Business ethics of vinamilk Đạo đức kinh doanh

Thuong Mai University Business Ethics Group 1: Vinamilk Presentation about Ethics in marketing Member: Phạm Hồng Vân Anh Trần Việt Anh Nguyễn Thị Kim Anh Nguyễn Lê Minh Anh Nguyễn Trần Phương Anh Nguyễn Đức Anh Đồng Thị Ánh Hoàng Thị Chang Dương Thành Công Huỳnh Thị Linh Chi Trần Thị Mai Chi I What is Ethical Marketing? A.Concept: Ethical Marketing (or ethics in marketing) is a process where businesses not only focus on marketing their products so that they can sell a lot of goods and earn a lot of profit, but also bring real benefits to customers Quality, helping society and communities to develop sustainably B.Importance of ethics in business: Ethical Marketing is not just a specific marketing strategy, it can be considered as a business motto of the business It includes developing communication activities to ensure honesty, building and developing lasting relationships with customers through sharing the right values An ethical business in business does not consider the transmission of valuable media messages a must, but rather a must for the well-being of the business and the communities in which they make an impact The sustainable development of businesses and communities, is the main reason why Ethical Marketing is important C.Scope of application of ethics in marketing Between businesses and customers Marketing towards customer value (customer value - is the benefits that the customer receives by owning the product/service, including the benefits resulting from the product products/services, benefits from added services, benefits from brand image The brand brings and benefits from the relationship formed between the customer and the brand This requires marketers to be aware of marketing activities that need to be profitable real customer benefit, from the product, price, distribution to operations marketing communications In advertising, the 3A principle: Advocacy (activity), Accuracy (accuracy, honesty), and Acquisitiveness (inspiration) also represent this point of view Business to society - Implement marketing activities that need to comply with laws, rules, and regulations of the State and Government in each national market (competition law, law commercial law, advertising law ) - Respect cultural values and ethical standards when implementing activities marketing activities such as promotions, advertising campaigns, events - Resolve conflicts and balance the interests of business parties - customers – and society when implementing marketing activities, such as environmental protection school, community benefits Business with partners When implementing business activities and doing marketing, businesses will have many relationships with partners (investors, suppliers, distributors, companies) service company ) so respect the relationship and interests of the parties involved in the above principle of mutual benefit and mutual development However, to maintain relationships and build Building trust that rigor and transparency are principles that businesses need attention too Business with competitors Principle of fair competition: Fair competition is a form of competition by the provisions of law, and social ethics The motto of the edge A healthy picture is "don't have to blow out someone else's candle to let yourself shine bright." Enterprises need to rely on competitiveness including identifying and exploiting capacity and advantages of the enterprise compared to competitors in good satisfaction meet customer requirements, create differentiated values, reflected in strategic brand positioning, through products - services, advantages of distribution channels, prices, and communication through thereby earning higher and higher profits and having a different or superior position compared to competitors in the market Within the enterprise Ethical principles, conduct, and social responsibility are implemented within the business Businesses see this as a guideline, shown in Mission – Corporate/brand vision - Manifestations/ethical issues in marketing For products: Ethical issues can arise from product policy through the product life cycle from development to decline Product safety is often a prominent ethical issue in product policy In almost all countries, it is legal for products to be sold to have a value that is fit for the intended consumer and requires the product to be safe As well as the content contained in this claim is a warranty policy, the seller (manufacturer, wholesaler and retailer) is responsible for the product supplied that may cause injury to the consumer Furthermore, sellers must adhere to product safety regulations issued by legal authorities However, considering ethical issues in product safety has implications beyond the limits of legal regulation Marketers must ask themselves: how safe are the company's products? Is it unlikely to pose a risk to the environment, to products that are not likely to cause harm because product safety is as much a function of the consumer as the product design and manufacture? For pricing: Pricing is one of the regulatory areas of marketing State regulations and laws related to regulated selling prices, correct perception of selling prices, overpriced selling prices and transfer pricing In some cases, the practice of applying a price does not violate the law, but does not mean