To what extent does the concept of ethics affect online business - Essay Example

To what extent does the concept of ethics affect online business? A critical evaluation of measures that can be implemented in order to deal with issues like controlling of advertising content as well as upholding the principles of ethical marketing by Global Media Company. Background of Global Media The advent of the internet has dramatically changed the business landscape given that there has been a steady increase in the number of virtual organisations operating online. However, these have also faced various issues that have impacted on their operations. As such, this report seeks to critically evaluate the above mentioned issues in a bid to establish the extent to which they have affected the operations of Global Media. The report also seeks to outline the measures that can be taken by the manager in order to resolve the issues highlighted above. Alternative solutions will be discussed in detail in the third part of the report. This section of the report outlines a brief background of the above mentioned organisation as well as the kind of business it is involved in. Global Media is a London based online mass media organisation which acts as a platform where different mass media houses can market their offerings to the customers. Advertising as well as marketing companies can utilise the services offered by Global Media Company to market as well as distribute their products. These products and services include literary works as well as advertisements for various goods that are related to the media fraternity. This online agency is primarily concerned with providing a network for media organisations to link with their customers. Global Media has a large database for customers as well as providers of different products and services. All the transactions between the media organisations as well as customers are facilitated by Global Media Company. Payments for these products and services offered are done online. Basically, Global Media Company is responsible for compiling and managing the database for various media houses. The organisation operates at a global level since it deals with stakeholders from different parts of the world. Experiences and lessons learnt A close analysis of the operations of Global Media Company shows that there are broadly two lessons that can be learnt from it. The network approach taken by the organisation overlooks some of the important societal values that characterise people from different backgrounds since the company is mainly driven by the concerns of the proprietors. The other issue that is of concern in this particular case is related to ethical marketing since it can be observed that the company at times give precedence to its profit oriented goals at the expense of the needs of the other stakeholders at large. Thus, these two issues are discussed in detail below and the lessons leant are also outlined. The other part of the report will discuss the measures that can be taken by the managers at Global Media to resolve the issues for the betterment of the company in its future operations. Network approach The main issue with the network approach by Global Media is that the model of communication is mainly linear. The main problem with this model is that special consideration is given to the sender of the message and it follows a linear direction. However, the use of the internet has made it possible for information to flow from different angles where all the stakeholders are treated as equal. According to McQuail (2000), this model of communication is criticised because it follows a linear channel from the sender to the recipient. Indeed, the organisation is in business of marketing various products and services to different stakeholders but the problem is that the communication process is skewed in favour of the people who are responsible for designing the message. Molwana (1997) acknowledges that there are several communication networks in society and everyone belongs to one or several of these. As such, people are members of groups, cooperatives and other forms of communication and they are capable of decoding meaning from the messages that are disseminated to them. People who share the same culture also share the same behaviour and an effort should be made in order to appeal to the individual values of the stakeholders. Organisations are kept together by communication but it has to be noted that in this society we are interconnected individuals who are linked by patterned communication flows (McQuail, 2000). These communication networks need to be identified which is one weakness impacting on the operations of Global Media Company. In most instances, the meaning of messages designed is shared on the basis of the perceptions held by individuals who may share the same values. The company overlooks the fact that meaning of different media texts are negotiated by people from different social backgrounds. The targeted audiences are viewed as passive consumers of media messages disseminated to them. However, people are capable of determining the meaning of different media texts they consume from the media. Thus, one good lesson derived from the issue identified above is that audiences in different parts of the globe are not homogeneous. This entails that people from different parts of the globe are not similar as generally believed by other marketers. People from different parts of the globe are capable of creating meaning from the media texts they consume. A company which is concerned about its success should treat the consumers as valuable people whose needs ought to be taken into consideration. As noted, the problem encountered by Global Media is that some people from other sectors of the society ended up shunning its products which were seen as skewed in favour of the marketers. Advertisers of various products and services should not underestimate the power of the audience in creating meaning from what they consume from the media. Messages should be carefully designed such that they appeal to the interests of the targeted customers. From the lessons learnt from the issue discussed above, the manager at Global Media should make an attempt to understand the society as well as the attitude of the people towards the attitude of the product or service that is being sold to the