Running head: ETHICALITY IN MARKETING 1

Ethicality in Marketing

Zack P. Peterson

Arizona State University

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Introduction

Marketing: it’s a profession that has witnesses both good and bad behaviors from

organizations; much like the topic of our course, being organizational ethics. A formal definition

of the profession states, “Marketing is the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value for customers, clients,

partners, and society at large” (Market Business News, n.d.). In marketing, decisions have to be

made that can publicly showcase an organization’s point of view on the world and on their

business. Similarly, in ethics, decisions are made that show employees, clients, stakeholders, and

the world at large not only what their own point of view is, but why their view is the way that it

is. Through analyzing actual case studies and personal reflection, I bring my own point of view

on how there can be ethicality in marketing.

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Chosen Profession

The profession I will examine in my case study research is that of marketing. I have

chosen this profession for my research because this profession is one I will pursue once I earn

my bachelor’s degree in organizational leadership. More importantly than that, though,

marketing is a profession that has had an impact throughout the majority of my life, whether I

was aware of it or not. My mom worked in marketing for real estate agencies in south Florida

when I was growing up, and within the past several years I’ve had the privilege and honor of

collaborating with a few of my favorite brands on creating imagery that would be used for their

own marketing, in both print and digital formats. In my position, as someone who is working on

obtaining a role in the marketing profession, how an organization advertises themselves can

show their ethicality to their peers, potential clients and stakeholders, as well as their competitors

within an industry. Ethics can be defined as, “[based on] well-founded standards of right and

wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to

society, fairness or specific virtues” (Velasquez, Andre, Shanks, S.J. and Meyer, 2010). From

working on the marketing end of an organization, you’re essentially sharing with the world every

minor detail, good or bad, about the organization – giving life to their story. Sharing that story

with others and working on ways to further challenge, enhance, and improve that story is a duty

that brings me immense joy.

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Case Studies

My chosen profession is to work within the marketing industry. In that role, I will work

alongside others in sharing the ethical value and story behind a brand or company to both

consumers and stakeholders in a printed and/or digital context. The decision I made in my

chosen industry/profession is a personal one that stems from my self-taught photography

background and having experience of working closely with brands on creating imagery myself

that would be used for their own marketing.

Here, I have chosen four case studies that, to me, exemplify the importance and necessity

of ethicality in marketing. Though each case study involves a situation that is different from one

another, each are a representation of likely dilemmas that can occur within the marketing

industry. In analyzing these four case studies, all will provide me with effective and useful

knowledge that I’ll be able to apply in my chosen profession to evoke a sense of ethicality in the

marketing industry.

Case Study 1: The CEO of Starbucks and the Practice of Ethical Leadership (Tangdall, 2018)

Summary of the Case

The characters in this case study include two men from Philadelphia, the store manager of one

Starbucks location in downtown Philadelphia, Kevin Johnson, CEO of Starbucks, and the

Starbucks company as a whole. What happened in this particular event is that two men were

arrested for objecting to leave a Philadelphia Starbucks store after the store manager had asked

them to, for reason that was unbeknownst to them. Once video from the smartphone of a

customer inside of this Starbucks location had surfaced, the incident was perceived as an act of

discrimination based upon the gentlemen’s race. Kevin Johnson, CEO of Starbucks, made a

public apology promptly after their arrest, stating that the actions that had taken place in the
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Starbucks store do not align with the company’s values or integrity. He then flew to Philadelphia

from Seattle to meet with the two gentlemen who were arrested to discuss ways in which

Starbucks, as a company, can improve their conduct and ethics policies. The decisions that were

made include temporarily closing several thousand Starbucks locations here in the U.S. for two

hours so that employees are able to partake in racial bias training. as well as learn the company’s

new policy that entails patrons who visit a Starbucks store, whether they’re a paying customer or

not, may use the space and its amenities to their advantage under certain circumstances. These

decisions were ethical dilemmas due to the fact that the general public, whether a customer or

non, believed that having employees undergo a racial bias training session was simply not

enough to resolve the situation. The result of these decisions were made to prove to the general

public that Starbucks is a company that prides itself on being a part of everyone’s community, no

matter how big or how small, and one who works to accommodate everyone.

