Introduction
Ethics in commerce is a necessary tool in achieving and maintaining high standards in a profession, which entails customer trust and satisfaction. In order to determine what is considered ethical in the industry, the American Marketing Association (AMA) has released a Statement of Ethics that serves as a guideline in making ethical decisions in the commercial field.
The Case of Sparrow Pharmaceuticals
Let us take the case of Sparrow Pharmaceuticals, who holds a mailing list of the customers who earned their trust. Suppose Soothing Waters Hot Tubs and Spas investors want to use the mailing list of said company wants to use the mailing list in order to advertise their products. However, doing so could potentially result in some consumers losing trust in Sparrow Pharmaceuticals as some would not like to receive promotion from other products. However, since Sparrow Pharmaceuticals is under the control of the investors, they have largely no say regarding the case.
What Should Sparrow Pharmaceuticals Do? In order to reach a compromise between maintaining the trust imparted to them by the customers and the mailing list and agreeing to their investor’s demands, Sparrow Pharmaceuticals could ask first the people in the mailing list if they want to be included in the advertising list before doing so. Asking consumers if they would like to receive updates proves beneficial on both sides—the consumers have the freedom of choice and the company would have informed the consumers regarding their products, which is ultimately what the investor’s company is aiming for.
Ethics in Using Consumer Information. In general, using customer information across multiple divisions of the same company can be considered largely unethical, unless there is an agreement that the information provided can be used by the company in any form without explicit permission from the owner. This is often the case in End-User License Agreement contracts. In that case, then the company can do whatever they want the data at hand, provided that the methods used will not violate the trust placed by the customer with regards to their personal information in any manner.
Marketing Management Philosophy. With regards to the Soothing Waters Hot Tubs and Spas, the investors subscribe to the selling concept of marketing management philosophy. In the selling concept, the products and services offered by the company can only be productive if great lengths are taken to advertise and promote the product being sold to attract potential customers (Punjabi, n.d.). Basically, using the mailing list as a means to distribute promotions counts as a way to attract the customers, which falls under the selling concept of marketing management philosophy.
Sparrow Pharmaceuticals and AMA Ethics. If the AMA Statement of Ethics is consulted, doing that tactic would be in violation of the fairness policy, which states that sales tactics that could harm a consumer’s trust is to be avoided. The strategy employed by the investors can lead to Sparrow Pharmaceuticals violating the trust put upon by the customers in the mailing list that their e-mail addresses are not to be used in any manner aside from services of said company. Since trust is violated, then it is deemed unethical. Maleki and Akbarzadeh Pasha (2012) believes that trust is the primary ethical concern between customers and businesses, especially in the modern age where information can be easily accessed. Maintaining the trust placed by the consumers is the foundation of ethics in commerce.
References
Maleki, M. & M. Akbarzadeh Pasha. (2012). Ethical challenges: Customer’s rights. SCMS Journal of Indian Management 9(4). Retrieved from http://connection.ebscohost.com/c/articles/85114507/ethical-challenges-customers-rights
Pujari, S. (n.d.). 5 Important Concept of Marketing Management Philosophy. Your Article Library. Retrieved from http://www.yourarticlelibrary.com/marketing/5-important-concept-of-marketing-management-philosophy/1076/
