In recent years, more and more experts talk about ethical marketing and for a more socially responsible and culture-sensitive business community.

The creation of global market ethics has the potential to bring benefit to the society as a whole, both in the short and long term.

Ethical marketing is part of business ethics and applied ethics as far as marketing is a significant part of the business model.

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Ethical marketing suggests consideration of a product or service within the framework of existing cultural and social values.

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It promotes to the customers quality benefits that other similar companies, products or services fail to offer. Concerns on various ethical issues such as child labour, working conditions, relations with the countries of the Third World and environmental issues, have changed the thinking of part of the businesses into the direction of increasing social responsibility.

The growing trend of fair trade is an example of the impact of ethical marketing. The idea of fair trade consists of the following: users pay a guaranteed price for a product to a small group of producers. Producers agree to pay a fair price for labour and to protect the environment.

The philosophy of marketing is not lost in this new ethical bias, and businesses hope to win customer loyalty by promoting the positive values of the brand. However, this new way of thinking creates new challenges for marketers of the 21st century related to inventions and development of products that add long-term benefits without reducing their desired qualities.

Ethical marketing should not be confused with legislation introduced to improve the welfare of users, such as the provisions to reduce sulphur dioxide emissions to improve air quality. Government regulations have legal means to mitigate or correct ethical problem, such as air pollution, which concerns all people. Ethical marketing occurs when a company specifies the means and ways to improve the lives of people on its own.

The issue of ethical managerial responsibility is also emphasized profoundly in the UN Global Compact. The UN Global Compact is a sweeping instance and pioneering document for global corporations helping them to comply with ethical issues. This document is also a source of ethical applications and solutions.

Fundamental principles for international and domestic businesses to be integrated into their entities are:

• Not to involve in human rights violations,
• Upholding the right to collective bargaining,
• Prevention of forced and compulsory labour,
• Avoidance of child labour,
• Respect to occupational safety and remove of discrimination in employment opportunities,
• Taking necessary measures to prevent environment pollution,
• Adopting environmentally friendly policies,
• Stimulating the design and distribution of environmentally friendly technologies and equipments,
• Taking all legal and individual action against any for of corruption.

Domestic businesses are easier to establish thanks to local awareness and knowledge. International investment is more complicated for the lack of local expertise and knowledge. Therefore, while investing abroad, complying with ethical principles is an important step to introduce a firm to a new host market. Besides, corporations upholding the ethical principles profoundly are adopted and respected in new host markets more easily. Eventually, a good and dignified inception in a new market is an effective way of corporate initiation for the managers, employees, consumers and all related stakeholders.

• Each party in a marketing transaction brings expectations with it regarding how the business relationship will be. For example, if a consumer wishes to make a purchase from a retailer, s/he expects to be treated fairly by the salesperson and to be paying a reasonable price.
• Ethical marketing decisions and efforts should meet and suit the needs of customers, suppliers, and business partners. Unethical behaviour such as price wars, selective advertising, and deceptive marketing can negatively impact a company’s relationships.
• Recent trends show that consumers prefer ethical companies. As a result ethics itself is a selling point or a component of a corporate image.