Importance of the Case

I chose this ethical dilemma case study because I work as a barista at a Starbucks store outside of

Nashville, Tennessee, so this event affected me rather deeply on a personal level. Working for

Starbucks, as a gay man within the LGBTQI+ community, who also lives in a state that’s vastly

conservative, this was a controversial subject among customers and my fellow partners; one that

was avoided at all costs. I feel that understanding this ethical dilemma in my industry/profession,

being marketing, is necessary for my leadership development because this is a very serious issue

that cannot be handled lightly. In terms of a marketing standpoint, the company wants to publicly

address this issue to customers in a way that best features their personal beliefs and rights, being

in opposition with the incident that took place. This wasn’t a publicity stunt to gain attention

towards the company, this was a modern-day example that racist behaviors still occur to this day
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and we, as a company with a large platform, will not accept or condone this behavior to take

place in one or any of our stores.

Case Study 2: Targeting a Broken Heart (Raicu, 2017)

Summary of the Case

The characters in this case study include the company Facebook, their own company researchers,

clients with various services and/or products who use Facebook for advertisement, and those

within the five mentioned countries who use Facebook. What happened in this particular event is

researchers for Facebook examined the behavior displayed by users on the social media platform

when they’re undergoing a relational breakup, using that examined data to the advantage of their

clients when it comes to advertisement space, then later on posting their findings in a post on the

platform’s blog. The options that were made include research into the online activity of

Facebook users when they’re experiencing a breakup, both before and after the breakup happens,

and brainstorming on ways in which brands or companies who use Facebook for ad space can

include themselves in the user’s breakup journey, whether it’s a product that can create a new

hobby or a service that can create a new experience for the user. The decisions that were made

include using targeted advertisements that show empathy to the user and condone them to travel

or pick up a new hobby that will help them get out of their breakup rut – hence, giving these

brands or companies their own money via an ad. These decisions were ethical dilemmas because

Facebook had essentially used their users for their own financial gain with advertising clients. By

conducting this examination, researchers for Facebook were monitoring users during a

vulnerable point in the users’ lives to see how their paying clients could manage their way into

the lives of many. The result of these decisions, once the blog post had been published for the

general public to read, Facebook users were quick to judge that this research study violated their
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ethical rights, among other ethical qualities that pertain to how we use the social media platform

and how they use us.

Importance of the Case

I chose this ethical dilemma case study because it’s a case that is very much prevalent in our

current society. We’re living in the age of technology, where there are constant advancements or

new additions that are being incorporated into the way we live our everyday lives, and while it is

exciting to witness and take part in it ourselves, that engagement comes at a bit of a cost.

Because of how advanced technology is, there’s practically no sense of privacy we have

anymore. Everything that goes on in our day-to-day is being shared, analyzed, recorded and

publicized, and sometimes even without our notice or approval. What caught my attention about

this ethical dilemma is how specific this case study was; it only involved a certain group of

Facebook users and went into great detail about how we’re sort of blindly unaware of the ways

in which we interact with the platform. I feel as though, after the blog post had been published, it

made those who read it more conscious of the degree to which they use Facebook and showed to

them that they’re exposing themselves to more than what they know. I feel that understanding

this ethical dilemma in my industry/profession is necessary for my leadership development

because it shows me the length at which when marketers can go too far. Having your ads

displayed throughout Facebook is a common practice; however, having your ads strategically

and timely placed in one’s account, where it could be perceived as unjust, is another practice. In

my leadership development, two qualities have become a newly set standard to achieve success:

behaving ethically and fairly. For me, I feel that this case study goes against that standard, which

makes it informative to know when and where to set the limit when marketing a brand within the

online marketing industry.

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Case Study 3: The Case of the Questionable Campaign Photo (Callaghan, 2015)

Summary of the Case

The characters in this case study include a candidate for the state Senate, her opponent for state

Senate, the current-sitting Governor of the state, public citizens, and a local reporter. What

happened in this particular event is our main candidate, in which this case study is about,

released a campaign brochure that included a photo of her in what appears to be the formal office

of an office holder. Once the brochure was obtained by the public, some public citizens made

note of the uncanny resemblance in the photo’s setting to that of the Governor’s office, down to

the framed photographs of the Governor’s family and even a bowl of jelly beans, which are

apparently favored by the Governor. The Governor then denied the accusation that he allowed

the candidate to be photographed in his office, saying that he does not endorse her, or anyone for

that matter, for State senate and that the purpose of the office is not for a photo shoot. The

opponent, however, came to his own conclusion that the photograph had been digitally altered

from an existing photography of the Governor to replace the him. With his assertion, he

approached a local reporter to run the story. The candidate then went on to say that the photo

could have been taken while she was a citizen volunteer who had visited the Governor’s office

many times and that she had no knowledge of the digital alteration, if any. She also stated that

the story from her opponent’s perspective takes attention away from serious matters that should

be faced. These decisions were ethical dilemmas because they ultimately tested the integrity of

the candidate, which subjected her to a false portrayal by the public. While the case study doesn’t

share any further details of what happened next, the result of these decisions that were made

from what’s mentioned of the case study led to questioning from the public of whether she’s a

trustworthy State senator.

