The Value of Integrity: Empowering SMEs with Ethical Marketing Communication

Abstract

Small- and medium-sized enterprises (SMEs) have faced criticism for their use of adversarial and deceptive marketing communication practices, which present challenges to ethical and sustainable development. This study aims to examine the factors influencing ethical marketing communication and their impact on value creation. With a robust dataset comprising responses from 183 participants and an impressive 85% response rate, structural equation modeling through ADANCO was employed to analyze the influence of each ethical communication factor on value creation. The findings reveal a positive relationship between ethical communication and value creation, benefiting all stakeholders involved. Moreover, the study emphasizes the importance of adhering to ethical principles and establishing mutually beneficial agreements with stakeholders to achieve successful outcomes in ethical communication. These findings underscore the significance of adopting ethical marketing communication practices to drive value creation and promote societal well-being. By incorporating ethical principles into their communication strategies, businesses can enhance their brand reputation, cultivate trust among customers, and contribute to the overall betterment of society.

1. Introduction

Responsible marketing communication is critical to the long-term survival of any product or organization. A corporation will receive a better response and more customer respect if its presentation is clear and accurate. It is a holistic ethical decision-making approach [1]. Nowadays, it is not only about designing, developing, and delivering products but also aiming to promote honesty, fairness, and responsibility in advertising to maximize customer satisfaction [2]. Research from Earth University, an international agricultural research institution, showed how small- and medium-sized enterprises (SMEs) had integrated an environmental or ethical parameter in their marketing communications to enhance firms’ reputations. A considerable percentage had no choice but to do it due to regulation needs; many SMEs have adopted it because of a strong and determined manager’s conviction. It is an extended metaphor for growing customer demand and is also applied as a competitive strategy [3]. Companies that look forward to improving their brand image and maintaining long-term relationships with their clients should focus on understanding the delivery of proper communication. Moreover, consumers increasingly emphasize facets of corporate social responsibility (CSR) as essential factors in their purchasing decisions [4]. Price is listed as one of the least essential characteristics of a company by 44% of respondents, compared to social responsibility (68%), giving back to the community (68%), and environmentally responsible corporate practices (71%) [5].

As of now, the marketing and, more precisely, the communication sector are still perceived as antagonistic and manipulative when they are expected to meet ethical or sustainable development needs [6]; several communication agencies understand this issue of CSR and are now starting to integrate it as an objective of development [7]. It is safe to assume that ethical practices also come under the umbrella of CSR [8]. Proper methods of communication work along the same lines as ethics. Business ethics has always been one of the most complicated and contentious subjects, and more research is needed regarding responsible communication [9]. There should be a balance between doing the right thing and making money, which is a constant challenge for SMEs. Ethics is no doubt a subjective matter when it comes to deciding what is “right” or “wrong” [9].

However, ethical marketing is not just a hard and fast list of rules but a set of general guidelines to assist firms as they evaluate new marketing strategies, such as marketing communications for products that shall be truthful and honest [10]. They should not be designed to be misleading or deceptive, and it has to be communicated in a manner appropriate to the level of understanding of the target audience [1,11]. The objective of this research is to comprehensively explore the progress in communication, both from normative and descriptive approaches, in order to understand the role of marketing communications. Additionally, this study aims to identify the factors that influence ethical marketing communications and their impact on value creation.

We have organized the paper as follows: First, we provide a comprehensive review of the literature on ethical communication, identifying the key factors that influence value creation and societal well-being. In doing so, we highlight the literature’s critical research gaps and questions. Next, we describe the methodology used in our study, including the sample selection process, data collection procedures, and statistical analyses. Following this, we present the findings of our study, discussing the results of hypothesis testing and demonstrating how ethical marketing communication can contribute to a better society. Finally, we conclude the paper with a discussion of the implications of our findings for businesses and future research directions. We aim to provide insights for marketing practitioners on improving ethical communication and creating value for all stakeholders while identifying areas where future research could contribute to a more comprehensive understanding of ethical marketing communication.

2. Literature Review

According to [12], the way to look at the entire marketing process is from the point of view of the client. Marketing communication is the most crucial message transfer process between corporations and consumers, which should build trust with the target audience brand and marketer [13]. It has various methods to reach an audience, but the main goal is to create an environment that can communicate and convince consumers. In addition, marketing communications is a method of establishing an invisible relationship between a company and customers. Therefore, ensuring the audience receives the message correctly is a fundamental step. Using marketing communications, consumers can understand firms, products, and brands [14]. Therefore, they have the same meaning in this report. It has been argued that some tools may also be in marketing communications, such as packaging, word of mouth, point of sale, email marketing, and trade shows.

Marketing communication can be broadly categorized into two types: above-the-line and below-the-line communication. Above-the-line communication involves paid advertising that requires the purchase of advertising space on mediums like television, radio, newspapers, and print magazines. On the other hand, below-the-line communication primarily focuses on sales promotions and public relations [15]. Multi-channel promotion is an effective way to increase brand awareness and improve the audience’s understanding of the message being conveyed. This can ultimately lead to increased sales and consumer engagement [15]. In short, effective marketing communication requires a strategic approach that integrates both above-the-line and below-the-line activities to create a cohesive and impactful brand message. With the right mix of promotional activities and channels, businesses can increase brand awareness and engagement, and ultimately drive sales.

2.1. Ethical Communication

It is conceivable to introduce ethics and social responsibility at any of these levels or categories to improve the overall corporate image and take simple steps toward achieving this goal. However, the extent and magnitude of efforts will undoubtedly vary from one category to another. So, the question here is how a discipline could such as marketing be employed to communicate an ethical image of an organization [16].

Moral correspondence is essential for a conscious dynamic and capable reasoning. It becomes tied to creating and supporting connections and building networks inside and across settings, societies, channels, and media. Moral correspondence is likewise tolerating duty regarding the messages passed on to other people and the present moment or long-term outcomes of one’s correspondence.

Ethical communication is fundamental to decision-making and responsible thinking [17,18]. It is about developing communities, contexts and cultures, and using the available information one passes on to others [19]. The use of ethical advertising as a medium of communication is one sure way for companies to show they value the needs of their customers [20]. Including a moral stance in their advertising gives consumers information about what companies they want to support and which ones they would instead withhold their money. People are eager to make a difference in the world and using products from ethical companies is a straightforward way to show they care. While everyone has issues they want to support, brands must follow some generally accepted guidelines when approving advertising campaigns.

2.2. Communication Gap

Within the realm of advertising, several ethical issues have been identified and studied, including puffery, taste, stereotyping, targeting children, promoting unhealthy products, and subliminal advertising [21]. Puffery involves making exaggerated claims about a product that cannot be substantiated. Advertisements are in bad taste when they offend individuals. Stereotyping entails portraying men or women in specific roles with negative connotations [22]. Advertisements aimed at children are viewed as unethical due to children’s limited ability to comprehend the information presented [23]. The promotion of unhealthy products, such as fast food and tobacco, contributes to negative health outcomes, making their advertising questionable. Subliminal advertising involves exposing viewers to product messages and images without their conscious awareness [24].

In the year 2020, the worldwide population of children under the age of five who were overweight or obese reached a staggering 39 million [18]. While obesity was historically viewed as primarily affecting high-income countries, the prevalence of overweight and obese children is now on the rise in low- and middle-income nations as well. For instance, in Africa, the prevalence of obesity among children under five has witnessed an alarming 24% increase since 2000 [18]. In the United States alone, between 2017 and 2018, approximately 14.4 million children, constituting 19.3% of the population aged 2 to 19, were classified as overweight or obese [25]. Advocates for overall well-being recognize the significant impact of changes in the food environment on the current weight pandemic [26], with particular attention given to sociocultural and economic shifts that occurred during the 1980s and 1990s [27]. The presence of “obesogenic” conditions encompasses various factors such as physical environments, policies, cultural influences, societal values, and the media’s role in advertising [28]. These factors collectively influence our behavior, including dietary choices and levels of physical activity.

To navigate away from the obesogenic environment, certain companies, including Hunter’s Food and Starbucks, have implemented measures to encourage healthier choices. Hunter’s Food, established in the UAE in 1985 with its flagship product, safari chips, offers a diverse range of chips that are marketed as being dairy-free, gluten-free, free from artificial colors and flavors, cholesterol-free, non-GMO, vegan, vegetarian, lactose-free, and certified as “Halal” to cater to the Middle Eastern market. Similarly, Starbucks has made a commitment to sourcing 100% ethically produced coffee through sustainable farming practices that benefit both farmers and communities. Their initiatives include promoting a safe working environment, providing education for children residing on coffee farms, ensuring fair wages, and implementing non-discriminatory employment policies. Furthermore, Starbucks focuses on conserving energy and water by adopting farming methods that enhance long-term productivity and soil health, minimizing the use of agrochemicals, and implementing proper waste treatment procedures. Regular inspections are conducted to ensure the quality of their green coffee beans.

Despite the growing emphasis on ethical communication within the SME realm, a significant research gap remains regarding the factors that shape ethical communication practices [29,30]. SMEs play a vital role in the economy, often serving as the backbone of local communities. When it comes to ethical communication, SMEs have a unique opportunity to build trust and foster strong relationships with their customers and stakeholders. Ethical communication for SMEs entails being transparent, honest, and respectful in all their interactions. This means providing accurate information about their products or services, ensuring clear and open communication channels, and actively listening to the needs and concerns of their stakeholders. By prioritizing ethical communication practices, SMEs can establish themselves as trustworthy and responsible entities, creating a positive impact on their reputation and long-term success [31]. While existing studies have provided insights into the influence of organizational culture, leadership, and individual values on ethical communication, further research is necessary to examine the impact of additional crucial factors. This would lead to a better understanding of how to develop more effective ethical communication strategies and ensure the integration of ethical practices into the corporate culture [32,33].

2.3. Conceptual Development and Hypotheses

2.3.1. Morals

Morals and ethical communication are essential to building trust and credibility, and maintaining good social relationships. Legal and ethical communication is grounded in honesty, truthfulness, substantiation, and transparency. Combining these principles in communication helps establish credibility, prevent misunderstandings, and ensure that communication is effective and trustworthy. In addition, these principles provide a framework for ensuring that communication is ethical, trustworthy, and effective, thus playing an essential role in maintaining positive relationships between individuals and organizations.

Changes in contemporary society necessitate adopting and observing ethical standards, as pointed out by [34]. The ICC Framework for Responsible Food and Beverage Marketing Communications 2019 emphasizes the need for marketing communications to be truthful, substantial, legal, and honest and adhere to social responsibility and fair competition codes, as [35] stipulated. Ref. [36] posits that business models lacking ethical and integrity-based considerations are unlikely to contribute to a company’s success. In the F&B context, marketing communications must not exploit customers’ lack of knowledge or experience or abuse their trust, and companies must make honest claims about their products’ nutritional and health benefits [37].

Effective, ethical communication must avoid any claims or statements that are likely to mislead customers, whether directly or indirectly. For instance, customers are more likely to buy a product based on its material characteristics, such as taste, ingredients, and nutritional or health benefits, as highlighted by [38]. Claims must be backed up by reliable evidence and information easily accessible to consumers. Statements, representations, and claims involving verifiable facts in marketing communications should be supported by substantiation, which should be made available to self-regulatory bodies responsible for enforcing the code [39]. Research shows that consumers are becoming increasingly cautious about online claims and demand transparency in digital advertising. Over the years, marketers have often exaggerated product features, leading to poor customer experiences [40].

The explanation is that a marketer starts a relationship with the customer by letting them down. If brands focused more on their product experience, customers would still come. If companies deliver value, customers will opt in to interact with their content. It is not long before companies will not have the possibility to trick customers via their screens [41].

Customers strongly desire comprehensive knowledge about the products they purchase in the current consumer landscape. They seek information regarding availability, manufacturing origins, and ingredients. In response to this demand, brand transparency plays a vital role in attracting new customers and fostering loyalty among existing ones [42]. By prioritizing transparency, brands can establish and reinforce trust, ultimately increasing customer loyalty over the long term. Therefore, we posit the following hypothesis which is measured based on previous studies [43,44].

Hypothesis 1. 

A positive relationship exists between moral principles and value creation in communication with integrity.

2.3.2. Accuracy of Scientific Data

Value creation will correlate with the accuracy of scientific data based on the assumption that the scientific data are a crucial factor in decision-making processes. It is hypothesized that organizations prioritizing accuracy in scientific data will have better outcomes regarding value creation than those not. The accuracy of scientific data can be determined by evaluating the validity and reliability of the data and the credibility of the sources that provide the data [45].

The hypothesis also considers the increasing importance of data-driven decision-making in modern business environments. As companies strive to remain competitive and relevant, the ability to analyze and make informed decisions based on data is becoming a critical success factor. By ensuring the accuracy of scientific data, organizations can make more informed decisions and create value by optimizing their operations, reducing costs, and improving the quality of their products and services.

