Marketing Ethics and Criticism

reasonablerobinson by reasonablerobinson
Last updated: 06/04/2011

Is Marketing ethical? Is marketing socially responsible? What is the philosophy of marketing? Caveat Emptor!

According to Peter Drucker, people use the word "guru" only because "charlatan" is too long! Is Marketing an ethical profession? Does the profession exploit fears and vulnerabilities? Is it manipulative and uncaring?

The function and practice of marketing has been criticised because it is claimed that it deliberately creates partial truths about products and services and exploits the fears and weaknesses of fellow human beings.

It is frequently claimed that the ethics of marketing can be criticised because it is the only business function that deliberately sets out to emphasise the gap between a persons reality and their expectations in such a way that people feel 'lacking' in either self esteem or posessions so that they feel compelled to close the gap by unnecessary spending.

Personal critcisim is often levelled at practioners who are characterised as vapid unscrupulous indidviduals who believe they hold superior knowledge about human behaviour, motivation, persuasion, influence.

Academically the profession is criticised from a managerial standpoint because it exists in state of torpid uncriticality...making claims to be a 'profession' when it is only attracts self opinionated gurus and mystics with a lack intellectual rigour and commercial discipline

Philosophically much of the critical position towards marketing takes a post modern standoint in opposition to the predominantly positivistic and managerialist stance of much of the pro-marketing academic and business management literature. Customers and markets are seen as resources to be exploited for shareholder gain, and scant regard is paid to the systemic problems that such behaviour creates.

For over 100 years marketing management has sought scientific credibilitity. Perhaps the most influential thought leader in that regard is Philip Kotler In his view customers are there to analysed and understood in order that their needs can be supplied by competitively differentiated value propositions. His work avoids many of the ethical consequences of such an approach.

The 'marketing way' either explicitly or implicitly endorses the philosophy of Milton Freidman and the belief that the ends justifies the means. In other words businesses are accountable to shareholders and shareholders alone.

Marketing as a profession nevertheless suffers from a continual identity crisis. Profesionally it distinguishes between 'marketing as a business environment aware philosophy' and marketing as a customer facing function The former characterises marketing as a fundamental and strategic process that guides the sustained competitiveness of the organisation (something that public service organisations naturally struggle with) the latter talks about marketing's 'jobs' in managing product & service development, pricing, channels to market, communications, service, relationships, and image. (The marketing mix)

The man in the street and many businesses (much to the annoyance of many marketing professionals) just regard marketing as responsible for influencing and persuading people to buy things by face to face selling and/or advertising Both of these things become associated with and represent the 'brand' and brand management is perhaps the most strategically important aspect of daily marketing management. Marketing in the minds of the public and many managers is associated with slapping lipstick on pigs and is sometimes disparigingly refered to as the the colouring in department

That said marketing is commonly understood to be in the persuasion business, and in doing that it naturally presents a biased version of products and services. Caveat Emptor is the cry and the best defence against what Bob Cialdini calls the 'Compliance Professionals

Hugh's Fish Fight

hughs-fish-fight

The disgraceful waste of fish is highlighted by this campaign to show the folly of politicians and big business.Hugh Fearnley-Whittingstall points out that "Half of all fish caught in the north sea off the UK are thrown back overboard dead"

Marketing Robots

the people who use marketing uncritically

Russian author Alexander Repiev takes a skeptical view of what he calls the Kotleroids. Marketing acolytes who uncritically deploy the ideas of marketing management. Alexander has some fascinating articles on his web site A.Repiev. Titles include:

The Lunatics have taken over the asylum

A physicist's view on branding

Pseudomarketing: scholasticism and bureaucracy

The Augean stables of academic marketing

Marketing Thinking or Clientomania: What distinguishes a real marketer from a marketing robot

Amazon Price: $18.99 (as of 02/15/2012)Buy Now

A great book for making sure you keep your feet and mind firmly on the ground when it comes to the pratice of marketing management.

The Robin Hood Tax

robin-hood-tax corporate-social-responsibility marketing-ethics ethical-marketing

The excesses of the banking fraternity have focussed attention on the implications of having a completely unchecked free market system. Modern marketing was born out of the system of free market economics and must take some responsibility for creating a particular 'mind set' that leads to particular types of executive behaviour.

