Understand Ethics Principles and Ethical Decision making as they apply in various marketing situations - Essay Example

Understanding Ethics Principles and Ethical Decision Making as they apply in various Marketing Situations It is wrong both in line with the existing code of marketing ethics and to her customers for Ms. Barksdale to claim that she is a Hispanic American when in the real sense she is not. This is issue is indeed ethical. Ethical issues underpinning this issue entail; exercising dishonesty (by Ms. Barksdale) to consumers of her products, knowingly taking part in conflict of interest without earlier notice to her consumers, initiating inequitable fee structures including the receipt or payment of customary reimbursement for marketing exchanges.

From ethical considerations, there are both positive and negative implications for the company and society that come as a result of the secret being advanced by Ms. Barksdale. It is apparently explicit that if the scheme planned by Ms. Barksdale succeeds, the company will accrue more profits from selling more profits. Besides, there is a possibility of securing a strong customer base that is most likely to increase the market stability of this company. On the contrary, since the company is violating several clauses governing marketing transactions, it risks being sued and consequently closed.

The company may also lose its assets for being frozen. Besides, if realized by the customers that indeed connection between Ms. Barksdale and the Hispanic American is vague, then customers may lose confidence in the company. In such cases, profit accrued by the company is most likely to reduce. Notably, the image and rapport established by the company is most likely to be tainted. Since this is the driving reason behind any business, Ms. Barksdale may thus find it hard if not impossible to continue operating the business.

Practically the society is most likely to benefit from this business in a number of ways; most people are likely to be employed as workers for Ms. Barksdale. The gross domestic product of the nation is likely to increase through accruing foreign exchange which will improve the standards of living of the members of the society. However, a number of negative effects are also evident; since Hispanic Americans are part of the target group in the society, their rights as customers are likely to be infringed.

Apparently they will engage in dishonest business activities, their conflict of interest is likely to be interfered with, and they are likely to pay exorbitant prices for ideally cheap clothes based on the fact that Ms. Barksdale has a sole purpose of making money from this deal so as to repay the bank loan. The American Marketing Association (AMA) has explicit clauses addressing Ms. Barksdal’s dilemma. Under the responsibility of the marketer, marketers ought to accept the liability of the repercussions of their activities and attempt all efforts to ensure that their actions, recommendations and decisions, satisfy and serve all relevant customers, organizations, publics, and the entire society (Bernard 78). From Ms. Barksdal’s situation, her action does not function to serve and satisfy customers.

In addition, under the clause of fairness and honesty, the American Marketing Association as cited in (Bernard 122) code of ethics asserts that it is an incumbent responsibility of marketers to advance and uphold the honor, integrity, and dignity of their marketing profession. This addresses Ms. Barksdal’s dilemma because by posing her business being owned by a Hispanic American, he is exercising dishonesty to her customers and therefore, knowingly participating in conflict of interest. Work Cited: Bernard, M.

Business Ethics: American Marketing Association Code of Ethics. New York: Pocket, 2010. Print.