John Tomasi's Free Market Fairness treats both traditions with depth, nuance, and unremitting fair-mindedness, and then points us toward a synthesis. Social democrats and libertarians equally need to read this book.
The Market Failures Approach (MFA) is one of the leading theories in contemporary business ethics. It generates a list of ethical obligations for the managers of private firms that states that they should not create or exploit market failures because doing so reduces the efficiency of the economy. Recently the MFA has been criticised by Abraham Singer on the basis that it unjustifiably does not assign private managers obligations based on egalitarian values. Singer proposes an extension to the MFA, the (...) Justice Failures Approach (JFA), in which managers have duties to alleviate political, social, and distributive inequalities in addition to having obligations to not exploit market failures. In this paper I describe the MFA and JFA and situate them relative to each other. I then highlight a threefold distinction between different types of obligations that can be given to private managers in order to argue that a hybrid theory of business ethics, which I call the MFA +, can be generated by arguing that managers have obligations based on efficiency and duties based on equality to the extent that these latter obligations do not lead to efficiency losses. This argument suggests a novel theoretical option in business ethics, elucidates the issues that are at stake between the MFA and the JFA, and clarifies the costs and benefits of each theory. (shrink)
This article reviews the history of marketing thought in relation to social responsibility and business ethics. The main objective of the article is to show that business can be profitable and socially responsible at the same time by practising the societal marketing concept. More specifically, it presents the development of a marketing philosophy, discusses the influence of consumerism on the marketing concept and deals with ethics and social responsibility in marketing. It is argued that organisations who adopt the societal marketing (...) concept will be the ones most likely to make long-run profits as well as be beneficial to society as a whole. (shrink)
Marketing Ethics addresses head-on the ethical questions, misunderstandings and challenges that marketing raises while defining marketing as a moral activity. A substantial introduction to the ethics of marketing, exploring the integral relations of marketing and morality Identifies and discusses a series of ethical tools and the marketing framework they constitute that are required for moral marketing Considers broader meanings and background assumptions of marketing infrequently included in other marketing literature Adds direction and meaning to problems in marketing ethics through reflection (...) on concepts such as individual choice, freedom and responsibility, desire satisfaction, noncoercive exchanges, and instrumental efficiency. (shrink)
May you sell your vote? May you sell your kidney? May gay men pay surrogates to bear them children? May spouses pay each other to watch the kids, do the dishes, or have sex? Should we allow the rich to genetically engineer gifted, beautiful children? Should we allow betting markets on terrorist attacks and natural disasters? Most people shudder at the thought. To put some goods and services for sale offends human dignity. If everything is commodified , then nothing (...) is sacred. The market corrodes our character. Or so most people say. In Markets without Limits , Jason Brennan and Peter Jaworski give markets a fair hearing. The market does not introduce wrongness where there was not any previously. Thus, the authors claim, the question of what rightfully may be bought and sold has a simple answer: if you may do it for free, you may do it for money. Contrary to the conservative consensus, they claim there are no inherent limits to what can be bought and sold, but only restrictions on how we buy and sell. (shrink)
Historically, republicans were of different minds about markets: some, such as Rousseau, reviled them, while others, like Adam Smith, praised them. The recent republican resurgence has revived this issue. Classical liberals such as Gerald Gaus contend that neo-republicanism is inherently hostile to markets, while neo-republicans like Richard Dagger and Philip Pettit reject this characterization—though with less enthusiasm than one might expect. I argue here that the right republican attitude toward competitive markets is celebratory rather than acquiescent and (...) that republicanism demands such markets for the same reason it requires the rule of law: because both are essential institutions for protecting individuals from arbitrary interference. I reveal how competition restrains—and in the limit, even eradicates—market power and thereby helps us realize “market freedom,” i.e., freedom as non-domination in the context of economic exchange. Finally, I show that such freedom necessitates “Anglo-Nordic” economic policies. (shrink)
Semiotic objections to commodification hold that buying and selling certain goods and services is wrong because of what market exchange communicates or because it violates the meaning of certain goods, services, and relationships. We argue that such objections fail. The meaning of markets and of money is a contingent, socially constructed fact. Cultures often impute meaning to markets in harmful, socially destructive, or costly ways. Rather than semiotic objections giving us reason to judge certain markets as immoral, (...) the usefulness of certain markets gives us reason to judge certain semiotic codes as immoral. (shrink)
Can we conceive of a market economy that fulfils the ideals of socialism? In this book, David Miller provides a comprehensive examination, from the standpoint of political theory, of an economy in which market mechanisms retain a central role, but in which capitalist patterns of ownership have been superseded.
This paper aims to examine the role(s) that the various vehicles of marketing communications can play with respect to communicating, publicising and highlighting organisational CSR policies to its various stakeholders. It will further endeavour to evaluate the impact of such communications on an organisation's corporate reputation and brand image. The proliferation of unsubstantiated ethical claims and so-called 'green washing' by some companies has resulted in increasing consumer cynicism and mistrust. This has made the task of communicating with, and more importantly (...) convincing, an organisation's stakeholders vis-à-vis its CSR credentials even more difficult. This paper argues that marketing communications tools can play a major role in conveying a company's CSR messages and communicating a more socially responsible image. (shrink)
The debate on the influence of markets on virtues has focused on two opposite hypotheses: the doux commerce thesis and the self-destruction thesis. Whereas the doux commerce hypothesis assumes that capitalism polishes human manners, the self-destruction hypothesis holds that capitalism erodes the moral foundation of society. This paper will develop a more balanced position by using the virtue ethics developed by Aristotle, which distinguishes several virtues. The research will focus on the question for which virtues the doux commerce or (...) self-destruction thesis is likely to hold. An extensive literature survey shows that market competition tends to stimulate diligence, crowd out temperance, generosity, and sociability, and stimulate envy. The effect on other virtues – i.e. courage, high-spiritedness, justice, and prudence – is ambiguous. (shrink)
International marketing practices, embedded in a strong ethical doctrine, can play a vital role in raising the standards of business conduct worldwide, while in no way compromising the quality of services or products offered to customers, or surrendering the profit margins of businesses. Adherence to such ethical practices can help to elevate the standards of behavior and thus of living, of traders and consumers alike. Against this background, this paper endeavors to identify the salient features of the Islamic framework of (...) International Marketing Ethics. In particular, it highlights the capabilities and strengths of this framework in creating and sustaining a strong ethical international marketing culture. At the heart of Islamic marketing is the principle of value-maximization based on equity and justice (constituting just dealing and fair play) for the wider welfare of the society. Selected key international marketing issues are examined from an Islamic perspective which, it is argued, if adhered to, can help to create a value-loaded global ethical marketing framework for MNCs in general, and establish harmony and meaningful cooperation between international marketers and Muslim target markets in particular. (shrink)
This book examines the effects of the market mechanism on economies and societies. It argues that perfect competition has a tendency to promote adulteration of products and a general deterioration in quality. It also contends that it is very difficult for competitive firms to behave in socially desirable ways - being kind to the environment, contributing to worthy social programmes, handling redundancy humanely. The book goes on to propose ways in which these flaws might be remedied without subverting the market (...) mechanism. (shrink)
Technology used in online marketing has advanced to a state where collection, enhancement and aggregation of information are instantaneous. This proliferation of customer information focused technology brings with it a host of issues surrounding customer privacy. This article makes two key contributions to the debate concerning digital privacy. First, we use theories of justice to help understand the way consumers conceive of, and react to, privacy concerns. Specifically, it is argued that an important component of consumers’ privacy concerns relates to (...) fairness judgments, which in turn comprise of the two primary components of distributive and procedural justice. Second, we make a number of prescriptions, aimed at both firms and regulators, based on the notion that consumers respond to perceived privacy violations in much the same way they would respond to an unfair exchange. (shrink)
Corporate reputation is an intangible asset that is related to marketing and financial performance. The social, economic, and global environment of the 1990'shas resulted in environmental performance becoming an increasingly important component of a company'sreputation. This paper explores the relationship between reputation, environmental performance, and financial performance, and looks at the contingencies that impact environmental policy making.
In the wake of recent corporate scandals, this paper examines the claim made by John Boatright that business ethics, as it is currently conceived, “rests on a mistake.” Ethics in business should not be achieved through managerial vision, discretion or responsibility; rather, ethics should shape the design of institutions that regulate business from the outside. What ethicists should advocate for, according to Boatright, are moral markets not moral managers. I explore the empirical and normative dimensions of his claim with (...) special attention paid to the extent to which Boatright’s development of the economic theory of the firm supports his position. I conclude by suggesting some reasons why moral markets and moral management are compatible frameworks for corporate reform. (shrink)
In several works, Jason Brennan and Peter Martin Jaworski defend the following thesis: If it is permissible to have, use, or exchange something for free, then it is permissible to have, use, or exchange that thing for money. In this paper, I argue that No Limits is false. Moreover, the reasons why it is false reflect many of the complaints made against markets. The paper will proceed as follows: In §1, I summarize Brennan and Jaworski’s position to clarify exactly (...) what a challenge to No Limits requires. In §2, I raise just such a challenge, one which also captures the concern behind some “semiotic objections.” In §3, I offer a modification to No Limits that avoids my objection but, as a result, re-opens the question of whether markets in some of the goods Brennan and Jaworski discuss are permissible. I conclude in §4 by considering a possible response and some thoughts on the dialectic as it stands. (shrink)
The material to follow challenges the conceptual uniqueness and contribution of the content of the field of marketing ethics. Based on a comprehensive inspection of the marketing ethics literature, this "review note" (an uncommon genre of academic manuscript – a briefly-presented review highlighting a specific point) concludes that, in terms of pragmatic behavioral guidance as well as conceptual content, marketing ethics has nothing new nor distinctive to offer. Though an initially unexpected conclusion, perhaps, explanation is provided for why marketing ethics' (...) absence of contribution is perfectly natural and appropriate. Evidence also is found to establish that the paper's contrarian-appearing position may not be extremist after all. (shrink)
In previous works, I defined ourselves as informational organisms, or inforgs for short, who forage for, produce, cultivate, curate, process, and consume information (Floridi 2013). Yet, we may also be understood as interfaces, who inhabit and interact with, an environment also made up of data and computational processes. By describing ourselves in such terms, this paper argues that we can better understand several crucial phenomena that characterise our digital age, including marketing and the “marketisation” of political communication. The article concludes (...) by discussing some of the implications for this in political theory. -/- . (shrink)
This study examines the moderating effects of corporate social responsibility (CSR) on the association between market orientation and firm performance in the context of an emerging economy. The results from a sample of firms that operate in Dubai indicate that CSR has a synergistic effect on the impact of market orientation on business performance. The results of our research on the moderating effects of CSR on market orientation subsets reveal that although CSR moderates the association between customer orientation and business (...) performance, it does not moderate the association between competitive orientation and interfunctional coordination and performance. The results of this study are discussed, and implications for practitioners and researchers are presented. (shrink)
Hayek’s social theory of evolution suggests that market liberal morality is adaptive for social groups. He justified the evolutionary superiority of market liberalism by asserting that groups operating under a market liberal morality would have a higher capacity to expand and reproduce than groups with alternative tribal moralities. Thus, market liberal groups would be favoured through cultural and genetic group selection. But in fact, market liberal morality reveals maladaptive tendencies and remains insufficiently powerful to create adaptive social groups. Hayek’s dismissal (...) of moral tribalism in favour of market liberal morality is found to underestimate the importance of tribal goals in the evolutionary system. (shrink)
The link between Corporate Social Responsibility (CSR) and financial performance has continued to generate mixed and inconclusive results. Most studies in this area seem to assume that corporate social and financial performance share the same underpinning logic. Drawing from a qualitative analysis of practitioners' accounts of the challenges of mainstreaming the market for responsible investments, as part of the broader CSR agenda, this article re-examines this taken-for-granted assumption in the extant literature, and reaches the conclusion that CSR, as a complex (...) private governance of externalities, does not easily lend itself to measurability and profitability. In other words, not everything about CSR is measurable and profitable as much as the financial markets would expect. Comparing what is rendered measurable and profitable, on one hand, and what is yet to fully lend itself to measurability and profitability, on the other, is identified as one of the fundamental flaws of this literature. As such, CSR and financial performance will continue to run on competing logics until their different markets are distinctively articulated and/or aligned. (shrink)