it is ethical For distribution: Ethical issues in distribution often involve conflicts between distribution intermediaries, typically reflected in unbalanced power in the distribution channel relationship The power of large retailers, wholesalers or manufacturers is often abused in demanding that suppliers meet demands that are beyond their power For example, retailers require suppliers Although it costs a lot of money to get their products into the retailer's catalog, some small manufacturers can't really meet the retailers' overly demanding standards In addition to the problems in managing distribution channels including the black market, many retailers have been criticized for relaxing sales to intermediaries and often intermediaries must be invested with very high costs due to having to provide better customer service and fierce competition, forcing them to push up prices For the media: The ethical issue in communication that is most evident and most criticized in marketing activities is in advertising activities with the traditional role of persuading customers (the truth is that advertising has existed for many years) at issue of ethics from the time advertising is used) Most countries have strict industry-specific advertising regulations, and advertisers must report all of their performance Misuse of advertising may include exaggeration or disinformation, or misrepresentation Such abuses are morally outright illegal However, it is very difficult to curb many bad behaviors in the name of advertising Only good ethical principles within companies, industries and professional groups can be afforded Personal selling is often not regularly monitored, the following actions are considered unethical: promoting a lot of product advantages, promising more than it can deliver, exaggerating or telling lie, or provide incorrect products Personal selling conflicts often arise between salespeople and companies, salespeople and customers, salespeople and competitors Indeed, one of the marketing challenges is to improve public confidence in effective communications: the right forms of sales, advertising, pricing, distribution, and use of customer information in a high ethical standards through keeping promises, assessing and accountability, and acting ethically first of all from within the company [although there are many external factors beyond our control of the company] and with effective marketing plans and strategies II Give example about ethics in marketing : Introduce company: - General introduction Vinamilk was born on August 20, 1976 This is a company established on the basis of taking over dairy factories, left by the old regime Since then, when successively awarded the Labor Medal by the State, the title of Labor Hero in the renovation period Vinamilk has built dairy farms in all parts of the country Not only developing in the domestic market, Vinamilk also expanded its brand to New Zealand and more than 20 other countries, including the US In addition, Vinamilk is also a pioneer brand opening the way to the high-end organic food market in Vietnam, with fresh dairy products that meet USDA standards in the United States Vinamilk is currently a leading enterprise in the field of manufacturing dairy products in Vietnam The company has a history of formation and development for more than 40 years with constant changes - Quality certification and management system: With continuous improvement and development, Vinamilk is increasingly improving itself, to achieve certification standards such as: Quality management system certification according to international standard ISO 9001: 2008 Certification of quality management system & food safety according to British standards BRC To certify that the establishment meets all food hygiene and safety conditions according to the regulations of the Ministry of Health In addition, Vinamilk also achieved ISO 50001: 2011, FSSC 22000: 2005, ISO 14001: 2004 certifications - With continuous improvement and development, Vinamilk is improving more and more, to achieve certification standards such as: Quality management system certification according to international standard ISO 9001: 2008 Certification of quality management system & food safety according to British standards BRC To certify that the establishment meets all food hygiene and safety conditions according to the regulations of the Ministry of Health In addition, Vinamilk also achieved ISO 50001: 2011, FSSC 22000: 2005, ISO 14001: 2004 certifications - Raw material area : Vinamilk is a company with diverse industries such as dairy farming, production of animal feed, cultivation In years, with many efforts, the company has successfully built dairy farms and has plans to build more farms next Vinamilk is very focused on investing in technological equipment All livestock barn systems are built by the company according to the most modern standards in the world To ensure the mastery of modern equipment, the company also regularly trains and develops human resources The directors and heads of departments were all sent by the company to learn practical experience from dairy farms in the US, Australia Capturing the market with quality products at competitive prices, it is certain that Vinamilk will continue further in the future - Products of Vinamilk: Vinamilk Dairy Company has provided more than 250 