Ethics and Marketing on the Internet: Practitioners' Perceptions of Societal, Industry and Company Concerns Author(s): Victoria D.

Bush, Beverly T. Venable, Alan J. Bush Source: Journal of Business Ethics, Vol. 23, No. 3, Ethical and Societal Issues in Marketing and Business (Feb., 2000), pp. 237-248 Published by: Springer Stable URL: http://www.jstor.org/stable/25074242 . Accessed: 11/09/2011 09:38
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Ethics
the

and Marketing of Societal,

Concerns

on
Victoria D. Bush

Internet:

Practitioners'

Perceptions
and Company

Industry

Beverly T. Venable

Alan J. Bush

astonishing growth of the Internet its unique capabilities has captured the the marketing community. Although businesses are acknowledging the importance of many aWeb site, to date, little attention has been given to The coupled with of attention the business community's perceptions of the ethicality A national sample of marketing of this new medium. executives was surveyed regarding their perceptions of: (1) regulation of the Internet, (2) the potential ethical issues via Internet marketing their facing industry, and (3) the role of ethics and Internet in their organization. Results and recom marketing mendations for incorporating Internet are discussed. lines into organizations ethical guide

ABSTRACT.

The tion growth nesses.

Internet

has

received

in the media

lately consumers in usage by both Current estimates of Internet

a great deal of atten due to its tremendous and busi users are as

high as 62 million with projections ranging from 120 to 200 million by the year 2,000 (Meeker
1997). This unique the attention a growing interested astonishing of capabilities number the growth, coupled with the Internet has captured of the marketing community. While of have or are companies an Internet presence, of uncertainty issues associated about with it its

there

in developing is still a great deal ethical

and the potential use as a marketing

medium. are acknowledging little site, to date, on the potential on the to given of the

businesses many Although the importance of a Web Victoria D. Bush the University in appeared is an assistant professor of marketing at ofMississippi. Dr. Bush's research has as the Journal such journals of research ethical Internet. the ethicalness has issues Much of been conducted related

to marketing less attention has been

of Advertising Research, Advertising, Journal and the Journal of Public Policy and Marketing Her research inter Journal of Services Marketing.
ests are in diversity advertising, in sales-force internet marketing, services, and management.

business

Beverly T. Venable is a doctoral candidate in marketing at the University of She has published several Mississippi. national conferenceproceedings and is interested in ethics, brand equity, and non-profit marketing. Alan J Bush is a professor of marketing at the University ofMemphis. Dr. Bush has previously published in the of Marketing of Research, Journal Journal of Advertising Research, Journal Advertising, Journal of Business Research, Journal of Retailing, Science, and Journal of the Academy of Marketing others. His current research interests are in advertising on the internet, services marketing, and role model
influence on adolescents.

the of this study is to investigate purpose perceptions of ethics at the societal, and organiza industry, on the tional level as they relate to marketing = A Internet. national of (n 292) sample was to give executives asked their marketing of the (1) regulation regarding: issues via Internet ethical (2) potential their industry, and (3) the role marketing facing of ethics and Internet marketing in their organi a "first zation. The results of this study provide at how look" the ethical businesses perceive perceptions Internet, environment
Internet.

community's this new

perceptions medium. Thus,

surrounding

marketing

on

the

?* P*

2000. fournal of Business Ethics 23: 237-248, ? 2000 Kluwer Academic Publishers. Printed in theNetherlands.

238 Victoria D.

Bush

et al. at several levels:

Background With million feel In estimates by of Internet users as high as 200

medium

(1) societal,

(2) industry,

and (3) company

the year 2000, to establish compelled fact, according the estimated with ?Web has to many organizations an Internet presence. International number presence and rate. Data Internet At the ethics and society societal increased to level, the Internet has been crit as other mediums in the same way - to a when in their infancy have they were on society. potential negative impact Although issues such as pornography and news-grabbing icized much children's focus Once lies viewed access have made in universal viewed the central headlines, access to information. of Fortune

Research

questions

Corporation, 500 companies 1998). continue The This

in 1996 from 175 to 400 (Leckenby and Hong,

growth at an explosive is expected

of the Internet has interactivity unique the marketing interest as captured community's a way to customer and enhance rela develop and establish brand greater tionships identity. Thus, many on available commercial the Internet to interact services that have become These online, receiving users on and this allow consumers

and organizations services include books buying stock market Although commercial "information

booking and compact information.

