2020 has been a year like no other. Business, like people, are trying to navigate how to survive in the new normal. But is it ethical for businesses to run sales during a crisis? In today’s post, we’ll be discussing if it is ethical to run sales during periods of crisis.
Before we dig into today’s topic, I need to put a very clear disclaimer: The question posed in this post is NOT aimed at small or family-owned businesses, food & service industries, pharmacies or medical supply sellers, or general sellers of essential goods. The focus of today’s post is on big business sellers of non-essential goods.
About the Times
Little did we realize that the end of 2019 would see the birth of a global pandemic that would lead to hundreds of thousands of sick individuals and tens of thousands of deaths. For those of us living in the Western hemisphere, COVID-19 seemed like a faraway illness that would never affect us here.
We were wrong.
By the end of February, more and more cases of COVID-19 popped up in the US and other Western nations. However, a failure to respond quickly combined with the exponential speed at which the virus spreads, resulted in nation-wide lockdowns in many countries. Non-essential businesses shut. Those capable of working from home are the lucky ones; while those working service jobs have been hit hard.
In the United States, the unemployment rate skyrocketed due to the effects of the virus. It is reported that over 3.3 million Americans filed for unemployment – with more layoffs looming as the economy stagnates during this period of crisis.
Despite these woes, we’ve seen many online retailers promoting online sales. While some of these sales are annual Spring sales; other sales are a direct response to the virus’s negative effects on business operations for retailers and brands. But is it ethical or exploitative for brands to run sales during periods of crisis?
Considerations for determining if it is ethical for businesses to run sales during a crisis
There are many things to consider when attempting to determine whether it is ethical for businesses to run sales during a crisis.
Two types of sales are currently running: (1) pre-planned sales that were set before a crisis outbreak and (2) sales that were offered as a result of the outbreak’s effect on the economy.
Positive Reasons to Support Brands Running Pre-Planned Sales
I see nothing wrong with brands running pre-planned sales during a period of crisis. For example, Ulta’s Spring iteration of the 21 Days of Beauty typically runs from mid-March through early-April. Both Ulta and the brands featured in the retailer’s promotions spend a lot of money to promote the sale. Also, promotional materials are prepared months ahead of time.
Moreover, the 21 Days of Beauty sale began before many US states began to enforce “Stay at Home” measures. For this reason, I do not see any issues with businesses like Ulta maintaining their normal promotional calendar.
Reasons NOT to Support Brands Running Pre-Planned Sales
Some pre-planned sales felt poorly timed given the global context. For example, Afterpay, a San Francisco-based online payment system that essentially offers online layaway for fashion and beauty goods, ran its 48-hour After Pay Day promotion.
Over one thousand brands participated in this year’s Afterpay promotional event. Across all participating sites, the discount code for the promotion was “afterpayday.” The coupon code was inappropriate given the number of people laid off or furloughed in the States.
Given the current state of the economy, it would have been prudent to change the promotional code for this year’s sale.
Positive Reasons to Support a Brand Running a Crisis-Initiated Sale
First, businesses need to generate sales to keep people employed. Second, sales can offer a temporary distraction to those who are feeling stressed. Third, free shipping offers make it easier for consumers to follow the mandates to stay at home and practice social distancing.
Additionally, some argue that it is up to a consumer to determine whether or not he or she can afford something that is being promoted within a sale.
Reasons NOT to Support a Brand Running a Crisis-Specific Sale
First, some of the crisis-specific sales feel almost predatory. In particular, I was appalled when I saw that the coupon code for one brand’s csale was “COVID-19.” (Do not ask me what brand used this coupon code. I am not attempting to ‘name and shame’ a small business.)
Second, Consumers may feel enticed to stress shop. As someone who already has an inclination to do an excessive amount of online shopping, the influx of online sales is extremely tempting. For those of us with potentially addictive shopping tendencies, the sheer volume of sales feels overwhelming. Moreover, the sales are hard to resist even if we can logically conclude that we don’t need to anything.
Finally, although online shopping may aid consumers in following social distancing orders, purchasing extraneous or non-essential goods may encourage businesses to avoid mandates to close their offices, warehouses, or factories. As a result, employees may experience a greater risk of catching and spreading the virus.
Did my friends think it was ethical for businesses to run sales during a crisis?
Before sitting down to write this post, I asked my friends on Twitter and Instagram whether or not they felt it was ethical for businesses to run sales during a crisis. Across the two platforms, approximately 50 people responded to my poll.
Across both platforms, 52-58% of respondents did not feel that it was unethical or “gross” for businesses to run sales during a crisis. However, the results are not conclusive due to the low voting turnout.
Here’s what some of my friends had to say:
As I expected, some of my friends were torn on whether it was ‘gross’ for a business to promote a sale during this time of crisis. For some, the intent behind the sale clearly played a part in influencing their opinions on brands running sales.