Objectives of socially responsible investment (SRI) are discussed with reference to the two main mechanisms of the SRI ‘movement’: shareholder advocacy and managed investments. We argue that in their current forms, both mechanisms lack the power to create significant corporate change. Shareholder advocacy has been largely unsuccessful to date. Even if resolutions were successful, shareholder advocacy may still be ineffective if underlying economic opportunities remain. Marketing material and investment prospectuses issued by socially responsible mutual funds (SRI funds) commonly contain the (...) claim that, by affecting corporations' access to capital funding, SRI funds can change corporate practices. This paper makes a contribution by presenting the market share of SRI funds in the regions where they are most developed, being Europe, the U.S. and Australia, to show that this claim is unlikely to eventuate. SRI funds also commonly claim that they will outperform conventional active mutual funds. That the economic performances of both are similar might be explained by their similar portfolio compositions. The paper makes an innovation in the SRI literature by adopting a legitimacy framework to explain the continued presence of SRI funds. To achieve desired social and environmental outcomes, SRI funds are urged to address issues at a more systemic level. A suggested mechanism is the collective lobbying of corporations and, especially, governments. (shrink)
We study the Johansen–Ledoit–Sornette model of financial market crashes :219–255, 2000). On our view, the JLS model is a curious case from the perspective of the recent philosophy of science literature, as it is naturally construed as a “minimal model” in the sense of Batterman and Rice :349–376, 2014) that nonetheless provides a causal explanation of market crashes, in the sense of Woodward’s interventionist account of causation.
The Marketing of Education has become epidemic. Business practices and principles now commonly suffuse the approach and administration of Higher Education in an attempt to make schools both more competitive and “branded.” This seems to be progressing without reference to the significant ethical challenges as well as the growing costs to society, students, and educators in pursuing a model with such inherent conflicts. The increased focus on narrowly defined degrees targeted to specific job requirements rather than the focus on raising (...) the level of students’ ability to engage in more abstract and critical thinking is accelerating. The impact on student world views and the lack of engagement with meaningful and challenging discourse has severely impaired their ability to become both engaged and reflective. This model has also impacted faculty morale as concern with lack of academic rigor continues to grow. An ethical crisis has emerged within education internationally and intervention is urgently needed. (shrink)
Our actions in the marketplace often harm others. For instance, buying and consuming petroleum contributes to climate change and thereby does harm. But there is another kind of harm we do in almost every market interaction: market harms. These are harms inflicted via changes to the goods and/or prices available to the victim in that market. (Similarly, market benefits are those conferred in the same way.) Such harms and benefits may seem morally unimportant, as Judith Jarvis Thomson and Ronald Dworkin (...) have argued. But, when those harms or benefits are concentrated on the global poor, they can have considerable impacts on wellbeing. For instance, in 2007-2008, commodity traders invested heavily in wheat and other staple foods, caused a dramatic price rise, and thereby pushed 40 million people into hunger. In such cases, intuition suggests that the traders act wrongly. In this paper, I argue that market harms and benefits are morally equivalent to harms and benefits imposed through other means (contra Thomson and Dworkin). I also demonstrate that, in practice, these harms and benefits are often great in magnitude. For many common products, buying that product results in a considerable financial loss for one group and a considerable gain by another. For instance, for every $10 we spend on wheat, we cause the global poor to lose between $5 and $67 (in expectation) and the global rich to gain the same amount. In light of these effects, I argue that we have moral duties to adopt certain consumption habits. (shrink)
