As Head of Marketing with expertise from roles at GCB Bank, this paper defines ethics in marketing, drawing from Verne E. Henderson’s “Spectrum of Ethicality” model (assuming E. Henderson refers to this, as per his works like “What’s Ethical in Business?”), which views ethics as a continuum from unethical/illegal to ethical/legal, emphasizing harmonizing stakeholder interests in dynamic environments. In Ghana’s banking, ethics aligns with BoG’s Corporate Governance Directive and sustainable principles, preventing issues like the 2017 bank collapses due to unethical practices.

What Ethics Is, as Applied to Marketing (4 marks)

Ethics in marketing involves moral principles guiding decisions to ensure fairness, transparency, and societal good beyond profit. It includes truthful promotion, consumer protection, and social responsibility. Henderson’s model frames this as redefining business rules amid changes (e.g., digital ethics in fintech), balancing manager, customer, and society interests for long-term viability.

Distinction Between Legal and Ethical Behaviour (4 marks)

• Legal Behaviour: Compliance with laws, e.g., BoG’s Act 930 mandating accurate advertising; non-compliance risks fines (e.g., misleading loan rates).
• Ethical Behaviour: Goes beyond laws to moral rightness, e.g., voluntarily disclosing all fees even if not required, fostering trust. Legal acts can be unethical (e.g., aggressive selling to vulnerable customers), while ethical acts enhance reputation, as per Henderson’s spectrum where ethics anticipates conflicts.

Four Implications of Ethics to Marketing (Guided by Henderson’s Model) (12 marks)

Henderson’s model implies ethics as a proactive process; here are four implications applied to marketing:

1. Truthful Communication and Advertising: Ethics requires avoiding deception, implying transparent campaigns (e.g., clear terms in promotions). In Ghana, unethical ads led to BoG sanctions; ethical practice builds loyalty, harmonizing interests per Henderson.
2. Fair Pricing and Value Delivery: Implies avoiding exploitative pricing (e.g., hidden fees in high-rate environments); ethical pricing ensures affordability, aligning with societal good and preventing reputational risks like post-DDEP customer backlash.
3. Consumer Protection and Privacy: Ethics implies safeguarding data (compliant with BoG’s Cyber Directive), e.g., not misusing CRM for intrusive marketing. Henderson’s model stresses worker-customer harmony, implying consent-based targeting to avoid exploitation.
4. Social Responsibility and Sustainability: Implies marketing that promotes inclusive banking (e.g., to unbanked under BoG principles), addressing environmental impacts. This anticipates moral expectations, enhancing brand equity in competitive markets.

In conclusion, ethics, per Henderson, fosters resilient marketing; banks ignoring it risk failures like Capital Bank, while ethical ones like Access Bank thrive.