make a
oo" 4rst impression an" reall$, reall$ "oesn6t 1ant to make people
ma"' ;ut "i0erent people react "i0erentl$'
Durin the 2III Super ;o1l, millions of people sa1 the follo1in
commercial for Christopher =ee#e 1alkin aain'
Some of us sa1 an upliftin messae of hope' Some sa1 a c$nical
compan$ manipulatin people6s hope to make a buck' Still others *
man$ of them 1ith "isabilities * sa1 an a" that a#e false hope' +hat
"i" $ou seeR
(t6s an a5iom in a"#ertisin that 1hen $ou "o somethin bol", it6s likel$
to polari&e $our au"ience' An" bi e#ents like the Super ;o1l or the
%l$mpics make a"#ertisers bol"er'
Sou can tell the a" aenc$ reall$ en.o$e" creatin the horror mo#ie
spoof 1ith an %l$mpic runner' )his >ike commercial ran "urin the
2III %l$mpics' ;ut this commercial recei#e" o#er 2,III complaints'
>ike hear" them an" kille" the spot an" unlike Ere""ie Kruer, this a"
sta$e" "ea"Q
18
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
A lot of people 2uestion the ethics of sellin consumers thins the$
"on6t nee" * 1hich presupposes that 1e shoul"n6t ha#e the thins 1e
"on6t nee" but 1ant an$1a$' +e "on6t nee" KIT of the stu0 in our
apartments' +e "on6t nee" art1ork, amon other thins' >ean"erthals
"i"n6t nee" ca#e paintins, but the$ sure brihten up a rotto' +h$ "i"
so man$ of us brin bottle" 1ater * that 1e pai" for * into this meetin
room to"a$, 1hen carr$in a canteen of tap 1ater is so much moreU
rationalR
A"#ertisin, like human beins, li#es 1here =eason meets Desire' Sears
ao, )he Coca*Cola Compan$ in#ente" a better pro"uct' >o consumer
pro"uct ha" e#er been so thorouhl$ teste" 1ith so man$ consumers'
)his ne1 Coke 1as pro#abl$ much better' ;ut consumers not onl$
"i"n6t bu$ it, the$ "emonstrate" aainst it' ;ecause a lot of 1hat the$
lo#e" about /real/ Coke 1asn6t insi"e the bottle' (t 1as the i"ea of Coke
an" their e5periences 1ith it an" ho1 those e5periences 1ere
connecte" to so much of 1hat 1e imaine life in America shoul" be
like' A"#ertisin isn6t .ust about the thins 1e bu$' (t6s about ho1 1e
feel about thins, inclu"in oursel#es' )hat6s 1hat makes it interestin'
$ause2related mar"etin&
:
Speakin of feelins, VIT of Americans sa$ the$ feel better about
companies that are aline" 1ith social issues' )1o thir"s of us sa$ 1e6"
be incline" to s1itch to a bran" that 1e i"entif$ 1ith a oo" cause' (t6s
1h$ American E5press put on the )ribeca Eilm Eesti#al in lo1er
Manhattan to help brin people back to the area after September HHth'
+al*Mart focuses on communit$ e0orts of their associates an" stores'
General Mills6 /Spoonfuls of 3ope/ campain features :ance Armstron
promotin cancer research' <ohnson ! <ohnson * al1a$s at the top of
polls as a sociall$ responsible compan$ ** has been runnin a
campain to help promote nursin as a career:
Does the e5tra business an" oo" 1ill these companies stan" to ain
compromise the oo" that the causes "oR +hat are the ethics of
enlihtene" self*interestR >ot lon ao a ma.or a"#ertiser "onate" a
2uarter*million "ollars in foo" ai" to ;osnians in the 1ake of the 1ar
there' ;$ all accounts, the ai" "i" a lot of oo"' :ater, the compan$
spent o#er a million "ollars to a"#ertise their oo" "ee" to American
au"iences' +hat "ecision 1oul" $ou ha#e ma"eR
*obacco Advertisin& :
=onal" =eaan once appeare" in a"s toutin the health bene4ts of a
ciarette bran"' )imes ha#e chane"' >o1 the space in 1hich tobacco
can be promote" in an$ form is ro1in more restricte" e#er$ "a$' An"
19
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
tobacco isn6t the onl$ leal * an" potentiall$ lethal * pro"uct that poses
ethical, not to mention public polic$ 2uestions for us'
A" aencies an" in"i#i"ual a"#ertisin people make their o1n
"ecisions about cateories like tobacco an" uns' Man$ sa$, />o,
thanks/ to 1orkin on certain businesses' ;ut 1oul" $ou turn "o1n the
Kraft Macaroni an" Cheese assinment because another "i#ision of the
same corporation makes MarlborosR )hat6s a touher 2uestion'
Alcohol:
)here are hun"re"s of beer commercials on the air, but not one of