Moreover, organizations recognize the importance of ethical considerations in scientific data collection and analysis. Organizations that prioritize ethical practices in their scientific data collection and analysis are assumed to be more likely to create value in the long run [3,46]. By prioritizing ethical practices such as informed consent, data privacy, and confidentiality, organizations can establish trust with their stakeholders and improve their reputation, ultimately leading to better value-creation outcomes. Therefore, we propose the following hypothesis, which is measured based on previous studies [18,25].

Hypothesis 2. 

The accuracy of scientific data positively impacts value creation in the context of communication with integrity.

2.3.3. Social Welfare

According to the national standees, a product should include necessary warnings and disclaimers, including allergy warnings and exposure to harmful chemicals. The message should be clear to the audience and not manipulate the consumers into disregarding facts by exploiting emotions. For example, the Coca-Cola company does not tell you how sweet their drinks are or how different they are compared to water; instead, they attach feelings to them with slogans such as “open happiness” and “have a smile”. They show you the lifestyle their drink embodies [47].

Marketing communications should not portray any dangerous practices with the product without proper justification or educational or social grounds [48]. For example, Red Bull claims to give wings as a marketing slogan [49]. In addition, brands should be careful in depicting and conveying the message to the audience. Multiple brands are or were considered offensive or inappropriate, like the Yorkie bar which is famous in the UK for its former tagline: “It is not for girls”. Nestlé first launched the slogans “Do not feed the birds”, “Not available in pink”, and “King size, not queen size” in 2002, but the bar has always been targeted at men ever since its inception [50].

From the examples above, we can conclude that ethical communication is a fundamental aspect of corporate social responsibility and refers to truthful, transparent, and respectful communication in all business interactions. By adopting ethical communication practices, companies can build trust and credibility with their stakeholders, including customers, employees, investors, and the broader community. This, in turn, can lead to enhanced value creation as customers are more likely to purchase products and services from a trusted brand, and employees are more engaged and motivated to contribute to the company’s success. Furthermore, ethical communication can also contribute to social welfare by promoting transparency, accountability, and fair treatment of all stakeholders. Overall, the hypothesis that value creation will correlate with social welfare highlights the importance of integrating ethical communication practices into business strategies to foster long-term value creation and promote social welfare. Therefore, we propose the following hypothesis, which is measured based on previous studies [51,52].

Hypothesis 3. 

Social welfare positively influences value creation in the context of communication with integrity.

2.3.4. Kids as Consumers

Marketing to communicate with children or teens should be carried out in a way that does not undermine children’s positive social behavior, lifestyles, and attitudes [53]. Products should not be designed to be addictive, especially if it is considered unhealthy to consume in large quantities [9]. If products are found illegal for kids, teenagers, and adolescents or unsuitable for them, they should not be marketed or targeted towards these segments. Furthermore, marketing communications should refrain from exploiting the inexperience of children by exaggerating the actual size and value nature of the product. In this case, food or beverage substances should clarify the product and its effects. Furthermore, marketing communications should not undermine parents’ authority, responsibility, judgment, or tastes regarding relevant social and cultural values. Lastly, companies should not market to children to directly appeal to and persuade their parents or guardians to purchase the product [48].

The type of animation displayed should not contain anything explicit, violent, or offensive, primarily when directed toward a younger audience such as children. The message must be clear, visually appealing, and appropriate. In the food and beverage industry, products should not be exclusive to a specific group of people based on race, religion, or sex. Sometimes, audiences need to understand the intentions or the message that companies display [46]. A beer company’s tone-deaf commercial landed it in hot water in March. The Heineken ad showed a bartender sliding a beer past three people, all of whom are Black, to a lighter-skinned woman. The tagline read, “Sometimes, lighter is better” [54].

Kids represent a unique segment of the consumer market, and companies are responsible for ensuring that their products and advertising do not harm or exploit this vulnerable population. Ethical communication practices prioritizing honesty, transparency, and respectful messaging can help build trust and credibility with parents and caregivers, who are the gatekeepers of children’s purchasing decisions. Furthermore, by adopting ethical communication practices, companies can enhance their brand reputation and value creation and promote positive outcomes for children as consumers. For example, companies that offer educational or developmental products for children can use ethical communication to highlight the benefits of their products truthfully and transparently. Similarly, companies that market to children can use respectful messaging that does not manipulate or exploit their vulnerabilities. Overall, the hypothesis that value creation will correlate with kids as consumers highlight the importance of ethical communication practices in creating value and promoting positive outcomes for this unique consumer group. Therefore, we propose the following hypothesis, which is measured based on previous studies [55,56].

