Ethics

1
Ethics Regulation

• Chapters 8 7 and Chapter 5, Global Issues

2
Ad Copy Hall of Fame-er says

• To explain responsibility to advertising people
  is like trying to convince an eight-year-old that
  sexual intercourse is more fun than a chocolate
  ice-cream cone.
• Other quotes next slide

3
Quotes about advertising ethics

• What is the difference between unethical and
  ethical advertising? Unethical advertising uses
  falsehoods to deceive the public ethical
  advertising uses truth to deceive the public.
• Univ. of Texas web site (good reference)
• http//advertising.utexas.edu/research/quotes/
• Pithy, pointed, important, maintained by Jef
  Richards
• http//www.workinghumor.com/quotes/advertising.sht
  ml
• http//www.quotationspage.com/subjects/advertising
  /

4
Professionals reactive proactive

• Federal Trade Commission govt regulations
• Food Drug Administration govt regulations
• National Advertising Review Board
• Ad Council
• American Association of Advertising Agencies

5
Is self regulation sufficient?

• Yet advertising which exists at the intersection
  of industry, communication, group interactions
  comes under attack from any of these perspectives
• Industry, i.e. marketing practices
• Communication, i.e. mass media
• Group interactions, i.e. stereotypes

6
Seven areas of ethical conflict, 1

• 1. Advertising rationalized mostly by assumptions
  at classical liberal end of neo liberal
  continuum. This means
• Accepting classical liberal version of people
  consumer sovereignty adv as mirror, socially
  passive force

• Farther to neo-liberal would see consumers as
  open to manipulation
• Adv. as a shaper of behavior, a socially
  influential force

7
Seven areas of ethical conflict, 2

• 2. Adv. is essentially 1 sided communication,
• Inherent potential of deception by omission
• Thus, adv. Sacrifices value free info for
  convenience

• Advertisers contend that since its openly
  corporate, consumer accepts it
• It creates climate of pluralism
• Because interested ethics tangled

8
Seven areas of ethical conflict, 3

• 3. Purpose of adv. is to cause us to think, act
  in accordance with advertiser intent
• Advertising sets the consumption agenda perhaps
  values

• Specific areas of concern
• Advertising of cigarettes
• Alcohol

9
Seven areas of ethical conflict, 4

• 4. Often advertising seeks out individual instead
  of individual seeking it.
• Text mentions several examples

• Currently wireless and other technologies allow
  even more aggressive adverts

10
Seven areas of ethical conflict, 5

• 5. Advertising is a controversial 3rd party in
  the media audience relationship
• Remember the Disney ownership chart

• The free press is free from government influence
  but
• What about corporate influence

11
Seven areas of ethical conflict, 6

• 6. Agency commission system rewards media buys
  over advertising content (more is good, most even
  better)
• However, various contemporary instances including
  integrated marketing communication model, newer
  technologies, and new agency structure leading to
  change

12
Seven areas of ethical conflict, 7

• Uncertainty of the outcome of advertising process
  leaves it wide open for differing interpretations
  of the same event
• Ask critic supporter to assess such topics as
  adv. to kids, adv. of cigarettes

• Meshing of self interest between buyer seller
  in a voluntary relationship, or unprincipled
  manipulation of a crafty professional
  communicator a hapless audience

13
Do advertisers have principles

• Personal criteria of individuals
• A level of formal principles vis a via
  professional organizations (195-6)
• The National Advertising Review Board (see next
  chapters slides)
• However, such codes are general and adherence is
  voluntary
• Exist within business world (of which adv. is one
  part) in which ethics, strained

14
Text authors offer guidelines

• Their guidelines are proposals they suggest
• Action at the individual firm level offers--
• Less abstractness, more flexibility
• Also firms could create an ethical ombud whose
  function would be to represent consumer in
  transactions

15
Regulation of Adv.

• Chapter 7
• Chapter 5, Global Issues

16
What, how, when, by whom?

• Chapters question What forces should be
  allowed to regulate the institution of
  advertising?
• Among choices natural market forces, organized
  market forces (consumerism), self-regulation,
  governmental forces, media forces
• Are these mutually exclusive or synergistic?

17
Natural market consumerism

• At the Classical Liberal end of the continuum,
  natural market forces suffice
• Consumerism puts the buyer on an equal footing
  with the seller. (163-8)
• Consumerism assumes active role for audience

18
Self-regulatory forces

• The National Advertising Division the National
  Advertising Review Board the Childrens
  Advertising Review Unit
• See pages 168-175 and also
• http//www.caru.org/index.asp
• http//www.nadreview.org/
• http//www.narcpartners.org/aboutnarb.asp

19
Brief description, NAD/NARB/CARU

• NAD/NARB system focuses on truth accuracy in
  advertising
• CARU reviews advertising in loco parentis for
  children, i.e. assesses whether childrens ads
  are fair

20
Government regulation 1/2

• The Federal Trade Commission (FTC) enforces
  federal antitrust and consumer protection laws.
  http//www.ftc.gov/ftc/mission.htm.
• The FTC maintains a number of Advertising Policy
  Statement and Guidance publications at its
  website. http//www.ftc.gov/bcp/guides/guides.htm
• Examines claims advertisiers make

21
Government regulation 2/2

• Food and Drug IndustryThe Food and Drug
  Administration regulates the labeling and safety
  of food and cosmetic products through its Center
  for Food Safety and Applied Nutrition (CFSAN)
• For others see among other web sites,
  International Business Law Services, e.g.
• http//www.uslaw.ibls.com/uslaw/home.htm

22
Outside the U.S. 5, GI

• These authors categorize national political
  economies into 5 different systems
• In each advertising regulations also differ
• The 5 categories libertarian/capitalist (US),
  socialist/capitalist (UK), authoritarian/capitalis
  t (Brazil), sectarian/authoritarian/capitalist
  (Iran) and communist/planned economies(Vietnam)

23
National international regulations

• Within each system, regulation is driven by
  social paradigm
• There may be stringent laws or loose guidelines
• Developments in corporate globalization in
  technology, suggest that international
  organizations may become increasingly determining

24
One example Gulf Cooperation Council

• The GCC, 6 member countries Saudi Arabia, Qatar,
  Kuwait, Oman, UAE, and Bahrain
• Forge common consumer trade policies
• Likewise in marketing environment, religion tends
  takes precedence

25
Sharia/Islamic legal code

• