Ethics refers to the moral principles or values that generally govern the conduct of an individual or a group. Ethical questions range from practical, narrowly defined issues, such as a businessperson’s obligation to be honest with customers, to broader social and philosophical questions. A code of ethics, a guideline to help marketing managers and other employees make better decisions, helps employees recognize what are acceptable business practices and ethical business decisions. Chanel adopted a Code of Business Conduct and Ethics on March 2013. It follows the value of “honestly, respect, collaboration, curiosity, and urgency.” In the Code if Business Conduct and Ethics, Chanel declares what are “wrong” actions toward to their coworkers, clients, partners, and shareholders; and their responsibilities to their audiences and the society.
Ethics in business is easy to define, but hard to practice. Recently, Chanel No. 5 perfume has been reported that it is “not safe” by the Europe’s Scientific Committee on Consumer Safety. They found out three allergens in the many fragrance brands including Chanel that cause thousands of allergy cases and skin conditions including eczema.
Corporate social responsibility and ethics
On the other hand, Chanel also practices ethically and social responsibly. Corporate social responsibility is a business’s concern for society’ welfare. Karl Lagerfeld, the head designer of Chanel, opposes the practice of using the animal fur by stating that there was “an industry who lives from that.” He provokes other designers to start using the alternative fur instead of animal fur by revealing that he is success on that.
Chanel also host many charities and fashion shows to support a different cause each year. The Chanel Pour Le Temps Charity Fashion Show is one of the most anticipated events in the year of 2012. It is being held in honor of Mitochondrial Disease Awareness. Chanel participates yearly in donating the cosmetic products to help people with cancer to “look good” and “feel better.”
Green marketing is the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment. Last year, Chanel started to “go green;” they followed the idea of Eco-friendly fashion. They have made many clothes and done many fashion shows that show of the Eco-friendly side of fashion. The little black dress, a women’s wardrobe staple since Coco Chanel first introduced them to the world decades ago, have now become Eco-friendly. Chanel designers collaborate to produce apparel and accessories made with recycled plastic and now it is easier for consumers to find clothing and accessories that are made with recycled plastics.