Hypothesis 4. 

The demographic of children as consumers positively influences value creation in the context of communication with integrity.

2.4. Conceptual Framework

Value creation was an empirical pillar for every business in the 20th century. While factors like product quality, color, and customer appeal are still important, products cannot be sold purely by these aspects. In the 21st century, the consumer base has grown to be highly competent and wise regarding purchasing options [2,21]. More than the logistics, customers are converted by the emotional appeal of the product and the underlying factors related to the brand and product.

Customer value has become the deciding variable of shareholder value and the market share of every company. Due to this, more and more firms are channeling their resources toward generating value for both their customers and the organization [57].

i.

Value generation for society: the prime participants of this classification are shareholders and the consumer base itself.

ii.

Value generation for the organization and its members: this aspect focuses more on the managerial end and how a brand creates tangible and intangible value for its employees and other members involved with the organization.

SMEs must know the value-driving factors for their customer base. This implies their needs, wants, tastes, and preferences. This can be achieved by conducting research through surveys and polls. Furthermore, SMEs should align their vision with the prime consumer base’s needs and wants, and communicate the same via their marketing campaigns [4,57].

Customer value is related to customer satisfaction with the brand and product. Therefore, it may imply the tangible or intangible worth offered to the consumer base. The concept may be open to interpretation, but the intangibles to value can be broken down into variables like product, sentimental, psychological, and shared resource value. The essence is to captivate the customer base by striking their emotions to create brand loyalty and achieve the ability to demand a higher monetary value converting into revenue for the firm [57]. On the other side, organizational value can be achieved by the same strategies and is projected in terms of intangibles such as goodwill, brand value, and brand loyalty, as well as tangibles from the financial perspective, such as revenue, profit margins, and annual turnover.

This can be achieved by practicing ethical marketing communication. Ethical communication is based on honesty, truthfulness, substantiation, and transparency: responsibility and fairness. Beyond being a legal mandate, to sustain in the 21st century, firms must be completely transparent with their values, mission, and vision. Furthermore, firms must be open with product-related information and paint the marketing picture as it is rather than misleading the customer to convert higher revenue. Value creation is the most reliable strategy to sustain a business in the modern dynamic business environment; with unethical communication, the firm may initially gain popularity, but that too will diminish and die out with time, considering the competencies of the 21st-century media as well as the customer base [57].

The conceptual framework of ethical communications is built upon several critical factors, including morals, the accuracy of scientific data, social welfare, and the role of children as consumers (please see Figure 1). These factors are important because they help ensure that communications are effective, ethical, and beneficial for society. For example, SMEs can establish trust and build long-lasting customer relationships by upholding moral standards. Ensuring the accuracy of scientific data is critical because it enables companies to make informed decisions that benefit society and minimize negative impacts. Additionally, social welfare should be considered in communications as it promotes the well-being of individuals and communities. Finally, the role of children as consumers must be considered, as they are a vulnerable group that can be easily influenced by advertising. By incorporating these factors into their communications, SMEs can create value that benefits society, industry, and firms alike.

3. Methods

In order to gather comprehensive data that accurately represent the population of Indian SMEs and to capture a wide range of perspectives and insights, a random sample approach was employed in our study [58]. This approach ensured that participants from various Indian SMEs were included, allowing for a comprehensive understanding of how they perceive ethical communication in the context of value creation. The sample selection process involved identifying and selecting Indian SMEs from different industries and regions. By utilizing a random selection approach, we aimed to minimize bias in the sample and increase the generalizability of our findings to the broader population of Indian SMEs. Random sampling helps ensure that every eligible SME in the population has an equal chance of being included in the study. This approach enhances the reliability and validity of the results, allowing for more accurate generalizations about Indian SMEs as a whole [58,59].

There were two components to the questionnaire: Section A asked about the respondent’s profile and Section B for the research model. The first part included five screening questions and demographic information, allowing us to establish a baseline understanding of the participants and their preferences. The second part comprised 15 questions based on our conceptual model, designed to delve deeper into the subject matter. The questionnaire included a combination of open-ended and closed-ended questions to obtain varied and detailed feedback from the participants. A 5-point Likert scale was used to gauge respondents’ levels of agreement, with 1 denoting “strongly disagree”, 2 “moderately disagree”, 3 “slightly agree”, 4 “moderately agree”, and 5 denoting “strongly agree”. Exploratory, descriptive, and causal research are the three main categories of important social science research, according to [60,61]. The statistical analysis was determined to be adequate with partial least squares (PLS). The questionnaire was pretested with a group of 30 respondents, and their feedback was incorporated to improve the clarity and effectiveness of the survey instrument [62].