them sho1s somebo"$ actuall$ "rinkin the beer' Does that make
them more ethicalR An" althouh there6s the same amount of the same
chemical in a can of ;u" an" a shot of <ack Daniels, $ou "on6t see har"
li2uor a"#ertise" on tele#ision' (n the case of alcohol, a"#ertisers
themsel#es ha#e ma"e these /ethical/ choices' ;ut "o the$ make
rational senseR )he Mothers aainst Drunk Dri#in 8MADD- probabl$
"on6t make the same "istinction bet1een beer an" bourbon that
a"#ertisers "o'
(nci"entall$, a"#ertisin people 1orkin for free because the$ belie#e
in the cause create MADD6s a"s' A" folk like to 1ork pro bono for
nonpro4ts an" oo" causes' Public ser#ice campains, inclu"in anti*
smokin messaes, ot o#er GH'J billion "ollars in free me"ia last $ear'
Altoether, the$6" be the 4fth larest a"#ertiser'
)he ethical issue isn6t the alcohol in the pro"uct, it6s the bran" name
on the bottle 8Smirno0 (ce-' +hen ( sa$ the 1or" /Smirno0/, 1hat "o
$ou think ofR * $ou6re not alone' A ri#al compan$ sa$s this commercial
is mislea"in $ou because there6s no #o"ka in Smirno0 (ce' (t6s a malt
be#erae' Does the name /Smirno0/ mean /#o"ka/ or is it .ust a
nameR Man$ of $ou are in the taret au"ience' Are $ou bein foole"
hereR An" if $ou thouht Smirno0 (ce containe" #o"ka, "i" $ou also
think it containe" iceR Sou "on6t ha#e to take time from $our stu"ies to
"eci"e this case' As 1e speak, it6s bein e5amine" b$ the A)E 8Ee"eral
;ureau of Alcohol, )obacco an" Eirearms-'
$hildren
Societ$ imposes conte5t on a"#ertisin ethics all the time * especiall$
in a"#ertisin that in#ol#es chil"ren' 3ere6s a commercial for chil"ren6s
shampoo' %n behalf of Societ$, can $ou see 1hat6s 1ron 1ith this
messaeR
)he problem isn6t somethin in the spot * it6s 1hat6s missin' )here is
no a"ult super#ision sho1n aroun" the s1immin pool' )he Chil"ren6s
A"#ertisin =e#ie1 Dnit 8CA=D- of the ;etter ;usiness ;ureau 8;;;-,
20
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
1hich also monitors ki"6s prorammin, re2uires that a"ults be sho1n
super#isin chil"ren 1hen pro"ucts or acti#ities coul" be risk$' So
:6%real chane" the commercial to mo"el oo" parental beha#ior'
Score one for Societ$' Another commercial for Aim toothpaste sho1e"
a chil" 1ho 1ent to the bathroom in a museum to brush her teeth'
Goo" h$iene or not, it ha" to be taken o0 the air 1hen teachers
complaine" that the$6" ne#er, e#er, let a chil" lea#e the roup
unatten"e"'
A"#ertisers spen" most of their 1akin hours tr$in to anticipate 1hat
their au"iences 1ill 1ant an" ho1 the$6ll react' +e tr$ our best, but
sometimes 1e miss'
Pharmaceutical advertisin& :
(nformation is ethicall$ neutral' (n an aca"emic settin like this, 1e
1elcome more information because the marketplace of i"eas enables
in"i#i"uals to form their o1n .u"ments * 1hich brins us to
a"#ertisin about prescription "rus' >ot lon ao, onl$ a "octor coul"
tell $ou about a ne1 me"icine' Sou probabl$ ne#er hear" of it before
$ou 1alke" inL $ou "i"n6t kno1 if it 1as the onl$ one in the 1orl" or
one of "o&ens that "i" prett$ much the same thin' >o1 a"#ertisers
spen" millions of "ollars tellin $ou about their me"icines' A"#ertisin
puts more information in people6s han"s' Stu"ies sho1 that "ru a"s
raise a1areness of some con"itions so more people seek treatment'
An" the$ kno1 more about their options before seein the "octor'
)hat6s oo", rihtR
;ut of course the "ru companies "on6t a"#ertise their cheapest
pro"ucts' )he$ promote the bi mone$makers' )here6s more
information out there, but it comes 1ith a hea#$ "ose of Point*of*7ie1'
Sometimes there are t1o points of #ie1 in the same commercial' )he
EDA re2uires that, if $ou promote the bene4ts of $our me"icine, $ou
must also re#eal an$ sini4cant risks or si"e e0ects' So 1e ha#e them
to thank for the no1 leen"ar$ "isclaimer for a 1eiht*loss "ru' )he
me"icine 1orke" miracles, but the compan$ 1as also oblie" to
mention its unpleasant si"e e0ects, 1ith the result that the "ru
turne" into a national .okeQ Does more information ele#ate the national