electronically. airline tickets discs, and

as a public is information good, as a marketable commodity increasingly and Carr, (Rosen 1997). Thus, public policy are faced with a complicated decision makers dilemma how to regulate such a complex infor mation-based universal entity while insuring access The not the differs barriers terms and the by the public. also question Internet from of time traditional remains as to whether The outlets. or

the number organizations

of consumer navigating is growing

exponentially, without drawbacks. criticism Issues action due such

superhighway" the benefits of the Internet This new medium of

almost are not

can be

regulated. information

Internet The in

has drawn

and distance ability ability

are minimized to create databases

to its very nature as privacy, unsolicited and pornography in the academic Koprowski, studies

hotly literature Coupey, Most focused attention munity's Internet

security debated (cf. 1998). of the on has

interactivity. trans e-mail, to be continue

of marketers' consumers'

and practitioner and Cook 1995; to date user. have Less com

to selectively obtain information the Further, (Cronin, 1994). in how Internet greater flexibility provides and the depth of it, is displayed. information, of print, a single presentation into sound differs from any other the combination radio, and tele text of video, single medium

conducted Internet

Finally, vision and

the

household given of

been

to the business

(Cook and Coupey,

These difficult where ulation

1998).

perceptions (Bush, Bush issues this is due

the ethical

on the marketing and Harris, 1998), let alone this new medium. surrounding to the fact that the Internet As as a and For

the Internet characteristics make unique as to to regulate. Thus, it is still debated consumers issue. Little and marketers research stand on has been the reg conducted

Perhaps is a complex of information. entity global a challenge to marketers it presents such, bundle of legal, business, ethical complicated issues (Cook and Coupey, 1998). regulatory example, mediums its very

of regulation marketers' concerning perception at the societal level. Thus, this study fills this void by investigating perceptions from this particular group. are the bases Rl: Has for the first toward These regulation issues societal questions: the Internet abuses by

involves different composition television, lines, including telephone a to simplify this complexity, and print. Thus, concern of this study is to gain insight as to key the ethical nature of this how marketers perceive

two

research

resulted

on the lack of regulation in frequent ethical

organizations?

Ethics R2: Should insure the Internet be

and Marketing to

on the Internet Internet A

239 the organization amount a of how has been research a more to create

regulated

ethics and

ethical marketing?

considerable

conducted Internet Businesses due to ethics and marketing have its rapid a specific growth interest (Leckenby in the Internet and Hong, ethical (cf., ethical of

concerning climate within

Laczniak conduct

organization marketing and Murphy, 1993). Promoting at all levels requires commitment and is not an ethical a clear understanding behavior. acceptable climate can lead to as a better

1998). With

its goal of soliciting and retaining

organization of what is and such

the

has jumped on the Internet customers, marketing at break-neck "band wagon" speed. The Internet communication two-way electronically a potential and seller. As such, buyer as marketers have viewed online communications between ripe incorporation strategy. For example, they leave a trail of addresses and interests for an overall marketing as prospects visit Web Sites, information that includes into clues about their allows

Establishing

such reputa competitive advantages tion in the marketplace, increased sales, market and Murphy, share, and profits (Laczniak 1993). To improve ethics in organizations, many have codes of ethics that prescribe what developed the expected is of their behavior appropriate In a recent of employees. study, 94 percent Forbes 500 companies indicated had a code they

e-mail and

lifestyle informa 1995). This (Koprowski, tion can be built into databases for further solic can lead to invasion itation which of privacy
issues.

of conduct
These of their codes dilemmas A

(or ethics) in place (Ferrell, 1995).

can deal with ethical help marketers that may arise in the daily operations

become become

to the privacy issue, Internet concerned about the very over the Internet. Many transactions Due reluctant

users

have

of security users have because

of this uncertainty creates This another

to purchase products and Andrews, (Hershel dilemma

1997). as for marketers

organization. to the present key issue of interest study is of the role of ethics marketers' in perceptions on the Internet within their organi marketing In other words, zation. organi although many zations may the importance of ethics, recognize how present does it apply study to the Internet? several Internet First, we investigates on the level. Thus, issues the con at to or

to encourage over the transactions they attempt Internet. Furthermore, security of the informa tion that marketers transmit can be jeopardized by computer a key medium becomes hackers. Thus, for advertising as the Internet and pre as well as

cerning marketing the organizational gauge marketers' not ethical issues

same as other

and ethics

perceptions concerning
of marketing

attempt as to whether

the Internet whether consider

are the or not

information senting detailed product are faced with transaction a marketers capacity, deal of uncertainty the proper use great regarding of the Internet. Due to this present of most to gauge study attempts concern to marketing organizations the following research question: R3: What of the are the ethical Internet issues facing uncertainty, the ethical the issues via

forms

communica

tions.

