The Ethics of Electronic Marketing

“Marketers must accept responsibility for the consequences of their activities and make every effort to ensure that their decisions, recommendations, and actions function to identify, serve, and satisfy all relevant publics: customers, organizations, and society.” (American Marketing Association, November 1998)

Introduction

Internet has become popular medium for communicating and marketing to widespread consumer and business groupsMarketers must act responsibly in their usage of the WebRequires self-regulation which may include developing a “Standards and Practices Code” which would mitigate the need for additional governingThere are unwritten rules of ethics that must be followed by all who are creating materials for public viewing or commerce

A Commitment to Customer Service

Treat all customers as you would like to be treatedPut the needs of the customers firstProvide secure, fast connections to your Web siteProvide your customers safe delivery and promised satisfaction Do not tempt your customers with false advertising, provide what you promiseMake all necessary disclosures about legal issues or product limitations in a prominent place on your Web siteMake sure that orders are filled accurately and on time

A Commitment to Customer Service

Notify the customer immediately of items that are out of stock, have been discontinued, or otherwise unavailableGive accurate estimates of the delivery timesIf a mistake occurs, be sure to apologize and accommodate the customer the best you canProvide a fair and responsive return policy

Personal Privacy

Everyone on the Internet deserves privacyThis is an ethical and moral obligation that a marketer has to the consumer and the companyDo not bombard potential customers with unwanted solicitations and informationProvide customers with the option to join mailing listsAlso provide them with the option of terminating their subscription to your mailing list

Guidelines to Protecting Customer Privacy

User information is private and belongs to the userUsers should volunteer to reveal their informationUsers should be made aware of all information collection activityUsers should be able to refuse to allow collection of their user dataUnder no circumstances should the privacy of a user be violatedNo information about a user should reach a second party without explicit user permission

Guidelines to Protecting Customer Privacy

Users should be able to choose the type and timing of information they want to receiveOnly information that the end user specifically is interested in and wants should be sent No junk mail should ever reach the end userUsers should remain in control of there information profile so that at any time they can update that information

Security: Validation and Censorship

Customers will expect privacy and securityProvide them a secured transaction as they order products or services or request information onlineProvide a written policy to let the customer know how you deal with security of their personal informationConsumer information should not be traded or sold without permission

Securing Customer Transactions

Secure Sockets Layer (SSL): uses a form of encryption to provide privacy for the information being transmitted between the user’s browser and the merchant’s server

Secure Electronic Transactions (SET): protocol is proposed to safeguard credit card transactions via open networks

Technology Limits Spying on Web Users

Firewalls prevent unauthorized Internet users from accessing private networks connected to the InternetFor greater security, data can be encryptedPasswords should also be changed frequentlyDo not leave your company and your consumers open to break ins and theft of informationValidating a person’s age or identity may be necessary if your site contains material that should not be viewed by minorsMust be aware of products that are prohibited for sale in certain states and ensure that they are not sold there

Technology Limits Spying on Web Users

Must notify the customer if you are unable to ship the goods do to legal issuesMust also be aware of trade embargoes between the United States and other countriesDigital certificates allow people to authenticate themselves and companies to be authenticated to the consumerThey are attempting to bring the world closer to an electronic solution to the problems of validationDo not assume you are in the clear just because you have a disclaimer on your Web site

Copyright Issues

With electronic communication comes the temptation to borrow from others on the InternetIt is still illegalAsk for permission before using someone’s site or materialUnless they are a direct competitor, most are open to reciprocal relationshipsCopying the code from someone else’s Web page is also illegalImages and background must be purchasedFair Use Act provides for the use of small pieces of copyrighted materials for the purposes of education

Computer Viruses

Cause problems for the consumer and the marketerDo not want to spread viruses to your consumersMust use virus protection software to protect you and your customersWatch out for virus hoaxes that are spread on the InternetThese can be time consuming and costly to handleMust notify your system administrator or Internet Service Provider when you discover a virus

Pirated Software

Unlawful to copy and use software without purchasing a licenseCan make backup copy of software that you purchased for your purposes onlyThere are entities that look for companies that are involved in software piracyYou can go to jail for software piracy

Who Should Be Using the Internet?

Who should be deciding what content is appropriate for the mediumShould there be any regulations on usage of the InternetExtremist GroupsChildrenInmates

Internet Issues

Who should be the gatekeeper of Internet contentIs someone’s desire to download indecent images and to archive these images protected by free speechDo content filters violate the same principles of freedom of speech by the pornography disseminatorsShould the government or the online industry decide what content is acceptableWhat standards should be setIs access to the Internet a universal right

Internet Issues

Should everyone have free access to the InternetShould advertisers be allowed to place their messages anywhere on the Internet or should there be safe times or channels free of advertisingShould advertising be restricted to promotional channelsHow will computer-illiterate people or those without computers compete within this economy

Internet Issues

Can or should community funding or the federal government pay for the costs of the advancement of the technologyShould public buildings and schools be required to be equipped with free public-use computersHow will these technology rights be paid forShould there be an individual technology grant or an online services tax credit to help people keep up-to-date with Internet usage and new applicationsThese issues deserve observation so that the power and convenience of the Internet serves everyone

Key Terms

Computer virusesDigital certificatesElectronic Frontier FoundationEncryptionEthicsFair useHackersHoaxesInternet CensorshipInternet firewall

Key Terms

IntranetMoralsPiracySecure Electronic Transactions (SET)Secure Sockets Layer (SSL)Spam