Position Paper, Values, ethics and sustainability shape much of the more interesting news events. Scan the press, magazines, on-line news sources, idea handout sheets, and TV, and choose a topic from

However, there is considerable public opinion which holds the activities of MNCs in emerging markets to be immoral economic colonialism. For example, the aggressive commercialisation of ‘Nestlé Pure Life’ water in Pakistan was interpreted as directed against the common welfare and the real needs of the local people 4. Similar to the ‘Nestlé Baby Food case’ 5, Nestlé aggressively marketed their water ‘Pure Life’ by organising seminars on water quality (wherein they did not officially appear as the organiser) shortly before launching the new product. The hired marketing organisation convinced Kathrin Sele is a doctoral student at the Institute of Marketing and Retailing, Graduate School of Business, Economics, Law and Social Sciences, University of St-Gallen, Switzerland.

[email protected] Round Table 96 Marketing Ethics in Emerging Markets – Coping with Ethical Dilemmas considerations when talking about global marketing, and to discuss the necessity and the role of marketing ethics in emerging markets. The paper contends that the implementation of ethical marketing practices can make a valuable contribution towards the sustainable development of these countries not despite but due to the existing market conditions. Consequently, an attempt is made to develop and discuss maxims for the handling of ethically responsible marketing practices. Throughout this paper, the market entry of MNCs in developing countries is taken for granted.

Therefore, perspectives and solution approaches that foster responsible use of marketing practices are required.

The Notion of Marketing Ethics The Notion of Marketing EthicsThe Notion of Marketing Ethics The Notion of Marketing Ethics The Notion of Marketing Ethics According to Meffert 8, marketing is the planning, coordination, and control of all corporate activities concentrated on actual and upcoming markets. Corporate goals should be achieved through a continuous satisfaction of customer needs. Kotler 9, in contrast, defines marketing as a process in the economic and social structure within which individuals and groups satisfy their needs and wishes by producing, offering, and exchanging products or services.

Whereas Meffert explicitly concentrates on the satisfaction of customer needs, Kotler puts emphasis on the exchange relationships. To summarise, marketing can be conceived as market-oriented corporate management wherein the customer and his needs play a crucial role. Intersection of Marketing and Ethics Intersection of Marketing and EthicsIntersection of Marketing and Ethics Intersection of Marketing and Ethics Intersection of Marketing and Ethics Marketing is the gateway between the corporate environment or the different target audiences and the company itself. It is this position and the implicit characteristics of marketing activities that give rise to ethical concerns and criticism 10 and since the 1960s, ethical concerns have been increasingly connected to the marketing practices of particular companies. According to Tsalikis and Fritzsche 11 marketing is ‘the functional area most closely related to ethical abuse’.

In general, fundamental social problems such as the negative influence upon culturally affected values, the advancement of conformity instead of individuality and the discrimination against classes or castes, cultural imperialism or the tendency towards a global dominance of Western culture, and ecological problems caused by production, distribution and consumption take centre stage when the ethical aspects of marketing practices are discussed. In the field of marketing, the focus of the critics is mainly on problematic fields such as local politicians that the available state-controlled water was causing health problems. It was not the selling of water, or milk powder or cigarettes 6 as in previous cases, which was considered morally questionable but the aggressive commercialisation and the misleading of potential customers through communication that neither reflected the framing conditions nor considered the actual knowledge standard of the consumer. Such attitudes have led to worldwide criticism and a public call for a stronger sense of responsibility among MNCs. Shue 7 sees this kind of attitude as having ‘a great deal to do with the discounting of the welfare of people across national boundaries, especially when the boundaries also mark cultural, ethnic, or radical differences. Harm to foreigners is simply not taken as seriously’.

From an ethical point of view, several decisive areas of conflict when entering new markets can be identified. The growth activities of global companies or the principles of profit maximisation seem to be competing with the common welfare or the maximisation of welfare. Further, there is the question of whether new needs should be actively created before existing needs are satisfied. How should needs be prioritised and who should define them? In striving for a clear win-win situation with regard to sustainable development, from the local perspective, a need-oriented market activity should be the main goal. However, companies can only persist in the market if they are economically successful. From a company’s perspective a market-oriented satisfaction of needs is essential. Thus, we encounter a classical dilemma between economic and social goals, wherein ethical points of view play a key role.

