Ethical Marketing: Why it’s Important, and How to Use It
Updated: Feb 7, 2022
Ethical marketing is not a new concept, but it can be unfamiliar or even abstract to some. Find out what it really is, and how using it as a digital marketer gives you a powerful edge. This is the second article in our 2-part series on ethical marketing. If you’re interested, read part 1 where I broke down case studies where unethical marketing can harm your brand.
Ethics are rules and principles that govern a person’s conduct. These can vary between individuals, but common examples include responsibility, integrity, and fairness. Like individuals, companies also abide by their own set of business ethics. They serve as a compass to establish standards for what’s morally (sometimes legally) right or wrong.
You can incorporate ethics in every process of running a business:
Promotion: How products are displayed in-store or online
E.g. Ensuring price labels are accurate
Advertising: How your staff are selling it to potential customers
E.g. Relaying precise information; not promoting false deals
Company Values: What you stand for, what you believe in and how you conduct yourself professionally
Aligning partners with these are crucial as well
Fair treatment of all staff involved (in both your own company AND partner companies)
Promises/pledges to donate to others in need, supported by customers’ purchases
Positive Impact on Society:
A focus on social or environmental concerns through your work
What is Ethical Marketing?
Ethical marketing is a philosophy that reflects how companies commit to transparency, honesty and responsibility in their marketing efforts. Another facet of ethical marketing includes how a company positions its products to focus on social or environmental responsibility. The former is related to using ethics on promotion and advertising tactics, while the latter depends on the organization’s innate promise to do good and contribute to meaningful causes.
Ethical marketing covers a brand’s philosophy and how it conducts itself when it comes to sales and promotions. Given its depth, we will narrow our focus to equipping digital marketers on how to weave in ethics in their day-to-day work.
In this article, we will outline what being ethical looks like in digital marketing practices.
Ethical Marketing Makes a Difference in Singapore
Singaporean consumers are becoming more conscious about how their purchases can impact the world. An Eco Business’ 2016 Collaborative Brands report found that over half (54%) of interviewed respondents have purchased a product or service from a brand because they supported a social cause. Within the same group, 81% also believe brands should play a role in improving society. Customers want to know where their money goes. More importantly, they want to do good with each purchase.
As we usher in a new age in the digital and information revolution, we find ourselves better equipped for uncomfortable, yet necessary dialogues on social issues that were previously swept under the rug. We have become more attuned to the details in content around us, as both global and local citizens. Consumers are more sensitive to nuances that touch on sensitive topics such as race and inequality. The eruption of Black Lives Matter protests throughout the US in the wake of George Floyd’s murder has shed new light on the topic. Household brands that have previously dominated the market are now receiving heat for their racist branding, leaving them with no choice but to rebrand.
Bringing this back home to Singapore, having our rich social tapestry rooted in diverse multiculturalism and multiracialism underlines just how crucial it is to uphold ethics in marketing. Yes, steering clear from unethical practices will prevent unnecessary damage to your branding. On the flipside, successfully incorporating ethics in all aspects of your marketing efforts can strengthen your brand’s positioning. When you’re perceived as a socially conscious and forward-thinking brand, consumers are more inclined to be associated with your products.
Ethical Marketing is a Grey Area
Ethics does not, however, fall under one fixed definition. Unless it’s governed by the law, what is universally “right” and “wrong” isn’t always clear. Besides referencing company values, whether your marketing efforts are considered ethical also depends on cultural and societal norms.
Case Study: Darlie Toothpaste Controversy
To illustrate this, let’s look deeper into the case of Darlie, one of the toothpaste brands owned by Colgate. Up till 1989, it was known as Darkie, its logo inspired by white minstrel performer, Al Jolson, who became popular for his blackface performances. After stirring up great controversy over brand name and image in the United States, it went through a one-letter name rebranding and took on a more “racially ambiguous” face on the packaging.
Yet, it is still referred to as “Hei Ren Ya Gao” in Mandarin Chinese, which directly translates to “Black person toothpaste”.
While highly offensive for western countries, consumers from Asia have been more or less indifferent. In fact, it remains one of the most popular toothpaste brands in many Asian countries, Singapore included. According to Euromonitor International, they own 17 percent of the market share in China, 21 percent in Singapore, 28 percent in Malaysia and nearly half in Taiwan.
Marketing messages and tactics in Asia usually promote fair skin as ideal standards of beauty, while darker skin tones are portrayed as less desirable. This notion of “dark being inferior” is a form of discrimination known as colourism, based largely on ignorance and the legacy left behind by western imperialism in Asia.
A possible explanation to why Darlie is still thriving in Asia is because its branding is not targeted at the major race groups in Asian countries. The discourse on colourism in Asia is still slow, and has yet to gain the traction it deserves. Advertisements based on insensitive racial stereotypes are still a common occurrence throughout Asia. Thus, through Darlie, we can see how certain products or branding methods may come across as more or less offensive, depending on the country and culture you are in.
While being unethical may be frowned upon, it isn't always illegal either. When pressured to meet quotas, salespeople might resort to any means available to make a sale. This could include baiting customers with tempting offers, or promoting deals improperly. These consumers then proceed with securing the deal, only to find out the details have been changed after it’s too late.
These might help to boost revenue, but only temporarily. In the long-term, it damages the relationships you have with your customers. By anchoring your marketing efforts on ethics, you can build a sense of trust with your consumers. When done right, it’s possible to convert them into champions and advocates for your brand.