Ferell and Gresham have indentified three factors that determine the code of ethics framed by marketer:
- Individual Factors
- Significant Factors
- Opportunity Factors
- Individual Factors: are the moral values inculcated in person by family, education and culture. The Individual Factors play an important role in framing a marketing decision.
- Significant Factors: refer to the extent to which the reference groups, top management and peers influence the marketer. These have more to do with the organizational climate of the markets.
- Opportunity Factors: are the ethical codes and standards that are promoted in an organization. They are the rules and policies framed by organization which all the employees are expected to adhere.
All these factors play an important role in framing a marketing decision.
According to Donaldson and Davis, common ethical standard is important for the shared values and to bring in higher quality in products, processes and services and for better output and achievement.
Certain fundamental ethical issues have been codified into statutory regulations, to be followed by manufactures. To nurture their long – term relationship with the customers, they need to conform to ethical standards, which society expects them to follow. If the marketing efforts of a company deviate from these ethical standards it may face serious problems.