The aim of this paper is to establish a basis for ethical In striving for a clear win-win situation with regard to sustainable development, from the local perspective, a need-oriented market activity should be the main goal. However, from a company’s perspective a market-oriented satisfaction of needs is essential.

Thus, we encounter a classical dilemma between economic and social goals. IIMB Management Review, March 2006 97 price fixing and price differentiation, bribery, unfair selling methods, extensive information databases about single customers, deceptive advertising, and unsafe products 12.

Public discussion, as well as socially and economically negative effects of marketing, have led to a strong countervailing power:

consumerism. Kotler 13 describes consumerism as an organised movement of citizens and state institutions who pursue the goal to strengthen the rights and powers of buyers in relation to sellers. The emergence of the consumerist movement prompted Drucker 14 to pose the question as to what extent marketing had failed. From his perspective, marketing intrinsically aims to know and understand the customer so well that the product and service fit him and sell themselves, making selling activities superfluous. However, such welfare maximisation is not being assigned to the actual conception of marketing 15. Given its primary concentration on profitability, the socio-political consequences and problems of marketing practices are subordinated and are often considered irrelevant. The marketing discipline, to date, has not been able to separate itself from the traditionally profit- oriented economy. In fact, the widely requested need- orientation is being hindered by the strong shareholder value- orientation. Consequently, Drucker 16 calls the emergence of the consumerist movement the ‘shame of marketing’, in terms of a reaction to the predominant power and information asymmetry.

The marketing legitimisation crisis is based on the fact that it does not just deal with the satisfaction of existing needs, but also with the creation and formation of new needs in the interest of the company. We are therefore confronted with a dilemma between satisfaction of needs and creation of needs.

To overcome this dilemma at least to a certain extent, ethical considerations have to become an integral part of marketing, and therefore alternative marketing becomes indispensable.

This claim is targetted at companies who strive for a successful and sustainable business model. However, sustainable success requires that companies emphasise the welfare and protection of consumers by orienting their activities along their real needs. Additionally, marketing practices that simultaneously support the political goals of the host country such as poverty reduction or the establishment of infrastructure can further support the legitimisation process because they may activate or support virtuous development circles 17 or economic globalisation processes that have beneficial, not malignant, effects on social agendas 18. Development of Marketing Ethics as a Discipline Development of Marketing Ethics as a DisciplineDevelopment of Marketing Ethics as a Discipline Development of Marketing Ethics as a Discipline Development of Marketing Ethics as a Discipline The new ways of seeing have led to the development of a newresearch field, especially in the Anglo-American context, that mainly focuses on the definition and empirical analysis of the sources of ethical marketing dilemmas. Marketing ethics deals with the development of moral values (the desirable) and norms (the requirements) for responsible marketing practices.

Parallel to the establishment of marketing ethics as a discipline, a further development of the marketing concept, amounting to a paradigm shift, has taken place. Under the notion Social Marketing , the market orientation has been broadened into the field of non-profit organisations and, in response to the criticism targetted at the classical marketing conception, its goals have been enlarged through approaches such as Eco-marketing or Societal Marketing . The common goal of these approaches it to overcome the solely economic perspective and to enable a marketing that is aligned with social goals as well. According to Kotler and Zaltmann 19, the idea of these approaches is ‘the design, implementation, and control of programs calculated to influence the acceptability of social ideas and involving considerations of product planning, pricing, communication and marketing research’.

