...“Marketing Leaders and Ethical Issues in Advertising” ABSTRACT The purpose of this project is to point out some different measures used in advertising for defining problems and to note ethical and moral problems that advertising can and does raise and, finally, to suggest certain steps for the marketing leaders of those professionally involved in advertising. The project examines what the ethical problems in advertising are and why many marketing leaders create unethical advertisements. In order to demonstrate the unethical advertising, I provided some examples. I added to the project a list of ethical and legal issues when creating advertisements can help you to craft legal, responsible advertisement messages. The project also examines ways of solving ethical issues in advertising and what advertisers, marketing leaders should do to be in the money. INTRODUCTION Communication stimulation was known in ancient times. With banners and signs and graffiti dealers notified the citizens about the availability of certain goods on the stalls, as well as future events, such as the slave trade or the gladiators. Due to mass illiteracy traders also had to resort to touts - people standing in the streets or on the busy intersections of the city and loudly informed the passers on the goods. While advertising was of informative, it did not have the elements of persuasion. The flourishing of the advertising business falls on XIX century, when the first public relations man, began...
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...THE CASE FOR ETHICAL BEHAVIOUR IN TODAY’S BUSINESS ENVIRONMENT Despite the presence of professional ethical codes designed to govern professional conduct in specific industries, there has been numerous cases of unethical conducts which have led to the collapse of great companies in the past such as Enron and Worldcom. In recent times however, many organisations have been taking practical steps to incorporate ethical principles in the daily operations of the business in. The importance of business ethics cannot be overemphasized in the role it plays for any organisations whose objective is to continue in business for the foreseeable future. In the bid to maximize profitability, several managers have failed in their responsibility to act ethically in the conduct of their business because they have given less consideration to the ethical issues, which will have long term impact on the organisations, while focusing on short term financial considerations. Unethical behaviours do not just affect the organisation itself but also negatively affects all stakeholders of the organization – for example, giving bribe to a customer representative does not only affects the company’s reputation but also promotes the societal ill of dishonesty and lack of integrity; when a company is declared insolvent as a result of a fraud perpetrated by senior management, there is a threat to the source of livelihood of the employees of the organisation. Therefore, in order for a business to remain sustainable...
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...similar to each other and they also have their differences in relation to their actual profession. I am going to compare and contrast the different codes of the major associations of professional communications. I am going to discuss one from the Journalist profession: The Society of Professional Journalist (SPJ), Public relations and information: Public Relations Society of America (PRSA) and the business profession: American Advertising Federation (AAF). All three of these have some of the same basic codes for example: respect, truth, accountability, honesty and avoiding conflicts of interest. Any member of The Society of Professional Journalist believe the public has a right to know of any events or issues in the world. They believe that this is the “forerunner of justice and the foundation of democracy” (Unit 4). All journalists look for the truth and then let the public know about it. The Society of Professional Journalist minimizes harm, act independently and be accountable. There is no stereotyping of any kind allowed. Any ethical The Society of Professional Journalist will treat all informants, co-workers or the subject at hand with respect as we are all deserving of it as human beings. Any time a Society of Professional Journalist makes a mistake they are to promptly correct...
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...Michael Carlson and Chris Luhrs outline the ethical failings of Tobacco marketing in the US in “The Ethics of Tobacco Marketing.” In this research paper, the authors juxtapose the American Marketing Association’s ethical norms against the Kantian theory of ethics to expose that by marketing tobacco products and betraying their duty to “do no harm” tobacco marketers fail the Kantian standard of ethics to act only in a manner worthy of becoming a universal law (Carlson and Luhrs). The paper outlines the dangers associated with marketing tobacco products when the marketing is extremely effective, pervasive, aimed at vulnerable children and deceitful resulting in high levels of addiction, sickness and ultimately death (Carlson and Luhrs). Carlson and Luhrs point out that “one would not consider doing harm to others or acting dishonestly as worthy of a universal law.” While this ethical failing, by Kantian standards, is evident in the US, the ethical failings of tobacco corporations are compounded when this marketing is done in developing countries with even more vulnerable populations. In her March 2010 article, “Phillip Morris Pushing Smoking Hard in Foreign Countries,” Anne Landman outlines the tactics that Tobacco giant Phillip Morris had begun to use in developing countries to sell their product because the market for tobacco products in the US had decreased. These tactics included utilizing strategies that had proven successful in the US prior to the decline of tobacco...
