Ethical Marketing

July 10, 2024

Taisiya Kozorez/Shutterstock.com

How can brands ensure they are accountable to consumers?

Ethical marketing is always evolving as technology changes. As such, marketers need to be vigilant and dedicated to continually educating themselves on the latest trends, legal regulations, and processes that come with the responsibility of connecting to vast audiences with the goal of selling a product and/or experience. Thus, it is a company's duty to be accountable and transparent to its consumers.

For instance, when it comes to data privacy and security, ANA's Ethical Code of Best Practices: Draft Edition, stated that "consumers should be provided with an easy to locate point of contact for their marketing questions and consumer preferences. Therefore, entities should provide a clear, accessible privacy policy that includes easy access for consumers to update their marketing communication preferences. For example, offering a valid point of contact including the marketers name, an Internet-based contact mechanism or email, and a street address should be provided. This point of contact is where consumers may obtain the entitys information regarding the collection, use, and transfer of consumer data and to express consumer choice about marketing communications."

Establishing and maintaing trust is crucial to building loyalty with consumers, which starts with providing accessible and easy to understand policies. Consumers expect this too; in a recent ANA Ethics Alert Issue, it was noted that "70 percent of consumers – across different ages, genders and income levels – believe that trusting a brand is more important today than in the past, according to a study by Edelman, reported by Forbes."

Mark Proulx, head of media responsibility at Johnson & Johnson Consumer Health, discussed the importance of informed consent at an ANA event, stating, that "informed consent is what we're striving for. I think transparently we're complying with the law. But my personal opinion of where we're headed is that you're going to have to make sure that you're very clear about data collection when you visit a website in the U.S. We've really been considering what is the simplest way you can do this and ensure that the consumer understands what they're opting into without creating an intrusive experience. That is simple to say, but it's a lot harder to do. We're running tests. We have some leeway because there is no federal legislation right now, but we feel like it's coming. We want to have that answer before that regulation comes down."

Fruther, Proulx noted that teams should meet monthly to stay on top of trends and growing concerns, adding, "When it comes to data ethics, I don't think that I will ever have it fully figured out. That's because the ways in which we are collecting data are changing all the time."

Below are resources, examples, and best practices to help companies market ethically. Don't forget to check out this ANA hub on Ethical Marketing and ANA's Center for Ethical Marketing.

Trends and Best Practices

ANA Ethics Code of Marketing Best Practices. ANA, July 2024.
The ANA Ethics Code of Best Marketing Practices is a framework of high-level principles, guidelines, resources and examples of ethical marketing and advertising best practices applicable to all entities engaged in marketing, advertising, and fundraising. The Code has been shaped by your peers on the ANA Ethics Code Steering Committee and is designed to be a resource to guide the industry towards ethical business practices with the overarching goal of rebuilding and maintaining consumer trust. The Code covers the following sections:
- Member Principles
- Advertising Offers
- Audiences (Children, Older adults, Disabled)
- Diversity and Inclusion
- Data Privacy, Security and Stewardship
- Regulated Products (Tobacco, Alcohol, and others)
- Digital Innovation (AI, Machine Learning, and Automated Processing)
Honoring Consumers' Marketing Preferences: The Right Thing to Do. ANA, June 2024.
Casework has revealed that the heart of many of consumers' complaints lie in a breakdown in trust and respect for consumers' marketing preferences by certain companies. Not surprisingly, they are feeling frustrated when they try to make a marketing choice and their request is not honored.

Developing a good preference center is the first step to show that your organization is a brand that cares about your customers' experience and puts consumers in control of their marketing preferences. As you structure your preference center operations, make sure that you implement data minimization strategies. Only ask for the relevant information necessary to honor the consumers' marketing preferences.

It is important for marketers and fundraisers to listen and respect the audience they're trying to reach to build industry, brand and consumer trust:

70 percent of consumers – across different ages, genders and income levels – believe that trusting a brand is more important today than in the past, according to a study by Edelman, reported by Forbes.
57 percent of business leaders report a positive correlation between consumer trust and revenue growth, according to Forbes.

Trends in Ethical Marketing. Salesforce, February 2024.
Marketers increasingly rely on emerging technologies like generative AI to push the boundaries of how they can connect with customers. But when it comes to powerful new tools like these, ethical risks are a major concern. There are already important strategies emerging to protect trust and maximize the value these new tools – and the tried-and-true ones we're still using – can bring to the table.