This article presents the most important strands of the philosophical debate about markets. It offers some distinctions between the concept of markets and related concepts, as well as a brief outline of historical positions vis-à-vis markets. The main focus is on presenting the most common arguments for and against markets, and on analyzing the ways in which markets are related to other social institutions. In the concluding section questions about markets are connected to two (...) related themes, methodological questions in economics and the topics of business ethics and corporate social responsibility. (shrink)
The stock market’s reaction to information disclosure of environmental violation events (EVEs) is investigated multi-dimensionally for Chinese listed companies, including variables such as pollution types, information disclosure sources, information disclosure levels, modernization levels of the region where the company locates, ultimate ownership of the company, and ownership held by the largest shareholder. Using the method of event study, daily abnormal return (AR) and accumulative abnormal return (CAR) are calculated under different event window for examining the extent to which the stock (...) market responds to the EVEs. Furthermore, statistical significance of the difference in stock market reaction is compared between event firms with different characteristics. The relationship between CAR and its impact factors is examined by multivariate analysis. The findings reveal that the average reduction in market value is estimated to be much lower than the estimated changes in market value for similar events in other countries, demonstrating that the negative environmental events of Chinese listed companies currently have weak impact on the stock market. (shrink)
The ‘limits of markets’ debate broadly concerns the question of when it is (im)permissible to have a market in some good. Markets can be of tremendous benefit to society, but many have felt that certain goods should not be for sale (e.g., sex, kidneys, bombs). Their sale is argued to be corrupting, exploitative, or to express a form of disrespect. In Markets without Limits, Jason Brennan and Peter Jaworski have recently argued to the contrary: For any good, (...) as long as it is permissible to give it for free, then it is permissible to give it for money. Their thesis has led to a number of engaging objections, and I leverage recent work on the nature of feasibility within political philosophy to offer a new challenge. I argue that feasibility offers a constraint on which markets can be permissibly implemented. Though it may be possible to create a morally acceptable version of an otherwise repugnant market, some of these markets may be infeasible, and so we are not permitted to implement them. After laying out this challenge, I consider several replies. They concern the relevance of feasibility, and whether any markets really are infeasible. This provides an opportunity to explore the dangers of pursuing the infeasible and with markets generally. I conclude by considering what might lead us to pursue these markets despite their infeasibility, or how knowledge of infeasibility may prove useful regardless. (shrink)
In a commercial society, said Adam Smith, “every man becomes in some measure a merchant.” If Smith is right, what does that mean for the character of the society? This paper addresses the character forming effects of the market—and, specifically its impact on the “virtues.” There is a long tradition of viewing commerce as subversive of the virtues. In this view, the market is held to have legitimated the pursuit of narrow self-interest at the expense of social and civic obligations (...) and moral restraints. But, as Albert Hirschman has shown, many Enlightenment moralists saw commercial society as a moralizing force. Which view is right? This paper examines how many of the character traits that we commonly call virtues are rewarded— and so presumably reinforced and diffused—by the market. In this way, the market (as it were by a hidden hand) strengthens its own foundations and reproduces a moral culture that is functional to its own needs. (shrink)
This paper argues for the legalization of vote markets. I contend that the state should not prohibit the sale of votes under certain institutional conditions. Jason Brennan has recently argued for the moral permissibility of vote selling; yet, thus far, no philosopher has argued for the legal permissibility of vote selling. I begin by giving four prima facie reasons in favour of legalizing vote markets. First, vote markets benefit both buyers and sellers. Second, citizens already enjoy significant (...) discretion in their use of their vote, including the ability to use their vote in ways antithetical to justice and the public interest. Third, vote markets are relevantly similar to other democratic practices that are legally permissible. Fourth, vote markets enable elections to better reflect the intensity of citizens’ preferences. Next, I reply to two counter-arguments. The first contends that vote markets will increase the political power of the wealthy; the second contends that votes must be used in the serv.. (shrink)