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...examination of the ethical issues involved within the context of the given scenario needs to be looked at. Finally, an analysis of what ethical actions I would have taken if I was Wayne Terrago under the circumstances given in this scenario will be explored. To begin with, the stakeholders in this situation need to be defined before examining the issues. After careful assessment of the situation, I will lay out a step by step reasoning behind who I believe are the main stakeholders in this ethical dilemma. The most obvious stakeholders in this given situation are the President of Robbins Industries, the Vice President of Finance of Robbins Industries, and Mr. Wayne Terrago, the Controller of Robbins Industries because they are the individuals responsible for making the decisions in this situation and are the main decision makers responsible for financial and accounting decisions at Robbins Industries. The shareholders and the employees of Robbins Industries will be the stakeholders who will be most affected by the decision that will be made by the three decision makers because in most cases of accounting fraud by a company, the losers in the situation more often than not are the shareholders and the employees of that company, and in this case, the employees and shareholders of Robbins Industries. The investment bank who will be involved in the planned bond offering would be an interested stakeholder because the accounting treatment of the advertising cost could possibly...
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...One of the key persuasive techniques for advertising fast food is be frequent and consistent. A lot of small businesses become discouraged when their advertising efforts don’t bring about the desired results. There are no marketing techniques for “instant” results, but employing your message on a regular, frequent schedule over a continuous period of time will, in most cases, pay off. Effective advertising requires getting your persuasive message in front of your market as often and as consistently as your budget allows. Creating a persuasive message is comprehension. Readers should be able to instantly understand the message of your marketing piece. Make sure your message is clearly stated with text and illustrated in the graphics. Use the principle of repetition to emphasize your message and keep the message simple. The second principle for creating a persuasive message is connection. Readers will remember and respond to an advertisement that evokes an emotional response that helps them relate to your message. Use a message that has meaning and significance for your target market. The message should trigger an emotional response like excitement or happiness, etc. Use an emotional message that calls readers to action. The third principle for creating a persuasive message is credibility. Your target audience needs to be able to believe your message. This goes back to the reputation of your business as well as the message being used in your campaign. Have high customer...
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...Deontology Paper Direct-to-Consumer Advertising (DTC) has been a long disputed ethical dilemma. The United States and New Zealand are the only two countries that allow it. By using Rawl's principles of justice, I will explain to you why I feel that this kind of advertising is ethical. There are different kinds of justice. Commutative justice refers to transactions being just. This kind of justice involves keeping transactions fair to both parties of the transactions. The transaction will be fair if both parties "have access to all pertinent information about the transaction; enter it freely and without any coercion; and benefit from the transaction"(DeGeorge, pg 76). Commutative justice is central to business transactions, but distributive justice is central to the actions of the government. John Rawls formulated a theory of distributive justice. He developed these principles in hopes that all rational persons find them acceptable. The principles are universal, respect all people, and can be rationally accepted by everybody. Rawls felt that people would agree "to two specific principles of distributive justice" that can be used in "establishing a just constitution" (DeGeorge, pg 78).These principles are: • First: Each person is to have equal right to the most extensive basic liberty compatible with similar liberty for others. • Second: Social and economic inequalities are to be arranged so that they are both a. reasonably expected to be to everyone's advantage and b...
