Ethical marketing examples: Ethical Marketing

Summary

The video script explores the concept of ethical marketing, highlighting its importance to millennial consumers and showcasing companies like TOMS, Everlane, Dr. Bronner's, and Conscious Coffees that embody this practice. These businesses integrate social responsibility and environmental consciousness into their branding, emphasizing fairness, honesty, and transparency. Their dedication to ethical marketing not only fosters brand loyalty but also supports vulnerable communities and promotes sustainable practices.

Takeaways

• 🌿 92% of Millennial customers prefer to purchase goods from ethical businesses.
• 🌟 82% of Millennial customers think ethical brands perform better than non-ethical brands.
• 🤝 Ethical marketing involves companies selling products and services with social responsibility and environmental issues in mind.
• ⚖️ Ethical marketing is a mindset rather than a plan of action, covering truthfulness, reliability, and strong client connections.
• 📜 Fundamental marketing ethics rules include fairness, honesty, responsibilities, and transparency.
• 👟 TOMS is an example of ethical marketing, donating over 60 million pairs of shoes and supporting various charitable initiatives.
• 👗 Everlane is committed to ethical manufacturing, providing transparency in production costs and maintaining high-quality standards for worker treatment.
• 🧼 Dr. Bronner's uses fair-trade ingredients and aims to raise awareness on environmental and social justice issues.
• ☕ Conscious Coffees supports fair-trade practices and community outreach programs, helping coffee farmers improve their livelihoods.
• ❤️ Ethical marketing helps companies build brand loyalty by aligning their values with those of their target customers.

Q & A

What percentage of Millennial customers prefer to purchase from ethical businesses according to the script?

92% of Millennial customers prefer to purchase goods from ethical businesses.

What do customers believe about the performance of ethical brands compared to non-ethical ones?

82% of customers think ethical brands perform better than comparable businesses that don't uphold ethical standards.

What does ethical marketing involve for corporations?

Ethical marketing involves corporations selling their products and services with a focus on social responsibility and environmental issues.

What is the main idea behind ethical marketing according to the script?

Ethical marketing is a mindset rather than a plan of action, covering everything from truthful and reliable marketing to cultivating strong connections with clients through shared values.

What are the four fundamental marketing ethics rules mentioned in the script?

The four fundamental marketing ethics rules are fairness, honesty, responsibilities, and transparency.

What is the core principle of TOMS' business model?

The core principle of TOMS' business model is corporate philanthropy, donating products like shoes, eyewear, and providing support for clean water and safe childbirth assistance.

How does TOMS demonstrate its commitment to social and environmental philanthropy?

TOMS demonstrates its commitment by openly showcasing its philanthropic efforts on its website and through its marketing materials, ensuring customers are aware of the company's values.

What is Everlane's approach to ethical manufacturing?

Everlane is dedicated to ethical manufacturing, producing all of its clothing in facilities that respect high standards of quality and employee treatment.

How does Everlane practice transparency with its customers?

Everlane practices transparency by providing a detailed breakdown of the costs associated with each of its products, including information on materials, labor, shipping, and more.

What are Dr. Bronner's commitments in its ethical marketing practices?

Dr. Bronner's is committed to increasing public awareness of environmental and social justice issues, using fair-trade ingredients, and implementing equitable compensation plans.

How does Conscious Coffees support coffee farmers and producers worldwide?

Conscious Coffees supports coffee farmers and producers by improving production pipelines, participating in community outreach programs, and providing technical guidance and support through initiatives like the Farmer-to-Farmer program.

What is the common thread among the companies featured in the script?

The common thread among the companies is their dedication to helping others, defending the rights and way of life of vulnerable individuals, and embracing ethical marketing as a fundamental component of their organizational mission and values.

Outlines

00:00

🌟 Ethical Marketing Defined and Its Impact

This paragraph introduces the concept of ethical marketing, emphasizing its importance among Millennial customers who prefer to buy from businesses with strong ethical standards. It defines ethical marketing as a mindset that integrates social responsibility and environmental concerns into business practices, rather than a mere strategy. The paragraph outlines basic ethical marketing principles such as fairness, honesty, responsibility, and transparency, and highlights the significance of these principles in building customer trust and brand reputation.