different types of products, with specific main categories as follows: Fresh milk with brands: ADM GOLD, Flex, Super SuSu Yogurt with brands: SuSu, Probi ProBeauty Infant and adult milk powder: Dielac, Alpha, Pedia Grow Plus, Optimum Gold, Ridielac nutritional powder, Diecerna special treatment for diabetes, SurePrevent, CalciumPro, Mama Gold Condensed milk: Phuong Nam star, Ong Tho Cream and Cheese: Subo Yogurt Ice Cream, Delight Ice Cream, Twin Cows, Ice Cream Kid, Oze Ice Cream Kid, Bow-Weared Cow Cheese Soy milk – beverage: Vfresh juice, Icy bottled water, GoldSoy soy milk Corporate ethics issues On the occasion of the 45th anniversary of establishment, Vinamilk kicked off the 2021 operation of the Milk Fund Reaching Tall Vietnam with an online campaign called "Million glasses of milk of love, a happy smile" with the hope of every child Everyone can drink milk to be healthier and happier The campaign calls for the community to join the application to have more glasses of milk to send to disadvantaged children in all parts of the country With each shared post posted, Vinamilk will contribute 10 boxes of milk on behalf of the participants to the program "Standing Tall Vietnam" and send joy to the children In 2020, the obstacles caused by Covid-19 have not stopped loving buses bringing more than 1.7 million glasses of Vinamilk milk to disadvantaged children in 27 provinces and cities such as Ha Giang, Yen Bai, and Ha City Noi, Thua Thien Hue, Quang Nam, Phu Yen, Ho Chi Minh City All for the sake of every child drinking milk every day, for no reason, the nutritional care for the children is interrupted That also partly helps them improve their health, strengthen their resistance to fight off the disease And to kick off the journey in 2021, with the aim of calling for a hand to bring milk to disadvantaged and unlucky children, Vinamilk organized an online campaign called "Million glasses of milk of love, million of smiles" happy" The way to participate in the program is very simple, with just a small action: upload pictures of happy, healthy moments with family and friends on your personal page and share your feelings about "happiness" with hashtags #Vinamilk #QuySuaVuonCaoVietNam #HanhPhuc With each share posted, Vinamilk will contribute 10 boxes of milk on behalf of the participants to the program "Standing Tall Vietnam Milk Fund" and send joy to the children 3.Evaluate the problem The community always pays attention and is ready to accompany Vinamilk in the journey of bringing milk to disadvantaged and unlucky children They are the young trees that need to be cared for by the community to grow Our cooperation will help them have more motivation to fulfill their dreams towards a healthy and happy future Vinamilk has brought true values to the community, spreading love to all parts of the country, creating a positive influence for the whole community In this campaign, Vinamilk honestly conveys the characteristics of the company's dairy products such as: high tide growth, support for children's intelligence development, products are certified by the Ministry of Health to ensure food safety and hygiene Unethical behavior and how to Vinamilk handle it In 2006, Vinamilk Company launched into the market a type of milk called "pure pasteurized fresh milk without sugar", with the lines on the product packaging "a natural source of nutrition every day", which made consumers believe that this is genuine fresh milk Although the manufacturer's product packaging has recorded some information such as the butter composition accounting for 3.5% or the percentage of vitamins, calcium, and fat But the percentage of fresh milk and powdered milk does not have a single percentage What parameters, all are very general, on the product packaging there is only a very ambiguous sentence "the ingredients include fresh milk, powdered milk" without knowing the ratio of them In this situation, Vinamilk company has had unethical behavior in business and the aspect of business ethics here is ethics in marketing Vinamilk Company has had unethical advertising behavior It manifests itself in: Firstly, Vinamilk advertised with vague messages for its products In the above situation, we can see that on the packaging of its "pure fresh milk" products, Vinamilk did not include any parameters on the composition of the ratio of fresh milk and powdered milk Vinamilk exploited and took advantage of customers' false beliefs about its products to sell more products and earn more profits Second, to cover up its "pure fresh milk" product, Vinamilk advertised in a very vague way its product information The product packaging says "pure pasteurized fresh milk without sugar" but the parameters of the percentage of fresh milk and powdered milk are not announced by the manufacturer  So, this case of Vinamilk can be considered a commercial fraud and can be considered a fake because on the product packaging it is clearly stated that "pure pasteurized fresh milk without sugar" but in fact milk ingredients How many percent is pure fresh? This behavior of Vinamilk has infringed on the rights of consumers, which are recognized by the international community as the right to information "is the right to be provided with necessary information to have a choice and to be protected before dishonest advertising or labeling”, the right to be safe “is