Ethics and Marketing

1
Ethics and Marketing
Becoming Responsible The Case of Philip Morris
Becoming Responsible The Case of Phillip Morris

• Karen Enthoven
• Karthik Rajaraman
• Ben Thompson
• Emma Weston

2
Outline

• Philip Morris The Case
• Ethical Issues Raised
• Advertising Issues
• Ethical Issues in Marketing
• QA

3
Philip Morris The Case

• Maker of the Worlds Best Selling Cigarette
  Marlboro
• Increased Diversification (Kraft Foods, Miller
  Brewing)
• Repositioning to meet changing social climate
• From Tobacco Giant to Worlds largest Packaged
  Goods Company
• New Mission Statement
• To be the most responsible, effective and
  respected developer, manufacturer and marketer of
  consumer products, especially products intended
  for adults
• New Tagline
• Working to make a difference. The people of
  Philip Morris
• The Ugly Truth
• Marlboro kills 75,000 Americans per year
• 2/3 of 80Bn USD revenue still comes from Tobacco
  

4
Ethical Issues Raised

• Shareholder Responsibility
• Self interest - meeting shareholder needs
• Moving with the times
• Right to compete and effectively represent
  products
• Stakeholder Responsibility
• Accurate information
• Proper representation
• Responsible Advertising

5
Advertising Issues

• Current Situation
• Legal framework
• Ethical dilemma - Protection vs Freedom
• Easy to circumvent (Marlboro Country)
• Ideal Situation
• Ethical behaviour
• Onus is on Tobacco companies
• Relatively undeveloped
• Promotion of individual products

6
Ethical Issues in Marketing

• Ethics and the relationship between marketing
  manager and their customers
• Representing the official company position vs the
  Truth
• Advertising conventions stretching the truth
• What happens when you are found out?
• Role of a Code of Ethics
• Good but can be circumvented
• Can tobacco companies be trusted ?
• May just be lip service
• Advent of Green Marketing
• Green does not necessarily mean ethical

7
Questions