Marketing ethics does not claim to become a new marketing management theory, but aims to improve the current marketing conception through the integration of socio- ecological thought. From an overall business ethics perspective, this development can be considered a conciliation or a teaming-up of economical rationality with ethical reasoning 20. Marketing ethics is an integral part of business ethics that requests an ongoing dialogue on the possible consequences of marketing practices in general, as well as the development and constitution of imperatives or action guidelines for future marketing activities. Marketing ethics deals with the development of moral values and norms for responsible marketing practices. Under Social Marketing, the market orientation has been broadened into the field of non-profit organisations and, in response to the criticism of the classical marketing conception, its goals have been enlarged through Eco-marketing or Societal Marketing. 98 Marketing Ethics in Emerging Markets – Coping with Ethical Dilemmas Role of Marketing Ethics in Emerging Role of Marketing Ethics in EmergingRole of Marketing Ethics in Emerging Role of Marketing Ethics in Emerging Role of Marketing Ethics in Emerging Markets MarketsMarkets Markets Markets Developments in recent years have shown that developing countries gain importance through their increasing integration into the global economy. However, today’s dynamics in the global economy, such as the ubiquitous access to information, increased automation or the power of human knowledge, create challenges and consequences that complicate the long- term integration of emerging markets into global trade. The importance of these dynamics can be detected on a macro and a micro level. On the one hand, political and economic leaders have ongoing discussions on emerging markets and the corresponding challenges in such fora as the World Economic Forum, and on the other hand, many MNCs are evaluating how they could enter these markets successfully – a difficult task as the discussion of practical cases will show.

At present, the discussions in relation to developing countries have mainly been viewed from an overall business ethics perspective. Multinational companies and sometimes even states are criticised for behaviour that only values the principle of profit maximisation; for taking advantage of the fact that there exists a massive need for paid employment in developing countries where growth does not automatically translate into new jobs 21; and that the legal protection against poor working conditions is often still inadequate 22. For instance, it is only after much criticism that the Indian and French governments have prohibited the deconstruction of the possibly contaminated French aircraft carrier ‘Clemenceau’ in India 23.

Public discussion and growing public criticism of many such cases has led to improvements, especially in working conditions and the use of natural resources 24. From Manufacturing Bases to Buying Markets From Manufacturing Bases to Buying MarketsFrom Manufacturing Bases to Buying Markets From Manufacturing Bases to Buying Markets From Manufacturing Bases to Buying Markets With ‘the market’ starting to turn into the dominant model even in emerging markets — a development however that is much discussed in the ongoing globalisation debate — the importance of marketing ethics for future action becomes clear. As Prahalad and Hart 25 note, MNCs have gained access to more than a billion new customers within the last decade.

Formerly closed markets such as Eastern Europe, China, India, and Brazil have become an active part of the global economy. As a consequence, these markets are increasingly turning into buying markets. Through their attendance, the new market participants not only radically alter the demographic configuration but also the existing need context.

India, for example, is one of the fastest growing countries in the world, while industrialised nations such as Germany or the US, with their greying populations, have difficulty upholding an annual birth rate that is higher than their mortality rate. As marketing has been viewed as a feature of Western economies, the ongoing transition from manufacturing bases into buying markets is leading to a fundamental modification of the relationship between corporations and consumers. The resulting accelerated economic growth will inevitably lead to a further proliferation of marketing activities and therefore to new conflict situations.

As early as 1958, Drucker 26 argued for a marketing discipline that incorporated an impact- fostering development from a Western perspective. To him, the allocation of marketable need-oriented products would mobilise the effective demand and buying power and thus stimulate macroeconomic activity. Meffert 27 had a similar opinion and saw in the development and expansion of mass markets the necessary preconditions for new investments as well as the stimulation of the labour market. The diffusion of marketing, taking the local circumstances into consideration, can lead to fair competitive conditions and better goods supply, and also to social development in the area of education, hygiene, nutrition, and medical supply. Social development and corporate success can go hand in hand as long as corporate investments do not negatively affect the common welfare in these countries. Areas of Misconduct Areas of MisconductAreas of Misconduct Areas of Misconduct Areas of Misconduct Based on McCarty’s 4P-model (product, place, price, and promotion) 28 wherein almost all marketing activities and decisions can be located, current ethical dilemmas can be discussed with regard to the individual strategic dimensions of the international marketing situation. Formerly closed markets have become an active part of the global economy, increasingly turning from manufacturing bases into buying markets. The new market participants not only radically alter the demographic configuration but also the existing need context, leading to a fundamental modification of the relationship between corporations and consumers. IIMB Management Review, March 2006 99 Product Products and services can, as long as they are oriented along social and economic performance factors, guarantee better need satisfaction in developing countries. Product variation, product innovation, and product elimination hold a key function in covering the fundamental needs. Unfortunately, MNCs still do not have a strong orientation along these basic needs of the people when defining their product ranges. In general, they uncritically transfer life style and consumption patterns derived from Western countries onto their new customers to exploit emerging economies of scale and to achieve additional profits through an artificial extension of product life cycles. In the case of such product introductions, two types of ethical problems regarding international marketing can be identified: products that are not appropriate in developing countries and products that are forbidden in Western markets. Emerging markets often serve as disposal sites for previous generation, or even dangerous, products.

