Ethical Issues in Marketing: Rip Curl and Commonwealth Bank
This paper explores ethical issues in the marketing field, using two Australian corporations as case studies. It first defines business ethics and ethical marketing principles, emphasizing honesty, fairness, and regulatory compliance. The paper then examines how Rip Curl violated ethical standards by manufacturing clothing in North Korean factories using slave labor while falsely labeling products as "made in China." Next, it analyzes how Commonwealth Bank's insurance arm, CommInsure, allegedly delayed or denied policyholder claims and pressured medical officers to alter findings. The paper concludes by recommending that both companies implement enforceable codes of ethics across their supply chains and operations to restore consumer trust and uphold corporate social responsibility.
- Introduction to Business Ethics and Ethical Marketing: Defines ethics and ethical marketing principles for businesses
- Rip Curl: Slave Labor and Misleading Product Labeling: Rip Curl's use of North Korean factories and false labeling
- Corporate Accountability and Rip Curl's Ethical Obligations: Accountability measures Rip Curl should adopt
- Commonwealth Bank: The CommInsure Claims Scandal: CommInsure's alleged denial and delay of policyholder claims
- Conclusion and Recommendations: Policy recommendations for both companies' ethical reform
✍️ How to write this paper — guide, tools & examples ▾
What makes this paper effective
- Uses two concrete, real-world Australian case studies to ground abstract ethical principles in documented corporate misconduct, making the argument immediately tangible.
- Balances descriptive analysis with normative critique — the paper not only identifies what went wrong but explains why it was wrong and what should be done differently.
- Connects company-level behavior to broader frameworks such as corporate social responsibility and the Code of Ethics, giving the argument theoretical structure.
Key academic technique demonstrated
The paper demonstrates applied ethical analysis: it introduces a theoretical framework (ethical marketing principles), then systematically applies that framework to evaluate specific corporate behaviors. Each case is assessed against standards of honesty, transparency, and accountability rather than being treated as a news summary, which elevates the discussion from description to analysis.
Structure breakdown
The paper opens with a conceptual introduction defining ethics and ethical marketing. It then devotes one section each to Rip Curl and Commonwealth Bank, structured similarly: describe the misconduct, cite evidence, evaluate against ethical standards, and propose corrective action. The conclusion synthesizes both cases under a unified recommendation for supply-chain accountability and enforceable codes of ethics. This parallel case-study structure makes the argument easy to follow and compare.
Introduction to Business Ethics and Ethical Marketing
Ethics can be defined as the standards employed by people to choose the right course of action among diverse, often conflicting possibilities. Ethics rely on a logical and rational set of principles to arrive at a decision, which is in essence a cognitive procedure or practice. Ethical standards are an imperative element for any company or organization, especially in contemporary times, where the growth of the internet means that information is accessible to virtually any individual and people are prone to spending extended periods online (Sandilands, 2016). Business ethics impacts organizations in various ways. One of those ways is the manner in which companies carry out their advertising. The majority of businesses need to advertise their products or services with the principal aim of increasing their customer base and, thereby, their revenues. Businesses are obligated to undertake such activities ethically. Ethical advertising is supposed to be honest, explaining clearly and unambiguously the salient features of their offerings to target consumers.
Ethics also affect the way companies undertake their selling methods and practices. How a business chooses to direct its sales is a key ethical decision that defines its integrity. Businesses are obligated to be honest and fair to their clients while undertaking such operations. For example, due to business ethics, an organization is expected to candidly disclose both the benefits and the shortcomings or likely harms of its products and services and acknowledge them fully (Sandilands, 2016).
Ethical marketing is a philosophy that places emphasis on honesty, fairness, and responsibility. Although judgments of right and wrong can be subjective, an overall set of guidelines can be established to ensure that an organization's values are communicated and upheld. Some of the principles encompassed in ethical marketing include a mutual standard of truthfulness in marketing communications, a clear distinction between factual advertising and exaggeration, and the requirement that recommendations be transparent and apparent. Another principle is that the privacy of consumers ought to be maintained at all times. Finally, marketers should practice and adhere to government standards and regulations (Anastasia, 2015). The following paper elucidates the ethical issues in the marketing field and discusses issues two corporations in Australia have faced concerning the manner in which they conduct their business. The two companies examined are Rip Curl and Commonwealth Bank.
References
Anastasia. (2015). Social responsibility and ethics in marketing. Cleverism.
Carroll, A., & Buchholtz, A. (2012). Business and society: Ethics, sustainability, and stakeholder management. Cengage Learning.
McKenzie, N., & Baker, R. (2016). Surf clothing label Rip Curl using 'slave labour' to manufacture clothes in North Korea. The Sydney Morning Herald.
Sandilands, T. (2016). Marketing issues that have ethical implications. Chron.
Thomsen, S. (2016). The CBA now faces new investigations over its insurance arm. Business Insider Australia.
Wahlquist, C. (2016). Rip Curl's use of North Korean factories leads to calls for industry transparency. The Guardian.
Create your account
Always verify citation format against your institution’s current style guide requirements.