Analysing ethical branding by selected motor dealers in South Africa

Abstract

This study investigates ethical branding by motor dealers in South Africa. It uses General Motors South Africa (GMSA) as a case study. The author chose General Motors South Africa based on its many years of existence within the South African motor industry and its track record. The study established what the most important values that contribute towards an ethical brand are, and developed a theoretical model that was used to measure the ethical branding values of motor dealers in South Africa. The model displayed ethical business practices in motor vehicle branding of South African motor dealers and identified the key ethical values that have made GMSA to be one of the leading ethical brands in the country. Data was collected from 22 GMSA employees between May and September 2017 in Gauteng, North West and Limpopo provinces using a self-administered questionnaire, containing both closed and open-ended questions. Open-ended questions allowed the respondents to elaborate on their answers. The data evaluated GMSA's ethical values and core attributes and how these are carried throughout the company and its dealer network. Of the 22 respondents, 54.5%, 40.9% and 4.5% were in the job positions of the General Manager, Sales Manager and Sales consultants, respectively, in the retail network of GMSA to evaluate the implementation of the said values by GMSA for ethical branding throughout the value chain and dealer network. The results identified the key values of ethical branding that GMSA considers to be important and also indicated how GMSA is using the identified values to build an ethical GMSA brand in vehicle manufacturing. The study established that ethical brands in motor manufacturing in South Africa are brands that promote social responsibility and the public good, and minimise harm to society and the environment. The study gives insight into the application by GMSA of these ethical values in the GMSA brand and tests the communication of the ethical values through to GMSA's retail network. The study subsequently found that motor dealers in South Africa can benefit from the application of ethical values in branding and that they should use the opportunity to communicate their ethical values to customers to minimise the negative public perception brought by the media reports on some of the reported scandals in the motor industry. Other recommendations are that South African motor dealers can organise themselves and should use the proposed model for ethical branding in this study and GMSA's approach to ethical branding as a guide to organise itself to ensure that there is uniformity of ethical standards throughout motor manufacturing and dealership in South Africa. Uniform application of ethical values by the South African motor industry will ensure a better understanding of the role ethical values in branding can help to ensure the sustainability of the automotive industry in South Africa.