The relatively recent entry of multinational corporations (MNCs) into low-income markets, particularly in developing countries, affords the opportunity for the more inclusive capitalism envisioned by globalists. Alternatively, an expansion of MNC marketing in less developed economies might foreshadow the greater exploitation of disadvantaged consumers predicted by many critics of expanded free trade. To diffuse the charge of “exploitative” marketing, it is imperative that corporate marketing efforts seeking to engage impoverished segments be grounded in a strong ethical framework. This article unveils one such framework—the “integrative justice model” (IJM). The IJM is an aspirational model that outlines how to market ethically to disadvantaged consumers in both developed and developing countries. The authors derive the elements of this model from frameworks of moral philosophy and management theory. Although the IJM is normative in nature, the authors connect it to real-world examples, which provides MNCs that market to the poor practical benchmarks for conducting their business operations with fairness and equity. The article concludes with a discussion of the implications of the IJM for public policy.
Corporate sustainability management encompasses multiple dimensions: environmental, social, and economic. Companies are increasingly evaluated within the public sphere, and within their own organizations, according to the degree to which they are perceived to simultaneously promote this nexus of virtues. This article seeks to explore the tensions frequently faced by organizations that strive to manage these dimensions and the role of public policy in that pursuit. A multiple-case study approach is utilized in which the authors selected case organizations according to whether they were attempting to manage the three dimensions of sustainability. The authors utilize paradox theory and a typology provided by previous research to understand the nature of the tensions that emerge in the selected case study organizations. They extend this previous work by examining the role of public policy in providing the situational conditions to make these paradoxical tensions salient, and they examine organizational responses to these conditions. Directions for firms, policy makers, and future researchers are provided on the basis of this study's findings.
As multinational corporations (MNCs) increasingly turn their attention to the fast growing markets of China, India, Brazil, and other developing areas, the question of fair treatment of consumers and other residents of those areas is more intensively debated than ever before. In essence, issues of "distributive justice" come to the fore, that is, are the benefits and burdens of rapid economic development being fairly allocated among the parties and stakeholders to the expanded economic transactions? In response to this question, the authors have postulated a detailed normative model for ethically marketing to impoverished consumer segments; they label their model, the Integrative Justice Model (IJM) for impoverished markets. In this article, the authors show how the IJM, an independently derived model of normative marketing, conforms in its key operational elements to the foundational premises (FPs) of the positive S-D logic and extends the S-D logic perspective to societal and ethical concerns. Furthermore, the authors connect the S-D logic philosophy to macromarketing frameworks such as distributive justice, sustainability, and labor.
The economic and political outcomes of market globalization continue to be complex. As international corporations engage developing markets, they increasingly find consumers who lack market sophistication, meaningful purchasing options and economic leverage. Such conditions are ripe for the exploitation of these market segments but also can be mitigated by enlightened managers willing to thoughtfully consider their ethical and professional obligations to vulnerable consumers. This paper builds on a normative ethical framework, labeled the integrative justice model (IJM) for impoverished markets that was introduced in the marketing and public policy literature. Specifically, the paper will extend the normative ethics of the IJM by proposing logically reasoned decision principles for managers, particularly in MNC subsidiaries, that might better shape ethical business strategy when targeting impoverished segments. Additionally, numerous case examples are given to illustrate how a number of these decision principles are already being applied by companies around the world. Such an approach can serve as a counterweight to the difficulty of crafting global regulations for market development.
in the College of Business. His research interests include marketing strategies for impoverished market segments, social entrepreneurship, corporate social responsibility, business ethics and the interaction between marketing and society. He has published in numerous journals such as the
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