Scenario: John Smith owns a small marketing research firm in Cleveland, Ohio, which employs 75 people. Most employees are the sole breadwinners in their families. John’s firm has not fared well for the past two years and is on the verge of bankruptcy. The company recently surveyed more than 2,000 people in Ohio about new car purchase plans for the Ohio Department of Economic Development. Because the study identified many hot prospects for new cars, a car dealer has offered John $8,000 for the names and phone numbers of people saying they are “likely” or “very likely” to buy a new car within the next 12 months. John needs the money to avoid laying off a number of employees.
Questions: Should John Smith sell the names? Does the AMA Statement of Ethics address this issue? (Yes, go to the site and check out the statement.) What does the AMA Statement contain that relates to John Smith’s dilemma?
According to the AMA Statement of Ethics John Smith should not sell the names. It doesn't specifically mention this exact issue, but very clearly states numerous times that a customer should be held at the highest level of respect. In this instant the survey participants would act as customers. The AMA Statement of Ethics has many areas that cover why selling the names and phone numbers would be unethical. Here are just a few:
1.) Ethical Norm #2..."Foster trust in the marketing system. This means striving for good faith and fair dealing so as to contribute toward the efficacy of the exchange process as well as avoiding deception in product design, pricing, communication, and delivery of distribution." This clearly states that a company must avoid deception in order to encourage trust in the system. If I were a survey participant and I found out my name had been given out I would feel betrayed and definitely would not be trusting in the system.
2.) Ethical Value #1... "Honesty – to be forthright in dealings with customers and stakeholders. To this end, we will:Strive to be truthful in all situations and at all times and honor our explicit and implicit commitments and promises."
I doubt that those participating in the survey were told that there names and numbers could be sold to car dealerships... thus the research firm would not have been forthright with their customers.
3.) Ethical Value #3... "Fairness – to balance justly the needs of the buyer with the interests of the seller. To this end, we will: Reject manipulations and sales tactics that harm customer trust and avoid knowing participation in conflicts of interest. Seek to protect the private information of customers, employees and partners.
This is the big one... it states quite clearly that firms must protect the private information of customers.
The AMA Statement of Ethics is posted at this
site.
There is no way that ethically the marketing research firm can disclose the customers' information, but can you think of another way that the research firm could avoid laying off employees?