Second,

marketing when planning ask marketers code These research of ethics issues

investigate even organizations their Internet

we

ethics

strategy. Finally, we a if organizations should develop for Internet marketing. specifically are addressed in the last three

questions: Are the ethical Internet issues related the to marketing same forms on

the use

R4:

for marketing

purposes?

issues keting R5: Do

basically raised with other in your

as ethical of mar

organization? consider Internet ethics strategy? when

companies their planning

240 Victoria D. R6: Should of ethics have or develop companies for Internet marketing? a code

Bush

et al.

Measures at the societal level centered were on the

Finally,

perceptions interest to this study. Recent research on agency on each side advertiser has focused relationships the relationship their counter understanding and priorities value and systems part's (Murphy are an Since ethics 1996). Maynard, important of an organization's value part system (Hunt, of Wood and Chonko, 1989) and thus the agency advertiser then it becomes relationship, impor tant to assess agency and advertiser perceptions on the Internet. of ethics and marketing Thus, the last research question is posed: R7: Are there differences and advertisers in how advertising ethical perceive on

the type of marketing and organization are of of ethics and the internet

Questions issue of using

one is six, where six is strongly and agree. disagree strongly were asked their extent of agree Respondents on ment lack of regulation has (1) whether ethical abuses and (2) frequent or not the Internet whether should be regulated to ensure ethical marketing practices. resulted At was the industry level, to assess developed What issues on was from facing the which an open ended question the primary of question perceptions concerning of in

regulation. a scale from

Questions one to

formatted

interest: ethical marketing question research developed. Finally,

are marketers' their

industry An Internet? due scaled

selected

open-ended to the lack of published items could be

agencies issues surrounding internet?

marketing

the

regarding ethics and These were one

at the organizational codes of ethics and Internet

level, questions consideration of

Methodology
This is to assess the per study's main objective of the ethical the issues surrounding ceptions com Internet among a sample from the business A national mailing list of account advertising agency

questions, formatted is strongly

were marketing developed. similar to the societal questions, on a scale from one to six, where

and six is strongly agree. disagree were their extent of asked Here, respondents on whether or not issues agreement (1) ethical on the Internet are the same as other forms of marketing, planning (2) companies their Internet consider ethics and when (3) com of ethics

munity.

(i.e., agency president, supervi and client organization decision sors/executives) makers VP's, (i.e., product managers, marketing was obtained for this investigation. etc.)

strategy, a code should have or develop panies for Internet marketing.

Sample Questionnaire A was from a broad to reach of attempt spectrum a sample in the marketing community, companies a commer selected from of 1,250 persons was cial mailing organizations. questionnaires 127 invalid resultant 1,123). In order list of advertising A total of 292 were received. in addresses agency usable and client completed for the In an

questionnaire research and pretested from

experts process ethical

yielded as and usage of the Internet perceptions part of the company's strategy. The marketing a section also included of demo questionnaire statements graphic the respondents. to help develop a profile of

previous a small sample of among a major Southeastern city. This a questionnaire on that focused developed

Accounting the mailing 26%

response to verify

rate was Internet

list, the (292 out of

usage/non-usage the following the respondents, among question was of your job time is "What asked, percent on the or advertising to marketing dedicated

Ethics Internet?"

and Marketing

on the Internet

241

those 45% stated that Of surveyed, not spend any time marketing/adver they did spent less Forty percent tising on the Internet. than 25% of their job time on the Internet. Only than 25% 12% stated that they spent any more of their time on the Internet. Thus, this a cross-section of respondents yielded users and nonusers of the Internet. A profile respondents are 57% of the sample work from study are who

TABLE I
Respondent Characteristic Type of organization: agency Advertising organization Marketing Industry: Consumer Consumer products profile Frequency Percent*

121 159

48.2% 56.8

the current

study while in

is presented in Table I.Approximately 48% of the

for advertising client by employed agencies experience organizations.

products services

47 9.524 79 5.5 14

18.6

Business-to-business

31.2

have marketing Respondents various industries (i.e., consumer consumer products, and work less 10%; services, 31%; business-to-business

Business-to-business

19%; products, business-to-business 6%)

services Other Number of employees: Less than 100 101-500 501-1,000 Over 1,000 Job position: President

AU 23
25

9.1
9.9

in organizations 100 than employees,

services, of various sizes 51%;

