Ethical Challenges In

International Marketing
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When developing an international marketing campaign (IMC) in a global and diverse competitive

environment, one of the first challenges a marketer will face is that different nations across the world

embrace different standards of ethical advocacy and regulate marketing and advertising in different

ways. Recent ethical scandals in business, combined with the media savvy eye of the American

consumer makes standard ethical norms not simply a moral necessity, but good business sense.

For instance, in response to recent outcry about voluntary and paid hidden ‘word of mouth

advertising,’ Andy Sernovitz of the Word of Mouth Marketing Association (WOMMA), released a

code of conduct, demanding that companies that practice such a technique uphold that “honest

disclosure of Relationship, Opinion, and Identity. This demands that advocates (those who are

spreading a marketer’s message by “word of mouth”) disclose their relationship with marketers in

their conversations with other consumers; that they be allowed to form their own honest opinions

and let those with whom they’re communicating form their own opinions; and that everyone be
transparent and reveal their identity to anyone with whom they’re communicating.” (Cited by Boyd,

2005)

The increased scrutiny to such ‘word of mouth’ campaigns in the American media made such an

ethical manifesto a necessity for companies to embrace, rather than a free ethical choice. In other

European nations, such as Canada and the United Kingdom, cynicism about marketing practices

runs equally high. In a 2003 Daily Telegraph newspaper poll in the UK found “on a net trust rating

(calculated by subtracting the negative percentage score from the positive) ministers in government

came out with a lamentable score of minus 49 per cent and directors who run large companies fared

even worse, being right at the bottom with minus 56 per cent.” (Parry, 2003) But what should one do

in the case of marketing to a nation where a technique of water cooler buzz by paid advocates in

ordinary offices is not so scrutinized, and ethical standards by marketing executives are notably, and

acceptably more lax? The temptation would be to take advantage of this naivete and more flexible

cultural attitude to ‘the truth,’ to for example, hire some people who are influential, in say, offices of a

country where it is uncommon to get take-out, and hire ‘word of mouth’-ers to generate positive buzz

by buying-in their lunches and ‘talking up’ the quality of the food.

However, regardless of the cultural context, to take advantage of a country’s greater overall naivete

or less stringent government regulations regarding the divulging of information might be effective,

but hardly ethical. Nations without requirements regarding cigarette warning labels may give

marketers greater freedom in associating, for example, Marlboro brand cigarettes with health and

the great American outdoors, or even marketing flavored cigarettes to susceptible children—but

marketing efficacy and ethics are not always conjoined.

A more ambiguous ethical question when engaged in marketing internationally comes with the

question of marketing products that change the local culture. Is it ethical to encourage Hindus to eat

beef-containing McDonald’s products, even if the consumer is free to choose to do so? Is it ethical to

alter the healthy French relationship to food, to sell quickly consumed ‘food on the go’ burgers in that

nation? Or to market beauty products in Asia that stress the loveliness of the wider Western eye-
shape that Asian women cannot attain, without plastic surgery? If the marketing campaign is fully

effective, the culture of the nation will be changed, even though stockholders may profit.

Any business boss can make a strong case for the view that agonizing over the impact of one’s

business decisions on the health of a competitor weakens your effectiveness,” scoffs one industry

analyst. (Parry, 2003) But while behaving unethically in the short run may reap rich marketing

rewards, one could counter that a culturally exploitative and damaging campaign could generate

such ill will, that the immediate surges in consumer purchasing were likely to be swiftly cut by locally

voiced outrage. Even a country that was tolerant of its own national corporations foibles might be

less tolerant of a United States company engaged in similar practices.

In fact when faced with an unethical U.S. company, it is like that even more vociferous dissent would

occur abroad, than would occur in the United States, since the unethical marketing campaign was

being wielded by corporate influence representing a more powerful nation, or a nation perceived as

more powerful. “When I can get fresh dosas and phulkas next door to the burgers and pizzas in

Kennedy airport in New York city, then the global playing field will be even!” wryly noted one Indian

observer, commenting on what he perceived as cultural incursions and advocating for protectionism.

(Sriniva, 2004) “Today the middle class Bangalorean can eat Thai food, drink lager, and have

chocolate tarts at Barista, or visit the local supermarket and have a meal of puliyogare and rasam, or

samosas and pav bhaji, in less than fifteen minutes”—a loss not simply of local cuisine, but of local

cultural rhythms of life, to globalization. (Sriniva, 2004)

The perception of the United States as culturally imperialist is a legacy all international marketing

campaigns must wrestle with, ethically as representatives (however unwillingly) of the American

nation and also in terms of generating long-term profits for stockholders. Ultimately, a “high standard

of ethical behavior” combined with astute cultural sensitivity and intelligence “will help cement

relationships with staff and customers,” aboard, rather than hinder profits.

Works Cited
Boyd, Stephen. (Feb 2005) “Word of Mouth—Marketing Code of Ethics.” (Parry, 2004) Get Real.

Retrieved 26 Mar 2005 at

http://www.corante.com/getreal/archives/2005/02/09/word_of_mouth_marketing_code_of_ethics.php

Parry, Mike. (2004) “Moral Philosophy and Business.” Philosophos. Retrieved 26 Mar 2005 at

http://www.philosophos.com/philosophy_article_45.html

Sriniva, Tulasi.

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