Skip to main content

Advertisement

Log in

The “Integrative Justice Model” as Transformative Justice for Base-of-the-Pyramid Marketing

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Writing in the Business and Politics, Santos and Laczniak (Business and Politics 14(1) 2012) formulated a normative, ethical approach to be followed when marketers e ngage impoverished market segments. It is labeled the integrative justice model (IJM). As noted below, that approach called for authentic engagement, co-creation, and customer interest representation, among other elements, when transacting with vulnerable market segments. Basically, the IJM derived certain operational virtues, implied by moral philosophy, to be used when marketing to the poor. But this well-intentioned approach raises a significant “So what?” question. Are such sentiments anything but lofty aspirations for idealists or are there steps to be taken by society and business managers of goodwill to make the adaptation of the IJM by corporations more likely and pragmatic? This paper begins to layout a roadmap that shows “how and why” the IJM might more likely be vitalized. The crux, as described below, is found in the transformational justice dimensions that are embedded in institutions (and supporting institutional arrangements); such external institutions provide a “power” impetus to assure the ethical rights claims that impoverished consumers have owed to them. In this way, the ideal exchange characteristics for bottom (or base) of the pyramid (BoP) markets argued for in the IJM can become actively transformational. The main contribution of this paper is that it begins to chart out the institutional system elements that need to exercise power in order to deliver a “fairer” marketplace for BoP consumers.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Academy of Management. (2009). Code of ethics. Retrieved January 12, 2009, from http://www.aomonline.org/aom.asp?ID=268&page_ID=240.

  • American Marketing Association. (2009). Statement of ethics. Retrieved January 12, 2009, from http://www.marketingpower.com/AboutAMA/Pages/StatementofEthics.aspx.

  • Bazemore, G., & Walgrave, L. (1999). Restorative Juvenile Justice: In Search of Fundamentals and an Outline for Systemic Reform. In G. Bazemore & L. Walgrave (Eds.), Restorative Juvenile Justice: Repairing the Harm of Youth Crime (pp. 45–74). New York: Willow Tree Press Inc.

    Google Scholar 

  • Bishop, J. D. (2000). A framework for discussing normative theories of business ethics. Business Ethics Quarterly, 10(3), 563–592.

    Article  Google Scholar 

  • Caplovitz, D. (1967). The poor pay more. New York: The Free Press.

    Google Scholar 

  • Collins, J., & Reingold, J. (2009). How great companies turn crisis into opportunity. Fortune, 25(7), 48–52.

    Google Scholar 

  • Davidson, D. K. (2008). When CSR meets BoP: Ethical concerns at the base of the pyramid. In P. Kandachar & M. Halme (Eds.), Sustainability challenges and solutions at the base of the pyramid (pp. 462–474). Sheffield: Greenleaf Publishing.

    Chapter  Google Scholar 

  • Davidson, D. K. (2009). Ethical concerns at the bottom of the pyramid: where CSR meets bop. Journal of International Business Ethics, 2(1), 22–32.

    Google Scholar 

  • Epstein, K., & Smith, G. (2007). The ugly side of micro-lending: How big mexican banks profit as many borrowers get trapped in a maze of debt. Business week online (pp. 39–46). Grand Rapids: Eerdmans Publishing Co.

    Google Scholar 

  • Federal Reserve Board (2008). Press release, December 18. Retrieved December 19, 2008, from http://www.federalreserve.gov/newsevents/press/bcreg/20081218a.htm.

  • Freeman, R. E., Harrison, J. S., & Wicks, A. C. (2007). Managing for stakeholders: Survival, reputation, and success. New Haven: Yale University Press.

    Google Scholar 

  • Friedman, M. (1962). Capitalism and freedom. Chicago: University of Chicago Press.

    Google Scholar 

  • Friedman, M. (1970). The responsibility of business is to increase its profits. The New York Times Magazine, p. SM17.

  • Gradl, C., Sobhani, S., Bootsman, A., & Gasnier, A. (2008). Understanding the markets of the poor: A market system approach to inclusive business models. In P. Kandachar & M. Halme (Eds.), Sustainability challenges and solutions at the base of the pyramid: Business, technology and the poor (pp. 30–50). Sheffield: Greenleaf Publishing.

    Google Scholar 

  • Grameen Bank (2011). Grameen at a glance. Retrieved July 16, 2012, from http://www.grameen-info.org/index.php?option=com_content&task=view&id=26&Itemid=175.

  • Hahn, R. (2009). The ethical rational of business for the poor—Integrating the concepts bottom of the pyramid, sustainable development, and corporate citizenship. Journal of Business Ethics, 84, 313–324.

    Google Scholar 

  • Halme, M., & Laurila, J. (2009). Philanthropy, integration or innovation? Exploring the financial and societal outcomes of different types of corporate responsibility. Journal of Business Ethics, 84(3), 325–339.

    Article  Google Scholar 

  • Hammond, A., Kramer, W. J., Katz, R., Tran, J., & Walker, C. (2007). The next 4 billion: Market size and business strategy at the base of the pyramid. The World Resources Institute. Retrieved April 25, 2007, from http://www.wri.org/business/pubs_description.cfm?pid=4142.

  • Karnani, A. (2007). The mirage of marketing to the bottom of the pyramid: How the private sector can help alleviate poverty. California Management Review, 49(4), 90–111.

    Article  Google Scholar 

  • Karnani, A. (2009). Romanticizing the poor. Stanford Social Innovation Review, 7(1), 38–43.

    Google Scholar 

  • Kelley, S., Werhane, P. H., & Hartman, L. P. (2008). The end of foreign aid as we know it: The profitable alleviation of poverty in a globalized economy. In C. Wankel (Ed.), Alleviating poverty through business strategy (pp. 5–32). New York: Palgrave Macmillan.

    Google Scholar 

  • Laczniak, G. R., & Murphy, P. E. (2012). Stakeholder theory and marketing: Moving from a firm-centric to a societal perspective. Journal of Public Policy & Marketing, 31(2), 284–292.

    Article  Google Scholar 

  • Lakshman, N. (2008). Toyota trains India teens. Business Week Online, (January 23). Retrieved January 28, 2008, from http://www.businessweek.com/globalbiz/content/jan2008/gb20080123_960639.htm.

  • Lewis, M. (2008). Panic: The story of modern financial insanity. New York: W. W. Norton.

    Google Scholar 

  • McMahon, T. F. (1999). Transforming justice: A conceptualization. Business Ethics Quarterly, 9(4), 593–602.

    Article  Google Scholar 

  • McMahon, T. F. (2004). Ethical leadership through transforming justice. Lanham: University Press of America.

    Google Scholar 

  • Merriam-Webster, (Ed.). (2001). Merriam-Webster’s Collegiate Dictionary (10th ed.). Springfield: Merriam-Webster, Inc.

    Google Scholar 

  • Murphy, P. E. (1998). Eighty exemplary ethics statements. Notre Dame: University of Notre Dame Press.

    Google Scholar 

  • Murphy, P. E., Öberseder, M., & Laczniak, G. R. (2013). Corporate societal responsibility in marketing: normatively broadening the concept. AMS Review, 3(2), 86–102.

    Article  Google Scholar 

  • Murray, S. (2009). Opportunity to learn far from the boardroom. Financial Times (p. 10). Deutschland: Financial Times.

    Google Scholar 

  • Nakagawa, S. (2003). Restorative and transformative justice: A comparison. Retrieved October 24, 2008, from http://safetyandjustice.org/info/nation/story/173.

  • Parsons, T. (1960). Structure and Process in Modern Society. New York: John Wiley.

    Google Scholar 

  • Phillips, M. M. (2008). Rent-a-center presses charity to stop fighting payday lending. Wall Street Journal, p. A4.

  • Prahalad, C. K. (2005). The fortune at the bottom of the pyramid. Upper Saddle River. NJ: Wharton School Pub.

  • Prahalad, C. K., & Ramaswamy, V. (2000). Co-opting customer competence. Harvard Business Review, 78(1), 79–87.

    Google Scholar 

  • Prahalad, C. K., & Ramaswamy, V. (2002). The co-Creation connection. Strategy+Business, 27(Second Quarter), pp. 1–12.

    Google Scholar 

  • Prahalad, C. K., & Ramaswamy, V. (2004a). Co-creation experiences: The next practice in value creation. Journal of Interactive Marketing, 18(3), 5–14.

    Article  Google Scholar 

  • Prahalad, C. K., & Ramaswamy, V. (2004b). The future of competition: co-creating unique value with customers. Boston: Harvard Business School Pub.

    Google Scholar 

  • Santos, N. J. C., & Laczniak, G. R. (2012). Marketing to the base of the pyramid: A corporate responsibility approach with case inspired strategies. Business and Politics, 14(1), Article ID 4.

  • Scott, W. R. (2008). Institutions and Organizations: Ideas and Interests (3rd ed.). Thousand Oaks: Sage Publications.

    Google Scholar 

  • Sen, A. K. (1999). Development as freedom. New York: Knopf.

    Google Scholar 

  • United States of America Congress. (1977). Foreign Corrupt Practices Act of 1977. Washington: United States of America Congress.

    Google Scholar 

  • United States of America Congress. (1988). Omnibus Trade and Competitiveness Act of 1988. Washington: United States of America Congress.

    Google Scholar 

  • Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68, 1–17.

    Article  Google Scholar 

  • Vargo, S. L., & Lusch, R. F. (2008). Service-dominant logic: continuing the evolution. Journal of the Academy of Marketing Science, 36(Spring), 1–10.

    Article  Google Scholar 

  • World Business Council for Sustainable Development. (2006). From Challenge to Opportunity: The role of business in tomorrow’s society. In L. Timberlake (Ed.). Retrieved from http://www.wbcsd.org/DocRoot/0faRVQ4wqO4ZqXVe3RMK/tomorrows-leaders.pdf.

  • World Business Council for Sustainable Development. (2008a). Annual Review: 2007. Retrieved December 12, 2008, from http://www.wbcsd.org/DocRoot/eC4MJxCo243nISr3qT1G/annualreview2007.pdf.

  • World Business Council for Sustainable Development. (2008b). Inclusive business is key for companies to engage in developing countries, WBCSD executive dialogue reveals. Retrieved November 11, 2008, from http://www.wbcsd.org/Plugins/DocSearch/details.asp?DocTypeId=251&ObjectId=MzIyNTc.

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Nicholas J. C. Santos.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Santos, N.J.C., Laczniak, G.R. & Facca-Miess, T.M. The “Integrative Justice Model” as Transformative Justice for Base-of-the-Pyramid Marketing. J Bus Ethics 126, 697–707 (2015). https://doi.org/10.1007/s10551-013-1980-z

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-013-1980-z

Keywords

Navigation