"ialoueR
Product placement
:
+hat are the ethics of a"#ertisin that "oesn6t look like a"#ertisinR (n
a mo#ie chase scene, the hero an" the ba" u$ are oin to nee"
some kin" of car to "ri#e' (n the theatre 1e ha#e no 1a$ of kno1in
1hether the "irector chose those cars because the$ ful4lle" his artistic
21
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
#ision * or because the car manufacturer ma"e a "eal 1ith the
pro"ucer' )he car people et e5citin e5posure for their bran" an" she
sa#es a nice piece of chane on her pro"uction bu"et' Au"iences like
realism in mo#ies' Ma"e*up bran"s break the spell because the$6re
ob#ious fakes' ;ut the "i0erence bet1een somethin that6s .ust a prop
an" somethin that6s a pro"uct promotion is ettin murkier all the
time, on )7 sho1s as 1ell as mo#ies'
)his kin" of /pro"uct placement/ happens in real life, too' (f $ou o out
to a club toniht, $ou miht see some particularl$ oo"*lookin $oun
people usin a ne1 kin" of cell phone' (t lets them shoot pictures of
people to their frien"s across the room: /3ere6s a cute u$ * 1ant to
come an" meet himR/ Eun stu0 like that' (f $ou6re curious, ma$be
the$6#e taken $our picture an" the$6ll be happ$ to sho1 $ou the phone
an" let $ou tr$ it' )he phone is #er$ cool' An" the people are 1hat
a"#ertisers call /aspirational/ because the$6re 1a$ cooler than $ou are'
)he$6re people $ou 1ant to be' )he$6re also actors an" this is a i for
them' )heir .ob is creatin the impression that usin this phone is )he
>e5t )ren"' (f $ou ask them "irectl$ if the$ are actors, the$ 1on6t lie'
;ut if $ou "on6t ask, the$ 1on6t tell' )his is the re#erse of the 7ol#o
stor$' 7ol#o6s "emonstration 1as rie", no 2uestion, but 1hat #ie1ers
sa1 on )7 1as the truth' +ith this cell phone, the "emonstration is the
absolute truth, but the scene in the club is pure theater'
8>ote: )his ne1 /uerrilla/ marketin campain for Son$ Ericsson has
recei#e" a reat "eal of neati#e publicit$ alrea"$ for bein "ecepti#e
in its approach'-
4ubliminal advertisin&
:
)here6s one more thin ( kno1 $ou 1ant me to talk about' (f $ou
belie#e subliminal a"#ertisin e5ists, $ou "on6t an$ more because (
embe""e" a con#incin subliminal "enial in this talk' (n case $ou
misse" it, subliminal a"#ertisin is one of those /urban leen"s'/ )r$
this e5periment' )ake a photoraph of a lass of ice 1ater or the
be#erae of $our choice an" make a fake a" out of it' )hen in#ite
people in $our Ps$ch "epartment to 4n" the subliminal messaes in
$our a"' )he$ 1on6t "isappoint $ou'
(f a bunch of stu"ents can create subliminal messaes, imaine 1hat
the pros on Ma"ison A#enue can "o'
$,3$9.4I,3
)his 1oul"n6t be a talk about ethics in a"#ertisin 1ithout a 1or" from
our sponsor an" here it comes'
22
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
VIT of American companies ha#e a 1ritten Co"e of Ethics' An"
probabl$ HIIT of $ou "o too, if $ou a#e it some thouht an" 1rote it
"o1n' Ethics happen, or "on6t, in our relationships 1ith others'
A"#ertisers are in the business of communicatin 1ith thousan"s, e#en
millions, of /others/ all the time' )hat i#es us thousan"s or millions of
chances to practice 1hat 1e belie#e e#er$ "a$' An" tr$ to et it riht'
Ethical #ers#ecti!e in Em#lo$ment incl%ing in the &nternational 'abo%r
(rgani)ation Stanar"
)he "iscussions on ethical issues that ma$ arise in the emplo$ment
relationship, inclu"in the ethics of "iscrimination, an" emplo$eesB
rihts an" "uties are commonl$ seen in the business ethics te5ts +hile
some arue that there are certain inalienable rihts of 1orkplace such
as a riht to 1ork, a riht to pri#ac$, a riht to be pai" in accor"ance
1ith comparable 1orth, a riht not to be the #ictim of "iscrimination,
others claim that these rihts are neotiable' Ethical "iscourse in 3=M
often re"uce" the ethical beha#ior of 4rms as if the$ 1ere charit$ from
the 4rms rather than rihts of emplo$ees' E5cept in the occupations,
1here market con"itions o#er1helminl$ fa#our emplo$ees,