The sample size was determined using the formula suggested by [60,63]:

n = Z²pq/e2

p = the incidence or prior judgement of the correct value of ρ;

Z = z-score; for this study, the z-score is 1.96 for the 95% confidence interval;

e = the desired margin of error of 5%.

The sample size of 150 was thus considered adequate for this research. In order to reach a representative sample, the survey was published online, acknowledging that the research was not limited to a specific region [58,59]. This approach aimed to ensure a diverse and inclusive sample that accurately reflects the perspectives of Indian SMEs in the context of ethical communication and value creation.

The participants in our study were diverse in terms of age and gender. The majority of participants (72%) were under 25 years old, 17% were between 25 and 50 years old, and the remaining respondents were above 50. Among the participants, there was a balanced representation of gender, with 50% identifying as female and 47% as male. The remaining participants identified as others, ensuring a diverse sample.

Structural equation modelling (PLS-SEM) was used to analyze the data over a regression model, as SEM helps reveal and understand the direct relationship between dependent and independent variables, and the indirect relationship among independent variables in the study. The regression model and path analysis have some similarities; they do not offer the test of causality and are based on linear statistical models. Regression assumes a normal distribution, while path analysis assumes multivariate normality distribution and, in path analysis, variables can be both dependent and independent.

4. Result

4.1. Measurement Model

The measurement instruments were analyzed for reliability, and convergent and discriminant validity. ADANCO was used to illustrate the goodness of model fit. The indicator’s standardized root mean square residual (SRMR) was 0.0755, which falls into an acceptable range (SRMR < 0.8) and is considered a good fit [47]. To confirm the validity of the results and the bias caused by the lack of responses was analyzed by looking into the sample features and comparing respondents to non-respondents on characteristics like geographical location and size [64].

Regarding construct reliability, most values are acceptable since their Cronbach’s alpha value (α) and Jöreskog’s Rho (ρc) values are more significant than 0.7 (Cronbach, 1951), except for Cronbach’s alpha value of scientific data and social welfare, whose values are below 0.7 (please see

Table 1. Construct reliability.

Construct	Dijkstra–Henseler’s Rho (ρA)	Jöreskog’s Rho (ρc)	Cronbach’s Alpha (α)
Value creation	0.8091	0.8719	0.8021
Morals	0.8895	0.9229	0.8886
Scientific data	0.6316	0.8427	0.6275
Social welfare	0.689	0.8569	0.6696
Marketing to children	0.8273	0.8958	0.8256

). But, for Jöreskog’s Rho (ρc), all the values were above 0.8. Furthermore, the convergent validity (please see

Table 2. Convergent validity.

Construct	Average Variance Extracted (AVE)
Value creation	0.6318
Morals	0.7497
Scientific data	0.7282
Social welfare	0.7499
Marketing to children	0.7412

) of the measurement model was assured, as the loadings were significantly different from zero and higher than 0.6 [60], and all average variances explained values exceeding 0.5, as recommended by [61]. The discriminant validity was established by comparing the values between the square root of the average variance extracted belonging to each construct and any correlation among constructs. In contrast, the square root of the average variance extracted is much larger than the values of the correlations [65]. All the values’ divergent validity satisfied the condition, thus helping us confirm validity of the results (please see

Table 3. Divergent validity.

Construct	Value Creation	Morals	Scientific Data	Social Welfare	Kids as Consumers
Value creation	0.6318
Morals	0.6119	0.7497
Scientific data	0.5354	0.4691	0.7282
Social welfare	0.5094	0.4041	0.3171	0.7499
Kids as consumers	0.4649	0.6701	0.5501	0.4294	0.7412

Squared correlations; AVE in the diagonal.

).

4.2. Hypotheses Testing Results

The testing results (please see

Table 4. Hypotheses testing results.

