Marketing Ethics Case Study

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Marketing ethics Case Study Lei FENG 1187662
Table of Contents
1. Background 2
2. Ethical issues 2
3. Stakeholders 4
4. Stakeholders analysis 6
5. Recommendations 7
6. References 10

1. Background In this age, the development of the world can not without oil. British Petroleum (BP) is the largest energy cooperation on our plant. From 1917 to today, BP plays many different roles, however, one thing never changed, BP is an energy cooperation, fossil fuels is the heart of this organization. In world war one; BP was the British Royal Navy's primary fuel resource. In the 20th century, according the successful in the Middle East, BP obtains the considerable development. Today, as environmental protection becomes more and more important, BP is trying to play a new role--- leader of the Green energy. Whether changing the trademarks, cooperation with National Wildlife Federation (NWF) or making the commitment to public, BP is trying to change the impression of the people for the energy companies (Sider, 2009). Nevertheless, there is still some controversy from public. All of these activities are called "Green wash". Green wash, it is the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology or company practice (Rouse, 2007). Many companies using Green Wash to show more beneficial on environment, not only BP, but also Hitachi and Ford Motor Company use Green Wash.

2. Ethical issues Ethical marketing is about making marketing decisions that are morally right (Ethical marketing, 2012). All the marketing decision making should follow the Golden Rule. The target of marketing is profit; however, there are some responsibilities at the same time. In this case, BP's green washing is an unethical example. According the green wash, consumers are easy to misled, because the production and transform processes are not easy to supervise by consumers. Secondly, consumers do not have enough skills to discriminate. Thirdly, marketers using some professional introduction increase the difficulties of judgment and comparison. Below are some specific examples in this case. 2.1. Changing Trademark and renewable energy BP changed their trademark to be more "green". This new logo shows to consumers that BP does not mean "British petroleum" anymore. People may read it to be "Beyond petroleum", said Sir John Brown, BP's chief executive officer. Also he made a commitment; BP will reduce the emission of carbon. What is more, with the acquisition of the solar energy company Solarex, BP will be the largest solar energy company in the future (Sider, 2009).
However, these activities of GP have a large gap between the commitment and reality. First of all, before BP purchase of Solarex, it purchased ARCO for US$ 26.5 billion. On the other hand, the cost on purchase Solarex is only US$ 45 million. This shows the core profit of BP: oil, gas and coal, these kinds of fossil fuels. 2.2. Protection of wildlife BP built a partnership with National Wildlife Federation (NWF), which is a large non-government organization. BP uses some business practices to show concern about the protection of wild animals. Some "wildlife dolls" are free when consumers purchase a certain amount of gas. At the same time, BP also built a partnership with New York's Urban Park Ranger. All of these business practices are conveying a message to public, BP concerned about global climate change and protection of wildlife.
Nevertheless, BP drill for oil in the ecologically sensitive arctic wildlife refuge, such as northeast Alaska and North Slope. These activities have brought an enormous impact on the wildlife in these areas where have a fragile ecological environment and vulnerable to climate change. 2.3.
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