05:06

👟 TOMS: A Case Study in Ethical Business Practices

The second paragraph delves into TOMS as an example of a company that embodies ethical marketing. TOMS, founded by Blake Mycoskie, is known for its one-for-one model, donating a pair of shoes for every pair sold. The company's commitment to social and environmental philanthropy extends to its eyewear and coffee businesses, which support vision care and clean water initiatives, respectively. TOMS' transparency and consistent communication of its philanthropic mission through its branding and marketing materials are highlighted as key aspects of its ethical marketing approach.

10:12

👕 Everlane: Transparency and Ethical Fashion

This paragraph discusses Everlane, a clothing brand that prioritizes ethical manufacturing and transparency. Founded by Michael Preysman, Everlane ensures its products are made in facilities that uphold high standards for both product quality and employee treatment. A unique aspect of Everlane's ethical marketing is its cost breakdown, which openly shares the expenses associated with each garment, from materials to logistics. This radical transparency allows consumers to understand the true cost of production and the brand's commitment to fair pricing and labor practices.

🧼 Dr. Bronner's: Ethical Soap Making with a Social Mission

The fourth paragraph presents Dr. Bronner's as an example of a company that combines ethical production with a strong social mission. Dr. Bronner's is recognized for its organic liquid soap and its dedication to environmental and social justice. The company uses fair-trade ingredients, ensures equitable compensation plans, and actively raises awareness of important issues. Its unique packaging and branding also contribute to its memorable identity in the market, setting it apart from other soap makers.

☕ Conscious Coffees: Empowering Coffee Farmers with Ethical Practices

The final paragraph showcases Conscious Coffees, a company committed to improving the lives of coffee farmers and producers worldwide. Founded by Mark and Melissa Glenn and later sold to Craig Lamberty, Conscious Coffees focuses on ethical manufacturing and fair-trade practices. The company's CAFE Livelihoods Program supports farmers in Central America, providing them with the tools to own and manage their coffee enterprises. Additionally, Conscious Coffees is involved in community outreach and technical support initiatives, reflecting its comprehensive approach to ethical marketing.

Keywords

💡Ethical Marketing

Ethical marketing is a business approach that integrates social responsibility and environmental concerns into the promotion and sale of products and services. It is a mindset that prioritizes honesty, fairness, transparency, and responsibility in all marketing activities. In the video, ethical marketing is exemplified by companies like TOMS, Everlane, Dr. Bronner's, and Conscious Coffees, which are committed to ethical practices and have incorporated these values into their branding and operations.

💡Millennial Customers

Millennial customers, also known as Generation Y, are individuals born between the early 1980s and the mid-1990s to early 2000s. The script highlights that a significant percentage of these customers prefer to purchase from ethical businesses and believe that ethical brands perform better. This indicates a growing trend where consumers are not just interested in products but also in the values and ethics of the companies they support.

💡Corporate Philanthropy

Corporate philanthropy refers to the practice of businesses donating a portion of their profits or resources to charitable causes. TOMS exemplifies this concept by donating a pair of shoes for every pair sold and expanding its philanthropic efforts to include eyewear, clean water, and safe childbirth assistance. This approach not only helps those in need but also aligns with the company's ethical marketing strategy.

💡Ethical Manufacturing

Ethical manufacturing is the practice of producing goods under fair labor conditions, ensuring worker rights, and maintaining environmental standards. Everlane is highlighted in the script for its dedication to ethical manufacturing, producing clothing in facilities that uphold high standards for both product quality and employee treatment.

💡Transparency

Transparency in business refers to the openness and honesty with which a company communicates its practices, policies, and impacts to the public. The script mentions that ethical marketing involves transparency, as seen with Everlane, which provides a detailed breakdown of the costs associated with each of its products, thereby showing its commitment to ethical and fair pricing.

💡Fairness

Fairness as a principle in ethical marketing implies that companies should offer equitable treatment to all stakeholders, including customers, employees, and suppliers. The script cites fairness as one of the fundamental marketing ethics rules, suggesting that ethical businesses should provide fair prices, wages, and contribute to sustainable development.