emplo$ees are treate" "isposable an" e5pen"able an" thus the$ are
"efenselessl$ cornere" to e5treme #ulnerabilit$' )he e5pen"abilit$ of
emplo$ees, ho1e#er, is .usti4e" in the te5ts of Abusiness moralit$B on
the roun" the ethical position aainst such e5pen"abilit$ shoul" be
sacri4ce" for Areater merit in a free market s$stem' Eurther, it is
arue" since because Aboth emplo$ees an" emplo$ers "o in fact
possess economic po1erB in the free market, it 1oul" be unethical if
o#ernments or labour unions Aimpose emplo$ment terms on the labor
relationshipB )here are "iscussions of ethics in emplo$ment
manaement in"i#i"ual practices, issues like policies an" practices of
human resource manaement, the roles of human resource 83=-
practitioners, the "ecline of tra"e unionism, an" issues of lobali&in
the labour etc', in the recent 3=M literature, thouh the$ "o not
occup$ the central stae in the 3= aca"emics' (t is obser#e" that 1ith
the "ecline of labour unions 1orl" o#er, emplo$ees are potentiall$
23
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
more #ulnerable to opportunistic an" unethical beha#ior' (t is critici&e"
that 3=M has become a strateic arm of sharehol"er pro4teerin
throuh makin 1orkers into A1illin sla#esB' A 1ell cite" article points
out that there are AsoftB an" a Ahar"B #ersions of 3=Ms, 1here in the
soft*approach rear" emplo$ees as a source of creati#e ener$ an"
participants in 1orkplace "ecision makin an" har" #ersion is more
e5plicitl$ focuse" on orani&ational rationalit$, control, an" pro4tabilit$'
(n response, it is arue" that the stereot$pes of har" an" soft 3=M are
both inimical to ethics because the$ instrumentall$ atten" to the pro4t
moti#e 1ithout i#in enouh consi"eration to other morall$ rele#ant
concerns such as social .ustice an" human 1ellbein' 3o1e#er, there
are stu"ies in"icatin, lon term sustainable success of orani&ations
can be ensure" onl$ 1ith humanel$ treate" satis4e" 1orkforce'
Market, ob#iousl$, is not inherentl$ ethical institution that coul" be le"
b$ the m$thical Ain#isible han"B aloneL neither, it can be allu"e" that
market is inherentl$ unethical' Also, ethics is not somethin that coul"
be achie#e" throuh establishment of proce"ures, "ra1in co"es of
ethics, or enactment of la1 or an$ other heteronomous means, thouh
their necessit$ coul" remain un2uestione"'3o1e#er, thouh market
nee" not be the cause of moral or ethical ha&ar"s it ma$ ser#e an
occasion for such ha&ar"s' )he moral ha&ar"s of 3=M 1oul" be on
increase so much as human relations an" the resources embe""e"
1ithin humans are treate" merel$ as commo"ities'
Discrimination issues inclu"e "iscrimination on the bases of ae
8aeism-, en"er, race, reliion, "isabilities, 1eiht an"
attracti#eness' See also: a9rmati#e action, se5ual harassment'
(ssues arisin from the tra"itional #ie1 of relationships bet1een
emplo$ers an" emplo$ees, also kno1n as At*1ill emplo$ment'
(ssues surroun"in the representation of emplo$ees an" the
"emocrati&ation of the 1orkplace: union bustin, strike breakin'
(ssues a0ectin the pri#ac$ of the emplo$ee: 1orkplace
sur#eillance, "ru testin' See also: pri#ac$'
(ssues a0ectin the pri#ac$ of the employer: 1histle*blo1in'
(ssues relatin to the fairness of the emplo$ment contract an"
the balance of po1er bet1een emplo$er an" emplo$ee: sla#er$,
in"enture" ser#itu"e, emplo$ment la1'
%ccupational safet$ an" health'
All of abo#e are relate" to the hirin an" 4rin of emplo$ees' An
emplo$ee or future emplo$ee can not be hire" or 4re" base" on race,
ae, en"er, reliion, or an$ other "iscriminator$ act'
International 9abour ,r&ani8ation %I9,)
24
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
International labour standards are con#entions, treaties an"
recommen"ations "esine" to eliminate un.ust an" inhumane labour
practices' )he primar$ international aenc$ chare" 1ith "e#elopin
such stan"ar"s is the (nternational :abour %rani&ation 8(:%-'
Establishe" in HKHK, the (:% a"#ocates international stan"ar"s as
essential for the era"ication of labour con"itions in#ol#in /in.ustice,