This article traces John Rawls’s debt to Frank Knight’s critique of the ‘just deserts’ rationale for laissez-faire in order to defend justice as fairness against some prominent contemporary criticisms, but also to argue that desert can find a place within a Rawlsian theory of justice when desert is grounded in reciprocity. The first lesson Rawls took from Knight was that inheritance of talent and wealth are on a moral par. Knight highlighted the inconsistency of objecting to the inheritance of wealth (...) while taking for granted the legitimacy of unequal reward based on differential productive capacity. Rawls agreed that there was an inconsistency, but claimed that it should be resolved by rejecting both kinds of inequality, except to the extent they benefitted the worst off. The second lesson Rawls learned from Knight was that the size of one’s marginal product depends on supply and demand, which depend on institutional decisions that cannot themselves be made on the basis of the principle of rewarding marginal productivity. The article claims that this argument about background justice overstates its conclusion, because the dependence of contribution on institutional setup is not total. Proposals for an unconditional basic income may therefore have a strike against them, as far as a reciprocity-based conception of desert is concerned. If we follow Knight’s analysis of the competitive system, however, so too does the alternative of leaving determination of income up to the market. (shrink)
According to the Market Failures Approach to business ethics, beyond-compliance duties can be derived by employing the same rationale and arguments that justify state regulation of economic conduct. Very roughly the idea is that managers have a duty to behave as if they were complying with an ideal regulatory regime ensuring Pareto-optimal market outcomes. Proponents of the approach argue that managers have a professional duty not to undermine the institutional setting that defines their role, namely the competitive market. This answer (...) is inadequate, however, for it is the hierarchical firm, rather than the competitive market, that defines the role of corporate managers and shapes their professional obligations. Thus, if the obligations that the market failures approach generates are to apply to managers, they must do so in an indirect way. I suggest that the obligations the market failures approach generates directly apply to shareholders. Managers, in turn, inherit these obligations as part of their duties as loyal agents. (shrink)
The efficient markets hypothesis has been the central proposition in finance for nearly thirty years. It states that securities prices in financial markets must equal fundamental values, either because all investors are rational or because arbitrage eliminates pricing anomalies. This book describes an alternative approach to the study of financial markets: behavioral finance. This approach starts with an observation that the assumptions of investor rationality and perfect arbitrage are overwhelmingly contradicted by both psychological and institutional evidence. In (...) actual financial markets, less than fully rational investors trade against arbitrageurs whose resources are limited by risk aversion, short horizons, and agency problems. The book presents and empirically evaluates models of such inefficient markets. Behavioral finance models both explain the available financial data better than does the efficient markets hypothesis and generate new empirical predictions. These models can account for such anomalies as the superior performance of value stocks, the closed end fund puzzle, the high returns on stocks included in market indices, the persistence of stock price bubbles, and even the collapse of several well-known hedge funds in 1998. By summarizing and expanding the research in behavioral finance, the book builds a new theoretical and empirical foundation for the economic analysis of real-world markets. (shrink)
There is a libertarian argument for live donor organ markets, according to which live donor organ markets would be permitted if we simply refrained from imposing any substantive and controversial moral assumptions on people who reasonably disagree about morality and justice. I argue that, to the contrary, this endorsement of live donor organ markets depends upon the libertarians’ adoption of a substantive and deeply controversial conception of strong, extensive property rights. This is shown by the fact that (...) these rights would prevent states intervening in cases of preventable and intuitively impermissible wronging of others that can arise when free individuals engage in voluntary offers and exchanges. I outline two forms of such wronging: discrimination and disrespectful demands. I argue that although these types of acts are morally impermissible, the policy question of whether and how they should be regulated by states is non-trivial. I then argue that there is good reason to think that organ markets would rely on disrespectful demands. This may help explain the widespread moral repugnance people feel toward organ trading. It also provides a prima facie, though not decisive, case for states to prohibit such markets. (shrink)
