Ethical Marketing (SQA National 5 Business Management): Revision Note

Ethical approaches to marketing

• Ethical marketing involves making marketing decisions that are morally right, fair and socially responsible

• It involves balancing the business’s desire to make a profit with honesty, respect for consumers and concern for society and the environment

• Examples of ethical principles include

  • Protecting the environment and promoting sustainability

  • Being honest and transparent about products and prices

  • Avoiding discrimination or stereotyping

  • Ensuring advertising does not cause offence or harm

  • Treating suppliers and workers fairly

Responsible design and production

• Businesses can design environmentally friendly products, such as using recycled or biodegradable materials

• They can ensure products are safe, not misleadingly labelled, and tested responsibly

• Ethical marketing also includes avoiding products that cause harm, such as single-use plastics in packaging

  • E.g. Lush markets its bath and beauty products as cruelty-free, which appeals to environmentally and ethically conscious consumers

Fair and transparent pricing

• Prices should be honest and clear, with no hidden fees or misleading discounts

• Ethical businesses avoid price exploitation, especially in times of crisis (e.g., overcharging for essentials during an extreme weather event)

• Paying fair prices to suppliers, such as through FairTrade, supports sustainable supply chains

Honest and respectful promotion

• Advertising should be truthful and should not mislead customers about product performance or benefits

• Businesses should avoid discrimination or stereotyping in adverts, for example, in portrayals of women, those of different races or those living with disability

• Ethical promotion means not causing offence, avoiding shock tactics, and being sensitive to cultural issues

• Marketing messages should support positive values such as inclusion and respect

  • E.g. The Body Shop's advertising often highlights social and environmental responsibility, avoiding unrealistic beauty standards

Responsible distribution and sales practices

• Ethical businesses ensure that their products are sold safely and appropriately, avoiding sales to vulnerable groups

  • E.g. Most UK retailers will not sell knives to customers under the age of 25

• They can reduce environmental impact by choosing low-emission transport and local suppliers

• Fair treatment of suppliers and avoiding exploitative working conditions in distribution are also important

  • E.g. Patagonia uses ethical sourcing and ensures its clothing is only sold in stores that share with its environmental and social values

Evaluating the use of ethical marketing