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...Ethics in marketing and advertising Ethics is a branch of philosophy which seeks to address questions about morality; i.e. about concepts, such as good and bad, justice and virtue, right and wrong. In other word, we can say that Ethics are moral principles that govern the actions and decisions of an individual group. It is governed by a set of principles of morality at a given time, at a given place and in a given society. Ethics is closely related to group behavior in ultimate analysis, thus norms for an individual to follow should be set in consistence with the group norms. The mixing of art and facts in advertising communication are submissive to ethical principles. In today’s competitive market, an advertisement has to be truthful and ethical. The credibility of an organization is lost If an advertisement is misleading. To view the truth in advertisement, it has to be seen from the consumer’s point of view and not from the legal point. The advertising industry has been frequently criticized for putting out misleading or exaggerated claims in respect of products, goods and services. It is also alleged as guilty of glorifying certain habits or tendencies regarded as undesirable and encouraging consume rest culture. However, it is very difficult to draw a clear line of difference between what is true and what is untrue. The advertisement is judged by its impact and its acceptance by the consumers. The product must fulfill the claims it’s advertised...
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...today is all pervasive—from keeping people updated on the latest international and national events to giving a person the inside scoop on all kinds of major political matters, it has steadily moved on to becoming the one-stop destination for all sorts of information. And then there are the digital learning sessions, e-commerce, online review sites, e-campuses, consumer forums, and virtual shopping zones, there is nothing that the Web does not have an answer for. Advertising is the best way for companies can reach consumers with their target market for different kinds of companies. Having the internet and able to advertise is the most modern way for companies to be able to reach and influence larger groups of consumers. With advertising, companies need to follow certain kinds of code of ethics. When companies don’t follow codes of ethics, there can be a chance that the company will not have the kind of advertising they want and it can be short lived. While the online medium is well established, the concept of advertising and selling on the net is still at a promising stage. However, with the impact of the Internet, it becomes critical to have the ethics and regulations put in...
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...Direct-to-Consumer Drug Advertising: Ethical or Not? The United States and New Zealand are the only developed countries that allow direct-to-consumer advertising. Whether the practice of direct to consumer advertising is beneficial to the consumers or not is a highly debated subject with both positions presenting sound reasoning for their position. Whether the practice is beneficial or not to the consumer is not the question, but rather, is advertising prescription drugs directly to consumers ethical? To analyze this question I will use Rawls’s second principle of distributive justice for analysis. (2) use that method, developing the argument in support of your case; In utilizing direct to consumer advertising for prescription drugs is the advertising “reasonably expected to be to everyone’s advantage”? and “attached to positions and offices open to all?” (DeGeorge 78) One of the predominate claims of the pharmaceutical companies that the advertisements educate the consumer, thus giving them more information to evaluate their needs and to speak intelligently with their doctor. So, is the information provided in an ad or commercial “reasonably expected to be to everyone’s advantage?” It is reasonable to assume that everyone is exposed to the ads with the various media outlets used, such as TV, radio, newspaper, magazines and so forth, but is the education to everyone’s advantage? The drug companies receive a great deal of returns for every dollar spent on the advertising, thus increased...
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...| Wayne Terrago, controller for Robbin Industries, was reviewing production cost reports for the year. One amount in these reports continued to bother him—advertising. During the year, the company had instituted an expensive advertising campaign to sell some of its slower-moving products. It was still too early to tell whether the advertising campaign was successful.There had been much internal debate as how to report advertising cost. The vice president of finance argued that advertising costs should be reported as a cost of production, just like direct materials and direct labor. He therefore recommended that this cost be identified as manufacturing overhead and reported as part of inventory costs until sold. Others disagreed. Terrago believed that this cost should be reported as an expense of the current period, based on the conservatism principle. Others argued that it should be reported as Prepaid Advertising and reported as a current asset.The president finally had to decide the issue. He argued that these costs should be reported as inventory. His arguments were practical ones. He noted that the company was experiencing financial difficulty and expensing this amount in the current period might jeopardize a planned bond offering. Also, by reporting the advertising costs as inventory rather than as prepaid advertising, less attention would be directed to it by the financial community. | | Instructions | (a) | Who are the stakeholders in this situation?The stakeholders...
