1. TO: Dr. Paul Lucas
FROM: Johana Elson
RE: Lasting Brands
DATE: April 20, 2016
On April 6, 2016, Dr. Lucas requested research be done on marketing practitioners and ethical
practices to explain why it might be important for marketing practitioners to engage in ethical
practices in order to promote the longevity of and consumer interest of their brand(s). After
researching marketing ethics, the following questions will be answered:
1. Why do firms engage in unethical/illegal behaviors?
2. How can education in ethics be changed to promote more ethical practices from
marketing practitioners?
3. What are the most effective ways to prevent marketing firms from engaging in
unethical/illegal behaviors?
Why Marketing Firms Engage in Unethical/Illegal Behaviors
Although corporate misconduct can create major economic downfall to marketing firms as a
result of regulatory reinforcement, litigation, consumer skepticism, reduced quality perceptions,
and negative publicity, these firms still engage in unethical and often illegal practices to some
degree (Gazley, Sinha, & Rod, 2016). This is extremely problematic due to consumers being
more heavily reliant on marketers’ claims on a product when making purchase decisions
(Gazley, Sinha, & Rod, 2016). Since consumers’ trust would directly influence sales, it would be
prudent for marketing firms to engage in ethical behaviors. One reason why firms are still
engaging in this behavior despite the risks is because of the contingency model which describes
that previous transgression and the detection and outcome of the transgression influence whether
the firm will engages in misconduct again; therefore if an unethical behavior is not reprimanded,
the firm will be more likely to engage in unethical and potentially illegal behaviors again.
(Gazley, Sinha, & Rod, 2016). Another reason for this behavior is conceptual model which states
that large, high-performing firms where there is a competitive, aggressive environment condone
persistent, ‘accepted-as-normal’ illegal behavior (Gazley, Sinha, & Rod, 2016).
Education in Ethics
Although there has been a recent push in education of ethical topics for business students, the
manner in which the material is being taught may cause the students to be unprepared and forget
much of their ethical training (Brennan, Eagle, Ellis, & Higgins, 2010). One problem found in
how ethics is currently taught is that everyday business activities are not covered as much as
other subjects such as bribery and uncompetitive practices (Brennan, Eagle, Ellis, & Higgins,
2010). Another concern is the structure in which ethics should be taught: full integration versus
one fully dedicated course (Brennan, Eagle, Ellis, & Higgins, 2010). While it might seem

2. beneficial to speak of ethics within each course taken, it often results in superficial and
incomplete coverage of the topic (Brennan, Eagle, Ellis, & Higgins, 2010). What is suggested to
enhance the education of ethics is to allow for the educator to go beyond lecture and create
ethical environments with the students (Brennan, Eagle, Ellis, & Higgins, 2010). The authors
suggest to ensure that ethics is not just an ‘extra’ to a course but instead emphasized to teach
more theories on ethics, to provide more sensitivity to daily ethical issues as well as explicit
situations, and to have the educator take personal responsibility in advocating ethics education by
being more sensitive to ethical situations which will arise every day in a business career
(Brennan, Eagle, Ellis, & Higgins, 2010). The main objective would be to make marketing less
objective and introduce a more personal and relational approach to ethics (Brennan, Eagle, Ellis,
& Higgins, 2010).
Effective Ways to Prevent Unethical/Illegal Behaviors
Research found that previous consequences of transgression greatly influenced future
transgression, suggesting that detection and punishment of illegal activity would be a large
deterrent of future unethical behaviors (Gazley, Sinha, & Rod, 2016). Since some firms would
consider negative publicity a worse punishment than fines, regulatory agencies such as the FCC
in the United States should consider large media coverage of unethical/illegal behaviors to
prevent other firms from committing similar violations (Gazley, Sinha, & Rod, 2016). Also,
regulatory agencies should maintain a visible presence in the market-place to deter illegal
behavior (Brennan, Eagle, Ellis, & Higgins, 2010). Last, regulatory agencies should continue to
promote, if not mandate, compliance programs in marketing firms to maintain an ethical
environment within the firm (Brennan, Eagle, Ellis, & Higgins, 2010). Overall, a prominent,
tangible threat should be present to prevent marketing firms from engaging in unethical
behaviors subsequently preventing illegal behaviors.

3. References
Brennan, R., Eagle, L., Ellis, N., & Higgins, M. (2010, Decemeber). Of a Complex Sensitivity in
Marketing Ethics Education. Journal of Marketing Management, 26(13-14), 1165-1180.
Retrieved April 2016, from
http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=13&sid=5a1c8978-8c01-
4a7e-b122-d2c188368105%40sessionmgr102&hid=102
Gazley, A., Sinha, A., & Rod, M. (2016). Toward a Theory of Marketing Law Transgressions.
Journal of Business Research, 69, 476-483. Retrieved April 2016, from http://ac.els-
cdn.com.pitt.idm.oclc.org/S0148296315001939/1-s2.0-S0148296315001939-
main.pdf?_tid=39fd7584-06ea-11e6-8a20-
00000aab0f6b&acdnat=1461151554_f772824e86ed9d367ea1103f9147a08a