The good news is that 'market orientation' also implies that organisations should respond to changes in markets and the needs attitudes and aspirations of customers.

The Robin Hood Tax is just one example of how an industry can respond to needs of its customers.

As RHT says "A tiny tax on bankers that would give billions to tackle poverty and climate change, here and abroad.

This tax on banks - not you or I - has the power to raise hundreds of billions every year. It could give a vital boost to the NHS, our schools, and the fight against child poverty in the UK - as well as tackling poverty and climate change around the world.

Not complicated. Just brilliant."

Marketing - A Critical Introduction

hackley


This is an excellent introduction what for most marketing professionals would regard as 'off piste'. Chris Hackley introduces the themes and perspectives that are usually reserved for obscure academic tomes. I love this book. If you are interested in re-instating the human being into marketing management then grab yourself a copy.

Marketing: A Critical Introduction

Amazon Price: $32.59 (as of 02/15/2012)Buy Now

Deception In The Marketplace

Deception In The Marketplace: The Psychology of Deceptive Persuasion and Consumer Self-Protection

Amazon Price: $24.38 (as of 02/15/2012)Buy Now

David Glen Mick, University of Virginia says... "Like any other powerful tool, marketing can be used for good or evil. The authors paint a vivid picture of the dark side of marketing. Persuaders who prey on vulnerable populations such as children and seniors have remained hidden while wielding their arsenal of marketing weapons. This book pulls them out of the shadows by describing their shapes, forms, and tactics."

An article published on Yahoo in March 2010 reveals some 'supermarket 'tricks' that might decieve the unwary. These include, going for bigger sizes (e.g. 880 gram) that are sold at premium compared to buying two 400 gram products which works out cheaper, coffe shops used to 'up-sell', and changing the layout to stop habitual buying. The defence against these dark arts? Have a strict budget, and treat shopping as the necessary chore it is not a 'days out entertainment'

Trust and Sustainability Essential Features of Business Models

Confederation of British Industry Report

cbi-business-sustainability-corporate social responsibility



The CBI Report The Next 10 Years highlights that business needs to respond to the changing needs and expectations of society.

In particular they say business must take a more responsible attitude to sustainability and they must re-double their efforts to be seen to act in an authentic and trustworthy manner.

"The business environment of the next decade will be significantly different to what might have been expected just
two years ago"

Do Social Networking Companies Behave Ethically?

Are members of social networking sites exploited by the owners of the sites they use?



image credit - Blendworx


The people that design and run social networking sites are obviously skilled at the 'behind the scenes' programming that makes their sites run. They clearly known alot more about the technicalities of social networking site design than the majority of their users (customers!)


Maryannaville pointed out this article...

To Muse which explains how sites such as Digg and Facebook book alledgedly steal contributers content and montetise it for their own advantage. This theme is also picked up by Mihaela Lica in this article titled Social Media Traffic Thieves

Manipulation and exploitation of customers is wrong. Taking advantage of their lack of understanding and knowledge is unethical. Being opaque about the way in which so called 'features' benefit the user is deceptive.

Customer Sovereignty

How To Assess The Ethics and Transparency of Business Values


Recognise the face? Its Quark the Ferengi bartender from Star Trek. Quark has a reputation for being unscrupulous in his commercial dealings. How much does Quark represent the dealings of modern business?

N.Craig Smith Professor of Marketing at Georgetown University wrote a paper in 1995 entitled Marketing Strategies For The Ethics Era

It was published in the Sloan Management Review volume 36 issue 4.

In his abstract Professor Smith says:

"Marketing strategies are increasingly subject to public scrutiny and are being held to higher standards. Caveat emptor is no longer acceptance as a basis for justifying marketing practices..Today, consumers' interests are increasingly favored over producers' consumers can make informed choices, and less capable consumers are offered special protection. The author provides a practical framework - including the consumer sovereignty test - for marketers to apply to their decision making."

Smith suggested that Businesses just like the products they produce could be labelled in a way that showed their attitude and performance in respect of:

Consumer Capability - (is the consumer vulnerable?)
Information - (are expectations and promises realised?)
Choice - (do customers have an opportunity to switch?)