The need for conceptual work in marketing ethics is addressed by examining the five techniques of neutralization as a means for partially explaining unethical behaviors by marketing practitioners. These techniques are often used by individuals to lessen the possible impact of norm-violating behaviors upon their self-concept and their social relationships. Borrowed from the social disorganization and deviance literature, the five techniques of neutralization are: (1) denial of responsibility, (2) denial of injury, (3) denial of victim, (4) condemning the condemners and (...) (5) appeal to higher loyalties. Examples of marketing professionals using each of the five techniques are given, and a conceptual model linking the techniques of neutralization with unethical behavior is presented. Finally, relevant research questions are offered for consideration. (shrink)
Semiotic objections to market exchange of a good or service maintain that such exchanges signal an inappropriate attitude to the good or to associated individuals, and that this provides a weighty reason against having or participating in such markets. This style of argument has recently come under withering attack from Jason Brennan and Peter Jaworski (2015a, 2015b). They point out that the significance of any market exchange is explained by a contingent semiotic norm. Given the tremendous value that could (...) be realised by markets in, for instance, bone marrow, or kidneys, deferring to such norms across the board would have very significant opportunity costs. In the absence of any rationale for these norms, they should be ignored completely. We provide one important rationale. Unlike many semiotic objections to markets, we provide a broadly consequentialist semiotic argument. We argue that a range of behaviours play important signalling roles in interpersonal social practices; in particular, in practices involving caring, esteem, and testimony. Markets in these behaviours would distort these signals. Moreover, many of the productive advantages yielded by markets rely in turn on positive market norms that also inhibit the signalling behaviours associated with these nonmarket behaviours. We conclude that there will inevitably be trade-offs between the distributive advantages of new markets and these interpersonal social practices. (shrink)
This paper aims to examine the role that the various vehicles of marketing communications can play with respect to communicating, publicising and highlighting organisational CSR policies to its various stakeholders. It will further endeavour to evaluate the impact of such communications on an organisation's corporate reputation and brand image. The proliferation of unsubstantiated ethical claims and so-called 'green washing' by some companies has resulted in increasing consumer cynicism and mistrust. This has made the task of communicating with, and more importantly (...) convincing, an organisation's stakeholders vis-à-vis its CSR credentials even more difficult. This paper argues that marketing communications tools can play a major role in conveying a company's CSR messages and communicating a more socially responsible image. (shrink)
Does the level of marketing activity in a country contribute to societal well-being or quality of life? Does economic efficiency also play a positive role in societal well-being? Does economic efficiency also moderate or mediate the marketing activity effect on societal well-being? Marketing activity refers to the pervasiveness of promotion expenditures and number of retail outlets per capita in a country. Economic efficiency refers to the extent to which the economy is unhampered by corruption, burdensome government regulation, and a large (...) informal economy. We used secondary data from the World Bank and other statistical sources to answer these questions. Our study findings suggest that both marketing activity and economic efficiency contribute positively to societal well-being, and that economic efficiency plays more of a mediator than moderator role between marketing activity and societal well-being. The public policy implication of this study is that increases in marketing activity and economic efficiency in countries characterized as low on both dimensions should significantly increase the quality of life in those countries. (shrink)
How much inequality does market interaction generate? The answer to this question partly depends on the level of competition among economic agents. Yet, in their normative analysis of the market, theories of distributive justice focus on individual characteristics such as talents as determinants of income, and tend to ignore structural features such as competition. Economists, on the other hand, dispose of the conceptual tools to assess the distributive impact of competition, but their analysis is usually limited to allocative efficiency. Part (...) I of the article distinguishes my argument from conventional perspectives on income inequality and redistribution. Whereas the latter propose either to redistribute income once the market interaction has taken place or to adjust the initial holdings of market participants, I focus on the distributive impact of the institutional structure of the market itself. Part II outlines the ways in which various forms of competition affect distribution. My objective here is descriptive in nature, but shows that a normative evaluation of the market has to take seriously the distributive impact of competition. This impact can be broken down into the analysis of three overlapping groups of economic agents, namely consumers, workers, and capital owners. Consumers potentially gain from competition in the form of lower prices, but these gains are only realized if competition does not put pressure on their work income at the same time. Unless competition squeezes profits unusually hard, capital owners tend to benefit from competition. (shrink)
