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Ethics of Advertising
A business Ethics PresentationBy University of South Asia
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What is advertising? Advertisingis a form of
communication used to help sell
products and services. Typically itcommunicates a messageincluding the name of the productor service and ho that product or
service could potentially benefitthe consumer
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!"ST#$% Edo period
advertising flyerfrom &'() for atraditional medicinecalled Kinseitan
Egyptians usedpapyrusto ma*e
sales messages andall posters
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+ost and foundadvertising on papyrus ascommon in Ancient ,reeceand Ancient $ome.
As the tons and cities of the -iddle Agesbegan to gro and the general populace as
unable to read signs that today ould saycobbler miller tailor or blac*smith ould usean image associated ith their trade such as aboot a suit a hat a diamond a horse shoe or
even a bag of flour.
http://en.wikipedia.org/wiki/Lost_and_foundhttp://en.wikipedia.org/wiki/Ancient_Greecehttp://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/Ancient_Greecehttp://en.wikipedia.org/wiki/Lost_and_found -
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. "n the &/th century advertisements started to
appear in ee*ly nespapers in England.
Asthe economy e0panded during the &1thcentury advertising gre alongside
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An &'12 advertisement for a eight
gain product.
"n the early &13(s the first radio stations ereestablished by radio e4uipment manufacturersand retailers ho offered programs in order tosell more radios to consumers
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A print advertisement for the &1&5 issue of theEncyclopdia Britannica
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Presently #rgani6ations fre4uentlyspend large sums of money onadvertising
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Ethical 7uties of -anufacturersEthical 7uties of -anufacturers
8ontract Theory8ontract Theory 7ue 8are Theory7ue 8are Theory
Social 8osts TheorySocial 8osts Theory
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8ontract Theory8ontract Theory 9irm:s duties to customer created by9irm:s duties to customer created by
contract ith customercontract ith customer
&.7uty to comply;&.7uty to comply; product must be safe for useproduct must be safe for use
3.7uty of disclosure;3.7uty of disclosure;disclose relevant factsdisclose relevant facts
5.7uty not to misrepresent5.7uty not to misrepresent; don:t mislead; don:t mislead
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7ue 8are Theory7ue 8are Theory
Seller has a duty to e0ercise due care to protectSeller has a duty to e0ercise due care to protect
consumers from harmconsumers from harm Seller should protect consumers by;Seller should protect consumers by;
7esign7esign 8hoice of materials8hoice of materials
-anufacturing process-anufacturing process =uality control=uality control Warnings labels > instructionsWarnings labels > instructions
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Social 8osts TheorySocial 8osts Theory Strict liabilityStrict liability
Seller should bear all the costs henSeller should bear all the costs hen
a consumer is inured by a producta consumer is inured by a product
Product price no reflects all costsProduct price no reflects all costs
including costs associated ith consumerincluding costs associated ith consumer
inuriesinuriesSeller has incentive to protectSeller has incentive to protect
consumersconsumers 8osts spread across all users of8osts spread across all users of
the productthe product
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Ethics and Culture
"n history some presidents evo*e notions of truthand honesty hile some arn of theconse4uences of lying. Abraham +incolnearned
good name but Bill 8lintonsufferedimpeachment.
"n the same ay the orld of advertising has its onset of stories about the good and the bad truth and
dishonesty. This unit focuses on truth and deception inadvertising and on the ethical dilemmas of those hoproduce advertising
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What is Deceptive Advertising?
8laiming that a product can do
something that it cannot is aclear@cut case of deception.
This is the picture by i*eshoing the strength of their foot
ball but in reality neither thefootballs are so huge nor sopoerful
"t is ethically rong to shosomething that doesnt e0ist
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!uge A7S And Advertisement
Balloons
+ittle children are usually ama6ed by certain ads because theyAre too young to understand the message in the advertisement
But they understands the picture.
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This *ind of advertisement ama6e people a lot specially the footballlovers
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A ine bottle that is considered ethically rong because the lorry may
have to move to certain places here drin*ing is unethical
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#+7T"-E$ advertisement is rather funny and unethical because
Some people ill have bad feelings about going inside a human body
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-#C"E A7CE$T"SE-ETS
-ovie advertisement outside cinemas are considered ethicalBut bad pictures on them are considered strongly unethical
"n a country li*e Pa*istan
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Sports Advertising
Sport goods companiesalso advertisethemselves .9or e0ample
#lympics and footballmatches etc
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8hannel Advertisements
There isadvertisements ofprogrammes on
channels as ell ontelevision
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Advertisements on "nternet
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Advertising ebsites
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Mock-Ups, Demonstrations, and
Simulations in Ads
-oc* ups are the props instead of thereal products in order to simulate theay products or* . .D 9or e0ampleshooting a commercial for ice creamtopping ould normally occur in a studiounder hot lights. Under thesecircumstances real ice cream ould melt4uic*ly so sometimes mashed potatoes orshaving cream is used.