I am a bit torn on this. On the hand of ‘totally fine’ I think it’s great that companies like Fender are offering free lessons and exercise programs offering their classes is great. BUT the ‘for profit’ things out there leave a bad taste in my mouth. Like they’re trying to profit off these times…I’m more irritated by the spammers selling fake tests and ‘kits’ to people. I hate when things like this happen and we see all the evil in the world.
– Leah, Living on Roots (shared via IG DM)
I can see it from both sides. 1. People will be staying in and could need to buy some of that stuff so deals are good. 2. It’s almost playing with people’s panic to buy anything
– Kelly Marie, Kelly Marie Beauty (via IG DM)
I can’t decide – on the one hand it’s great that people can access products they might need without leaving the house, and at a discounted price. It’s also a logical business strategy, right? They know they’ll get traffic since people have the time.
On the other hand, it feels like they’re taking advantage of the situation. And whilst management and marketing can email you from their homes, if a company is still open for business that means that some poor workers have to get to the warehouse despite the outbreak.
– Girl on the Fly (via Twitter comment)
I personally think the frequency makes a difference. If I get multiple emails a day from businesses about their promo and how I’m “missing out” then its super gross, but if I get emails every couple days about an online sale change, it doesn’t bother me as much.
– Jackie, The Vibrant Dreamer (shared via IG DM)
For others, whether or not a sale was ‘gross’ was less of a question. Consumers should be responsible for keeping accountable for their spending choices.
Everyone is trying to get paid one way or another 100% of the time, unfortunately that’s just how society is, but we as consumers have a choice to either make a purchase or not. We need to govern ourselves more, especially at such uncertain time as we know that larger brands have their marketing teams ready to take advantage of every situation.
– Khalilah, Lady K Beauty (shared via IG DM)
And two felt that these sales could provide consumers with an opportunity to enjoy themselves or treat themselves during a period that has otherwise been quite stressful.
I think it’s fine because though it may be nonessential to some, others might value it more. And it’s nice to know that even though times are tough, I can still afford that replacement if I need it. Also, if I don’t have the money or the need, I don’t have to partake. So to me, it’s the consumers’ responsibility to say no if it’s not in their budget and its actually kind of nice that the businesses are giving people a chance to still enjoy themselves in the midst of struggle.
– Victoria, Panarama Beauty (via IG DM)
Better Personal care deals during tough times is positive reinforcement. Shopping is a therapy.
– Bhoomi (via IG DM)
Did I purchase from businesses that ran sales during the crisis?
As someone who has a hard enough time avoiding sales during normal periods, I felt distressed by the sales. Online shopping is my go-to coping mechanism during periods of high anxiety or major lows.
As someone who is graduating in May in this downturned job market, I am worrying every day about my prospects. It may seem illogical to shop when I’m worried about my job searching and finances. However, I felt triggered to shop.
So, is it ethical for businesses to run sales during a crisis?
At the end of the day, it is up to individual consumers to determine the ethical nature of non-essential businesses running sales during a crisis. Consumers should consider a brand is ethical and is taking precautions to keep employees safe.
Moreover, everyone copes with stress differently. As such, it is not my place to judge whether someone should or should not online shop.
Finally, many small businesses are Direct-to-Consumer. Logically, these brands could turn to online promotions to help keep their businesses afloat.
Overall, it is not unethical to run sales during a crisis. Companies need to survive to keep people employed. Moreover, I am happy if I can support a small business through an online sale.
….
Related: Did you enjoy this post? Check out this post on the ethics of brands selling PR, overhyped limited-edition releases, or this post on the rise of celebrity makeup brands.
Now I’m turning it over to you. Do you think it is ethical for businesses to run sales during a crisis? Please let me know your thoughts in the comments below.
beauty Business Coronavirus Covid19 digital marketing marketing mental health online shopping Opinion shopping wellness
Good representation of pros and cons. You touched all the bases. I think if a business is still open and use COVID-19 as a sale drive, it should pay extra to their staff who show up for work and give great discount to consumers. Big companies make a lot of profits throughout the year so they can afford to take a smaller profit in order to help the economy going. You’d be surprised how much your makeup really costs and how brands mark up the price.
I was nervous to actually share this post today because it is a delicate topic and I didn’t want to come across as judgmental since I don’t think there is true “right” or “wrong” in this scenario. Such tricky times!
Yeah definitely. I think this problem is complex and what’s right or wrong depends on who you are, what role you play in your community/society.
I definitely took advantage of some sales, mostly for makeup to review and necessities but I’m trying to not shop much because I’m scare for delivery guys.
You raised so many thoughtful questions, LP. I had not even thought about this- I’ve not been paying enough attention to notice the sales but I can definitely see the problems. I also see the good like you said for the businesses about to possibly go under who may benefit from sales with deep discounts. You did a great job balancing the pros and cons.