(i.e., 101-500

7%; over 15%; 501-1000 employees, employees, 1000 employees, 27%). Job titles of respondents include: president VP/director (14%), marketing (34%), account (18%), com supervisor/executive munications/information and manager (25%), Internet/new media manager (7%). Finally, work that are for organizations respondents located While appears in 40 the states across the U.S. small, it diverse organi similar in Chonko, the rate is relatively response is a nationally that the sample and client of advertising agency makers. This rate is also ethics and studies investigating (Hunt, Wood

7.4

143 41 21 77

50.7 14.5 27.3

Marketing Account supervisor/ Executive Communication/ Information manager Internet/New media manager Other 9 3.2 State of origin: New York 22 8.8 California Texas New Jersey Pennsylvania Ohio Illinois 13 5.4 Wisconsin 9 3.8 8 3.3 Florida 8 3.3 6 2.5 Oregon 6 2.5 Virginia Connecticut 5 2.1 5 2.1 Maryland 24 other states * Percentages calculated Michigan Minnesota Tennessee

38 13.7 VP/Director

94 18.0 50 68

33.8

24.5

sample zation decision to other business

6.8

19

from this study are 1989). not advisable, of the rather because however, as well as the nature of this medium dynamic non response for bias. It is hoped that potential can provide this sample of decision makers initial into ethical issues on the Internet that insights will assist businesses regarding decisions more in making new medium. this informed

setting Broad generalizations

25 8.4 6.3 5.9 20 15 14 13 11

10.5

5.4

4.6 11 4.6

Results The results of to this investigation the research are presented in stated questions based on the

accordance

20.9 50 based on totals in each

the First, previously. societal level questions ethical issues at the

findings are Second, presented. level are discussed industry

characteristic.

242 Victoria D. in format three. to address the research to

Bush

et al.

open-ended number question research questions organization these Finally,

These

findings

also highlight

the disparity of
of use

Third,

responses respondents' are presented. are investigated

questions in perceptions for differences by type of organi or advertiser zation agency (R7). advertising

(i.e., R4, research

regarding R5, R6)

of regulations views the imposition regarding as a means the Internet of insuring ethical for marketing of this new medium purposes.

Industry What

level are the ethical issues facing purposes? The issues were the 292 the use responses found of the were to be con The

Societal Has

level

Internet for marketing and eleven compiled

the lack of regulation on the Internet resulted in ethical abuses by organizations? The results frequent one indicate that number from research question twenty-nine or agreed "lack in percent strongly of those agreed with on the Internet abuses either surveyed the statement has resulted

among predominant research question cerning perceptions issues related of

respondents three. number

ethical the respondents regarding on the Internet are to marketing II. The ethical concern most on

of regulation ethical frequent twenty-six that they These have

in Table presented often mentioned Internet was mentions. ethical were

Another indicated statement.

by organizations". of the respondents percent the somewhat agreed with seem to indicate that results concerns has The on mean a scale agree). that the absence ethical to of this

the marketing regarding 126 the security of transactions with The next three most often mentioned Internet marketing regarding with activities hacking) (e.g. fraud,

concerns illegal

over half of this sample (55%) of marketing

professionals Internet regulations by organizations. was 3.71 question disagree) Should marketing? to six influenced abuses

45 mentions;

privacy

(38 mentions);

and

response of one

TABLE II
Marketers' perceptions of ethical
internet

(strongly

issues facing

the

(strongly

Issue
the Internet The mean be regulated response to insure to the ethical statement Security of transactions Illegal activity (fraud,

Frequency
of response1 29 126

%2

research question two, "the Internet addressing to insure ethical marketing" should be regulated was 3.34 on a scale of one to six. Approximately indicated of the respondents percent forty-six some level However, statement those who was agreement those who strongly strongly of to the statement. this disagreed with for 38% of the sample, while the statement agreed with

hacking, etc.) Privacy

Honesty/Truthfulness Judged by same standards as other mediums

45 38 8
8 36 28 7

10

accounted

Pornography
Product warranty

24
23 5 4 3

seems to indicate 30%. This approximately of views or perceptions almost a polarization by the need for regulation the respondents regarding the Internet uses. in There expressed agreed (16%) order appears to insure to be the those those ethical same who who

Plagiarism
Targeting Unsolicited children e-mail

20 5
16 12

of

marketing polarization somewhat somewhat

False advertising Other Total

of times mentioned Number not total 292 due to multiple
omissions.

