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Business Ethics

Stefanie Van Denheuvel

Rasmussen University

COURSE#: SPR21T1-ONP-GEB2930-02

Tom LeNeau

April 18, 2021

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I would like to start off by explaining why it's important to take an ethical approach to
solving the challenge to marketing and getting loyal customers. The reason why it’s important
to take an ethical approach is because the product you market, you can build the company’s
definition of ethical marketing. This will help you create an upstanding approach to market your
product. In this way, you’ll be able to set some basic rules for avoiding big-time marketing
blunders.
That Ethical marketing helps increase retention because employees feel eager and
willing to help sell the product or service. More and more employees express the need for
making a difference or being useful to society. A transparent company that promotes
responsible marketing can provide a sense of purpose to workers and worth to society. Vitell
(2003) stated “that stronger relationships between consumers and sellers create more
favorable behaviors from consumers.”

This next part I will be discussing what the short term and long-term effects on decision
making would be if you were using unethical/ethical ways. Those would be decreased
productivity. Increased misconduct and conflict internally. Decreased performance levels of
employees. Increased employee turnover and more challenging employee recruitment.
Decreased success of retention and recruitment of employees. Increased absenteeism and
“presenteeism” (the tendency to stay at work beyond the time needed for effective
performance on the job. Decreased probability of reporting misconduct and unethical behavior
of others. Increased dysfunctional behaviors such as not paying attention to details,
scapegoating, withholding information, under delivering and overpromising, not giving credit to
others, lowering goals, misrepresenting results, etc.
It helps in boosting customers’ confidence in the company. As customers are relieved
that they are buying products of a company that execute high social responsibility, sales and
revenue of the company eventually increases. You as a business can infuse interest in people
who are dreaming of getting associated with an organization that is reputed for ethical
behavior. This will help the company in building a pool of talent that can work collectively for
achieving a common goal, which is profit. Another advantage of implementing business ethics is
the ease in retaining employees. When staff and workers are treated ethically, the thought of
leaving the company will never touch their mind. There will be no need to get engaged in hiring
process. The time thus saved can be used for other important matters. Besides time, the
company can also save money they would be investing in hiring and training new employees.

A lack of ethics has a negative effect on employee performance. In some cases,

employees are so concerned with getting ahead and making money that they ignore
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procedures and protocol. This can lead to additional paperwork and careless errors that result
in the task having to be completed again. Additionally, employees who feel acting ethically and
following the rules will not get them ahead in the business sometimes feel a lack of motivation,
which often leads to a decrease in performance.
Craft (2013) reported ten findings related to ethical culture in the areas of awareness,
judgment, and intent. Studies showed ethical decision making was significantly impacted by
workplace ethics, standards, and practices. (Elango et al. 2010); age and perceived ethical
climate types (Forte 2004); management’s efforts to encourage ethical decision making and the
tone at the top (Sweeneet al. 2010); and ethical norms and incentives (Shafer and Simmons
2011). Zhang et al. (2009) found a positive correlation between employee perception of an
ethical culture and their whistleblowing judgment.

Some of the ethical approaches I would suggest to help with improving the marketing
and loyal customers would be to leverage the consumer interest in the streaming videos
industry that will impact them by educating them about your movie streaming business and
supporting initiatives. Tell them how their purchase will make a difference, as consumers
generally do not believe they can make a difference.
Also, you want to educate your consumers on your movie streaming business and let
your customers know what role your business has in the marketplace. Consumers appear to
take a macro view of ethics in business. They rarely have specific knowledge regarding
individual companies, which implies the need for brands to differentiate themselves,
particularly in challenging industries like energy, telecommunications, apparel and food. If you
are in one of those industries, you need to be more proactive with your marketing and
positioning.
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References

Journal of Business Ethics: JBE; Dordrecht Vol. 156, Iss. 2, (May 2019): 399-416. DOI:10.1007/s10551-

017-3595-2

Craft, Jana L. Journal of Business Ethics: JBE; Dordrecht Vol. 149, Iss. 1, (Apr 2018): 127-145.

DOI:10.1007/s10551-016-3034-9