The key? Prioritizing the people behind the process of marketing. Even as AI revolutionizes how businesses and consumers interact, lessons learned from ongoing trends can help them maximize value and avoid risky or exploitative practices. Salesforce leaned on research, analysis and our experience within Salesforce to bring this new guide on ethical marketing with key takeaways, including:

Snapshot and statistics of where the marketing industry is today
Research of sentiment from consumers
Ways that businesses can balance risk and reward with ethical principles
Insights into Salesforce's leadership approach on how to achieve trust, safety & privacy through ethical marketing products and practices

Ethical Marketing: 5 Examples of Companies with a Conscience. Wordstream, November 2023.
Ninety-two percent of millennial consumers are more likely to buy products from ethical companies, and 82 percent of those consumers believe ethical brands outperform similar companies that lack a commitment to ethical principles. These are just two of the findings of an Aflac survey into the potential business impact of ethical commerce and corporate philanthropy. Brand authenticity has never been more crucial to a business' success, and companies that have dedicated themselves to the greater good instead of solely to their bottom lines have seen a remarkable surge in support – and revenue.

This article explains what ethical marketing is and looks at how five different brands have proven their commitment to ethical marketing. The following examples show the principles of ethical marketing in action, as well as why championing good causes is so effective for today's brands. It also includes how the World Trade Fair Organization defines ethical marketing:
Ethical Marketing: 4 Values All Brands Should Strive For. Forbes, May 2023.
Today, consumers demand that companies not only offer quality products and services but also behave ethically in their marketing practices. Ethical behavior is a critical aspect of building long-term relationships with consumers. In this article, Jeff Bradford, president of Dalton Agency's Nashville office, lists what he believes are the fundamental, perennial philosophical values that guide ethical marketing — values that have guided the work of his PR agency for the past 23 years — and describes how brands have implemented them in their strategies. They include:

Honesty
Respect for individual rights
Respect for human dignity
Responsibility

Text Marketing: Highly Regulated and Needs Permission. ANA, April 2024.
Self-regulation and ethical marketing are at the core of building consumer trust and loyalty. This ethics update series focuses on key consumer marketing issues to highlight the ethical standards of applicability and to assure best practices are communicated and followed. This is not intended to replace legal advice and counsel. Please consult with your counsel on compliance to ensure you are following the laws specific to your organization.
Ethical and Legal Considerations of AI. ANA, February 2024.
The ANA's Chris Oswald discussed the ethical and legal aspects that revolve around artificial intelligence, and what to consider when applying the technology into content and business processes.
Ethical Practices Advance Growth — 2023 ANA Compliance Report Published. ANA, January 2024.
The ANA Center for Ethical Marketing seeks to help advance ethics and accountability for our members and protect advertising and marketing freedoms. Through our comprehensive self-regulatory enforcement program, we provide education, tools and compliance services for ethical marketers and consumers — DMAchoice, ANA DPF Dispute Resolution and Digital Advertising Alliance (DAA) are core offerings. As part of our self-regulatory efforts, we publicly report the findings and work of staff and our Ethics Committees to ensure transparency and accountability.

Check out our latest report to review the types of consumer marketing ethical inquiries involving direct and digital advertising, including privacy, that were processed by our ethics team and Committees in 2023. The report details the top consumer complaints from the over 4,300 inquiries received and lists the companies found to be out-of-compliance with industry standard practices.
Using Testimonials, Endorsements, and Consumer Reviews in Marketing. ANA, January 2024.
Is it ethical to use celebrities or consumers to endorse your brand? Generally, this is common practice and not unethical if marketers follow best practices and ensure legal compliance. Endorsements are a type of promotion that comes from public figures or influencers, while testimonials are the personal accounts of customer experiences with a product or service. However, having celebrities and supporters work with you to promote your brand without adequate transparency and required disclosures can be problematic, and the rules governing endorsements and reviews can be more restrictive than you may expect.
Ethics for Advertising Lawyers. ANA, November 2023.
Advertising lawyers face unique challenges when navigating ethical obligations. Whether working in-house or as outside counsel to an agency or brand, lawyers are often called on to wear many different hats. For instance, how should a lawyer deal with conflicts of interest when asked to advise multiple parties in the same corporate structure? How can a lawyer maintain the attorney-client privilege when dealing with a counterparty with similar interests? Is a lawyer permitted to handle a matter in a jurisdiction where they are not admitted? This session covers these topics (and more) along with the practical realities of advising clients at all stages of the creative process.
AI, Automation, Targeting, and Data: Risk Assessment and Legal and Ethical Considerations. ANA, July 2023.
New state privacy laws require data controllers to conduct and document assessments of high-risk data processing, which specifically includes many marketing use cases, such as use of cookies, combining personal data from multiple sources, selling/sharing personal data, sensitive information processing and profiling, and automated decision making.