His checklist is elaborated in the paper to include aspects of:
Product Policy - product safety, deceptive packaging, planned obsolesence etc
Marketing Communications - questionable sales techniques, misrepresentation, conflicts of interests, ie pushing products not best suited to the customer, puffery, advertising as hidden perusader.
Pricing deceptive, unfair
Distribution selective, deliberate shortages


How these issues echo today with the 2009 financial crisis.

Marketing Ethics and Corporate Social Responsibility

Marketing people innovate product concepts that need resources. Where is the boundary between marketing responsibility and corporate social responisibility.

If a new mobile requires a plastic case then the extractive industries will have been used to provide the raw material. What if that plastic laptop case directly contributed to the exploitation of indigenous people and spoiling the planet? Should marketers take more responsibility?

Earth Matters: Indigenous Peoples, the Extractive Industries and Corporate Social Responsibility

Amazon Price: $65.00 (as of 02/15/2012)Buy Now

Provokes thinking about marketing responsibilities start and finish.

An academic review can be found in the Organization Studies September 2009 volume 30, 9

Ethics and Marketing

The Euro MBA market: conservative, competitive
ETHICAL evangelism among MBA academics does not interest members of their market, according to a new UK survey from research consultants Carrington Crisp for the European education quality control agency and an association of business masters providers ...
Quinn proposes constitutional amendment allowing voters to pass ethics reforms
Pat Quinn is calling for the public to be given the power to enact ethics reforms without going through the Illinois Legislature, a constitutional change he's marketing as the "Lincoln Amendment." The amendment would let Illinois voters put new ethics ...
What Joe Paterno Can Teach Us About Boot Camp Marketing
Boot camp marketing experts must also approach their trade with a sense of morality and ethics. Joe Paterno once said, ?Losing a game is heartbreaking. Losing your sense of excellence or worth is a tragedy.? Also, he said, ?Success without honor is an ...
Ethics 20/20 Is Lauded on Tech Proposals, Rejects Plea to Lower Barriers to ...
By Joan C. Rogers NEW ORLEANS?The ABA Commission on Ethics 20/20 rejected Feb. 3 a proposal to recommend eliminating the disciplinary rule that generally prohibits lawyers from paying others to recommend their services. The idea was proffered by the ...

Marketing seen critically

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Who Controls Your Wallet?

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Criticised Marketing links

Wikipedia Marketing ethics
The wiki take on Marketing ethics
Wikipedia Ethical marketing
The wiki take on Ethical marketing
Wikipedia Ethical marketing
The wiki take on Ethical marketing
The Centre for sustainable design
The Sustainable Marketing Knowledge Network, leading the way in the integration of marketing and sustainability, by providing a support network for marketers.
Principled Profit
Principled Profit: Marketing That Puts People First By Shel Horowitz
Ethics in Social marketing
Ethics in Social Marketing By Alan R. Andreasen
Parents for Ethical marketing
Consumer marketing is everywhere. On television. In magazines and newspapers. On the Internet and on school buses. On billboards and on bus shelters. On milk cartons and cereal boxes.

In our public schools.

And it's almost impossible to buy anything for a child without a "brand identity." Barbie, for example, can be found on everything from band-aids to board games to backpacks.

As parents, we know there's a problem. We argue with our kids about what to buy, what to wear, what to watch and what to play. We know what is best for our kids, yet sometimes we give in when we know we shouldn't.
Consumer Manipulation
We all know there are ways that that businesses use to manipulate our buying behavior to get us to buy more. We know there are many techniques and other stimuli, which affect us and we know that they are often employed in businesses.
Covert Hypnosis
Dr. Joe Vitale is one of the worlds most respected experts in metaphysics and attraction. He is known for his ground-breaking work in spiritual marketing and copywriting via the Internet.
Home of the Ethical Brand Identity™
Ethical Brand licenses qualifying entities to use the Ethical Brand Identity™ so that genuine and authentic ethical products and services are easy to identify in the marketplace. Licenses to use the Ethical Brand Identity™ are not for sale, but granted on the basis of continuous monitoring. Register
Ethical Performance | corporate social responsibility | socially responsible investment | csr | sri | news
the independent global newsletter on corporate social responsibility and socially responsible investment
Choose Cruelty Free
Choose Cruelty Free, This site is dedicated to the prevention of cruelty to animals and provides an excellent resource for all those wanting to understand what they can do to help
The Nestle Boycott
Breastfeeding.com - breastfeeding information & support, video clips, directories of Doulas, Midwives, and Lactation Consultants, Ask an LC, and social networks for both moms and medical professionals.
Pharmaceutical Co. Ethics
· Companies violate own ethical codes, says study · Patient group promotions bypass ban on advertising
Be a Better Liar - May 1, 2005
Seth Godin's view
Ethics of Influence & Persuasion II
The science of persuasion, compliance, marketing & propaganda from a psychological perspective.
buyer behaviour - case study: influence of children on buyer behaviour
buyer behaviour - case study: influence of children on buyer behaviour