An example of this is the commercialisation and the distribution of Depo-Provera ® in Malaysia, when the drug was not licensed in the United States due to its side effects and the suspicion that it caused cancer 29.

Some MNCs exploit the knowledge standard of the consumers and the absence of environment protection in developing countries, as well as the lack of oversight of product safety and product quality. As a representative example, the return of the Coca-Cola Company to India in 1993 can be mentioned. The processes used in manufacturing soft drinks have been inherently damaging because the disproportionately high extraction of groundwater deprives poor people of their fundamental right of access to clean water. Additionally, their products have negligible nutritional value compared with traditional drinks and they are often damaging to health 30. According to Chonko 31 product safety is, together with misleading information on packaging or product, counterfeit products, socially questionable products, ecologically incompatible products and intentional product aging, the most common area of ethical concern regarding the development of products and marketing in general. Such practices do not reflect Western standards of customer care at any point, because corporations are not held responsible for the ecological, economic, and social consequences of their actions. From an ethical perspective, corporations must therefore be held responsible for the intended and the unintended consequences of their actions. Within this process, governments can play a crucial role by enacting laws and regulations that are clearly targetted towards misconduct.

Customers also can play an important role as their concertedaction can lead to boycotts and sanctions. Place Studies and surveys dealing with market entry in developing countries show that the integration of the local context decisively contributes to the satisfaction of needs and is a further step to business success in these countries 32. An oft cited example is Hindustan Lever Ltd. (HLL), with their successful distribution of the washing powder ‘Wheel’, that was clearly designed for the needs of the lower economic classes and the conditions of the Indian market 33. Despite its economic success, the usage of washing powder among the lower economic classes might also have negative effects, especially from an ecological perspective. However, as products and services simultaneously have positive and negative effects, it is difficult to decide whether or not a product should be launched. For example, empowering of women through education, family planning, and microcredit loans may be a desirable outcome, but it is also culturally disruptive 34. Why should a rural family not be allowed to use washing powder? And who is in a position to decide? As these questions cannot be detached from the specific context, it can only be stated that such topics must become an integral part of the public discourse. At the same time, MNCs should yield towards ‘product stewardship’ by considering the impact of products throughout their entire lifecycle 35. Price Based on the international price policy, companies define the market price of their products and services. Price definition uses three basic methods: cost-oriented, demand-oriented, and competition-oriented methods. The factors that affect Product safety is, together with misleading information on packaging or product, counterfeit products, socially questionable products, ecologically incompatible products and intentional product aging, the most common area of ethical concern regarding marketing. Such practices do not reflect Western standards of customer care. 100 Marketing Ethics in Emerging Markets – Coping with Ethical Dilemmas governments, multilateral institutions, and NGOs – as well as by firms themselves – to help create the conditions in which prices can be lowered to a “socially responsible” point at which the poor can be better served’.

Promotion The superior goal of a corporation’s communication policy is to steer the behaviour of actual as well as potential customers.

It therefore comprises the conscious design of all information through advertising, sales promotion, personal selling, public relations and special instruments such as exhibitions and fairs that are directed towards the national and international sales markets.

Through its role as connector to the public, the communication policy is often the first to be criticised from an ethical point of view. This is clearly being reflected through the plurality of scientific studies and discourses concentrating on ethical advertising principles and the misleading of consumers through false statements, as well as through the increasing number of legal restrictions in the field of advertising and communication 40. In this context, MNCs often refer to the power of customers’ judgement. However, the power of judgement develops through increasing market participation and is still evolving in emerging markets. Especially with regard to the impact of mass communication, it is necessary that companies consider the knowledge situation of the consumers as well as their cultural background when planning and defining the content of their communication measures.

