Marketing With Integrity
Society relies on businesses to provide a service or services to consumers, as well as other stakeholders, under the assumptions that business practices are ethical. Unfortunately, I think most consumers choose to turn a blind eye if they are getting a 'good deal,' or if their other stakeholders are making a significant amount of money enough to disregard the 'minor infraction.' Nowadays, companies are learning the value behind integrity. Companies no longer can rest on maintaining ethical standards in order to comply with legal statutes. "An integrity-based approach to ethics management combines concern for the law with an emphasis on managerial responsibility for ethical behavior" (Paine, 1994).
One of the companies I have admired for their integrity is the Consumer Value Store (CVS). It may appear that the reason alone why CVS stopped selling cigarettes in September of 2014 was to align with lower insurance expenses and appeal to health-conscious consumers. However, CVS has done more than lose $2 Billion in revenue, it has included the Affordable Care Act (ACA) specialists such as nurse practitioners and physician assistants within their pharmacies aligning the company with a real health care model while lowering consumer health insurance costs (Friedman, 2014).
While doing the right thing hurt CVS' profits in the near-term, the decision to promote themselves as part of the health care system has led them to a profitable market. In looking to do more than being perceived from their stakeholders as a health-oriented business, CVS has developed, implemented and publicly published a Code of Conduct that includes an entire section to integrity. In an introduction to the CVS Health Code of Conduct, Merlo (2019), President, and CEO of CVS Health, states, "Our reputation for superior customer service and excellence in execution, coupled with our high level of integrity and sound business practices, have helped us build a solid foundation of trust...that is why we all must commit to act with integrity while meeting our responsibilities." In addition to a very attractive Code of Conduct, CVS Health has recovered from fiscal losses in numerous beneficial ways such as earning trust, projecting a positive position on health, investing in their people and supporting their stakeholder's needs.
Another company that has made market improvements through integrity is Google. This company is one of those companies that stand out and for good reason. It appears Google is involved in many projects that society at large could deem 'doing the right thing.' Some of these projects include creating efficient data centers, accelerating their transition to renewable energy, creating sustainable workplaces, and empowering users with new technologies to help ensure a cleaner and healthier future (Google.com, n.d.). Much like CVS Health, Google also has developed, implemented and publicly published a Code of Conduct. Within their code, Integrity is listed as #1 under their first topic, "Serve our Users." Under the Integrity header, Google speaks of trust and how it is their most valuable asset.
Google's primary method of marketing is through testing and advertising the quality of their equipment and services. They offer a transparent communications model and a very diverse workforce. Their integrity is built into their systems and practices. If their integrity practices fail, Google would simply fail. Perhaps this is why integrity is at the top of the Code of Conduct.
It's apparent the important role integrity plays in corporate ethics, and thus business. If companies continue to risk their livelihood, and that of their stakeholders, on questionable business practices by not investing in their employees with a living code of ethics, these companies may very well be without a competitive edge in the long-run. Operating on a marketing ploy that lacks integrity is bound to be discovered by the very stakeholders the company claims to support. In my future company, I will base integrity in the foundations of its purpose by developing my own Code of Conduct and ensuring the people are not only following it but enforcing it because the business is their own and the quality of business directly reflects on them. Doing so, the marketing aspect would contrive an obligation through integrity to not only remain transparent of all activities but ensure its stakeholders are supportive in their applications."There is an evolving concern that organizations must also focus on the important communities and groups that hold the firm accountable for its actions" (Caner & Banu, 2014). This holistic approach to 'owning' the business you represent feeds back into the business; a company that is built on and promotes passion and integrity.
References:
Caner, D. and Banu, D. (2014, November). An overview and analysis of marketing ethics. International Journal of Academic Research and Social Sciences, (4)11, p. 151-158. doi:10.6007/UARBSS/v4-i11/1290
Google.com (n.d.). Alphabet investor relations: Google code of conduct. Retrieved from https://abc.xyz/investor/other/google-code-of-conduct/
Friedman, L. F. (2014, September 4). Here's why cvs' decision to stop selling cigarettes makes perfect business sense. Retrieved from https://www.businessinsider.com/why-cvs-stopped-selling-cigarettes-2014-9
Merlo, L. (2019, March). Cvs health code of conduct. Retrieved from https://cvshealth.com/sites/default/files/cvs-health-code-of-conduct.pdf
Paine, L. s. (1994, April). Managing for organizational integrity {Harvard Business Review]. Retrieved from https://hbr.org/1994/03/managing-for-organizational-integrity
No comments:
Post a Comment