'Bad Marketing' Books

off the rails

Bad Marketing is a term that refers to the specialsed methods that can be used to influence and perusade us and to the mistakes that marketers often make. Bad in this context might mean Good depending on your point of view.
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Bad Marketing

What others have to say

Bad Marketing
If you want to market smart, you have to know how to avoid the scams, and how to spot the people who are ignorantly telling you to do things that will waste your time. Point by point, you can look up all the negative strategies here, and find out just why they will hurt, or what it is that makes them risky.
The Phony Voice
Does your marketing sound like this? You might have been able to get away with this 15 years ago but since social media has allowed people to opt out this kind of insincere over-dramatization you need to be careful.
Is Marketing Evil
As I've said before, marketing is a tool for research and development, not inherently evil or dangerous in itself.
The Root Of All Evil
I'm a marketing student who rants and raves about how marketing has killed music and the horrible phenomenon of packaged music. I'm a marketing student who throws away junk mail and channel-surfs right by commercials. I'm a marketing student who rudely hangs up on telemarketers. I'm a marketing student who's 99% cynical but has still retained that 1% idealism that refuses to go away no matter how deep I try to bury it.
Is Marketing A Church Evil?
Some people believe the church can be more effective by utilizing processes most commonly and effectively used in business today, including marketing. In fact there are companies that specifically help churches develop a logo, a slogan, a website, brochures, and a multi-faceted marketing campaign much the same way other companies develop these elements to launch a new business.

On the other hand, some people abhor these practices and think the church should stay as far away from them as possible. They believe marketing is deceptive, manipulative, superficial, worldly, and yes - evil.
Why Marketing Has Become So Evil ?
The number one reason that marketing has degenerated into a range of sinister tricks played on consumers is because most merchandise, services, brands, people, ideas and beliefs being marketed these days are crap, and there is more of this crap than ever.
Quackery
The word "quack" derives from the archaic word "quacksalver," of Dutch origin (spelled kwakzalver in contemporary Dutch), meaning "boaster who applies a salve." The meaning of the German word "Quacksalber" is "questionable salesperson (literal translation: quack salver)."
Greenwashing H20: WTF is 'Sustainable Water'?
Is sustainable, all-natural, and organic water just a bunch of greenwash? Water bottlers hope that you'll continue to believe that their spring water, mineral water, or enhanced tap water is at least 1000 times better than the free or nearly-free water you can get yourself...
The Case for Giving Eli Lilly the Corporate Death Penalty
The potential consequences for not thinking through corporate policies

Are You Being Ripped Off?

Consumer reports by consumers about bad marketing practice



If you want to keep up with the latest information on unfair trading practice then check out Ripoff Report This site includes hundereds of examples of unethical business behaviour

Too Big To Fail

The arrogance of financial institutions

This book was brought to my attention by Surviving and Thriving

Critical Marketing

Challenging Conventional Understandings of Marketing Theory and Practice

Traditional Marketing is approached from a 'managerialist' perspective that rests upon a mainly 'postivistic' philosophy. This view is criticised from outside the profession and from within it too. How might the marketing philosophy adapt to the needs and world views of the 21st century?
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Marketing Ethics Blog Posts from Google