har"ship an" pri#ation/' Accor"in to the (:%, international labour
stan"ar"s contribute to the possibilit$ of lastin peace, help to mitiate
potentiall$ a"#erse e0ects of international market competition an"
help the proress of international "e#elopment'
)he most basic labor rihts ha#e been co"i4e" b$ the (:% in the HKKV
Declaration of Eun"amental =ihts at +ork after some "e#elope"
countries trie" to inclu"e them at the +)%Bs Sinapore Meetin in
HKKW' )he "eclaration outlines 4#e @core labor stan"ar"sC 8C:S- that all
labor markets shoul" stri#e to meet: free"om of association, the riht
to collecti#e barainin, abolition of force" or compulsor$ labor,
elimination of chil" labor, an" free"om from "iscrimination'
:abor stan"ar"s an" their implementation "i" not merel$ arise to
promote economic ro1th' )he$ also emere" as a ne1 an" important
area of concern for sociall$ responsible in#estors, especiall$ in the
@problematicC foot1ear, apparel, an" to$ in"ustries' Eor most in#estors
in#ol#e" 1ith this issue, the fun"amental matter of concern is the
protection of human rihts in the 1orkplace' )his is 1h$ there is a
stron mo#ement to consi"er the core labor rihts "e4ne" in the HKKV
(:% Declaration as @uni#ersal human rihts'C )he (:% Declaration on
Eun"amental Principles an" =ihts at +ork "eclares inter alia that all
member states, 1hether the$ ha#e rati4e" the rele#ant con#entions or
not, ha#e an obliation "ue to their membership in the (:%, to respect,
to promote, an" to reali&e in oo" faith an" accor"ance 1ith the
Constitution, the fun"amental rihts 1hich are the sub.ect of those
con#entions'
Ethics an &T" E-commerce* +ri!ac$ ,oes"
Information ethics is the 4el" that in#estiates the ethical issues
arisin from the "e#elopment an" application of information
technoloies' (t pro#i"es a critical frame1ork for consi"erin moral
issues concernin informational pri#ac$, moral aenc$ 8e'' 1hether
arti4cial aents ma$ be moral-, ne1 en#ironmental issues 8especiall$
ho1 aents shoul" one beha#e in the infosphere-, problems arisin
from the life*c$cle 8creation, collection, recor"in, "istribution,
processin, etc'- of information 8especiall$ o1nership an" cop$riht,
25
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
"iital "i#i"e-' (nformation Ethics is relate" to the 4el"s of computer
ethics an" the philosoph$ of information'
Dilemmas rear"in the life of information are becomin increasinl$
important in a societ$ that is "e4ne" as /the information societ$/'
(nformation transmission an" literac$ are essential concerns in
establishin an ethical foun"ation that promotes fair, e2uitable, an"
responsible practices' (nformation ethics broa"l$ e5amines issues
relate" to o1nership, access, pri#ac$, securit$, an" communit$'
(nformation technolo$ a0ects fun"amental rihts in#ol#in cop$riht
protection, intellectual free"om, accountabilit$, an" securit$'
Professional co"es o0er a basis for makin ethical "ecisions an"
appl$in ethical solutions to situations in#ol#in information pro#ision
an" use 1hich re,ect an orani&ationBs commitment to responsible
information ser#ice' E#ol#in information formats an" nee"s re2uire
continual reconsi"eration of ethical principles an" ho1 these co"es are
applie"' Consi"erations rear"in information ethics in,uence
@personal "ecisions, professional practice, an" public polic$C'
)herefore, ethical anal$sis must pro#i"e a frame1ork to take into
consi"eration @man$, "i#erse "omainsC 8ibi"'- rear"in ho1
information is "istribute"'
Ethics for e2$ommerce

)hereBs nothin like bu$in somethin from the local merchants in to1n'
Sou kno1 them, $ou trust them, an" the$ kno1 $ou an" $ou s1ap car"s
"urin the holi"a$s' )hese are relationships built on trust'
>ot so in the on*line 1orl" of commerce' SouBre a home pae' Sour
bu$ers are numbers an" e*mail a""resses' Sou "onBt kno1 themL the$
"onBt kno1 $ou' 3o1e#er, $ou can an" shoul" still con"uct business
like a local merchant'
$ustomers 'ill come bac", &eneratin& repeat sales.