💡Honesty

Honesty in the context of ethical marketing means that businesses should communicate truthfully and without deception. The script emphasizes the importance of honesty as a cornerstone of ethical conduct, with ethical businesses using marketing communications to convey accurate information about their products and services.

💡Responsibilities

Responsibilities in ethical marketing encompass a company's duties towards various stakeholders, including delivering reliable products, supporting charitable causes, treating employees with respect, and protecting the environment. The script mentions that businesses can highlight their responsibilities in various ways, which is evident in the practices of companies like TOMS and Conscious Coffees.

💡Sustainable Development

Sustainable development refers to a form of progress that meets the needs of the present without compromising the ability of future generations to meet their own needs. The script touches on sustainable development as part of the ethical marketing principles, where companies like TOMS and Conscious Coffees contribute to the development by supporting environmental causes and fair-trade practices.

💡B-Corporation

A B-Corporation, or Benefit Corporation, is a type of corporation that meets rigorous social and environmental standards, as certified by the non-profit B Lab. The script mentions Conscious Coffees as a qualified B-Corporation, indicating that the company has been recognized for its commitment to ethical business practices and community impact.

💡Community Outreach

Community outreach involves a company's efforts to engage with and support local communities through various initiatives. The script discusses Conscious Coffees' community outreach programs, such as the CAFE Livelihoods Program, which empowers people in Central America to own and run their coffee enterprises, and the Community Cycles program, which supports bicycle maintenance and restoration.

Highlights

92% of Millennial customers prefer to purchase from ethical businesses.

82% of customers believe ethical brands perform better than non-ethical ones.

Ethical marketing is defined as a mindset integrating social and environmental issues into business practices.

Ethical marketing covers truthfulness, reliability, and shared values with customers.

Basic marketing ethics rules include fairness, honesty, responsibilities, and transparency.

TOMS demonstrates ethical marketing through corporate philanthropy, donating over 60 million pairs of shoes since 2006.

TOMS' eyewear division has donated more than 400,000 pairs of glasses to those in need.

Everlane was founded on ethical manufacturing principles, focusing on quality and employee welfare.

Everlane practices extreme transparency by revealing the cost breakdown of its clothing items.

Dr. Bronner's is committed to social and environmental justice, using fair-trade ingredients and equitable compensation.

Conscious Coffees supports coffee farmers by improving production pipelines and offering community programs.

Conscious Coffees is a B-Corporation with a top 10% community impact score globally.

Ethical marketing aims to help customers make smarter decisions about the products they purchase.

Aligning company values with customer values can develop brand loyalty through ethical marketing.

The video inspires viewers to consider implementing generous ideals in their own businesses.

Transcripts

Did you know that 92% of Millennial customers  prefer to purchase goods from ethical businesses?  

Or that 82% of those customers think ethical  brands perform better than comparable businesses  

that don't uphold ethical standards?This video  will define ethical marketing and examine  

examples of companies that have demonstrated this  dedication. The following examples demonstrate  

ethical marketing ideas in action and demonstrate  why supporting charitable organizations is so  

successful for modern firms. What Exactly  Is Ethical Marketing? Let's define ethical  

marketing for a bit before moving on to the  examples. Ethical marketing involves corporations  

selling their products and services to customers  and socially responsible or environmental issues.  

To put it another way, ethical marketing is  a mindset rather than a plan of action. It  

covers everything, from making sure marketing  are truthful and reliable to cultivating strong  

connections with clients through a set of shared  values. Companies that place a strong emphasis on  

ethical marketing assess their choices from both a  business and moral standpoint, determining whether  

a certain marketing activity will result in  the intended return. Let's move on to the  

important information now that that is over. A few  fundamental marketing ethics rules are as follows:  

1. Fairness: When organizations choose fairness  as a guiding principle in decision-making,  

they agree to offer fair prices, higher  wages, and sustainable development.  

2. Honesty: Honesty is a cornerstone of  moral conduct. Sincere businesses don't  

try to deceive customers; instead, they utilize  marketing communications to convey accurate,  

unedited information about the benefits and uses  of their goods and services. 3. Responsibilities:  

Businesses may highlight their responsibilities in  a variety of ways, such as their duty to deliver a  

reliable good or service, back charitable causes,  support local communities, treat their employees  

with respect, or safeguard the environment  through environmentally friendly practices.  