The Euro MBA market: conservative, competitive
ETHICAL evangelism among MBA academics does not interest members of their market, according to a new UK survey from research consultants Carrington Crisp for the European education quality control agency and an association of business masters providers ...
Quinn proposes constitutional amendment allowing voters to pass ethics reforms
Pat Quinn is calling for the public to be given the power to enact ethics reforms without going through the Illinois Legislature, a constitutional change he's marketing as the "Lincoln Amendment." The amendment would let Illinois voters put new ethics ...
What Joe Paterno Can Teach Us About Boot Camp Marketing
Boot camp marketing experts must also approach their trade with a sense of morality and ethics. Joe Paterno once said, ?Losing a game is heartbreaking. Losing your sense of excellence or worth is a tragedy.? Also, he said, ?Success without honor is an ...
Ethics 20/20 Is Lauded on Tech Proposals, Rejects Plea to Lower Barriers to ...
By Joan C. Rogers NEW ORLEANS?The ABA Commission on Ethics 20/20 rejected Feb. 3 a proposal to recommend eliminating the disciplinary rule that generally prohibits lawyers from paying others to recommend their services. The idea was proffered by the ...

Business Ethics Blog

The views of Chris MacDonald, Ph.D

An informed blog that addresses many issues raised by Marketing ethics
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Marketing manipulation

Food nutrition labels influencing health-conscious consumers to choose more ...
By framing serving sizes, companies are able to increase consumers' intent to purchase higher calorie foods while reducing the anticipated feelings of guilt for consuming them. Interestingly, the effect of framing foods appears to influence consumers ...
Subliminal Nation
But the central Keysian thesis ? that the advertising industry conceals images of sex and death in its work, the better to control the consumer ? has exercised more widespread influence than most other contributions in media criticism.
Phizzle Launches PhizzleBiz - Self-Service Mobile Marketing Platform for SMB's ...
PhizzleBiz assists small businesses to influence buying decisions through the power of two-way interaction with mobile consumers. The PhizzleBiz mobile platform allows organizations such as schools, retail establishments, non-profits, restaurants and ...
Global Business Traveler Survey 2012: Hotel Accommodation, Selection Criteria ...
Understand customer perceptions of new technology, drivers influencing online reservations and the growing importance of mobile technologies to enhance customer retention and direct sales.? Identify the key features of business hotels which influence ...

Are You A Marketing Addict?

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Critical Marketing Link List

Social Change Media
Using social media for social change
Niche Marketing - Andy Beard
NDY BEARD
The Responsible Marketing Blog - Where commerce and conscience come together
The Responsible Marketing Blog is where commerce and conscience come together. It's a place where you can discuss and learn about a holistic approach to marketing that combines the tactics our mind tells us we need to prioritize with the principles our heart tells us we need to embrace.
Express Marketing Memo - Small Business Marketing Tips
Express Marketing Memo provides relevant marketing tips and ideas for small business owners and marketing managers.
Social Entrepreneurship - Change.org
Social Entrepreneurship news, information, and nonprofits. Includes resources on social enterprise, venture philanthropy, social venture capital, blended value.
BBC NEWS | England | Manchester | Bishop attacks 'scandal' of debt
The Bishop of Manchester attacks society's "buy now, pay later" culture during his Christmas Day sermon.
Is Responsibility the Holy Grail of Marketing
Triple Pundit says; With so many companies jumping on the "do good" bandwagon, even more names have emerged for the concept itself -- cause marketing, cause-related marketing, cause branding, green marketing, conscious marketing, marketing with meaning, social good marketing, social change marketing and a slew of others.

Conflicts of interest

Uncovering hidden agendas

Conflicts of interest
Interesting blog post by Cam Beck. Includes video of free marketer Milton Freidman

Tescopoly

The Tescopoly Alliance was launched in June 2005 to highlight and challenge the negative impacts of Tesco's behaviour along its supply chains both in the UK and internationally, on small businesses, on communities and the environment. The campaign also advocates national and international legislation needed to curb the market power of all the major British supermarkets.
Tescopoly
Tesco now controls over 30% of the grocery market in the UK. In 2008, the supermarket chain announced £2.8 billion in profits. Growing evidence indicates that Tesco's success is partly based on trading practices that are having serious consequences for suppliers, farmers and workers worldwide, local shops and the environment.

Is this a fair picture of what Marketing is about?

Is marketing really this bad?

image credit advercation a marketing professional with a critical eye

Do Candy and Sweet Manufacturers market their products responsibly?

Candy Sweets and Child Aggression

Image thanks to Tottsmag


Researchers from Cardiff Wales say there is a direct link between the amount of candy and sweets a child eats and their liklihood of being of convicted of commiting violent crime.