From an ethical perspective, advertising especially should strive for local adaptation in order to maintain national norms and cultural identity. The main aim should be to preserve a national identity rather than promote an international one.

The awareness and acceptance of cultural identities can minimise the cultural footprints and ease the creation of more informed customers, as the activities are based on common knowledge 41.

Another fundamental problem concerning the communication policy deals with the artificial creation of needs, particularly in a market where a large section of the population can satisfy its basic needs only with difficulty. The creation of such additional needs may aggravate the situation because important financial resources may be diverted for their consumption (e.g. the consumption of cigarettes 42). Such dysfunctional behaviour may be based on the encouragement of consumption standards that rise more quickly than incomes 43.

As seen earlier in the Nestle ‘Pure Life’ case, marketing in price determination differ from one country to the other and must therefore be revised on an individual basis.

The price structuring or the fair determination of prices, is one of the most controversial points of international marketing strategies pursued by MNCs. The central question of international price policy is: At what point is a price fair for the buyer as well as for the seller? In emerging markets these kinds of questions are very difficult to answer. As of now, MNCs mainly serve the upper classes 36 wherein the price plays a subordinated role. This so-called ‘skimming strategy’ implies that the middle and lower classes are obviously excluded from market development. In other words, the needs of the broad public are not being considered, and the market entry strategies do not support the overall development of these countries. If one is eager to serve the lower group of buyers – and therefore the majority of the people in emerging markets – prices must be radically adjusted to their income situation. However, these customisations are often not carried out. A sad example is the selling of AIDS drugs in emerging markets. Western pharmaceutical companies are not willing to sell the drugs at a net cost price or to develop innovative distribution channels that aim to improve the situation of billions of AIDS-infected people. While successfully protecting the intellectual property of their pharmaceuticals, these companies have prevented the production of cheaper generic drugs for emerging markets 37. Thus, price policies can create strong interdependencies which can be exploited in favour of the profit maximisation principle 38. However, operating solely on this principle is not compatible with social responsibility and integrity at any point. According to Vachani and Smith 39 this situation ‘points to a need for coordinated action by The fair determination of prices is a controversial point in the international marketing strategies of MNCs. The central question is:

At what point is a price fair for the buyer as well as for the seller? In emerging markets these questions are difficult to answer.

MNCs mainly serve the upper classes wherein the price plays a subordinated role. IIMB Management Review, March 2006 101 creation of more informed consumers is important to foster further growth in developing countries 51.

Incorporating social responsibility Incorporating social responsibilityIncorporating social responsibility Incorporating social responsibility Incorporating social responsibility: MNCs should align their corporate goals to accommodate the development of overall political goals in developing markets and assume social responsibility, as their conduct has social, economic, and environmental consequences for local consumers 52.

According to Manmohan Singh, the Indian prime minister, such an overall goal would be the reduction of poverty or the establishment of an adequate infrastructure that supports economic growth 53. Bakan 54 argues that corporations need to become more trustworthy as authority is being transferred to them from the government. Lodge and Wilson 55 go even further by stating that the only institutions that have the resources and competences required for the sustainable development of these countries are MNCs. This can be only achieved by overcoming ideological and structural resistance among the different stakeholders. Cooperation between NGOs and MNCs can substantially improve the situation.

F FF F F os osos os os t tt t t er erer er er ing e ing eing e ing e ing e t tt t t hical beha hical behahical beha hical beha hical beha viour wit viour witviour wit viour wit viour wit hin MN hin MNhin MN hin MN hin MN Cs: Cs: Cs: Cs:

Cs: Today, several instruments that can help a company create a corporate culture reflecting ethical standards are available.

When fostering the realisation of ethical marketing practices through instruments, it is important that they address three different cognitive levels: sensibility, knowledge, and behaviour. The most important and widely spread instruments are: Codes and guidelines of ethics: Corporate codes of ethics help define and identify acceptable behaviour by formulating the basic moral values. Internally, they should help employees evaluate and eventually revise their decisions. Externally, they emerging markets is often characterised by an asymmetry of power. MNCs have the ability to control information relating to the product and its usage, as well as eventual side effects 44.

