What are key ethical issues this industry faces?
Businesses in the Household and
Personal Products Industry are ranked in the top percent for the best ethical
practices. The products produced by companies in this industry are very close
to consumers and rely on consumer satisfaction thus requiring a high standard
of ethical practices.
Key ethical issues this industry
faces deal with:
·
Espionage/spying
·
Ethics marketing
·
Animal testing
Espionage/spying
In 2001, there was a huge issue
with espionage. A member of the competitive analysis group at Proctor and
Gamble had been caught spying on Unilever, P&Gs main competitor. P&G
and Unilever compete in the hair care market, particularly with shampoos. The analyst
at P&G obtained information on future business ventures Unilever had
planned including: launch-plans, pricing, and margins. Businesses in the
Household and Personal Products Industry face a large amount of competition to
produce better products for the consumers they are so close to, in relation to
personal use of the products. Espionage and spying are large ethical issues.
Spying and espionage practices hinder the free market system, in which business
have the right to compete with one another. Having illegal insight into another
company’s strategies gives that particular company and unfair advantage and if
the plans are continuously stole and implemented by the other company the other
can suffer immensely.
Ethics Marketing
In order to reach different
markets, companies in the Household and Personal Products Industry use a strategy
of ethics marketing. This practice is where companies express their excellence
in ethics in order to be more appealing to potential buyers. The companies are
providing truly remarkable and helpful service to many communities across the
globe while also enhancing their marketing practices. Kimberly-Clark is the
best example of ethics marketing. Their extensive pledge to sustainability and
company ethics is shown through their many global initiatives. As part of their
new 2010 plans, each unit within the company must set and work to meet goals
for social and environmental outcomes. The countries in which Kimberly-Clark
and other companies within this industry provide service, also, are included in
their top revenue increasing areas. Consumers of household and personal
products tend to be very conscious of the products they purchase and the widespread
assistance these companies give appeal to the customers resulting in more
buying to influential companies. Ethics marketing supports the community and
the company.
Animal Testing
Products within this industry
care commonly directly used by the consumer, to be more specific, the products
are used on the body or near it. To ensure the product will not have negative
effects on the human some companies practice animal testing. In previous years,
animal testing was not a large issue mainly because the practice was hidden.
Through the new transparency of the government and business these practices
have been learned and are being strongly protested. Due to the increase in
protest against animal testing companies have altered their product ingredients
that are known to work well with the skin and not need to test. Some of these
companies include: Avon, Revlon, Mary Kay, etc. As mentioned before, consumers
of this industry’s products are often aware of these ethical standards and will
buy accordingly.
Does spying hinder the free market or support it, even though it is a negative action?
ReplyDeleteAlso, avoid using old articles, although I see how it was relevant here.
I disagree with ethics marketing. I think that companies must act with ethics and be social responsible but I do not think that they should use these actions as a marketing strategy. I think that these are actions that company should have because they believe in it not only to use them as a strategy to be more appealing to customers.
ReplyDeleteThe issue of animal testing is a serious ethical issue this industry faces. If companies are exposed to be performing harmful animal testing, it can have serious repercussions. Animal activists and even people who feel more mildly towards animal rights can protest a product, which can then cause serious losses for a company. Not only does a company lose market share and profit, but also the respect as a socially responsible company. The way a business handles all aspects of its affairs is crucial.
ReplyDelete