Sunday, October 31, 2010

Defining ethics (and arguing semantics)

Let’s lay down an appropriate marker and start with the individual’s worth ethic:
Typically we view this as the person’s way of working, and what they deem to be appropriate behaviour. So ethics can be translated into values, conduct and responsibilities.

Then there’s a business’ ethics: These are the values that complement the organisation’s vision and mission, and underpin the brand’s strategy. They are the brand’s moral compass that directs staff on what is acceptable and appropriate for the brand.

These values are driven by senior management. They can be explicit in terms of their articulation at board level and on various governance and consumer reports. But even where they are not formally introduced to staff, or indeed suppliers, they are implicitly evident in every function of the business including marketing. Furthermore, studies show that individuals emulate senior management behaviour, which they believe is what is expected of them, even if it contradicts their own morals.

So ethical marketing then, is based on the organisation’s and the brand’s ethics - regardless of whether they are communicated or discrete.

But here’s the rub:

Logic dictates that the most effective marketing is that which aligns the brand’s values to those of the customer. And customer and market oriented businesses, enjoy better performance, profitability and sustainable competitive advantage (Slater & Narver, Webster, and Hunt & Morgan respectively). So it follows that at a time when the customer is looking for greater integrity and honesty, these are the Utopian values that today’s brands should emulate to succeed. (A possible logic applied to the latest RaboDirect posters perhaps?)

Ultimately, I have two critical points I want to make here:

1. ethics is about behaviour, it’s what you do not what you say
2. ethics are lived through people, so they must be defined and communicated throughout the value chain and not just in the boardroom.

No comments:

Post a Comment