This was a well thought out and well-written post!
Thank you so much!
I can’t believe how fast things have escalated over the past few months. It is interesting that you have brought up this topic. I mean, there are some brands that have pre-planned sales and so much money was put into prep. Might as well. Other brands take advantage, but at the end of the day… Businesses need to survive too. I know for me, I love sales so might as well take advantage if it is appropriate. But it makes me wonder about their own ethics. There are people in the warehouses packing our order. Are they also protected? Thanks for sharing your thoughts.
Nancy ♥ exquisitely.me
This was def my struggle as well – as someone with a business background that has helped small businesses work our their financial projections I understand how important it is to keep cash flow coming in. But I struggle when I think about the workers in warehouses.
This is such a no win situation right now.
I think it’s a bit of a grey area and also depends on the business. I’ve heard of some businesses using the profit to help with the situation however I’ve also heard of businesses like Sephora having sales/free shipping etc and then firing all part time employees with a three minute video call which I find to be very unethical.
This is def a touchy subject with no solution or right answer. It’s so hard to determine what is best right now.
Yeah exactly it’s a very complicated issue and it’s hard to figure out the right thing to do.
Ahh tough one! I mean I totally get both sides, purchasing during their sales can help the company stay afloat during these times but I can also understand if someone feels a company may be calculated in initiating a sale. It’s a tough topic. Thanks for prompting a great discussion!
Des | https://www.itsbetterinheels.com
It really is a hard topic to discuss since I know some people feel quite offended that businesses are running sales like this. However, I believe it is up to each consumer and each company to decide how to handle promotions during this strange time.
This is a very thought provoking post. I’m not real sure how I feel about it either. I am currently unemployed due to the virus so it doesn’t really matter what kinda sale they are running, my budget is super strict right now and I can’t really buy anything but essentials.
I’m so sorry to hear that – hopefully things will turn around soon.
This is such an interesting blog! I’d not really thought about it much myself as I’ve totally stopped shopping apart from food. Thanks for taking the time to write and share this!
It’s definitely a complex issue with no clearcut wrong or right answer!
Very thought-provoking post. I really had to think about it. I’m not running any sales for my business but perhaps I should be giving discounts to customers in distress (i write resumes)
Thank you so much for this thoughtful comment – it is definitely a tricky topic with no real right or wrong answer. I’m sure that your clients are quite grateful to you during this tense time where many are currently or will be looking for jobs!
I’m not 100% sure how I responded but I feel like my opinion changed a bit. At first, I didn’t even realize how much of an impact this virus is going to have on our economy. Lots of businesses are having a tough time now they’re (partially) closed so I get that some of them might be running sales to still make some money. In some way, my purchases keep the economy going.
However, I’m scared businesses will find a way to fool us and still make lots of profit which I’m, of course, not supporting. But this is something we probably won’t find out.
I’m not able to work because of my health, but my appointment is postponed so this means a longer period of almost no income. Besides that, I need to search for a job and this is probably the worst time to look for a job (even after the virus and once my health is ok again). So this makes me anxious and anxiety makes me buy more things.
But I do miss Colourpop launching new products lol!
Same – I think if businesses are forced to close operations completely, the economy will suffer and so will more people as they lose their jobs. I’m sorry you were not able to get your appointment during this time – having no income is a major struggle.
Also, I completely relate to needing to job search during this difficult time because I am in the same boat. But we’ll make it through this!!
Yes we are! Times our tough but we got this ❤️
This issue definitely has a few sides, and you covered them well in this post! I actually took advantage of a sale because I had a gift card, but I felt a little weird about it. I mean, I don’t want to force people to go out and about packaging/shipping nonessential stuff for me, but I suppose people need jobs and the company does say they’re taking safety measures for employees. It’s certainly a tough situation and this pandemic is really something that the world’s never seen before to this extent.
Exactly – this is such a tough situations because if companies aren’t making any money at all then more layoffs will occur… which will be bad for everyone! I am really hoping that companies are (1) protecting their employees and (2) using non-shady marketing tactics (…like I’ve seen some brands specifically advertising for people to spend their stimulus checks on sales which leaves me feeling a little uneasy)!
This is a really interesting post! I didn’t think much about it but you made some great points
thank you so much!
An interesting take. On one hand the market has entered slowdown, people have lost jobs – affordability is a question. From the business running sales they need to keep that going or else they’ll risk cutting down costs which means further layoffs.
From my perspective it is necessary for a business to continue sales and doesn’t classify unethical. Of course the businesses do need to ensure that they are not taking advantage of the pandemic or helplessness of certain customers in such circumstances
I agree with you – at first I felt hesitant but that was due to the poor marketing choices of some brands. For example, brands that had coupon codes called “covid19” or brands that were explicitly advertising that people should shop using their stimulus checks.
But agree completely that if brands go bankrupt, the consequences will be worse in the long run.