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EA-P+E
The 8ampbells Soup ads of the late&1)(s in order to sho theabundance of vegetables and noodles
in the soup the ads ere shot afterplacing clear marbles in the bottomsof the bols and cups helping thevegetables stay near the top andsho up clearly in the ads. The publiccomplaint led to the discontinuationof the practice and resulted inconsiderable negative publicity for
the company
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Full Disclosure
A class action lasuit filed against the-c7onalds 8orporation claimedamong other things that thecompanys approach to advertising
highly processed food caused obesityand other problems especially theupsi6e deals but court as notconvinced."n response to the negativepublicity generated by the case-c7onalds ads intended for childrencurrently focus on a healthy lifestyle byshoing $onald -c7onald engaged insports and outdoor play ith children.The current slogan is D"ts hat " eatand hat " do.D 9ull disclosure isperfect e0ample of ET!"8A+BE!AC"#U$.
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False Advertising
The claims in some ads are not
only often outrageous butfre4uently completely false. 9ore0ample the claims of the electricbelt ad shon belo have no basisin fact. $ather they represent the
boastful proclamations of theseller.
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EA-P+E
"n the picture it is easilyseen that theadvertisement of pi66ais different from hat it
actually loo*s li*e
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Misleading Ads
The large grey area that e0ists beteen truthand deception contains ads that people oftenconsider misleading. The ads are misleading
because they depart from literal truth and fact.9or e0ample if an ad for Brand soap claimsD%ou cant buy a better deodorant soap thanBrand or if a company says that all thedoctors orld over recommend this soap li*e in7ET#+ ads. -any advertisements made claims
li*e D< out of 2 doctors surveyed recommendBrand %.D This became idely *non as a half@truth because there as never any indicationof ho many doctors had been consulted. Apicture of baby food ad is shon.
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mpression Management
An area here advertisers and mar*etersmust decide hat is permissible Fandtherefore ustified and ethicalG isimpression management. "n &1/2 a
7elta Airlines advertisement shoed aflight leaving ear* H at /;&2 am andarriving in Atlanta ,A at 1;33 am a totalof 3 hours and / minutes. "n 3((/7eltas online schedule shos a similarflight leaving ear* at /;&2 am andarriving in Atlanta at 1;5' am a total of 3
hours and 35 minutes. Why thedifference? This creates a bad impressionand the company must focus on imagehile doing such acts .Another e0ampleis -aggi 3 minute noodles.
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!arm"ul #roducts
Should products that can haveharmful effects li*e tobacco andalcohol be advertised at all? -anyadvertising agencies respond in the
affirmative. They bac* up theirdecision by saying that it is not anagencys responsibility to decidehich products should be advertisedand hich should not. $ather theirreasoning goes; if its legal to sell itits o*ay to advertise it. Providing*ids cigarettes is unethical not only nour society but all over the orldand is banned. Women smo*ing isunethical in some countries
There are other
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There are otheragencies and ahandful of famousadvertising men andomen ho refuse
tobacco or alcoholaccounts on ethicalgrounds. They do notant to be associatedith the social ills of
products that appearto be as harmful asthese. Anti smo*ingads are also given todiscourage the
practice.
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Communit$ Standards
Ethical standards inadvertising need to ta*ecommunity standardsinto account. A single set
of universal standardsabout hat is good bador ust acceptable isdifficult to applyeveryhere. What maybe appreciated in onecommunity may be off
limits in another
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%oad Sho&s and "reesampling
Some companies launch road shosand free sampling for the publicity
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8elebrities in ads
9amous celebritiesare hired foradvertisements by
some companies andby using the productthe customers feelthemselves li*e
those celebrities
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espaper ads
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+#,#S 9#$ A7CE$T"S",
Some ell *noncompanies only use theirlogos for advertising andleave it to people to
understand
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8ompany specialoffers
Some companies give
special offers for
publicity.
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!idden Surcharges
The most unethicalpractice is the hiddensurcharges to deceive
the customers
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Advertising Billboards > 9lags
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Advertising to Children
"s it ethical to advertise to children?
Many People Believed that the Now-Abandoned JoeCamel Character
Appealed to Children and Adolescents !""#$
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ndustr$ and 'overnment
%egulation o" Advertising
Advertising agencies employ layers to advise them onhat can and hat cannot be said in an ad. Theselayers are specialists in the regulation of advertisingby government boards and the courts to *eep in viethe general ethics related to advertisement
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9a*e advertising
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8riticism on advertising is unethical
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8#8+US"#
Advertising is not unethical if itsdone in the right ay
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Than* you