Effect	Original Coefficient	Mean Value	Standard Error	t-Value	p-Value (2-Sided)
Morals → Value creation	0.4317	0.4278	0.0829	5.2066	0.0000
Scientific data → Value creation	0.1703	0.1715	0.0820	2.0766	0.0381
Social welfare → Value creation	0.2141	0.2082	0.0664	3.2229	0.0013
Kids as consumers → Value creation	0.1974	0.2051	0.0949	2.0809	0.0377

) indicate the relative strength of different factors in contributing to value creation. Among these factors, morals have the highest score of 0.4317, suggesting a strong correlation between ethical considerations and the creation of value. This underscores the importance of maintaining high moral standards and ethical practices in order to enhance value creation. Scientific data follow with a score of 0.1703, indicating their significant but comparatively lesser impact on value creation. Social welfare, with a score of 0.2141, demonstrates its role in value creation, emphasizing the need for actions that benefit society as a whole. Lastly, the influence of kids as consumers on value creation is represented by a score of 0.1974, highlighting the importance of understanding and catering to the needs and preferences of this consumer group. These testing results provide valuable insights into the factors that contribute to value creation and can guide decision-making processes in various domains (please see Figure 2).

5. Discussion

5.1. Hypothesis 1. A Positive Relationship Exists between Moral Principles and Value Creation in Communication with Integrity Was Strongly Supported (t = 5.2066, β = 0.4317, and p < 0.05)

In the context of communicating with integrity, a positive relation exists between moral principles and value creation. In today’s market performance, the final value generated by a company is perceived to be a product of value production. This value is generated when participants engage in mutually beneficial agreements while respecting ethical laws. The importance of moral concepts including honesty, transparency, and ethical decision-making in the context of communicating with integrity and their favorable impact on value creation are also highlighted in a study by Stevens [63]. These values can be included into communication tactics to promote not only moral business conduct but also long-term success in the competitive and interconnected marketplace of today.

It is the responsibility of companies to behave ethically and create an ethical culture within their organization to improve the moral quality of the organization. This, in turn, can contribute to achieving a desired corporate reputation related to its target market segmentation, resulting in improved value creation of the company’s product. In addition, quality, transparency, and sustainability have become crucial consumer requirements. Informed consumers favor ethical and sustainable brand commitments, requiring companies to show their commitment to these principles.

5.2. Hypothesis 2. The Accuracy of Scientific Data Positively Impacts Value Creation in the Context of Communication with Integrity Was Positively Supported (t = 2.0766, β = 0.1703, and p < 0.05)

In the context of communicating with integrity, a positive relation exists between scientific data accuracy and value creation. Research has shown that accurate scientific data in product communication can provide consumers additional intangible value regarding the product’s formulation, contents, and use [54]. Product science is responsible for translating data into insights that improve and add value to the product, including providing evidence for knowledge claims of interest to the consumer. The gathering of relevant data and the application of product science have been found to enhance the product’s perceived value in the eyes of the consumer.

For data to be deemed “accurate”, they must meet two criteria: form and content. The forms of data are critical in eliminating any ambiguities about the content, ensuring that the content accurately captures the historical event. Accuracy also translates into reliability and purity of data, which can add value to the consumer and support effective decision-making, ultimately driving sales. For firms, investing in accurate, reliable, and clean data can prove to be cost-saving by preventing the waste of resources on ineffective tactics.

5.3. Hypothesis 3. Social Welfare Positively Influences Value Creation in the Context of Communication with Integrity Was Strongly Supported (t = 3.2229, β = 0.2141, and p < 0.05)

In the context of communicating with integrity, it is hypothesized that a positive relation exists between social welfare and value creation. Ethical behavior is often defined as fair-mindedness towards those affected by a situation, and while a scientifically robust definition may be challenging to pin down, ethical communication can generate value creation and customer loyalty. However, firms that strive towards ethical performance and communication tend to survive longer than those that do not. In addition, research findings suggest that ethical behavior in companies is often driven by a desire to avoid negative impacts on safety and health rather than a fundamental belief in social betterment. This sentiment is also echoed in previous studies [4,19,38].

When customers attempt to define ethical communication, moral principles and values commonly come into play; for example, mentioning harmful substances in a product or considering how specific audiences will react to it are typical examples of ethical communication. By prioritizing social welfare and communicating with integrity, firms can generate value creation and customer loyalty, ultimately leading to long-term success.

