A kiwifruit supplier in New Zealand has been warned for breaching the Fair Trading Act by misleading customers into thinking that they were buying New Zealand pollen when it was imported from Chile. The company repackaged the pollen from Chile, and attached the label, “Kiwi Pollen New Zealand” to their product before it was supplied to consumers. Allegations were made that the imported pollen let the kiwifruit vine killing disease (PSA) into New Zealand, but no conclusive evidence was found. Due to the lack of proof, the Commerce Commission decided to warn the company rather than prosecute.
“In fact Kiwi Pollen’s website continued to give the impression that all of its pollen was collected from properties in New Zealand,” she said.
(Source: Bay Of Plenty Times)
Although neither competitors nor consumers suffered any provable loss or harm, this article epitomizes an ethical issue that arises when marketers fail to disclose risks associated with their product. The company is conducting unethical behaviour through deceptive and disingenuous advertising about the place of origin of their product. The consequence of failing to promote responsible, strategic marketing brings into focus R. Edward Freeman’s statement that a company, “that doesn’t pay attention to the issues of corporate responsibility [is] a business that is soon to be regulated into decline.” The company’s decision of ignoring stakeholder demands for responsible marketing can obliterate the trust of their customers and decline sales. Instead of deceit, the company should have focused on maximizing its positive impact on society and executing socially responsible actions that can generate positive publicity and boost sales. The deceitful action performed by the kiwi company highlighted the importance of ethical business behaviour for the success of a business.
Learn more:
http://www.bayofplentytimes.co.nz/news/local-company-warned-deceit/1539773/
What is Stakeholder Theory?- R. Edward Freeman:
https://www.youtube.com/watch?v=bIRUaLcvPe8&feature=youtu.be
Photo Credits:
Watt, Peter. Kiwi Fruit Anthers. 2012. Photograph. New Zealand. Bay of Plenty Times. APN Holdings NZ Limited, 11 Sept. 2012. Web. 12 Sept. 2012. http://www.bayofplentytimes.co.nz/news/local-company-warned-deceit/1539773/.