In addition, risk and impact assessments of the use of artificial intelligence will not only address obligations under these laws but also other legal and reputational concerns. This panel looked at how to operationalize assessments as part of a data governance program and the benefits of doing so, particularly in the context of marketing practices.

Examples

This Brand Won New Business by Encouraging Consumers to Take Small Steps with Energy Efficiency. ANA, June 2024.
Rhode Island Energy (RIE) was a newly formed utility company serving thousands of commercial customers. To help drive awareness of the brand and inform customers of its energy-efficiency programs, RIE created a multi-channel campaign that encouraged prospects to take small steps toward more efficient and ethical energy use.

Dove Combats Toxic Beauty Standards Online and Fights for Passage of the Kids Online Safety Act. ANA, April 2024.
Research from the Dove Self-Esteem Project has shown that social media has become one of the biggest threats to young people's mental health today, with over eight in 10 youth mental health specialists saying social media is fueling a mental health crisis among young people.

The Dove Self-Esteem Project released Cost of Beauty, a powerful film illustrating the impact toxic that beauty content on social media can have on youth mental health. The film — which has now been viewed more than 19 million times — was inspired by real stories of young people. Given the alarming number of people negatively affected by this issue, it was important to Dove to approach this topic sensitively to drive awareness of the issue in an effective way without furthering the harmful effects social media can have and triggering those affected.

Sports Illustrated Swimsuit Edition Sells Ad Space to Brands Committed to Women's Empowerment. ANA, September 2023.
Sports Illustrated Swimsuit (SI Swimsuit) leveraged ad space in its iconic Swimsuit edition to support women's empowerment and encourage brands to invest in initiatives, policies, and causes supporting women.

Driving Data Ethics to Build Consumer Trust. ANA, April 2023.
As the Head of Media Responsibility for Johnson & Johnson Consumer Health, Mark Proulx oversees brand safety and data ethics for his brand. As Johnson & Johnson Consumer Health prepares to spin off into its own organization called Kenvue, Proulx and his team have been thinking long and hard about their approach to data ethics. Proulx shared some of the challenges that have arisen as his brand has undertaken this challenge and highlighted some of the ways in which having a robust data ethics policy can benefit brands.

Spotlighting Forced Labor in the Fashion Industry. ANA, December 2022.
This campaign undertaken by The Human Rights Foundation informed consumers that their fashion purchases could be unknowingly funding forced labor practices in China. Additionally, it provided shoppers with tools that would help them avoid buying such clothing in the future.

Webinars

Data Privacy is Not Optional — The Ethical and Legal Implications of Digital Data. ANA, September 2023.
Generative AI, metaverse, cookie deprecation, commercial surveillance, data brokers — these current hot topics have important data privacy implications for advertising. In this webinar, speakers unraveled the complex and interwoven world of digital data privacy now. They provided actionable insights, tools, and legislative and enforcement updates to ensure your organization is aware of the latest privacy concerns. Examine what ethical and legal considerations are important to factor in now. Our expert panel delved into this critical set of issues to ensure protecting privacy is a priority.

FUNdamentals of Ethical Marketing: Ethical Dilemmas — What Would You Do? ANA, March 2023.
In this interactive webinar, senior staff from ANA's Center for Ethical Marketing provided recent cases of potentially unethical marketing practices. Learn what the Federal Trade Commission is focused on and the latest issues in the news. ANA's Ethics Review Committee members — Jordan Abbott/Acxiom (Chair) and Will Clayton/Wiland — provided their insight and tips to avoid ethical pitfalls and improve your marketing campaigns' ethical practices.

Other FUNdamentals of Ethical Marketing Webinars include:

Committees

Ethics Policy Committee. ANA.
The Ethics Policy Committee meets to:

Review pending activities at the federal and state levels to ensure ANA members stay "ahead of the regulatory curve" by providing quick and transparent solutions for consumers having challenges with marketing offers and concerns about data privacy.
Review and provide input into the shaping of the Guidelines for Ethical Business Practices and related ethical standards and compliance updates as needed based on current issues.
Learn about best practices and key topics in ethical marketing across the marketing ecosystem such as the Digital Advertising Alliance principles and other compliance topics essential to marketers.

The Marketing Knowledge Center actively connects ANA members to the resources they need to be successful. You can visit the ANA website to engage with the MKC in three ways.

Explore content to access best practices, case studies, and marketing tools. Our proprietary content includes Event Recaps, which share actionable insights from conference and committee presentations.
Connect with our Ask Research Service in real time for customized answers to your specific marketing challenges.
Stay on top of trends with Marketing Futures Pulse issues, which explore how new technologies and innovations will affect marketers and consumers alike.

Submit a request to Ask Research Service here.

Source

"Ethical Marketing." ANA, 2024.