the right to protection against products, services, and processes harmful to health and life”  Up to now, almost years have passed, but Vinamilk has never spoken to these questions of consumers They still produce milk with unknown packaging and specific dosage of each ingredient But because the Vietnamese government does not have a sanctioning policy for such cases and consumers still trust to buy Vinamilk, their unethical action continues Recommendation With the marketing activities that the company has carried out such as the campaign mentioned above "rising Vietnam"; "millions of glasses of milk of love, a happy smile" The company should promote and continue marketing activities that are more meaningful to the Vietnamese people Especially in the context of the current epidemic, the gap between rich and poor has increased, so it is necessary to need help from companies like Vinamilk to join hands Our team would like to suggest some forms of marketing as follows: Communication campaign with meaningful messages: Specifically here, Vinamilk has many times in the past carried out charity activities for children in the highlands Based on that, Vinamilk will create a story around poor highland children and convey the value of a glass of milk when giving it This not only helps to increase customers' awareness of Vinamilk's image, but also shows the human value that every human being needs to remind Campaign towards the environment: Currently globally, the biggest and most important issue that countries need to pay attention to and change is climate change Understandably, it is due to carbon dioxide emissions from factories, industrial activities, vehicles or especially garbage Through the recent COP26 conference, Vietnam is also determined to become a zero carbon dioxie country in the future So, to respond and pioneer changes, Vinamilk needs to make changes in raw materials, materials and processing such as replacing plastic straws with paper ones Creating an awareness campaign is essential as an industry leader, campaigns that urge (educational) people to use recyclable products, for example ; Limit the use of nylon, materials that are difficult to disintegrate Conventional communication strategy: In the company's sales strategies, not only make customers buy a lot of products, but also honestly convey the features of each dairy product line such as certain complementary compounds, The company still needs to emphasize the importance of breast milk besides using processed milk III Notice when applying ethics in marketing: Ethical status in marketing in Vietnamese enterprises In fact, the most popular forms of marketing are on mainstream advertising channels such as television, billboards, posters as well as on social media channels This shows that the alarming situation of ethical violations in marketing requires a correction of marketing activities from all levels and sectors related to individuals and organizations in society - Advertise harmful products The two most attacked products are tobacco and alcohol, some countries completely ban tobacco advertising in any form (Canada, Finland, including our country), some countries only restrict but not completely ban them like the US, Sweden Tobacco manufacturers think that as long as their products are recognized by law, they have the right to advertise, another reason is to persuade smokers to switch to use their brand, not to encourage children or non-smokers However, this argument is strongly opposed by health organizations and non-smokers - Advertising affects children Every day, many advertisements around us are aimed at children and have caused much criticism in the press Advertising attracts curiosity, curiosity, and provokes unnecessary needs in children of this age Not being wise enough to judge can lead to competition or distraction from learning - Advertising is exaggerated, product hype For example: An advertisement for laundry detergent that is only dipped in once can be as white as new This makes consumers doubt the honesty, even panic about the detergent in the washing powder affecting the skin of the hands - Advertising is discriminatory, untasty, and ridiculous For example: The music program "Dance of the curve" organized by the Media Joint Stock Company and the Vietnam Singers Association event in Ho Chi Minh City Hai Phong On the large panel are pictures of hot girls with bikinis and the bold words "The program is not for young people under 18 years old and dignified women" This is a form of promoting women to live loosely… - Ads aimed at sensitive audiences In the case of Red Bear noodles, the message: "Eating a packet of noodles, you have contributed 10 dong to cancer patients" This is a form of advertising that strikes at the compassion of customers, the purpose is to sell many products, however, the donation of 10 VND for cancer patients for a package of noodles is too small compared to the selling price However, hitting the customer's humanity to sell is considered a violation of advertising ethics How does unethical behavior in marketing affect businesses and society ● Impact on society * For human Many businesses believe that social responsibility is just sharing material benefits with the community expressed through charity work Many businesses even use charity work as a "channel" to promote products and brands