11 52 431

3 12 100

among and

results would (16%). These disagreed a lack of consensus seem to indicate the among or in this sample regarding whether respondents not in fact be regulated. the Internet should

by respondents. Does and item mentions

Out

of 431 mentions.

Ethics of honesty/truthfulness Internet (36 mentions). keting by 28 mentions received 24 mentions. the same Other the information

and Marketing on mediums the

on the Internet

243 level

Organizational Are ethical

Judging standards as other

Internet

mar issues related to marketing on the Internet the same as ethical issues raised with other in your organization? When asked on the to marketing related

and pornography received areas of concern were plagiarism Interestingly, and false (23 and the 20 issues

basically

and warranty product mentions, respectively). of children targeting received tively). mentioned The there very The was final issue from

forms of marketing issues if ethical Internet with was the were other strong ethical

few mentions unsolicited

advertising (16 and 11, respec that was most often e-mail

the same as those raised basically mediums used for marketing, there the respondents that among agreement issues were 87% of the basically the same. An indicated this research respondents

responses are many issues to using the marketers with among regard as a Internet In fact, in medium. marketing to those issues already mentioned, addition fifty two others were in this raised by the respondents of the issues that were identified sample. Many the respondents societal have by implications a specific firm or industry. Therefore the beyond new medium is to use this powerful challenge wisely is yet to best accomplish this to As marketers begin consensus reach the major ethical regarding what on the to marketing issues of concern related and carefully. How to be determined. Internet solutions The similar ducted Online are, then it is expected to deal with them will concerns to those by identified revealed Trade in that appropriate be found. this study are con In its

(12 mentions). indicate that sample concerns that raise ethical this

concerning of the respondents or strongly with this statement, agreed agreed with another somewhat 17% expressing agree question. Sixty-nine percent ment. Only or about 6% of the

astonishing some level of agreement

agreed strongly disagreed and another 7% expressed somewhat disagree ment. These from this sample would responses seem to indicate a strong consensus the among = the common (x 4.81) respondents regarding issues among the various mar ality of ethical keting mediums, especially need for ethical 50/50 raises tion the use including since interesting the the their Internet Internet. This is to the responses to insure its

dis respondents with the statement

purposes was almost a those for and against. This split between a question as to why the need for regula is not viewed of to be more earlier

regulating for marketing

in a recent

the Federal

study Commission.

Report collect Yet their

to Congress,

the Commission

found that almost 85% of the 1,400 Web

surveyed consumers. personal 14% provide this practices with only information

sites
from

Only

regarding two percent of the 1,400 Web sites provide a any notice regarding privacy comprehensive to Congress, A Report (Privacy Online: policy 1998). Thus, truthfulness concerns of over privacy, security and are warranted. information

any notice information.

important given the responses regarding seen as leading to ethical being abuses by organizations. it is believed that Perhaps if other mediums, existing regulations regarding to this new medium, the applied stringently are all that would be needed. Internet, Or, there to the best way to solution may be a different strength lack of regulations the Internet. "regulate" An alternative to regulation may explanation be that the respondents in this study (advertising executives and advertisers) self agency prefer regulation. Advertising developing advertisers Association marketers. Bureau where Privacy For Association online the example, is currently standards and The American involved in

According

industry use, and dissemination has not yet taken hold.

to the FTC, effective at the regulation to online level with collection, respect of personal information

(www.aaf.org). also provides Most

registry with Direct Marketing for online support

has gone marketers Seal".

the Better Business recently, a program online and developed can for an "Online apply to Russell T Bodoff,

According

244 Victoria D. Senior Vice President will of BBBOnline, sites that display seal say what they do with personal and have it verified by the they say know that Web 1998). ethics when their and CEO

Bush

et al. the final research a code

"consumers a BBBOnline

data, do what BBB" (www.bbb.org, Do

develop to this question for Internet marketing. Response mean the second of the also achieved highest of the respondents study at 4.51. Sixty percent agreed another Only this statement and strongly agreed with somewhat indicated 22% agreement. about 8% of the respondents strongly should or disagreed with the statement "com a code of ethics have or develop or

agreement concerning that companies should

question of ethics

companies planning Internet strategy? When confronted with the state ment number research question five, addressing ethics when consider rarely planning "companies their 3.33 strategy", and responses were Internet response was fairly equally distributed. indicated 44% of the respondents the mean