people. Thus, it is imperative to take pre-emptive measures which are designed at establishing the needs and interests of the targeted audiences before rolling out an advertising campaign. There is need to plan communication in order to empower all the stakeholders involved in order to make informed decisions about products or services offered to them. It is also imperative to provide opportunities for education among the targeted audiences which encourages public interaction which in turn can also lead to collective understanding of a particular issue. Knowledge among the stakeholders is generated through learning where stakeholders can freely exchange their ideas about a particular subject. Open channels of communication should be established so that it becomes easy to get feedback from both angles. This can allow the involved stakeholders to stay in constant touch with the managers whereby views and other ideas can be freely exchanged. Ethical Marketing The other issue identified in the operations of Global Media is related to ethical marketing. Basically, this is a concept which attempts to protect the interests of the consumers by the marketers when they market various goods and services (Armstrong & Kotler, 2004). Some of the messages portrayed by the media are mainly tailored to meet the needs of the marketers at the expense of the general interests of the public as a whole. Some advertisements in particular are designed in such a way that is likely to impact negatively on the values of the targeted audiences. In this particular context, values are defined as the “essential and enduring tenets” (DesJardins, 2006, p.5). These play a pivotal role in defining a company and they are not supposed to be compromised on the basis of financial gain. The cultural environment that is characterised by various institutions shapes the values of the people as well as their behaviour. However, it seems that the marketers at Global Media are not very considerate of the values of the targeted customers. In order to promote ethical marketing, there is need for the marketers to take into consideration various social factors that shape the moral fabric of the society in which the organisation will be operating. As noted, failure to observe the values of the people is detrimental to the operations of the organisation, there is need for a holistic approach to conduct market research that is meant to establish the needs and interests of the targeted audiences. There is need for the marketers to carry online surveys in a bid to establish the interests of the customers from different corners of the globe where most of the customers are based. Through the use of the internet, it is possible for the marketers to reach a wide range of people regardless of their geographical location. In order for any particular business to be a success, there is need to treat the customers as kings in order to appeal to their interests. Failure to do that may negatively impact on the operations of the organisation. There is also need to create mutual understanding among the targeted audiences so that they will share the same vision for the company. Conducting business online is quite challenging in that the targeted consumers come from a diverse background. In order to appeal to their interests, there is need for the manager to make an effort to consult the stakeholders about their expectations in the products and services offered by the company. If the consumers are involved in the decision making process, they are likely to share the same vision with the company and this will be based on mutual understanding. The interests of the stakeholders play a pivotal role in shaping the operations of a given organisation. The level of commitment to the organisation is also shaped by the attitude of the stakeholders hence these need to be taken into consideration when the organisation formulates its policies. Another important consideration that can be taken is to ensure that the principles of honesty and truthfulness are upheld in the organisation. Trust is likely to be created if the organisation operates in an honest way. There are also chances of attracting new potential customers on the basis of offering services that are capable of attracting a wide number of customers. It seems that some of the advertising content is designed to fulfil the needs of the advertisers while at the same time impacting negatively on the stakeholders. Thus, managers should ensure that the content presented by different advertisers is good for the moral fabric of the societies in which the stakeholders live. Ethical considerations Besides written laws and regulations, there is need for businesses to abide by social codes as well as ethical considerations in order to operate viably (Kotler & Armstrong, 2004). The concept of ethics is mainly concerned with making a distinction between something that is good from bad and it often shapes the behaviour of the individuals. Rossouw (2004) describes business ethics as the values, principles and standards that operate within a business and these try to differentiate between something that is morally bad from good. The values often shape the way a company operates and this is the reason why companies that are enlightened prioritise the concept of ethics. Thus, in case of Global Media with regards to the issues raised above, there is need to create a fine balance between the profit making goal and the needs of the consumers. The following measures can be taken into consideration in as much as the issue of ethics is concerned. The stakeholder approach The stakeholder approach is used to analyse the way as well as explaining how various constituents are impacted by business or how they may impact on it (Bowie & Duska, 1991, as cited in Weiss, 1994). Businesses according to this approach are supposed to fulfill the interests of the stakeholders who are involved in a particular business. Organisations are also expected to uphold ethical as well as moral values of the stakeholders in a bid to establish mutual understanding among them. This approach is helpful in that the organisation is in a better position to take a leading role in championing the cause of fulfilling the interests of the customers in its operations. Loyalty is likely to be created among the stakeholders which is a source of competitive advantage in the long run