As it has become more and more urgent to solve the problems of environmental protection, we consider it necessary to conduct multilevel studies to examine the impact of business strategy on both employees’ and firms’ performances in environmental protection. Synthesizing the perspectives of strategic orientation, corporate strategy, and firm performance, we propose a comprehensive theoretical model linking market orientation and environmental performance. Based on a survey of 134 matched chief executive officers, senior marketing managers and frontline workers from Chinese firms, (...) we found that market orientation positively affects environmental strategy which, in turn, influences both environmental product quality and employees’ environmental involvement. These latter two variables consequently have a positive influence on environmental performance. At the same time, environmental commitment moderates the link between market orientation and environmental strategy. (shrink)
Technology used in online marketing has advanced to a state where collection, enhancement and aggregation of information are instantaneous. This proliferation of customer information focused technology brings with it a host of issues surrounding customer privacy. This article makes two key contributions to the debate concerning digital privacy. First, we use theories of justice to help understand the way consumers conceive of, and react to, privacy concerns. Specifically, it is argued that an important component of consumers' privacy concerns relates to (...) fairness judgments, which in turn comprise of the two primary components of distributive and procedural justice. Second, we make a number of prescriptions, aimed at both firms and regulators, based on the notion that consumers respond to perceived privacy violations in much the same way they would respond to an unfair exchange. (shrink)
This article analyzes the relationship between corporate social responsibility decoupling and financial market outcomes. CSR decoupling refers to the gap between CSR disclosure and CSR performance. More specifically, we analyze the effect of CSR decoupling on analysts’ forecast errors, cost of capital, and access to finance. We also examine the moderating effect of forecast errors on relationships between CSR decoupling and cost of capital and access to finance. For a sample of U.S. firms consisting of 7,681 firm-year observations for the (...) period 2006–2015, our empirical evidence supports the idea that a wider gap results in higher analysts’ forecast errors, a greater cost of capital, and reduced access to finance. In addition, our results show that forecast errors enhance the effect of the CSR decoupling on cost of capital and access to financial resources. We also note that external monitoring, in the form of greater analysts’ coverage, reduces CSR decoupling. (shrink)
This handbook advances the interdisciplinary field of Philosophy, Politics, and Economics (PPE) by identifying thirty-five topics of ongoing research. Instead of focusing on historically significant texts, it features experts talking about current debates. Individually, each chapter provides a resource for new research. Together, the chapters provide a thorough introduction to contemporary work in PPE, which makes it an ideal reader for a senior-year course. -/- This is Chapter 20, "Housing Markets".
Inventing the Market explores two paradigms of the market in the thought of Adam Smith and G.W.F. Hegel, bridging the gap between economics and philosophy, it shows that both disciplines can profit from a broader, more historically situated ...
Animal welfare is emerging as one of the most controversial issues in modern livestock agriculture. Although consumers can buy free range products in niche markets, some have argued that existing markets cannot solve the animal welfare dilemma because there are individuals who care about animal well-being who do not eat animal products. This paper proposes a market-based solution to at least partially manage animal welfare externalities. After discussing the current lack of market incentives to promote farm animal well-being, (...) a potential scheme to quantify and trade units of farm animal well-being is proposed. The potential merits and efficacy of an animal welfare market are also discussed. (shrink)
This study explores possible links between educational background and ethics among marketing professionals. Data from two surveys of members of the American Marketing Association suggest that marketing professionals with master's degrees and higher are similar to their less educated counterparts in both their ethical standards and their intended ethical behaviors. Marketers with business degrees, however, have lower ethical standards than do graduates of non-business programs, though they report behavior as ethical as that of their non-business educated peers. Business schools may (...) be producing cynics likely to accept marginal behaviors of colleagues though not likely to engage in such behaviors themselves. (shrink)