Such a concept is not correct and incomplete Profit is the driving force for business development, but it cannot be separated from the interests of the community in relation to the social environment (the State, partners, consumers) Businesses must anticipate the social impact of their operations, have consistent policies, and effective methods to limit negatives It is the voluntary responsibility of the enterprise to direct its activities However, very few businesses today have such thoughts in their business activities *For the environment In the context that the legal framework on the environment is still lacking, and the enforcement of the environmental law is still lax, the ethical issues of businesses towards the environment need to be monitored by the social community to become a effective tool to prevent rapid degradation in people's living environment Strong development of industrial zones affects the environment of agricultural land and creates harmful emissions that affect the environment people's lives The discharge of toxic substances directly destroys water resources, especially water used for irrigation of crops and aquaculture ● Impact on business *For corporate customers Customers are the foundation of business existence and development Business ethics is the behavior of investing in the future When businesses build a good reputation, they will attract customers Violations of business ethics will lead to boycotts and punishments from the customer community * For corporate investors Investors in the stock market always expect the profits of businesses when deciding to invest in stocks Business ethics shows transparency about honesty in financial statements, disclosure of information to investors, etc Therefore, the phenomenon of businesses giving inaccurate information to attract investors is an unethical practice But because the returns on the stock market were so great, similar incidents continued In many cases, when business activities face difficulties or risks, reputable enterprises in the world often choose to widely inform shareholders to call for their cooperation to help the company overcome difficult Although potentially risky, these ways help the company maintain the trust of investors, and avoid the risk of being abandoned when information is disclosed However, Vietnamese businesses often not so 3.How is an ethical marketing plan developed? Ethical marketing doesn’t refer to a plan in and of itself, but offers tools for companies to evaluate the marketing strategies they use in the past, present, and future If a company decides that an ethical marketing strategy can increase their profits or advance their public image, they can take steps to revise their existing marketing In some cases this involves minor changes; in others it will require entirely new ad campaigns Any ethical marketing effort will begin with a careful analysis of the company, its customers, and the markets it operates within Ethical marketing has many advantages, but few companies would undertake an ethical marketing strategy if it reduces profits Careful research is the best way to predict the effects of a change in strategy If ethical marketing proves to be cost prohibitive, many companies will abandon the effort A company will then decide which features of their advertising to perform in ethical ways As previously mentioned, the field of ethics is notoriously abstract What is right to one may be wrong to another Marketing professionals must reach an agreement about how they want to deliver their campaigns They might decide to focus on making honest claims, avoiding marketing to children, or falsely criticizing competitors A delicate balance has to be struck between the truth of the ad and its ability to persuade the customer Finally, ethical marketers need to make difficult choices about how to leverage the capital of their ethical decisions For most companies, the simple knowledge that they are doing the right thing will not be enough of a motivating factor Ethical marketing often highlights the ethical choices a company has made in order to improve their public reputation This can be a powerful way to connect with customers, but it also runs the risk of seeming self congratulatory Any effort at ethical marketing has to balance a company’s self interest with their social responsibility 4.Notice when applying ethics in marketing An ethical marketing strategy is responsible for paying heed upon different factors such as: Organization factors such as culture, norms, values, and opportunity Individual factors such as moral philosophies and values Stakeholder interests and concerns The intensity of ethical issues in marketing and organization setup Ethical decision making Evaluation of ethical outcomes ... without knowing the ratio of them In this situation, Vinamilk company has had unethical behavior in business and the aspect of business ethics here is ethics in marketing Vinamilk Company has had... irrigation of crops and aquaculture ● Impact on business *For corporate customers Customers are the foundation of business existence and development Business ethics is the behavior of investing... bottled water, GoldSoy soy milk Corporate ethics issues On the occasion of the 45th anniversary of establishment, Vinamilk kicked off the 2021 operation of the Milk Fund Reaching Tall Vietnam with