ETHICS

Marketing
Marketing is powerful because it shapes perception, desire,
and decision-making.

It doesn’t just inform—it persuades, frames reality, and

sometimes even creates needs that did not previously exist.

Because of this influence, marketing is never neutral.

Every campaign answers ethical questions like:

• Are we telling the truth?
• Are we respecting the consumer’s ability to choose freely?
• Are we taking advantage of vulnerabilities?
ETHICS in the Field of
Marketing

Ethics in marketing refers to the systematic

study of how moral standards apply to
marketing decisions, behaviors, and
practices.

It establishes guidelines to determine what is

right or wrong, fair or unfair, and responsible
or irresponsible in areas such as product
development, pricing, promotion, distribution,
and market research.
Key Ethical Tension in
Marketing
• There is often a conflict between:
• Profit maximization (sell more, grow faster)
• Moral responsibility (be honest, fair, and
respectful)
• This creates what we call an ethical dilemma: A
situation where a marketer must choose between
competing values.
“Limited Time Offer”
A brand says: “Only 2 items left! Buy now!”

But in reality, there is plenty of stock.

Psychologically, this triggers urgency and fear of missing

out (FOMO)
Ethically, it raises the question: Is this persuasion… or
manipulation?
Ethics as a Branch of
Philosophy

To fully understand marketing ethics, it is essential

to view ethics within its broader intellectual
context: as a core branch of philosophy.

Philosophy is the study of fundamental questions

about existence, knowledge, values, reason, mind,
and language, and ethics—also known as moral
philosophy—is the branch dedicated to analyzing
concepts of right and wrong, duty and obligation,
and good and bad.
 Meta-ethics: Deals with the
Ethics is nature of moral judgment.
divided
It asks abstract questions
into three such as “What does ‘good’
main areas actually mean?”
“Are moral truths objective
facts or subjective opinions?”
 • Normative Ethics: Focuses on arriving at
practical moral standards that regulate right
and wrong conduct. This is the most relevant
Ethics is area for business and marketing, as it provides
frameworks to guide behavior. Major
divided into frameworks include:
• Utilitarianism: An action is ethical if it
three main produces the greatest good for the greatest
number of people.
areas • Deontology: An action is ethical if it adheres
to inherent duties, rules, or principles,
regardless of the consequences.
• Virtue Ethics: Focuses on the character of
the decision-maker; an action is ethical if it
reflects virtues such as honesty, courage,
fairness, and compassion.
 • This framework evaluates actions based on
their overall outcomes. “The greatest good
for the greatest number.”
• Marketing Application:
• A company runs a fear-based campaign
about smoking.
• It uses graphic images to scare people
Utilitarianis • Some may find it disturbing
m
Ethical question:
• Is it acceptable to disturb people if it reduces
smoking and saves lives?
 • This approach focuses on rules, rights, and
obligations. “Some actions are inherently
Deontolog wrong, regardless of results.”

y (Duty- Marketing Application:

Based • False advertising is wrong—even if:
• It increases sales
Ethics) • Customers are temporarily satisfied
• Why? Because it violates the principle of
truthfulness
 • This approach focuses on who you are as a
Virtue decision-maker, not just what you do. “A good
marketer acts with honesty, integrity, and
Ethics fairness.”

(Characte Marketing Application:

• A company openly admits product limitations
r-Based) • Example: “This product works best under
specific conditions”
• This builds authenticity, even if it reduces
short-term sales
Ethics is • Applied Ethics: Involves applying
divided ethical theories to specific
controversial real-world issues.
into • Marketing ethics falls directly under
three this category. It applies these
main philosophical frameworks to solve
specific dilemmas, such as:
areas • Is it ethical to target vulnerable
populations?
• Is exaggerating product features
acceptable?
• Is collecting personal data without
explicit consent justified?
 Difference Between Ethics
and Morality
Dimension Morality Ethics

Derived from the Latin word moralis, meaning “customs or Derived from the Greek word ethos, meaning “character or
Origin manners.” It originates from social, cultural, religious, or custom.” It originates from systematic study, reasoning,
personal beliefs and values. frameworks, and professional codes of conduct.