It is therefore important to establish a reflective discussion on the possible consequences of aggressive marketing practices in emerging markets. Responsible Marketing Practices Responsible Marketing PracticesResponsible Marketing Practices Responsible Marketing Practices Responsible Marketing Practices To cope with such ethical dilemmas, companies can act along maxims that support responsible decision making in marketing. These maxims should both open structures and decision processes for ethical reflection and handling, and prevent unwanted behaviours by aligning corporate activities along declared and verifiable standards 45.

Designing products along customer needs: Designing products along customer needs: Designing products along customer needs: Designing products along customer needs:

Designing products along customer needs: ‘Inclusive capitalism’ 46 and ethical marketing in developing markets means designing products that are specifically suited to the need of low-income consumers 47, whom Prahalad and Hart 48 see as containing the real market potential, people who are getting access to the market for the first time. The rethinking of customers and the satisfaction of their needs stands at the centre of the discussion. In the long-run, their quality of life can be improved through culturally sensitive, ecologically sustainable, and economically profitable products and services, which however require ‘radical innovations in technology and business models’. The fact that a reliable infrastructure is still being set up in emerging markets, such as India or China, offers an opportunity for the development and marketing of innovative products under the application of new and disruptive technologies.

Achieving welfare maximisation Achieving welfare maximisationAchieving welfare maximisation Achieving welfare maximisation Achieving welfare maximisation: Marketing theory adheres to the philosophy of individualism and utilitarianism, thus allowing space for criticism. The anti-globalisation movement therefore emphasises that marketing undermines local culture, places intellectual property ahead of human rights, and contributes to unsustainable and unhealthy consumption patterns 49. In order to make an essential contribution to development, MNCs and their managers thus have to show sensitivity regarding the social consequences of marketing strategies and practices, which includes the nature of the product or the service to be marketed, as well as the possible external effects of selling. The establishment of a welfare maximisation perspective is therefore essential when supplying goods to the lower end of the pyramid 50. Besides affordable pricing and the introduction of efficient distribution channels, well-conceived information campaigns and the ‘Inclusive capitalism’ and ethical marketing in developing markets means designing products that are specifically suited to the needs of low-income consumers. In the long-run, their quality of life can be improved through culturally sensitive, ecologically sustainable, and economically profitable products and services. 102 Marketing Ethics in Emerging Markets – Coping with Ethical Dilemmas are often used as a public relations tool that should support the creation of a benevolent image. The successful implementation of codes of ethics requires a continuous and company-wide communication of the content, including specific wording and relevance within the corporate context 56.

Several companies have practical guidelines to operationalise their ethical principles and codes, to specifically support marketing specialists when making decisions with possible ethical implications, foster communication between individuals and uncover inconsistencies within ethical ideals 57. Top management leadership: As Thompson 58 assessed, codes and rules do not guarantee adherence. To anchor the basic ethical understanding within an organisation it is imperative that the top management represent the topic in a serious and credible manner 59. As Chonko observes, ‘Ethical guidelines and ethics codes are not likely to be observed unless top management declares that supporters will be rewarded and violators will be punished’ 60. The top management, as well as marketers, must adopt and incorporate the role of ‘moral champions’ 61. Ethics seminars and programmes: Internal education programmes and seminars are a popular measure to sensitise employees to ethical considerations. The goal of such educational modules is normally not the display of definite answers 62. Instead, case study methods are chosen to discuss possible problem areas. Ethical audits: Companies have seen that unless they monitor their ethical performance it will be taken for granted and hence many have developed systematic procedures to determine whether their employees are taking the commitment to ethical and social responsibility seriously 63. Conclusion ConclusionConclusion Conclusion Conclusion For Murphy 64 five virtues are particularly relevant in the context of international marketing activities – integrity, fairness, trust, respect, and empathy. These should be followed and fostered based on the fact that the first ‘Consumer Bill of Rights’ elaborated in the 1960s has identified at least four fundamental consumer rights: the right to safety, the right to be informed, the right to choose, and the right to be heard 65. In industrialised nations consumers have learned to fight for their rights. They group within consumer interest committees and increasingly gather power within the market, for example, by boycotting specific products or companies. This kind of resistance, however, is only beginning to be seen in emerging markets. Lack of information turns the consumer into the weakest element in the commercialisation chain. In contrast to earlier days though, MNCs who infringe upon ethical principles when doing business in emerging markets increasingly get into the news as we have seen in the cases of the Coca-Cola Company and Nestlé ‘Pure Life’, leading not only to a loss of reputation but also to high organisational costs 66. The increasingly open society and strong networking mainly through the rise of new communication technologies allow the organisation of targetted resistance all around the world.