consider

disagreed

panies for Internet

Approximately some level of agreement agree, agree, (strongly this statement. Thirty-one somewhat agree) with or disagreed either percent strongly disagreed with expressed It appears that in this disagreement. the majority of the respondents sample, while the statement with that com (56%) disagreed considered ethics when planning rarely panies somewhat strategy that 44%) ethics a fairly (approximately agreement This might perceptions ethics with large proportion some level of expressed were considered. rarely that there are mixed address this statement and another 25%

and 10% of the respon marketing" with the dents expressed somewhat disagreement statement. The high percentage of respondents on some level agreement (82%) who expressed this statement seems to indicate the respondents among to establish the need for companies regarding code of ethics for Internet marketing. consensus a strong in this sample a

with

Are

marketing

there differences in how advertising agencies and advertisers perceive ethical issues surrounding marketing on the internet? Results research for this final are no presented in Table difference III. For each found was

question question, between Each tions

be an indication

how companies regarding to this medium. regard

significant and advertisers. agencies advertising shared similar percep type of organization in this study. Thus, the agency-advertiser does not ethical appear issues to the to be compromised surrounding questions in

relationship Should companies have or develop a code of ethics for An Internet marketing? majority overwhelming some level of indicated of the respondents (82%) concerning
Internet.

the this

In

sum,

responses

TABLE III
Mean
Issue

comparison's

of ethical

issues between

advertising

agencies
Mean

(n

121) and advertisers

Mean

(n

159) Sign, level

r-value

ad agency 1. Lack of Internet regulation has resulted 3.63 ethical abuses by organizations 2. Internet should be regulated 3.29 marketing The Ethical forms of marketing 4. issues on the Internet 4.83 in frequent

advertiser

3.79

-0.93

0.35

to insure ethical 3.37

-0.40

0.69

3.

are the same as other 4.79 planning 3.31 0.24 0.81 0.21 0.83

Companies rarely consider ethics when their Internet strategy 3.35 should have/develop Companies 4.39 for Internet marketing

5.

a code of ethics 4.59

-01.3

0.18

Ethics initial

and Marketing

on the Internet "the fact road

245 the Highway, and lots of folks don't have a a of those who do have
or can we, manage where

some interesting results at study uncover the societal, and organizational level. industry, over First, there appears to be a definite disparity of the Internet. While the respondents regulation has led to ethical lack of regulation agreed as to whether it was unclear abuses, regulation, as a viable to this is perceived solution itself, issue facing the major the Second, problem. that respondents security inhibitor commerce. of level appears industry transactions. This may be a major of of electronic the development at the to be

is that on the Information

is changing Second, wagon."

"wagon", how do

we,

they go A hotly

and what debated

they do? solution

to this dilemma debate the con across on

is

government regulation. tinues in Washington and to whether should be Communications Telecommunications currently ethical legislated.

Substantial

abuses

as country Internet the

at the organizational level, Finally, seem to believe marketers that ethical issues are the same as other this new medium facing marketing media. should Further, develop Internet marketing. The strong to both of these issues may level of agreement some the indicate of that perhaps solving at the societal and industry dilemmas level reside at the organizational level. organizations ethics regarding they their own believe code that of

illegal to send or display service computer with sexual content that is offensive under fines 18 years of age. Violations and imprisonment. However,

the Congress passed as part of the Act Decency Act it is of 1996. Now, use an interactive to knowingly information can to a person result in

the American

Civil

Liberties Union
the

(ACLU) has
of

already
this Act there sexual (i.e., e-mail, on the

challenged

constitutionality

In addition, and Andrews, (Hershel 1997). are many other besides issues, legal concern that are of even greater content, credit card fraud, hacking, etc.) at the Ferrell that unsolicited to marketing societal copyright
Internet.

Implications The of ethical executives transaction results of this study reflect the uncertainty in terms of its impact on Clearly, marketing about such issues as

infringement, solution that of open LeClair and or situations between

Another simply Ferrell, be

this new medium decision are

discussion.

level may to According

making. concerned

e-mail, a few. These

fraud, unsolicited security, privacy, to name and the integrity of information ethical of concerns can hamper the between relationships

activities, discussions outside provides made." "catalyst discussion

trusting development and their potential marketers Internet customers. in this study as Given the perceptions revealed as others, a key question are well remains: What the options for managing these ethical concerns? can be done In other words, if anything what, at the societal, and company level? industry, are some suggestions What follows for managing ethics The on the Internet issue at each at the of these levels. level con central societal

many the organization and survive untarnished assurance was that the right decision a The Internet has become (p. 362). for of and promoting the relationship facilitating between the com

