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Marketing and Advertising Ethics: Developing Policies and Procedures to Reduce Ethical

drifts

The science of ‘Economics’ is based on an initial act of abstraction which involves

dissociating a particular set of practices from the social order in which all human practices are

immersed. Until the eighteenth century, economic growth ran in a very slow pace. However,

according to Angus Maddison who is an economic historian, Industrial Revolution brought about

massive reorganization of production and during this period, there were no nasty recessions thus

people experienced steady growth and low inflation. However, in the 1930’s the world

experienced the worst crisis and the deepest recessions which included; central banks out of

interest rate bullets reaching for the monetary bayonets, and dept crises stalking not only the poor

countries but also the rich. Consequently, these fostered the release of the unprecedented

government firepower. Moreover, the world’s indifference of the economy was now replaced by

an engrossed attention and fear. Inflation was now declared as the most serious economic

problem. It is said to be the cruelest tax and is viewed by most organizations as a sign of moral

rot.

A poor economy affects businesses in various ways which include; (1) stock market and

dividends going down which stops institutional investors to reinvest into better performing

stocks. (2) It leads to credit impairment and Bankruptcy which results to damaging the firm’s

credit rating and preventing further borrowing. (3) It may foster employees’ lay-offs and benefit

reductions which constitute to more work being done by fewer people. In addition, an

organization may be forced to close plants and discontinue poorly. (4)It may lead to cuts in

quality of goods and services as various organizations attempt to further cut costs to improve its

bottom line. For these reasons, the government has stepped in with plans to stimulate the

economy which involves lowering taxes and offering stimulation packages and above ensuring

the existence of a sustainable fair trade. Consequently, this has triggered stiff competition among

various businesses in the attempt of surviving while increasing market shares. Therefore,

businesses have employed various strategies which include marketing and advertising so as to

remain competitive in the market. Moreover, following the latest advancement in technology,

most organization has turned to advertising as the best means of marketing their products by

making them known to the public.

Marketing and Advertising have changed the way businesses are conducted. They pose

quite a challenge to the mangers since its implementation has many hazards and benefits not only

to the employees but also to the organization at large. Moreover, organizational leaders from

various organizations such as Apple Inc, Google Inc, and Samsung among many others are often

faced by various ethical dilemmas. This is as a result of facing threats from rivals, threats from

new entrants into the market, competition from substitute products, and bargaining power of both

the consumers and the suppliers (Jennings, 2012). This points up the fact that organizations need

clear policies and procedures while marketing and Advertising their products so as to remain

competitive in the market. Thus, there is the need of understanding what is marketing and

advertising and how it came to be.

Background on Marketing and Advertisement (700)

Marketing management is defined as the process of setting up and executing programs

designed to influence the behavior of consumers by creating and maintaining beneficial

exchanges for the purpose of satisfying not only the individual objectives but also the

organizational objectives. On the other hand, advertising is a paid form of communication with

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Marketing and Advertising Ethics: Developing Policies and Procedures to Reduce Ethical drifts The science of ‘Economics’ is based on an initial act of abstraction which involves dissociating a particular set of practices from the social order in which all human practices are immersed. Until the eighteenth century, economic growth ran in a very slow pace. However, according to Angus Maddison who is an economic historian, Industrial Revolution brought about massive reorganization of production and during this period, there were no nasty recessions thus people experienced steady growth and low inflation. However, in the 1930’s the world experienced the worst crisis and the deepest recessions which included; central banks out of interest rate bullets reaching for the monetary bayonets, and dept crises stalking not only the poor countries but also the rich. Consequently, these fostered the release of the unprecedented government firepower. Moreover, the world’s indifference of the economy was now replaced by an engrossed attention and fear. Inflation was now declared as the most serious economic problem. It is said to be the cruelest tax and is viewed by most organizations as a sign of moral rot. A poor economy affects businesses in various ways which include; (1) stock market and dividends going down which stops institutional investors to reinvest into better performing stocks. (2) It leads to credit impairment and Bankruptcy which results to damaging the firm’s credit ...
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