4. Transparency: In business, transparency  refers to being honest with the public  

about your activities, especially the moral  treatment of employees and the sustainability  

and environmental effects of your goods or  services. Example #1 of Ethical Marketing: TOMS.  

Corporate philanthropy is a vital component  of TOM's principles and brand; it's not just  

something the company does to earn fast money.  After visiting Argentina, Blake Mycoskie founded  

TOMS in 2006. Mycoskie witnessed firsthand how  difficult it was for residents of Argentina's  

poorer regions to survive without shoes during  his tour, a problem that most of us probably  

take for granted. Mycoskie made the decision  to start his business with donating in mind  

after returning from his trip.More than 60 million  pairs of shoes have been handed by the TOMS shoe  

company to children in need worldwide since 2006.  In addition, TOMS' eyewear branch has donated more  

than 400,000 pairs of glasses to people who are  blind and cannot afford ophthalmological care.  

Through its coffee business, the company has  expanded its activities to include clean water  

efforts, and its bag line has supported  programs to increase access to birthing  

kits for expectant mothers in poor countries  as well as training for birth attendants.  

Over 25,000 women have received safe childbirth  assistance from TOMS to this point.What  

Ethical Marketing Practices Does TOMS Use? With  regard to almost every part of its branding,  

TOMS proudly displays its commitment to  social and environmental philanthropy.  

This not only makes potential clients aware of the  type of business they are working with right away,  

but it also continuously communicates TOMS'  brand values throughout all platforms. Check  

out the TOMS website. The business informs you  that for every product you buy, TOMS will assist  

someone in need. Since the company's objective is  so essential to its branding, it receives almost  

as much attention on its website as the items  it sells. In fact, it's nearly hard to browse  

TOMS' website without finding more instances of  how the company supports individuals globally.  

This isn't an ordinary dishonest attempt to profit  off fake gestures or a heartwarming sales gimmick;  

it's the same idea that firms who employ  display advertising use. The humanitarian  

objective of TOMS is consistently reaffirmed  throughout its website and marketing materials,  

just as numerous display commercials are made to  increase brand awareness and attain top-of-mind  

presence among consumers. As a result, it is  nearly hard to think of TOMS as a brand without  

invoking up images of its numerous charitable  endeavors and corporate giving programs.  

Example #2 of Ethical Marketing: Everlane  One of the most contentious sectors in the  

world is clothing production. Over the past  20 years or so, much more focus has been  

placed on how and where our clothes are made,  especially in light of tragedies like the 2012  

Bangladesh factory fire that claimed 117 lives  and destroyed a garment manufacturing facility.  

This factory produced clothing for American  retailers like Walmart and Sears.Due to  

increased knowledge of sweatshops, demand for  ethically created clothes has skyrocketed,  

inspiring dozens of firms like Everlane that  aim to transform how we make and view clothing.  

Everlane, which Michael Preysman founded in 2010,  is resolutely dedicated to ethical manufacturing.  

All of Everlane's clothing is produced in  facilities that respect the highest standards  

of quality, both in terms of the products produced  and in terms of how employees are treated.  

Everlane takes great satisfaction in the fact  that it exclusively collaborates with businesses  

that show a strong dedication to the welfare  of their employees in its marketing materials.  

What Kind of Ethical Marketing Does Everlane Use?  Like other ethical firms, Everlane publishes its  

brand story on its About page, detailing how it  supports the rights and welfare of the people who  

manufacture its clothing. But what's really  intriguing about Everlane is its dedication  

to extreme transparency.Everlane goes beyond  simply stating that its clothing is produced and  

distributed ethically; the brand also gives buyers  a thorough explanation of the costs associated  

with each and every one of its fashionable, basic  pieces. This covers information on the price of  

components, labor, shipping, logistics, excise  taxes, and even hardware like zippers and buttons.  