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...| Wayne Terrago, controller for Robbin Industries, was reviewing production cost reports for the year. One amount in these reports continued to bother him—advertising. During the year, the company had instituted an expensive advertising campaign to sell some of its slower-moving products. It was still too early to tell whether the advertising campaign was successful.There had been much internal debate as how to report advertising cost. The vice president of finance argued that advertising costs should be reported as a cost of production, just like direct materials and direct labor. He therefore recommended that this cost be identified as manufacturing overhead and reported as part of inventory costs until sold. Others disagreed. Terrago believed that this cost should be reported as an expense of the current period, based on the conservatism principle. Others argued that it should be reported as Prepaid Advertising and reported as a current asset.The president finally had to decide the issue. He argued that these costs should be reported as inventory. His arguments were practical ones. He noted that the company was experiencing financial difficulty and expensing this amount in the current period might jeopardize a planned bond offering. Also, by reporting the advertising costs as inventory rather than as prepaid advertising, less attention would be directed to it by the financial community. | | Instructions | (a) | Who are the stakeholders in this situation?The stakeholders...
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...Otto Advertising has recently signed on Angela’s Secret Lingerie, a new client that represents a very large account for the company. Although we feel very confident in our abilities to market and influence consumers into buying their lingerie, this client places our company in a difficult situation. They are requesting we direct our advertising towards girls aged 8-10 years old which raises grave ethical concerns. Marketing can lead to ethical dilemmas due to the content and methodology used to pursue market growth and revenue. Many techniques that we ourselves have utilized have included heavily targeting the youth because of their susceptibility to marketing tactics. Targeting children is treading in dangerous waters and can have negative repercussions on all parties involved. Ethical theories represent important guidelines for better, more sustainable decision making. I have provided an analysis through the Utilitarian, Kantian and Virtue Ethics perspectives in order for Otto Advertising to make a sound decision for all parties affected. Utilitarian ethics is associated with Jeremy Bentham and John Stuart Mill and represents the utilitarian principle to provide the greatest good for the greatest number of people. This is to be followed by looking at the consequences of an action not the means employed to deem if it is morally right or not (ET 85-88). Marketing is essentially based on the utilitarian principle because our whole purpose as a business is to try and satisfy...
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...ETH/316 Week 3 Assignment Organizational Ethnics The company Granite and Marble Warehouse is a place of business where we sell Marble, Granite, Quartz, Tile, and so much more. The company is a very good company, because most of our products that we sell is very interesting which we find most of the products a wall of art. The company is a new business, which have been in business since 2007, which their advertising for the company is by word of mouth. The stones that we carry are all natural which comes from all over the world for individuals to choose color and style of Granite and Marble which could be regular Granite and or Exotic Granite and Marble which is more expensive than others. Ethical principles are principles that I haven’t seen, because the company itself is very lenient when it comes to information about the job. The ethical principles that I do believe should be in place are to treat every employee the same, and not discriminate against one another. Another ethical problem that I have noticed here at my job is that the company don’t treat customers fairly like they are supposed to. The reason I feel this way is, because every day we are working with so many customers, and when those customers come in to choose Granite or Marble, I think that it’s very unethical for customers to get different prices depending on how big their kitchen or vanity, which will give them their price. Another unethical issue that I seem to discover is not being honest, when...
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...ETH/316 Week 3 Assignment Organizational Ethnics The company Granite and Marble Warehouse is a place of business where we sell Marble, Granite, Quartz, Tile, and so much more. The company is a very good company, because most of our products that we sell is very interesting which we find most of the products a wall of art. The company is a new business, which have been in business since 2007, which their advertising for the company is by word of mouth. The stones that we carry are all natural which comes from all over the world for individuals to choose color and style of Granite and Marble which could be regular Granite and or Exotic Granite and Marble which is more expensive than others. Ethical principles are principles that I haven’t seen, because the company itself is very lenient when it comes to information about the job. The ethical principles that I do believe should be in place are to treat every employee the same, and not discriminate against one another. Another ethical problem that I have noticed here at my job is that the company don’t treat customers fairly like they are supposed to. The reason I feel this way is, because every day we are working with so many customers, and when those customers come in to choose Granite or Marble, I think that it’s very unethical for customers to get different prices depending on how big their kitchen or vanity, which will give them their price. Another unethical issue that I seem to discover is not being honest, when...
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