Chapter 2 Sustainable marketing: marketing ethics and social responsibilityactions, they might be ineffective as marketing managers and unhappy because of the constantmoral tension. Managers need a set of principles that will help them figure out the moralimportance of each situation and decide how far they can go in good conscience.But what principle should guide companies and marketing managers on issues of ethics andsocial responsibility? One philosophy is that such issues are decided by the free market and legalsystem. Under this principle, companies and their managers are not responsible <strong>for</strong> makingmoral judgements. Companies can in good conscience do whatever the system allows.A second philosophy puts responsibility not in the system, but in the hands of individualcompanies and managers. This more enlightened philosophy suggests that a company should havea ‘social conscience’. Companies and managers should apply high standards of ethics andmorality when making corporate decisions, regardless of ‘what the system allows’. Each companymust work out a philosophy of socially responsible and ethical behaviour. Under the societalmarketing concept, each manager must look beyond what is legal and allowed, and developstandards based on personal integrity, corporate conscience and long-run consumer welfare.A clear and responsible philosophy will help the company deal with the many knotty questionsposed by marketing and other human activities.A clear and responsible philosophy will help the company deal with knotty issues such as theone faced recently by 3M:In late 1997, a powerful new research technique <strong>for</strong> scanning blood kept turning up thesame odd result: tiny amounts of a chemical 3M had made <strong>for</strong> nearly 40 years were showingup in blood drawn from people living all across the country. If the results held up, it meant thatvirtually everyone may be carrying some minuscule amount of the chemical, calledperfluorooctane sulfonate (PFOS), in their systems. Even though at the time they had yet to comeup with a definitive answer as to what harm the chemical might cause, the company reached adrastic decision. In mid-2000, although under no mandate to act, 3M decided to phase outproducts containing PFOS and related chemicals, including its popular Scotchgard fabricprotector. This was no easy decision. Since there was as yet no replacement chemical, it meanta potential loss of about €400m in annual sales. 3M’s voluntary actions drew praise fromregulators. ‘3M deserves great credit <strong>for</strong> identifying the problem and coming <strong>for</strong>ward,’ says anEnvironmental Protection Agency administrator. ‘It took guts,’ comments another governmentscientist. ‘<strong>The</strong> fact is that most companies . . . go into anger, denial, and the rest of that stuff.[We’re used to seeing] decades-long arguments about whether a chemical is really toxic.’ For3M, however, it wasn’t all that difficult a decision – it was simply the right thing to do. 41In searching <strong>for</strong> ethical standards <strong>for</strong> marketing, marketing managers may also draw uponpostmodernist thinking and philosophies that date back well beyond marketing itself. <strong>Real</strong>Marketing 2.2 introduces some of this. As with environmentalism, the issue of ethics providesspecial challenges <strong>for</strong> international marketers. Business standards and practices vary a great dealfrom one country to the next.Imagine you are trying to win a big public contract in a developing country. <strong>The</strong> minister incharge makes unmistakable references to the disgracefully low pay of local civil officials and thebenefits his own children would enjoy if they could study abroad. <strong>The</strong> cost of providing this(concealed as a ‘scholarship’ paid <strong>for</strong> by your company) is minute compared with the value of thecontract. Your competitors, given the chance, would assuredly find the money. Do you pull out,or pay up? Most businesspeople in such situations find that their scruples are soon swallowed. Sodo most governments.103
Part 1 Marketing now2.2From Plato’s Republic to supermarketslavery<strong>The</strong>re is good reason to search a long way back <strong>for</strong> the ethics to guide marketing. Asthe British philosopher Alfred North Whitehead (1861–1947) commented, ‘All Westernphilosophy is really no more than a footnote to Plato’s (428–354 BC) great work <strong>The</strong>Republic.’ If that were true, our thinking on ‘marketing ethics’ is little more than asmudge on that footnote.<strong>The</strong> ancients were also practical, as Plato’s student explained:Ethics is a rough and ready business determined by ordinary practical men ofcommon sense, not by inbred ascetic ‘experts’ with their heads in a remote andaustere world.Aristotle (384–322 BC)Thinking’s the thingA lot of thinking went on in ancient Athens, a city state of about 400,000 people.Socrates (469–399 BC) thought that the most important thing about human beings isthat they ask questions. He also thought that real moral knowledge existed and wasworth pursuing. He did not think morality could be tough, but said that it was morethan just obeying the law. <strong>The</strong> newly democratic Athenians did not like this questioningof state morality, so they condemned him to death by poisoning.Good <strong>for</strong> the state and good <strong>for</strong> you tooPlato thought that Athens’ experiments with democracy were a shambles and lefttown. He believed in moral absolutes that were separate from the more sordid world.This led him to idealise regimes where right and wrong were well defined. He thoughtmilitaristic and disciplined Sparta was a much better place than freethinking Athensand that people should do what is good <strong>for</strong> the state. Lots of leaders have tried thisand very nasty it is too.Choosing the happy mediumAristotle rejected his teachers’ concern <strong>for</strong> absolute truths, suggesting that peopletake a middle road and learn how to behave from experience. People learn to become104