The American Marketing Association (AMA), Thesis Paper Example

The American Marketing Association (AMA) provides guidance on ethical standards for both its members and those engaged in the practice of marketing. The Association has three prime aims: (i) Do no harm! –Adherence to the law and the code of ethics in marketing ( provided by AMA and binding on its members).  The code of ethics attempts to maintain the highest standards of marketing practice (ii) Foster trust in the marketing system –Products that are promoted are for intended use.  Do not deceive or mislead the public. Marketing strategies should not be misrepresentative to the public.  (iii) Practice ethical values — This to enhance customer confidence and integrity in the marketing system.  Hence the code of ethics has ” three pillars of economic justice i.e.  equivalence, contributive justice and distributive justice”.  (Dawson, 2004).

Owing to the amount of an ethical and dishonest marketing practices, as carried out in the USA, the public are looking for improved codes of ethics and marketing practices.  Standards of marketing are not strictly governed by codes of ethics, as compared to other more regulated professions like law,  medicine, accountants etc. the American marketing Association.  [AMA] is attempting to bridge the gap but can only make code binding upon some members.  An underlying question is will any rigorous code of ethics improve marketing practices of business behaviour?  The first consideration must be enforcement; only if you can make people obey the code of ethics does it become worthwhile.  In 2008, the AMA was listed as having approximately 40,000 members.  US Department of Labour in 2002 indicated.  One third of all employees engaged in the USA are relative to marketing activities.  This translates to some 49 million jobs.  Hence, professional AMA membership as a percentage of total marketing employees equals  1: 1225.  As such, AMA currently in force, a code of ethics of one member in 1225 people engaged in marketing.  This being without recourse to  Federal or legal jurisdiction applicable to marketing standards and professional behaviour. As such there is a wider need for “social responsibility in the ethics of marketing ”  (Reidenbach, 1987).

Source :  (American Marketing Association, 2004)

Concluding Remarks

The concept of ethics in marketing now extends beyond the conventional into that of the global market place and use of the internet.  Journalists involved in marketing have no clear cut code of ethics or responsibilities to follow ” online journalists are wrestling with a broad array of new ethical dilemmas”  (PALSER, 1999).  The professions can only regulate so much in terms of prescribing a code of ethics. They can make it a conditional part of their membership but in the wider context it becomes a social responsibility of business engaged in marketing practices.    We therefore need a framework, similar to that shown above, in order to regulate ethical behaviour within the market place.  It becomes a social problem to resolve and similar to juvenile crime in the USA. As the Police cannot prevent juvenile crime neither can the professions fully regulate marketing behaviour or the way Corporate business goes about compilation of its’ marketing strategies. ” The role of the marketer these days could be seen in terms of connecting with stakeholders not only in terms of value, but in terms of values. In a world where intangible assets and corporate reputation are centre stage, the marketing team needs to focus on ethical issues more than ever before.”  (Chartered Institute of Marketing, 2010).

Works Cited

American Marketing Association. (2004). AMA Statement of Ethics. AMA Journal .

Chartered Institute of Marketing. (2010). Ethics and social responsibility . CIM .

Dawson, E. J. (2004, Springer Netherlands). The American marketing association code of ethics: Instructions for marketers. Journal of Business Ethics , 921-932.

PALSER, B. (1999). Charting New Terrain.(ethical dilemmas of online journalism)(. American Journalism Review .

Reidenbach, D. P. (1987). Social Responsibility, Ethics, and Marketing Strategy: Closing the Gap between Concept and Application. Journal of Marketing , 44-58.