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Importance of the Case

I chose this ethical dilemma case study because instances such as this, where a picture really is

worth a thousand words, have happened one too many a time. What caught my attention about

this ethical dilemma, aside from the title of the case study, is how one mistake can really make or

break one’s career. In this case, choosing to print a photo in a brochure that’s about you and your

campaign, and you aren’t aware of the clearly visible error in one of the photos, is somewhat

telling of the type of term she would be serving as State senator. I feel that understanding this

ethical dilemma in my industry/profession is necessary for my leadership development because it

is so crucial to have an accurate representation of who and what you are. Whether you’re a self-

owned business or someone working for a large corporation, marketing yourself or the company

you’re working for with imagery that is a genuine portrayal of the business you’re behind is

imperative, now more than ever. With social media being a large generator of business for

brands, putting photos out into the digital space that reflect what the business is about will help

create or enhance your following. As someone who has worked with brands on creating imagery

to use for campaigns or social media use, there really is an intense pressure in making sure that

what you visually convey to consumers or stakeholders is truthful and authentic.

Case Study 4: Case on Executive Integrity (Skeet, 2014)

Summary of the Case

The characters in this case study are three CEOs of well-known companies: Brendan Eich of the

internet browser Mozilla, Dov Charney of clothing retailer American Apparel, and Evan Spiegel

of the social media app Snapchat. What happened in this particular event is the telling of the

backstory of three CEOs to three different, well-known companies, both here in the States and

around the world, and how their individual integrity did not align with the integrity that was
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shared as a company to consumers and stakeholders. For Brendan Eich, his support towards the

Defense of Marriage Act, which exclusively defined marriage as being between one man and one

woman, went against Mozilla’s own values of openness and bringing people together from

around the world. Due to his personal beliefs, he resigned as CEO of the company in April of

2014. Dov Charney of American Apparel violated the company’s sexual harassment policy, as

well as mishandling company funds, which completely went against their ethos of ethical

practices within the industry they existed in. Ultimately, because of his reoccurring inappropriate

behavior, he was let go as CEO of the company and removed from the board as chairman in

2014. In the case of Evan Spiegel from Snapchat, emails from Spiegel’s time in college, which

wasn’t long after the launch of the photo and video sharing app, were released to the public

media, showing his offensive use of language and behavior towards women, mention of

underage drinking and illegal drug use, and even showed nods of racism. After the release of

these emails, Spiegel made a public apology, saying that his college years are not an accurate

representation of the person he is today; today, he still resides in the role as the company’s CEO.

The options that were made in this case study, spanning across three individual cases, include

possible termination of the current-sitting CEOs, at that time; yet, the decisions that were made

varied depending on the case. One CEO resigned himself from the company, another was let go

completely, and the third CEO is still the current-sitting CEO today. These were ethical

dilemmas because the CEOs broke ethical conduct, whether prior to or during their time as CEO,

to their consumers and stakeholders and essentially profited off of empty promises made by the

company as a whole. The result of these decisions varied depending on the individual case,

although, the overall consensus is that transparency from both ends of the organization – CEO

and company – must align in order to be trusted by consumers and stakeholders.

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Importance of the Case

I chose this ethical dilemma case study because, even though these cases originally happened

several years ago, this type of uncovering of the people that are behind these well-known

companies is just as relevant now as it was then. Transparency and integrity have become a

generously used terms by companies lately, and it’s for good reason. We, as consumers and/or

stakeholders, want to know exactly what we’re investing our time and money into and who we’re

involving ourselves with along the way. It seems as though these days, if a large corporation or

small brand wants to have a successful go in the industry, they have to be just as open to sharing

themselves and their business with us as we are in opening our wallets and ourselves with them.

With transparency and integrity comes trust, and trust is not as easily earned as it used to be.

What caught my attention about this ethical dilemma was how similar it was to the “Bots”

scenario in Level 5 of our simulation game. Because we live in a time where it’s easy to say or

do one thing when you really say or do another, there has to be a high level of accountability and

truthfulness placed on those who are leading companies, no matter the company’s size. I feel that

understanding this ethical dilemma in my industry/profession is necessary for my leadership

development because it proves the fact that what you’re putting out into the world has to a true

representation of what you are and who you are. The integrity and intention behind an

organization is traced back to the person, or persons, who established it, so there has to be

genuine and authentic to who they are. For me, in my opinion, it’s unethical to bank on empty

promises that you’re making to consumers and stakeholders.