"Issues, (1998), can withstand open groups both inside and

ethics" and and puter (Hershel technology the School 1997, p. 166). For example, Andrews, at of Communications State California Fullerton site devoted has a web University, to ethics on the World Wide The Web first (http://www5.fullerton.edu/les/ethics). was Annual Ethics and Technology Conference held at Loyola University in Chicago in March more are of 1996. Many forums for discussion emerging. ethics at the industry level may call Managing a different course of action. Here, for codes of to insure self, instead of ethics can be developed government, regulation among various industries.

is how to retain the abuse of the Internet cerning access to information social goal of universal is increasingly when viewed information, itself, as a commodity rather than as a public good. First, universal can afford to have According access is limited. access those who Only can use the Internet. (1997, p. 235),

to Rosen

and Carr

246 Victoria D. For example, the Canadian Direct Marketers which 80% of the Association, represents U.S. billion direct $9 country's marketing industry, has amended its code of ethics to to respect its 750 members corporate require on the Internet. The new code consumer privacy a clear opportunity consumers focuses on giving to reject unsolicited and informing e-mail, what is about information personal collected used use. from them online and how them being it might be

Bush

et al.

should focus on several key information systems issues as identified Laudon and Laudon (1994): by 1. rights and obligations as focus on such topics employee work privacy, monitoring, place on customer information. policies Property rights and obligations issues such as software licenses, Information ? should e-mail and address own

2.

data

A number of (www.cdma.org/new/ethics). institutes have also drafted guidelines for Internet For example, the Computer Ethics Institute

inWashington,
Commandments marketers, Association has For

DC

(1996) has drafted the Ten

of Computer Ethics. the American Marketing a code of ethics developed

ership, and software copyrights. ? 3. Accountability and control specify who is responsible for all information systems in the organization. ? 4. System quality describe the general levels and system error than can of data quality be tolerated. the purpose of is to improve the systems of life for customers and employees state that 5. Quality of life these information quality by

As shown in for Internet marketing. specifically Table IV, many of the issues raised by respondents in the AMA's of this study are echoed code of ethics. concern. collected and used also In fact, The from privacy AMA customers security stresses that should be and are of major information confidential The AMA to all

levels of product achieving specified customer satis service, quality, employee and human faction, dignity.

only for expressed stresses that marketers

purposes. should adhere

laws regulating other media such as applicable and facsimiles. mail, telephone at the industry level While general guidelines are are helpful, codes organization-specific equally important. In fact, there that was over agreement (82%) whelming organizations Internet of their own should Code develop ethical conduct Ethics. concerning Acceptable

cannot have A code of ethics alone certainly a profound on communication via tech impact it can at least be part of the However, nology. an ethical in for establishing climate process which ethical behavior toward using the Internet is actively encouraged. the code, as with Further, will if corpo any other only be taken seriously rate leaders abide by it and punish do those who enforcement there would not be to occur in an individual's 1977).

not. Without

any changes expected behavior (Weaver and Ferrell,

TABLE IV
American Internet marketers' 1. Support marketing association's code of ethics for marketing by: the rights of privacy, ownership that would and access. be illegal, if on the internet

professional ethics

conduct must

be guided

of professional

to avoid harm by protecting

2. Adherence conducted 3. Awareness 4. Effective

appropriate.

to all applicable laws and regulations with fax or other media. by mail, telephone, of changes communication in regulations related

use of Internet marketing

to Internet marketing. on risks and policies communicated related to Internet marketing, to employees, customers when

to organizational to ethical

members

5. Organizational stockholders. Source: American

commitment

Internet practices

and relevant

Marketing

Association

Web

site at: http://www.ama.org/about/ama/ethcode.asp

Ethics

and Marketing

on the Internet to enforce been tion these external

247

can also ethical encourage Companies behavior itself to regulate by using technology Internet network usage. security Computer access to the software can help organizations gain com resources without Internet's voluminous internal network (Hershel promising security are swiftly and Andrews, 1997). Organizations and authentication encryption developing software internet. to enable For secure transactions over the (tm) is aWorld HotJava example, - a Wide Web browser that uses Java language insure safe importing that helps safety language across of code the Network. The fragments Consumer University Science has department a Secure Internet at Princeton Programming of security flaws Thus, security

found

it. For example, values have corporate to define the standards that guide the and internal of an organiza functions

and Chonko, do (Hunt, Wood 1989). How values influence Internet marketing?

a code Further, many organizations already have a separate code of ethics 1996). Does (Murphy,

need
enforce holders? between

to be

developed
how among

specifically
does

for

the

Internet?