Usually universal or system-based. It provides general

Usually personal or group-specific. What is moral depends
Scope principles and standards applicable across contexts or
on what an individual or community believes is right.
professions.

Adaptive and analytical; it defines what is rationally or

Often deeply rooted and slow to change; it defines what a
Flexibility professionally right or wrong, and can evolve as
person feels is right or wrong.
circumstances or knowledge change.

Focuses on the character, intentions, and actions of the Focuses on the systems, rules, policies, and structures
Focus
individual. governing behavior.

Used to describe the critical reflection and justification of

Usage Used to describe behavior that conforms to shared norms.
those norms.
 • Imagine a marketing
manager is tasked with
Practical creating an advertisement
for a product that works but
Example is not as effective as
in competitors claim.

Marketing
 • The manager might personally believe that
“lying is wrong” and “I should not trick people.”
• This is a moral conviction shaped by their
upbringing, religion, or personal conscience.
Morality Even if the company culture says it is okay, the
manager feels it is wrong.
 • When the manager looks at the situation
through an ethical lens, they refer to
established standards—such as the Code of
Ethics from the Philippine Marketing
Association, or philosophical principles of
honesty and transparency.

Ethics • They analyze the consequences, the fairness,

and the rules to determine that making false
claims is unethical because it violates principles
of truthfulness and respect for consumer
autonomy.
In Summary

Morality is what
you believe is
right; Ethics is the
framework you
use to decide and
justify what is
right.
Why Ethics • Marketing is the voice and face of
a company. Because it shapes
Matters in public perception and influences
purchasing decisions, the
Marketing ethicality of marketing practices
has direct and tangible impacts on
business sustainability and social
welfare. Two of the most critical
reasons why ethics matters are
consumer trust and brand
reputation.
Consumer Trust

Trust is the foundation of any commercial relationship. Consumers need to

believe that what a company says is true, that products will perform as
promised, and that their data and interests are protected.

Impact: When marketing is ethical, consumers feel safe and valued. This
reduces uncertainty in purchasing decisions and encourages repeat business.

Consequence of Unethical Behavior: If consumers feel they have been

deceived or manipulated, trust is broken. Once lost, trust is extremely difficult
and costly to rebuild. It leads to consumer skepticism, reluctance to engage with
future campaigns, and active avoidance of the brand.
Example:

• A skincare brand honestly lists all ingredients, clearly states that

results vary per individual, and discloses possible side effects. Even if
the product is expensive, consumers trust that the company is being
transparent and prioritizing their health, leading to loyal customers
who recommend the brand to others.
Brand Reputation

Reputation is the collective perception held by the public regarding the

character, quality, and reliability of a business. Ethical marketing acts as a
driver for positive reputation, while unethical acts destroy it instantly.