5.4. Hypothesis 4. The Demographic of Children as Consumers Positively Influences Value Creation in the Context of Communication Integrity (t = 2.0809, β = 0.1974, and p < 0.05) was Positively Supported

Children are a significant component of the Food and Beverage industry’s consumer market, who have purchase power for sweets and snacks, and directly influence adults’ buying decisions. Regarding F&B companies, kids are taken seriously as influencers of consumers. In this increasingly commercialized world, kids are the main target of great marketing campaigns [66]. Therefore, firms must effectively plan their marketing toward children, in which ethical and responsible marketing cannot be ignored while approaching this segment. Children are different from adults; they are more vulnerable and thus need special care from adults in the marketplace. Since they cannot judge or analyze, communicating with them must raise concerns to the adults.

Parents are important stakeholders when it comes to marketing to children. Parents have complete responsibility and authority over their kids; however, marketers sometimes neglect them, focusing only on delivering their message to the kids [53]. By including parents in the media strategy, firms may have many chances to demonstrate to parents that the company’s communication with their kids is unharmful, ultimately creating trust and adding value to both firms and consumers.

6. Conclusions

In conclusion, this study has provided valuable insights into the role of ethics in marketing communication and its impact on value creation and societal well-being. The findings have significant implications for various stakeholders in the field, particularly in the context of SMEs’ ethical and sustainable development needs. By examining the testing results and dividing the conclusions into academic implications, managerial implications, and policy implications, we can thoroughly explore the multifaceted nature of the study’s implications.

6.1. Academic Implications

This study makes a noteworthy academic contribution by emphasizing the fundamental importance of ethical practices in creating value and promoting societal well-being within marketing communication. The positive correlation between moral principles and value creation reinforces the need for further research on the ethical dimensions of communication strategies. Scholars are encouraged to delve into various aspects of ethical communication, such as investigating the impact of different ethical frameworks on value creation, understanding the role of transparency and authenticity in ethical communication, and exploring the effectiveness of ethical guidelines across diverse cultural contexts. Furthermore, this study opens avenues for examining the relationship between ethical communication and long-term organizational success, encompassing aspects such as brand reputation, customer loyalty, and stakeholder engagement.

6.2. Managerial Implications

Managers and marketing practitioners can derive clear guidelines from this study on incorporating ethical principles into their communication strategies. The emphasis on ethical communication practices highlights the significance of nurturing trust, honesty, and mutual respect in relationships with stakeholders. By prioritizing ethical guidelines, businesses can enhance their brand reputation, foster strong relationships with customers and partners, and contribute to the betterment of society. It is crucial for managers to recognize that ethical marketing communication should not be viewed solely as a means to generate short-term profits but rather as a long-term strategy for sustainable success. Additionally, the study underscores the importance of accurate scientific data and credible sources in value creation. Managers should ensure the integrity of their data collection and analysis processes, as well as the transparency of their communication about scientific findings. By doing so, they can optimize decision-making, improve the quality of products and services, and enhance overall organizational performance.

6.3. Policy Implications

The findings of this study have significant implications for policymakers involved in the regulation of marketing communication practices. The positive correlation between social welfare and value creation through ethical communication emphasizes the need for policies that encourage responsible marketing behavior. Policymakers should consider implementing or strengthening regulations that promote ethical practices in marketing communication, particularly in areas such as advertising to children. By establishing guidelines that ensure appropriate, transparent, and respectful marketing messages targeted at children, policymakers can safeguard vulnerable consumers and contribute to positive societal outcomes. Furthermore, policymakers should support initiatives that promote data accuracy and source credibility to encourage the dissemination of accurate scientific information. By creating an environment where ethical marketing communication is rewarded and unethical practices are discouraged, policymakers can facilitate the development of a more socially responsible business ecosystem.

In summary, the conclusions of this study highlight the critical role of ethical communication in value creation and societal well-being within the field of marketing communication. The insights provided have implications for academia, managers, and policymakers, urging them to further explore the ethical dimensions of marketing communication, implement responsible communication strategies, and establish regulations that promote ethical practices. Embracing ethical principles in communication efforts not only enhances performance but also contributes to a more ethical and sustainable society.

7. Limitations and Further Research

An important implication of this study is the need for marketers to respect the laws of ethics in marketing communication. Ethical communication practices were more successful when marketers engaged in mutually advantageous stakeholder agreements. This emphasizes the importance of trust and integrity in relationships. Future research could explore the ethical roles of marketing communication in greater detail, consider interdisciplinary approaches, compare communication practices with other disciplines, or focus on related subjects to further advance the understanding of ethical marketing communication. Additionally, research could explore the impact of communication agencies in providing consumers with better information about sustainability issues and potential solutions.