You can see exactly how each of the manufacturing  and logistical factors influences the retail price  

by comparing the $60 production cost of the  company's Elements jacket to the following:  

Fair marketing Cost breakdown  for Everlane clothing:  

The majority of commercially made clothes often  has a highly guarded production cost. This is not  

only due to the fact that a breakdown of such  prices would show a brand's potential profit  

margin on a particular item, but also because  they draw attention to the appalling pay and  

working conditions that many individuals who work  in the clothing manufacturing industry experience.  

Everlane can give its customers the kind of  transparency they want while also benefiting  

from the significant good karma that this kind  of radical transparency gives by audaciously  

disclosing exactly how much each of its clothing  costs to create. Ethical Marketing Example #3:  

Dr. Bronner's Although there are literally  hundreds of soap brands on the market, few are  

as distinctive or memorable as Dr. Bronner's, the  top-selling organic liquid soap brand in America.  

Consumer demand for cleansing products  made responsibly has grown in recent years.  

You already know that Dr. Bronner's soap is  a little different from other soap makers if  

you've ever purchased or seen a bottle of it.  In this way, Dr. Bronner's does a great job.  

The company is dedicated to achieving a number  of specific goals, such as increasing public  

awareness of important environmental and social  justice issues, using fair-trade ingredients that  

have received USDA certification, and implementing  equitable compensation plans that end executive  

pay at five times that of lower-level employees.  Example #4 of Ethical Marketing: Conscious Coffees  

Few industries are likely to experience the kind  of disruption brought on by climate change as  

intensely as agricultural coffee production; in  worrying news for the persistently caffeinated,  

literally half the world's coffee farming land  could be lost by 2050 if climate change isn't  

tackled aggressively. Globally, the coffee  industry directly supports the livelihoods of  

more than 120 million of the world's poorest  people.Conscious Coffees is one of several  

businesses working to better the circumstances  for coffee farmers and producers worldwide.  

Mark and Melissa Glenn created Conscious Coffees,  which has its headquarters in Boulder, Colorado,  

in 1996. They eventually sold the company  to Craig Lamberty, who is the current owner,  

earlier this year. Conscious Coffees has devoted  many hours since its foundation to enhancing its  

production pipelines to the advantage of growers,  farmers, and suppliers throughout South America.  

Conscious Coffees, a qualified  B-Corporation like Dr. Bronner's,  

has a community impact score that places it in the  top 10% of all certified B-Corporations globally.  

What Ethical Marketing Practices Does Conscious  Coffees Workforce? From its name to its emblem,  

Conscious Coffees represents its mission  and ethical production philosophy.Conscious  

Coffees is strongly committed to ethical  manufacturing methods and fair-trade business,  

and it also takes part in a variety of community  outreach programs. Through training workshops,  

continuous advice, and assistance, its CAFE  Livelihoods Program gives people in El Salvador,  

Guatemala, Mexico, and Nicaragua the ability to  own and run their own coffee enterprises. The  

company frequently gives coffee to the community's  Community Cycles program, which is managed by  

cyclists from all around the Boulder area and  provides assistance to other riders by repairing,  

maintaining, and restoring old and used bicycles.  As part of the USAID-funded Farmer-to-Farmer  

initiative, Conscious Coffees' team of coffee  experts provides technical guidance and support  

to growers and farmers. This initiative helps  coffee farmers throughout South America learn  

new methods that can help them maximize yields  and participate in fair-trade economic practices  

with North American suppliers. Conscious Coffees  is the perfect example of a brand that not only  

uses ethical marketing practices, but embodies  them in everything it does.Although the companies  

in this video are all very different from one  another, they all have one thing in common:  

a dedication to helping others and defending  the rights and way of life of some of the most  

defenseless individuals on earth. These businesses  have embraced ethical marketing as a fundamental  

component of their organizational mission and  values. The long-term strategy of activism,  

advocacy, and ongoing education underpins ethical  marketing. It aims to assist customers in making  

smarter, more thoughtful decisions about the  goods they purchase and the businesses they visit.  

It requires changing the way we perceive how  goods are produced, the individuals who make and  

sell the products we buy on a daily basis, and the  communities whose survival depends on moral trade.  

By coordinating your company's values  with those of your target clients,  

you may develop brand loyalty. We hope that  these examples have inspired you to think  

about how you may establish and apply  generous ideals in your own business.