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Ethical Behavior in Marketing

Based on what I have collected from my case study analysis, the general consensus that

can be made about these case studies is that there lacks a sense of ethicality in the marketing

industry. As someone who is pursuing marketing as a profession, I have been conscious in my

analyzing of what was done versus what could have been done to achieve a more ethical

approach in each case study. In my first discussed case study, dealing with Kevin Johnson, CEO

of Starbucks, and the incident that took place in one Philadelphia Starbucks store, what could be

inferred there is that Johnson took an unethical situation and turned it into a lesson learned as to

how Starbucks can grow progressively towards creating a more welcoming and accepting

culture, but at the cost of the arrest of two, innocent men. The second discussed case study,

highlighting the fact that Facebook took advantage of its users in five different countries for the

benefit of the company’s advertisement clients, inferred that it is unjust to sell the information of

your consumers to your ad clients in order to make a profit. My third discussed case study, which

focused on a photograph used by a candidate for the state Senate that stirred some controversy,

solidified the saying that a picture is worth a thousand words, and inferred that it’s crucial to

ensure that your own picture is representative of who you are. In my fourth discussed case study,

one that reveals the truth behind the lives of three CEOs, the inference made there is that

integrity is integral for the sake and success of your company.

From the inferences that were made in my case study analysis and from what I have

learned about ethics in the course so far, the bridge to be gapped between marketing and ethical

behavior is not far apart from each other. For instance, a concept from our textbook that relates

to my chosen profession is virtue theory. Of the theory, Fryer goes into detail, saying, “It focuses

on personal qualities, or virtues, that an ethical person needs to have. In the context of business
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ethics, then, virtue theory helps us to think about what it is for a business or a businessperson to

be ethical” (Fryer, p. 172). In that same regard, our Planet Jockey simulation game has also

contributed to my understanding of how marketing and ethical behavior are more similar than

they are different. Throughout my time spent going through each level of the game, concepts and

practices that were presented to me in different decision-making scenarios included truth-telling,

accountability, intention, and facing bad press. From engaging with those concepts, I was able to

relate that learning to my inferences from the case studies and possess a thorough understanding

as to why it’s important for me to know this information to enhance my leadership development.
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Conclusion

In conclusion, the marketing industry is not a perfect one, nor is any industry for that

matter. There aren’t as many ethical standards put into place as there should be, although, I

believe that in due time there will be a shift in the way organizations market themselves to

consumers, stakeholders, and the public at large. With accountability, truthfulness, transparency,

and integrity becoming more prevalent as society continues to grow and evolve, the expectation

for organizations to adhere to those concepts will seem second nature. From the learning material

I engaged with throughout the course, in both our textbook and simulation game, as well as the

case studies I selected to emphasize the necessity of ethical behavior in marketing, I genuinely

feel prepared to take on the marketing industry and incorporate my learned skills about ethics to

future work I’ll take on.

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References

Callaghan, H. (2015). The Case of the Questionable Campaign Photo. Retrieved from

https://www.scu.edu/government-ethics/resources/the-case-of-the-questionable-

campaign-photo/

Fryer, M. (2014). Ethics Theory and Business Practice. Thousand Oaks, California: SAGE

Publications.

Market Business News. (n.d.). What Is Marketing? Definition and Meaning. Retrieved from

https://marketbusinessnews.com/financial-glossary/marketing-definition-meaning/

Raicu, I. (2017). Targeting a Broken Heart. Retrieved from https://www.scu.edu/ethics/focus-

areas/internet-ethics/resources/targeting-a-broken-heart/

Skeet, A. (2014). Case on Executive Integrity. Retrieved from https://www.scu.edu/ethics/focus-

areas/business-ethics/resources/case-on-executive-integrity/

Tangdall, S. (2018). The CEO of Starbucks and the Practice of Ethical Leadership. Retrieved

from https://www.scu.edu/ethics/focus-areas/leadership-ethics/resources/the-ceo-of-

starbucks-and-the-practice-of-ethical-leadership/

Velasquez, M., Andre, C., Thomas, S., S.J., Meyer, M. J. (2010). What is Ethics? Retrieved from

https://www.scu.edu/ethics/ethics-resources/ethical-decision-making/what-is-ethics/