Impact: A strong ethical reputation differentiates a brand in crowded

markets. It attracts not just customers, but also top talent, investors, and
partners who want to associate themselves with responsible organizations.
It creates "brand equity"—the intangible value that makes a brand worth
more than just its physical assets.
• Consequence of Unethical Behavior: Bad publicity spreads
rapidly, especially in the age of social media. Unethical practices can
lead to boycotts, regulatory fines, legal battles, and a permanent
stain on the brand image that can take decades to fix—or may even
lead to business failure.
Case 1: Misleading Advertising –
The "Healthy" Cooking Oil Controversy
• One of the most well-known cases of misleading marketing in the Philippines
involved a major local food manufacturing company, known for producing
popular household brands. In the mid-2010s, the company launched a massive
advertising campaign for its cooking oil product.
• The marketing materials—television commercials, print ads, and point-of-sale
displays—made prominent claims that the oil was “heart-healthy,” “low in bad
cholesterol,” and “recommended by doctors.” The advertisements featured
medical professionals in lab coats and scientific graphics, implying that the
product provided significant health benefits and was a safer choice compared
to competing brands.
• The campaign was strategically designed to target Filipino families, who are
increasingly becoming health-conscious due to rising cases of hypertension,
diabetes, and heart disease in the country. The product was priced slightly
higher than competitors, with the marketing message justifying the cost as an
investment in family health.
The Ethical Issue
• Upon investigation by the Department of Health (DOH) and the Department of Trade
and Industry (DTI)—the primary government agencies regulating fair trade and
advertising in the Philippines—it was discovered that the claims were not fully
supported by scientific evidence.
• Violation of Truthfulness: While the oil met basic food safety standards, the
specific claims regarding heart health and cholesterol reduction were exaggerated.
The company had used general industry data and loosely interpreted scientific
studies to create a marketing narrative that was more persuasive than factual.
• Targeting Vulnerability: The campaign capitalized on the common Filipino fear of
illnesses and the desire to provide the best for one’s family (pag-aaruga). This is
ethically concerning because it uses emotional vulnerabilities to drive purchasing
decisions.
• Legal and Regulatory Breach: Under Republic Act No. 7394 or the Consumer Act
of the Philippines, businesses are prohibited from making false, deceptive, or
misleading representations regarding the characteristics, ingredients, benefits, or
approval of products.
Analysis using our framework:
• Utilitarian Perspective: The company prioritized profit
and market share over the welfare of the consumers.
While they gained sales, they put consumers at risk of
making health decisions based on wrong information,
resulting in greater harm than good.
• Deontological Perspective: The company violated
established rules and duties—specifically the duty to be
honest and the duty to follow government regulations.
• Virtue Ethics: The action reflected a lack of integrity and
honesty, virtues expected of businesses trusted by
Filipino communities.
Case 2: Viral Controversy –
Cultural Insensitivity and Disrespect
• In 2019, a popular international fast-food chain operating in the
Philippines released a new advertisement campaign promoting its value
meals. The commercial featured a storyline that depicted a Filipino
household setting. In the scene, a young child was shown asking for
food, and the mother offered the fast-food meal. However, the dialogue
and portrayal were criticized for mocking the common Filipino struggle of
poverty and meager daily meals.
• Specifically, the ad implied that the usual food served in average Filipino
homes was tasteless, insufficient, or of low quality, while the brand’s
product was the “solution” or the “better option.” The ad also used
stereotypes regarding family roles and financial status that many
Filipinos found offensive and insulting to their culture and way of life.
• Within hours of being released, the video spread across social media.
Users created memes, negative hashtags, and long posts explaining why
the content was hurtful and inappropriate.
The Ethical Issue
• Unlike the first case, this issue did not involve lying about the product or its
quality. However, it raised serious ethical concerns regarding respect,
sensitivity, and social responsibility.
• Lack of Respect and Sensitivity: Marketing ethics requires that
communication respect the values, culture, and dignity of the target audience.
The ad failed to understand that for many Filipinos, the food prepared at home
represents love, sacrifice, and hard work—even if it is simple or inexpensive.
By belittling this, the campaign disrespected core cultural values.
• Exploitation of Context: The campaign tried to use relatable life situations
but ended up trivializing the economic realities of many Filipino families. It was
seen as using poverty and hardship merely as a tool to sell products, which is
viewed as unethical.
• Violation of the "Code of Ethics": Under the Code of Ethics of the Philippine
Association of National Advertisers (PANA), advertisements must not contain
anything that is offensive to local customs, traditions, or beliefs.
Analysis using our framework:
• Utilitarianism: While the goal was to sell more products,
the result was widespread hurt feelings, public anger,
and negative sentiment. The harm caused far
outweighed any potential benefit or profit.
• Deontology: The company failed to fulfill its duty to
respect the culture and rights of the community it
serves.
• Virtue Ethics: The campaign showed a lack of empathy
and respect—traits that Filipino consumers highly value
in the brands they support.
ACTIVITY for FRIDAY
• Can manipulation ever be ethical if it leads to positive
outcomes?
• Is emotional advertising inherently unethical, or does
intent matter?
• Should companies be held responsible for how
consumers interpret their ads?
• In the age of AI and targeted ads, where should we draw
ethical boundaries?
• Is transparency always good, or can too much honesty
harm a business?