"There appears to be a link between childhood diet and adult violence, although the nature of the mechanism underlying this association needs further scrutiny," said study author Simon Moore.

Daily Candy in Childhood linked to violence.

Business Ethics

more lenses about the issue of business ethics

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Reader Feedback

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  • Reply
    ajgodinho Dec 17, 2011 @ 4:46 pm | delete
    Very interesting topic and lens. I think there is nothing wrong in marketing per se. Each one of us have used it in our own lives whether at interviews or trying to persuade someone. When marketing is focused on truth and is free from deception, I think it's perfectly fine. That's where I believe ethics comes into play. Blessed!
  • Reply
    JoshK47 Nov 30, 2011 @ 11:43 am | delete
    Quite an interesting read - thank you for sharing your opinions on this!
  • Reply
    GottaGreenBuzz Sep 28, 2011 @ 11:01 pm | delete
    I love marketing, have a degree in it, but love this lense. To every good there is an opposite.. Marketing with an eye on the responsibility can get lost. The days of "snake oil" are still around! LOVE THE TWEETY!
  • Reply
    sousababy Sep 26, 2011 @ 7:10 am | delete
    Dear reasonablerobinson,
    Sorry it took me so long to get back to you, I featured this excellent lens of yours (early on in my lens, after the poll): http://www.squidoo.com/bad-in-society
    Hope it helps!
    Sincerely,
    Rose
  • Reply
    Tipi Aug 19, 2011 @ 9:09 pm | delete
    I just love that you use Quark as an example, you can be trusted to make our brains go tilt!
  • Reply
    sousababy Aug 14, 2011 @ 6:39 am | delete
    Came back to google +1 this. I wish to feature some of your lenses and will contact you via your bio page later on (this week, I hope) to get your approval first (I always ask). You have really hit on something so crucial for our society RR. Thank you so much, Rose
  • Reply
    Wtrombly Aug 7, 2011 @ 1:08 pm | delete
    Mobile marketing, a new style. What are your opinions on this as far as ethics go. Please feel free to ad to my lens and of course this lens with your comments. So how does the new mobile marketing going to fit into this. I am sure there is a way.
    http://www.squidoo.com/houston-mobile-marketing
    A new lens, would like some suggestions, and comments are helpful and will be accredited to the article by promoting you and your articles
  • Reply
    Tiggered Jul 6, 2011 @ 4:51 am | delete
    Wow, it's such an important topic! Well done you, I'm glad someone wrote it. I would do it myself, but I'm too outraged by the whole phenomenon and would probably end up writing the whole article in caps and getting sued in the end :)
  • Reply
    sousababy Jul 4, 2011 @ 10:36 am | delete
    I will need to come back for a more in-depth read. You have showcased many resources that I was not aware of. My most simplistic answer for why corruption continues is 'when money means more than lives (including the quality of life for humans and animals).' I do not believe with our wave of transparency that businesses (or individuals who market themselves on-line, even) will thrive very long if they continue to strive only to make a buck (or for similar self-serving reasons, like a sense of power over others). Indeed the leopard's spots haven't changed - as you stated on one of my lenses. In time, the public who cares . . does their research and it takes time to source out reputable businesses and people - but it will be crucial for our economy and well-being worldwide. Excellent work!
  • Reply
    OccultPriestess Jun 18, 2011 @ 3:42 pm | delete
    I found this lens very useful! I dislike marketing sue to the obvious manipulation. You have given me hope that we can sell honestly and with love. I am checking into Joe Vitales "Attract money now" book. Thank you!
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Journal Articles about Marketing Ethics and Criticism

Links to articles about marketing ethics and criticism

Looking to investigate marketing ethics and criticism further? here are links to journal articles. You will need journal subscription or library access to read the full article.
Corporate Hypocrisy: Overcoming the Threat of Inconsistent Corporate Social Responsibility Perceptions
Journal of Marketing
Volume: 73 | Issue: 6
Cover date: November 2009

Tillmann Wagner, Richard J. Lutz, and Barton A. Weitz say firms' behaviors with regard to corporate social responsibility (CSR) are often contrary to their stated standards of social responsibility

Critcial Marketing an academic perspective

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Marketing Ethics

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Corporate Social Responsibility

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Corporate Social Responsibility

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Consumerism

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Consumers and Consumerism

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Greenwash books

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Critical management studies

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