Marketing is the most important element of any business. It influences sales and behaviour of customers. The main reasons for ethical behaviour are:-
i) To reverse declining public confidence in marketing: Unethical practice such as misleading package labels, false claim in ads, infringements of well establishment trademarks, etc. not only declines public confidence in marketing but also damages reputation of all marketers. To reverse this situation, Companies must set high ethical standards & enforce them in consumer‟s interest as consumers are lifeblood of business.
ii) To avoid increase in Government regulation: Most of the governmental limitation on marketing are the results of management‟s failure to live up to its ethical responsibilities at one time or other.
iii) To sustain the power granted by society: – Marketing executives hold and use a great deal of social power as they influence market & speak out on economic issues. However, there
are responsibilities tied to this power & if marketers do not use their power in a socially acceptable manner then that power will be lost in long run.
iv) To protect Image of the organization: – Buyers often form as impression of an entire organization based on their contact with one person & and mostly that person represents the marketing functions.
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