Marketing Communications

Chapter 18 : Ethical and Legal Issues in Retailing

Focus on the Customer

Dealing with Ethical Issues

Awareness of Ethical issues
Moral Philosophy,Intentions and Behavior
The Organizational Environment
Company Ethics Programs

Social Responsibility

Cost-free activities
Legally Mandated activities
Policy Influenced activities
Group Imposed activities
Interest-groups Coerced activities
Free-will activities

Environmental Orientation

Waste reduction
Recycling
Packaging

Legal Framework

Supplier Relations
Competitor Relations
Consumer Relations
Employee Relations

Chapter Summary

Retailers have realized the advantages of reflecting an ethical sense in business operations. The organizational environment plays a major role in the kind of ethical sense the employees possess. Retailers are trying to ensure that their employees behave ethically. Though there are many laws influencing the business environment of the retailer, there are many more aspects that come under the purview of ethics. These aspects concern the merchandise buying and selling practices in the firm. Retailers also need to be socially responsible and environmentally concerned. They often undertake activities that are beneficial to the society. Retailers are also taking measures for waste reduction, trying to recycle the materials used and are switching over to environment friendly packaging materials.

Legislation governs the retail firm's operations and relations with its channel partners. Its relations with suppliers, competitors, consumers and employees are governed by appropriate laws. Legal restrictions are imposed on practices concerning pricing, product, promotion, distribution, trademarks and HR policies.

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