4atis:ed bu/ers 'ill tell their friends. %6o' do /ou thin"
Ama8on became so bi&;)
<ou0ll demonstrate /our commitment to bein& a &ood, on2line
citi8en.
<ou0ll be able to loo" at /ourself in the mirror each mornin&.
So, letBs look at the areas 1here e*tailers ha#e ethical responsibilities
to their customers, to their businesses an" to the ro1in societ$ of
on*line businesses an" the bu$in public'
26
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
Post <our Business Policies
Do $ou accept returnsR Dn"er 1hat con"itionsR Do $ou i#e cash
returns or store cre"itR Are shipments insure"R +here are $ou
ph$sicall$ locate"R Do $ou o0er customer support an" ser#iceR 2NOXR
Sour business policies shoul" be carefull$ lai" out for all to see' )here
shoul" be a lare link o0 $our home pae to a pae or t1o of $our
compan$Bs policies' (f $ou uarantee customer satisfaction, tell each
customer' (f there are con"itions on returns, la$ them out clearl$' Skip
the W*point te5t on the back pae 8the 4ne print-' ;e straiht 1ith $our
customers riht from the start'
6onor <our Policies
)he most o#eruse" 1or"s on the (nternet are @A;S%:D)E:S E=EEC'
>o1, unless $ouBre a complete rube, $ou kno1 nothin is e#er
absolutel$ free' )hereBs al1a$s a hook, a catch'
So, unless it reall$ is absolutel$ free, "onBt h$pe 1hat isnBt riht' (f $ou
o0er a full, mone$*back uarantee, then i#e the customer her mone$
backQ )here are e*tailers 1ho sa$ one thin in their site te5t, but
practice a "i0erent set of rules 1hen it comes to "eli#erin on
promises ma"e'
Sou 8an" the rest of the 1orl"- are better o0 if $ou "o 1hat $ou sa$
$ouBre oin to "o' (tBs the riht thin to "o' (tBs the ethical thin to "o'
$ome ,n =ith the >$ome2,ns0 Alread/
9aptops: ,nl/ ?@.@@AAA =hile the/ lastAAA
Sou see this kin" of Acome*onB all the time' So, $ou click to see 1hat a
GK'KK laptop ets $ou an" "isco#er the site sells abacuses' %r, the$
onl$ ha" one HI*$ear ol" laptop for GK'KK, 1hich "i"nBt last lon 81hile
the$ last-' (tBs the ol" bait*an"*s1itch, 1ith a cheap laptop the bait'
%nce on the site, $ouBre reroute" to a pae of much hiher price"
laptops' SouB#e been suckere" F aain' >o one likes to be suckere"'
(tBs a 1aste of time an" an insult to the in"i#i"ualBs intellience'
Protect <our Bu/er0s Privac/
Sou can bu$ a million e*mail a""resses 8#eri4e", so the$ sa$- for as
little as a penn$ an a""ress' An", 1here "i" the pur#e$ors of these
mailin lists ac2uire their informationR Erom people 8on*line
entrepreneurs- 1ho sol" them their o1n compan$ mailin lists' :ealR
Ses' EairR +ell, thatBs an ethical 2uestion' Do $ou think itBs fair to sell
$our customer list to a marketin "ata compan$ for sale to an$one
1illin to pa$ GHIIR
Sour strict pri#ac$ polic$ is a sellin point' (tBs also the ethical thin to
"o, so proclaim $our position riht there in $our terms of ser#ice'
27
Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
@+e 1ill not i#e or sell $our name or other personal information to
another part$'C
)hen, "o 1hat $ou promise'
=hat About 4ecurit/;

Another area in 1hich A"o the riht thinB comes into pla$'
Sou ather a lot of personal information on $our customers or clients F
names, a""resses, credit card numbers F the 1hole sheban' An",
as the keeper of this in#aluable information, $ou ha#e a moral
responsibilit$ to protect it from hackers an" the ki"s 1ho use $our
business computer to "o their home1ork'
(s $ou site secureR (s $our computer protecte" 1ith multi*la$ers of
protection aainst hackersR A 4re 1allR Anti*mal1are soft1areR
Encr$ption for on*line or"ersR (f not, $ouBre puttin $our customers at
risk' An" belie#e this: the$Bll be none too happ$ 1hen the$ "isco#er
that some cracker has their personal information thanks to $our la5
securit$'
Ethics is about responsibilit$ F acceptin responsibilit$ an" "oin the
riht thin' (f $ouBre oin to be a reputable, on*line "ealer F one 1ith
ethical business practices F $ou ha#e a responsibilit$ to protect the
personal information in $our s$stem'
3ereBs the bottom line on $our bottom line: 1e ha#e to et ri" of the
@snake oilC aspect of on*line commerce' +e ha#e to start operatin like
the ol" store on Main Street' ;uil" trust throuh clearl$*state" business