If developed, compliance Continued ethics

an organization its various stake

a number that discovered Group in Microsoft's Internet Explorer. to be a concern. issues continue

study of the relationship on the Internet and marketing will hopefully and practitioners help researchers as it continues to understand this new medium an integral part of the com become marketing mix. munications

References Conclusion The of this study provide initial insight as of ethics and marketing perceptions on the Internet. surrounds Clearly, uncertainty are unsure this new medium. Businesses how results to marketers' and if it should a major be regulated. Further, to businesses is the issue of security marketers would like to Surely, cus and potential each party exchanges are being made in the

Bush, Alan, Victoria Bush 'Advertiser Perceptions Marketing

and Sharon Harris: of the Internet

1998, as a

Communications Tool', Journal of Research 38(2), 17-28. Advertising Don and Eloise Cook, 1998, Lloyd Coupey: 'Consumer Behavior and Unresolved Regulatory Issues in Electronic Marketing', Journal of Business Research 41(3), Cronin, How 231-238. Mary J.: 1994, Doing Business on the Internet: the Electronic Highway Is Transforming American New York). Companies (Van Nostrand Reinhold, 1995, Survey of Forbes 500 Ethical Ferrell, O. C: Compliance Programs, Working
Memphis.

impediment and privacy.

to their present guarantee tomers that the information is secure. Major telecommunications strides

to ensure Internet industry results of this study show that security. However, are still a major about perceptions security concern and that these be may perceptions to change. difficult The ethical concerns to indicate issues begin Given study appear and industry keting tional might level. that emerged from this that many of the societal Internet mar at the organiza results concerning appear, Internet of not ethics sur on

Paper, University

of

surrounding to be solved split marketers the

Thorne and Linda LeClair Ferrell, O. C, Debbie Ferrell: 1998, 'The Federal Sentencing Guidelines for Organizations: A Framework for Ethical Business Ethics 17, 353?363. Journal of Compliance', and Patricia Hayes Andrews: Hershel, Richard 1997, 'Ethical Implications of Technological Advances on Business Communication', Journal of Business Hunt, Chonko: 1989, 'Corporate Ethical Values and Organizational Commitment inMarketing', Journal of Marketing 53 79-90. (July), Gene: 1995, 'The Electronic Watchdog', Koprowski, American Demographics (July/August), 4?9. and Patrick E. Murphy: Laczniak, Gene R. 1993, Ethical Marketing Decisions: The Higher Road (Allyn and Bacon, Boston). Communication 34(2), 160-170. and Lawrence Shelby, Van Wood

Internet prisingly, their own dents a code

addressing 80 percent level. Over indicated that organizations of ethics for the investigation developing is needed a code

regulation, to prefer

the respon should develop as to how best

Internet. of ethics and how

Further accomplish

248 Victoria D. Laudon, and J. P. Laudon, Information Systems: Organization ed. (MacMillan, New York). John D. K. C. 1994, Management and Technology, 3rd

Bush

et al. Victoria D. School University University, E-mail: Bush

of Business,

Leckenby,

and Jongpil Hong: 1998, 'Using for Web Media Reach/Frequency Planning', fournal of Advertising Research (January/February),
7-19.

ofMississippi, MS 38611,
U.S.A.

vbush@bus.olemiss.edu Beverly T. Venable School of Business, University University, ofMississippi, MS 38611,

U.S.A.

Meeker,

1997, Mary: Trends/Forecasts', 17(6), 20-21.

'An Update Computer

on Internet Usage Technology Review

1996, 'Using Murphy, Priscilla and Michael Maynard: to Compare Profiles Advertising Judgment and Clients' Campaign Values', Journal Agencies' of Advertising Research 38(2), 19-27. Rosen, C. Martin and Gabrielle M. Carr: 1997, 'Fares on the Information Highway', and Free Riders Journal of Business Ethics 16, 1439-1445. K. Mark 'The and O. C. Ferrell, 1977, Weaver, on Reported Ethical of Corporate Impact Policy Beliefs and Behaviors of Marketing Practitioners', in B. A. Greenberg and D. A. Bellenger (eds.), (American Contemporary Marketing Thought IL), pp. 477-481. Chicago, Marketing Association, Fogelman

E-mail:

btvenabl@olemiss.edu Bush AlanJ. and Economics, ofMemphis,

U.S.A.

College

of Business University

Memphis, TN 38152,
E-mail: bush@dixie-net.com