Write an ethical code of conduct for BMG.
To begin this assignment, read Developing a Code of Conduct (Lighthouse, 2013) from the Additional Resources section of this document.
Your task is to complete Step 2 Creating the Draft of the process described in Developing a Code of Conduct (Lighthouse, 2013), with the sections noted below. You will be provided with the information needed for Step 1, Gathering Information.
Your code of conduct document must include the following items/sections (Adapted from Lighthouse, 2013).
Engaging title – good examples are PWC’s The Way We Do Business, the World Bank Group’s Living Our Values, and Under Armour’s Protect This House.
CEO letter detailing the purpose of the code and its importance. The name of the new CEO of BMG is LaDonna Franklin. She is joining the company from outside next month and has asked that you draft something appropriate for her review.
Table of contents
Mission statement for BMG and/or statement of key values
Scope of code – to whom, when and how does this code apply?
Code provisions – these are the substantive ethical (and possibly legal) issues that impact the organization. A minimum of six code provisions is expected. It is expected that the provisions will address specific issues raised at this organization.
Examples of appropriate behavior as it relates to each code provision
Framework providing employees with guidance for making decisions and taking appropriate actions when faced with an ethical dilemma
References to disciplinary actions/other ramifications for code violations
List of resources for seeking assistance with grievances such as the ethics and compliance officer, anonymous reporting hotline and ethics and compliance website.
This is information you need for Step 1: Gathering Information.
This is the company’s mission statement: To be the best there is.
Vision Statement (Key Values)
We will do our best at all times
We will offer only the best advice and marketing services to our customers
We are the best in our field so we know what it take to be the best
Here’s what you need to know about the culture of BMG.[3]
Best Marketing Group, Inc. was founded by three former college athletes who all majored in marketing. Driven by nature, they are competitive and describe themselves as “still hungry” for success. Although BMG has grown to several locations and has incorporated, the founders still own most of the stock and still think of themselves as “partners,” which is what everyone calls them. The partners have recruited many former athletes to work there. The incoming CEO has an Olympic medal in track and field.
BMG has prospered largely through a hard-driving culture led by the three partners. The creatives work together in one group reporting to one partner; business development reports to another partner, while the third partner leads the digital services division. All administrative functions had been outsourced. Because the firm has grown larger it has outgrown its simple structure. A new CEO has been hired from the outside; the CEO, LaDonna Franklin, begins next month.
Several focus groups and interviews have been held with various stakeholders at BMG. Because of the work you will be doing you have access to the consultant’s confidential notes from the group and interview sessions.
First, the partners were interviewed. The partner interview revealed that earlier this year BMG was confronted by several customers who claimed to have been over-billed for work that was done, or who were billed for phantom work never authorized. The employee who worked on those accounts has been fired. No other claims of phantom work have emerged yet, so the incident seems to be isolated to the one employee at the single location. Although the number of customers involved was small, this was a serious incident. One particularly irate customer reported BMG to consumer groups and to the state attorney general’s office. Another customer took to social media to express their displeasure. It has been difficult to contain the reputational damage. Even more worrying, last month BMG settled a lawsuit with a client who alleged that BMG charged for digital ads on a certain platform that were never placed. This type of lawsuit is very difficult for a plaintiff to prove and BMG probably would have been able to win the case, but BMG counsel advised to settle the suit rather than go through the ordeal of proving the case in a public forum.
The partners also have some concerns about the use of the BMG Inc. identity. Some partners noticed that several associates have used the BMG, Inc. logo in questionable ways on social media, for example in terms of building their own personal brands, philanthropic efforts, and side hustles. These uses do not make it sufficiently clear that BMG, Inc. is not involved in these ventures.
Employees describe the BMG environment as “intense.” Employees report that winning is everything at BMG. Fear of failure is the single biggest concern they have. Client development associates do not feel it is okay to miss goals at BMG. They are getting creative in when they have to do to meet what they describe as aggressive client development goals. For example, an associate reports she told a new customer that the firm had deep strengths in TikTok marketing. She knew at the time she made that statement there was no one on staff with that expertise, but she did not think twice about doing that to bring in the client and make her goal. Her manager rewarded her for the deception.