policies, straiht*up information 8no bait*an"*s1itch-, treat customers
fairl$ 8thereBs al1a$s one- an" protect the personal information
entruste" to $ou'
+hen 1e all earn the con4"ence of more an" more on*line bu$ers, 1e
make the 1hole e*commerce Bsociet$B a stroner, more #ibrant place in
1hich to con"uct business F for e#er$one'
En!ironmental Ethics" &nian an -estern #ers#ecti!es
En#ironmental ethics is the "iscipline in philosoph$ that stu"ies the
moral relationship of human beins to, an" also the #alue an" moral
status of, the en#ironment an" its nonhuman contents' )his entr$
co#ers:
8H- the challene of en#ironmental ethics to the anthropocentrism 8i'e',
human*centere"ness- embe""e" in tra"itional 1estern ethical
thinkinL
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Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
82- the earl$ "e#elopment of the "iscipline in the HKWIs an" HKXIsL
8M- the connection of "eep ecolo$, feminist en#ironmental ethics, an"
social ecolo$ to politicsL
8N- the attempt to appl$ tra"itional ethical theories, inclu"in
conse2uentialism, "eontolo$, an" #irtue ethics, to support
contemporar$ en#ironmental concernsL an"
8J- the focus of en#ironmental literature on 1il"erness, an" possible
future "e#elopments of the "iscipline
Environmental ethics is the part of en#ironmental philosoph$ 1hich
consi"ers e5ten"in the tra"itional boun"aries of ethics from solel$
inclu"in humans to inclu"in the non*human 1orl"' (t e5erts in,uence
on a lare rane of "isciplines inclu"in la1, sociolo$, theolo$,
economics, ecolo$ an" eoraph$'
)here are man$ ethical "ecisions that human beins make 1ith respect
to the en#ironment' Eor e5ample:
Shoul" 1e continue to clear cut forests for the sake of human
consumptionR
Shoul" 1e continue to propaateR
Shoul" 1e continue to make asoline po1ere" #ehiclesR
+hat en#ironmental obliations "o 1e nee" to keep for future
enerationsR
(s it riht for humans to kno1inl$ cause the e5tinction of a
species for the con#enience of humanit$R
En#ironmental Challenes: Global Perspecti#e
Se#eral factors an" e#ents that re,ect future en#ironmental
challenes:
Some oil companies an" the +orl" +il"life Eun" aree to prohibit
+orl" 3eritae site e5ploration
)he abun"ance an" appeal of hea#$ oil resources in Cana"a an"
7ene&uela an" a ne1 focus on pro"ucin those resources ha#e
colli"e" 1ith reenhouse as commitments an" 1aste "isposal
issues
Aressi#e @en#ironmental liabilit$ manaementC has become
the norm for ma.or companies in "ealin 1ith leac$ issues an"
in a#oi"in future liabilities
)he nee" to accuratel$ measure an" manae reenhouse as
emissions "ata for purposes of future internal an" e5ternal
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Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
tra"in is "ri#in a D'S'Oin"ustr$ push for @stan"ar"i&ationC of
manaement techni2ues
E#en as the conse2uences of lobal 1armin are becomin
clearer * climate chane impacts alrea"$ reconi&e" in the Arctic,
1ith measurable "isruptions to Aboriinal lifest$les, 1il"life,
e5istin communities, an" in"ustrial "e#elopment Fthe e5act
causes are still "ebate", an" in turn une#en lobal approaches
ha#e create" uni2ue business challenes
)here is a "ire nee" to mitiate the 1orl"1i"e loss of 4sheries
an" un"er1ater habitats "ue to o#ere5ploitation an" collateral
"amae
Acti#ities in the >or1eian sector of the >orth Sea "emonstrate
the technical an" cost bene4ts of oil compan$ collaboration in
a""ressin en#ironmental research, an" "e#elopin an
en#ironmental manaement strate$
En#ironmental (ssues in (n"ia:
Across (n"ia, concern is mountin o#er an e#er ro1in list of
en#ironmental problems'
More people means increase" pressure on natural resources 8from
1ater to forests-, 1hile an econom$ in hih*ear is lea#in a trail of
pollution thatBs a0ectin not onl$ (n"ia, but the rest of the 1orl" too
Deforestation
(n"ia is 1itnessin a risin "eman" for forest*base" pro"ucts' )his is
causin "eforestation an" encroachment into forest protecte" areas,
1hich lea"s to a se#ere loss of natural resources'
(t is estimate" that total in"ustrial roun"1oo" consumption in (n"ia
coul" e5cee" XI million m
