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International Marketing Ethics and Csr Case Study

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International Marketing Ethics and Csr Case Study
1. Identification of Case Issues

Mars chocolate is one of the worlds leading chocolate manufacturers and employs more than 13,000 people across 110 sites worldwide. As market leaders in their industry, Mars is constantly in the spotlight. Being responsible in the way they conduct business is part of the reason they are in the highly regarded position that they are in today. The sourcing of cocoa however is currently one the greatest ethical dilemma’s facing not only Mars, but all chocolate companies all over the world.

The importance of international marketing ethics across cultures has been noted by a number of authors (Fletcher & Crawford, 2011; Armstrong & Sweeney, 1994; Singhapakdi, Rawwas, Marta & Ismail, 1999). For the leading chocolate company, Mars, effectively managing issues of marketing ethics is detrimental to the brand as it looks to internationalise into the Japanese market. This issue stems from recent investigations into the sourcing of cocoa from the Ivory Coast, the world’s largest cocoa producer, revealing many unethical practices at play. As the international marketing manager for Mars, one must identify and consider the ethical issues surrounding the development of the new chocolate range aimed at the Japanese market, in order to make the greatest impact on the market as possible.

The first and main ethical issue identified in the case is the sourcing of cocoa from sources which have involved the use of child slave labor, children who are not only unpaid and forced to work 10 hours a day but are taken from their homes and trafficked to, in most cases, neighboring countries (Paul Kenyon, BBC Video). Brown and Dacin's (1997) research argues that a company’s CSR record creates a general context for consumer’s evaluation of a company. If consumers are to think that the cocoa Mars uses in their chocolate products are from such sources, then the Mars brand would be seen as a brand that is not socially responsible in their



References: Armstrong, R., & Sweeney, J. (1994). Industry type, culture, mode of entry and perceptions of international marketing ethics problems: A cross-cultural comparison. Journal of Business Ethics, 13(10), 775-785. Becker, H. and D. J. Fritzsche. (1987). A Comparison of the Ethical Behavior of American, French, and German Managers. Columbia Journal of World Business, 87-95. Brown, Tom J. and Peter A. Dacin. (1997). The Company and the Product: Corporate Associations and Consumer Product Responses. Journal of Marketing, 61 (January), 68-84. Chanthavong, Samlanchith. (2002). Chocolate and Slavery: Child Labor in Cote D 'Ivoire. TED Case Studies, Number 664. Accessed From: http://elib.unikom.ac.id/files/disk1/476/jbptunikompp-gdl-gunardiend-23777-9-chocolat-y.pdf>. Erffmeyer, R Fletcher, R., & Crawford, H. (2011). International Marketing: An Asia-Pacific Perspective (5th ed.). Frenchs Forest: Pearson Australia. Fullerton, S., K. Kerch and H. R. Dodge. (1996). Consumer Ethics: An Assessment of Individual Behavior in the Market Place. Journal of Business Ethics 15 (July), 805-814. Joyner, B. E. and Payne, D. (2002). Evolution and Implementation: A Study of Values, Business Ethics and Corporate Social Responsibility. Journal of Business Ethics, 2002, Volume 41, Number 4, Pages 297-311. Kobayashi, Fumie. (1994). Changing Lifestyles, in Yasumichi Yamaguchi (ed.), Japan 1994 Marketing and Advertising Yearbook (Dentsu, Inc., Tokyo). Marylyn Carrigan, Svetla Marinova, Isabelle Szmigin. (2005). Ethics and international marketing: Research background and challenges. International Marketing Review, Vol. 22 Iss: 5, pp.481 - 493 Manokha, I Mars (2012), ‘Understanding our social impacts’. Retreived From: http://www.mars.com/global/about-mars/mars-pia/our-approach-to-business/understanding-our-impact/social-impacts.aspx Muncy, J. A. and S. J. Vitell. (1992). Consumer Ethics: An Empirical Investigation of the Ethical Beliefs of the Final Consumer. Journal of Business Research 24(1), 297-312. Singhapakdi, A., Rawwas, M., Marta, J., & Ismail, A. (1999). A cross-cultural study of consumer perceptions about marketing ethics. Journal of Consumer Marketing, 16(3), 257-272. Solomon, R. C. (1997), ‘Its Good Business’, Bowman & Littlefield Publishers, Inc., Lanham, MD, 202-206. Vitell, S. J., T. Festervand, J. R. Lumpkin and M. Rawwas. (1991). Consumer Ethics: An Investigation of the Ethical Beliefs of Elderly Consumers. Journal of Business Ethics (May), 365-375 Wilkes, R Yeo, M. (1988). Marketing ethics: the bottom line?. Journal of Business Ethics, Vol. 7 No. 12, pp. 929-32.

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