The activities of MNCs in emerging markets can simultaneously be seen as an opportunity as well as a threat.

In the words of J R Simpson 67, ‘The challenge, in which philosophers can play an important role, is in drafting the guidelines for dealing with globals from an ethical point of view, recognising that the end purpose of production and consumption is furthering the happiness of the entire world’s population. … It is recognising that there is a difference between growth and equity and between growth and development.’ Marketing departments can prove that ethical and social action does not impair the success of an organisation but raises it in the long-term. It should consequently turn into an integral part of business ethics, because economic aspirations and ethical rationality should be considered as one, and consequently serve the needs of all stakeholders. In summary, emerging markets bear a huge potential for a ‘win-win situation’ as long as corporates endeavour to carry all stakeholders on the journey to global prosperity. References and Notes References and NotesReferences and Notes References and Notes References and Notes 1 Sinha, J, 2005, ‘Checking India’s Vital Signs’, McKinsey Quarterly , Special Edition, pp 17-25; Perry, G E, O S Arias, J H Lopez, W F Maloney, and L Servén, 2006, ‘Poverty Codes and rules do not guarantee adherence. To anchor the basic ethical understanding within an organisation it is imperative that the top management represent the topic in a serious and credible manner. The top management, as well as marketers, must adopt and incorporate the role of ‘moral champions’. IIMB Management Review, March 2006 103 Reduction and Growth: Virtuous and Vicious Circles’, World Bank Latin American and Caribbean Studies, Washington:

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46 Prahalad and Hart, ‘The Fortune at the Bottom of the Pyramid’, pp. 2-3.

47 Witkowski, ‘Antiglobal Challenges to Marketing in Developing Countries …’ 48 Prahalad and Hart, ‘The Fortune at the Bottom of the Pyramid’, pp. 2-3.

49 Witkowski, ‘Antiglobal Challenges to Marketing in Developing Countries …’ 50 Vachani and Smith, ‘Socially Responsible Pricing …’ 51 Witkowski, ‘Antiglobal Challenges to Marketing in Developing Countries …’ 52 Ibid.

53 Gupta, R K, 2005, ‘India’s Economic Agenda: An Interview with Manmohan Singh, McKinsey Quarterly , Special Edition, pp. 123-132.

54 Bakan, J, 2004, The Corporation: The Pathological Pursuit of Profit and Power, New York: Free Press.

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56 Laczniak, G R, and P E Murphy, 1991, ‘Fostering Ethical Marketing Decisions’, Journal of Business Ethics , Vol. 10, pp.

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57 Chonko, Ethical Decision Making in Marketing, p. 123.

58 Thompson, ‘Marketing Virtue’, p. 361.

59 Laczniak and Murphy, ‘Fostering Ethical Marketing Decisions’, p. 268.

60 Chonko, Ethical Decision Making in Marketing, p. 129.

61 Amine, ‘The Need for Moral Champions in Global Marketing’, p. 81.

62 Laczniak and Murphy, ‘Fostering Ethical Marketing Decisions’, p. 268.

63 Laczniak and Murphy, ‘Fostering Ethical Marketing Decisions’, p. 270.

64 Murphy, P E, 1999, ‘Character and Virtue Ethics in International Marketing: An Agenda for Managers, Researchers and Educators’, Journal of Business Ethics , Vol.

18, p.107.

65 Amine, ‘The Need for Moral Champions in Global Marketing’, p. 82.

66 Laczniak and Murphy, ‘Ethical Marketing Decisions: The Higher Road’, p. 263.

67 Simpson, J R, 1982, ‘Ethics and Multinational Corporations vis-à-vis Developing Nations’, Journal of Business Ethics , Vol. 1, No. 3, p. 235.