M
per $ear b$ the en" of the "eca"e 8MJI,III
lare shippin containers-, 1hile "omestic suppl$ 1oul" fall short of
this 4ure b$ an estimate" HN million m
M
'
H
As the nation 1ill ha#e to "epen" hea#il$ on imports to meet this
ro1in "eman", there is fear that this coul" result in loss of hih
conser#ation #alue forests an" bio"i#ersit$ else1here'
A thirst for palm oil
(n"ia is a bi e"ible oil consumer' (n fact, it is one of the three larest
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Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
importers of palm oil in the 1orl", alon 1ith ED an" China' %f these
imports, KJT come from (n"onesia an" Mala$sia, causin neati#e
social an" en#ironmental conse2uences in these e5portin countries'
Con#ersion of natural forests for culti#atin oil palm is a ma.or threat
to bio"i#ersit$ an" li#elihoo"s in the tropics' Most of the lo1lan"
rainforest on the (n"onesian islan" of Sumatra has alrea"$ been lost,
larel$ because of the clearance for oil palm an" pulp 1oo" plantations
+ith the lobal "eman" for palm oil e5pecte" to increase from 2V
million tonnes at present to about JI million tonnes in 2IMI
2
, there are
#er$ serious concerns that this 1ill happen at the e5pense of
bioloicall$ an" economicall$ important forests'
Pollution
(ncreasin competition for 1ater amon #arious sectors, inclu"in
ariculture, in"ustr$, "omestic, "rinkin, ener$ eneration an" others,
is causin this precious natural resource to "r$ up' (ncreasin pollution
is also lea"in to the "estruction of the habitat of 1il"life that li#es in
1ater1a$s'
)he aca"emic 4el" of en#ironmental ethics re1 up in response to the
1ork of scientists such as =achel Carson an" e#ents such as the 4rst
Earth Da$ in HKXI, 1hen en#ironmentalists starte" urin philosophers
to consi"er the philosophical aspects of en#ironmental problems'
)he 4rst international aca"emic .ournals in this 4el" emere" from
>orth America in the late HKXIs an" earl$ HKVIs the DS*base"
.ournal Environmental Ethics in HKXK an" the Cana"ian base" .ournal
The Trumpeter: Journal of Ecosophy in HKVM' )he 4rst ;ritish base"
.ournal of this kin", Environmental Values, 1as launche" in HKK2'
Ecolo&ic e-tension
Alan Marshall6s cateor$ of ecoloic e5tension places emphasis not on
human rihts but on the reconition of the fun"amental
inter"epen"ence of all bioloical 8an" some abioloical- entities an"
their essential "i#ersit$' +here as :ibertarian E5tension can be thouht
of as ,o1in from a political re,ection of the natural 1orl", Ecoloic
E5tension is best thouht of as a scienti4c re,ection of the natural
1orl"' Ecoloical E5tension is rouhl$ the same classi4cation of SmithBs
eco*holism, an" it arues for the intrinsic #alue inherent in collecti#e
ecoloical entities like ecos$stems or the lobal en#ironment as a
1hole entit$' 3olmes =olston, amon others, has taken this approach'
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Business Ethics & Corporate Social Responsibility TY-BMS (Sem 5)
)his cateor$ inclu"es <ames :o#elock6s Gaia h$pothesisL the theor$
that the planet earth alters its eo*ph$sioloical structure o#er time in
or"er to ensure the continuation of an e2uilibrium of e#ol#in oranic
an" inoranic matter' )he planet is characteri&e" as a uni4e", holistic
entit$ 1ith ethical 1orth of 1hich the human race is of no particular
sini4cance in the lon run
$onservation ethics
Marshall6s cateor$ of 6conser#ation ethics6 is an e5tension of use*#alue
into the non*human bioloical 1orl"' (t focuses onl$ on the 1orth of the
en#ironment in terms of its utilit$ or usefulness to humans' (t contrasts
the intrinsic #alue i"eas of 6"eep ecolo$6, hence is often referre" to as
6shallo1 ecolo$6, an" enerall$ arues for the preser#ation of the
en#ironment on the basis that it has e5trinsic #alue instrumental to
the 1elfare of human beins' Conser#ation is therefore a means to an
en" an" purel$ concerne" 1ith mankin" an" interenerational
consi"erations' (t coul" be arue" that it is this ethic that forme" the
un"erl$in aruments propose" b$ Go#ernments at the K$oto summit
in HKKX an" three areements reache" in =io in HKK2
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