for the organisation. The viability of the organisation in the long run is determined by the number of loyal customers who exist given that it is easy to appeal to the interests of existing consumers than attracting new customers. Value chain According to Armstrong & Kotler (2004), value chain is derived when an organisation is able to provide the customers with what they want. Marketing plays a significant role in satisfying this need among the customers. It is the role of the marketers to conduct market research so that they establish the needs of the customers in order to be better positioned to fulfil them. If they are able to identify the needs of the stakeholders, then there are chances that the products offered will be satisfactory to the customers since they would have been designed according to their specifications. Given that various media products can be accessed online, it is imperative for the responsible managers at Global Media to design their products in such a way that is likely to appeal to the interests of the customers. This will certainly go a long way in creating a rapport with them. However, besides the need to take into consideration the above factors discussed, it can be observed that Global Media Company is already serving customers at national level and is intending to venture into the global market place. At the moment, the organisation has a large number of committed customers though there are certain shortcomings which need to be addressed. It can also be observed that the organisation strives to operate within the dictates of the FAIRTRADE Foundation in Europe. According to information obtained from its official website, the FAIRTRADE Foundation a regulatory institution that sets standards for operations that have to be respected by various organisations operating in Europe. FAIRTRADE was also conceived on the idea of assisting previously disadvantaged organisations and it can be noted that to a certain extent, Global Media tries to take into consideration the dictates of this foundation which seeks to cater for the needs of the people who could not access the media products of their choice. It also has to be borne in mind that in order for any company in Europe to operate internationally, it has to fulfil the requirements of the FAIRTRADE Foundation. The other measure that is being taken by the organisation is to ensure that the customers are empowered to make decisions about the choice of products and services they make in terms of the products that are offered by different companies. If the above mentioned measures are carefully implemented, there are likely chances that that the organisation will be in a better position to effectively operate in this particular type of online business. There is only need to formulate policies that oriented towards the needs of the stakeholders as they are the main drivers of the organisation towards success in its operations. Conclusion Over and above, it can be noted that the operations of an online business are quite different from other conventional businesses given that online organisations mainly operate in virtual space. There are different forces that affect online business as indicated in the critical discussion about Global Media carried above. Basically, this is an online mass media company that is based in London and it specialises in providing a platform upon which various online media houses can link up with their customers. There products and services offered mainly include advertisements as well as other literary works that are sold to different customers using this platform. All the transactions as well as exchanges are done through this online media company. However, there have been two issues that have been identified and these have a bearing on the operations of the organisation. The issue of network approach has significantly impacted on the viability of the organisation given that the communication strategy implemented by the responsible authorities gives precedence to the needs and interest of the proprietors while less consideration is given to the targeted audiences. The customers are often seen as receivers of information disseminated to them where they are expected to passively consume the messages. The channels of communication are mainly controlled by the organisation and the message is designed to meet the needs and interests of the company while little consideration is given to the needs of the customers. The other issue observed is related to ethical marketing where it has been seen that the company at times fail to uphold the ethical considerations with regards to monitoring the content of media information disseminated to the consumers. To a certain extent, some information is skewed in favour of the company which is likely to have a negative impact on the long term viability of the company. It has been recommended that the manager should attempt to adopt the stakeholder approach which is primarily concerned with taking the interests of the stakeholders into consideration in as far as policy formulation is concerned. This approach is effective given that it is accommodative to the different values of all stakeholders. Involvement of the stakeholders is likely to inculcate a sense of belonging to the company since the stakeholders will be in a position to identify with it. It has also been recommended that the organisation should strive to establish value chain in its operations so as to be in a position to appeal to the interests of as many targeted customers as possible. The managers should not rely on rhetoric when marketing their products as this is detrimental to the operations of the company as a whole. References Fairtrade, Official website, 2012, Fairtrade,viewed 26 March, 2012, < http://www.fairtrade.org.uk/what_is_fairtrade/who_needs_fairtrade.aspx> Kotler, P & Armstrong, G 2004, Principles of Marketing. Pearson Education International: NJ. Kotler, P 1999. Kotler on Marketing: How to create, win and dominate Markets. Free Press: London. McQuail, D 2000, Mass Communication Theory, Sage Publication, London. Mowlana, H 1997, Global information and world communication, 2nd Edition, Sage Publications, London. Rossouw, D 2004, Business Ethics: (3rd Edition). Oxford: CT. Weiss, JW 1994, Business ethics: A managerial, stakeholder approach. International Thompson Publishing: California. Read More