All the associates agree that in terms of business development, lavish gifts are expected to close the deal. They seem to give and accept them without much thought.
An associate is attempting to partner with her college alma mater to bring in a potentially lucrative deal. She is thinking that BMG should make a generous donation to the election campaign fund of her contact who is running for town council next year.
The associates mentioned that they feel pressure to promote their clients and client’s projects on social media using their own personal accounts. These requests from BMG managers are becoming more frequent and insistent. Some feel this is not right and it is misleading to post fake positive reviews online.
Finally, the consultant noted from observation and an anonymous survey that the working environment appears to be unusually “gamified,” even for marketing. Competitions, leaderboards, metrics, and prizes abound in the workplace. Creative staff are pressured to do “winning” work. Development staff must “win” clients constantly. Everyone has “win” goals.
These are the issues that came up most often in the consultant’s focus groups and interviews with partners, employees and on an anonymous survey. You have been asked to use this information as a basis for your work.
Format
Format this as a professional code of conduct, rather than an academic document, except that references must be included where relevant. Do not include an abstract, introduction, or conclusion.
Follow this format:
Cover Page
CEO Letter
Table of Contents
Body of Document (includes Mission Statement, Scope of Code, Code Provisions, Examples, Guidance Framework, References to Disciplinary Actions, and Resource List)
References (must be in APA format)
For a formatting example, see the format of Developing a Code of Conduct (Lighthouse, 2013).
You may, and should, consult other company’s codes of conduct for content ideas for each section. However, provisions that you adapt from other codes of conduct must be paraphrased into your own words. Do not use any direct quotation in your code, other than the mission statement which requires no source citation.
A reference list in APA format is required for the sources you reference. See the Writing Resources section for how to format the reference list in APA.
It is reasonable to expect that your code of conduct will be about 10 double spaced pages long (not counting cover, table of contents, and reference page). You may choose 1.5 spacing for more professional presentation. You may include images for more professional presentation. However, any images used must have source citation.
Additional Resources
· Lighthouse. (2013, July 11). White Paper: Developing a Code of Conduct: A step-by-step guide. Retrieved from https://www.lighthouse-services.com/documents/Developing%20a%20Code%20of%20Conduct%20[A%20Step-by-Step%20Guide].pdf
Code of conduct: AMA statement of ethics. (n.d.). Retrieved from https://www.ama.org/codes-of-conduct/
An ethical decision model. Section 2.3. (2012). In Legal Aspects of Marketing and Sales (V. 1.0). Retrieved from https://saylordotorg.github.io/text_legal-aspects-of-marketing-and-sales/s05-03-an-ethical-decision-model.html
Under Armour. (n.d.). Code of conduct. Retrieved from http://www.uabiz.com/static-files/fdd4d03e-a31e-49a4-9500-88c4a0abcb80
Code of standards and ethics for market research and data analytics (2018, February). Insights Association. Retrieved from https://www.insightsassociation.org/sites/default/files/misc_files/insights_association_code_of_standards.pdf
Newman, N. (2014). How big data enables harm to consumers, especially to low-income and other vulnerable sectors of the population. Retrieved from https://www.ftc.gov/system/files/documents/public_comments/2014/08/00015-92370.pdf
Roy, A. (2018). Targeted marketing. In R. Kolb (Ed.), The SAGE encyclopedia of business ethics and society (pp. 3342-3344). SAGE. doi: 10.4135/9781483381503.n1152
Aggarwal, P., Vaidyanathan, R., & Castleberry, S. (2012). Managerial and Public Attitudes Toward Ethics in Marketing Research. Journal of Business Ethics, 109(4), 463–481
Hsu, M. (2017). Neuromarketing: Inside the mind of the consumer. California Management Review, 59(4), 5–22.
Nairn, A., & Berthon, P. (2003). Creating the customer: The influence of advertising on consumer market segments — Evidence and ethics. Journal of Business Ethics, 42(1), 83–99. doi: 1021620825950
Conick, H. (2019). What are the ethics of neuromarketing? https://www.ama.org/marketing-news/what-are-the-ethics-of-neuromarketing/
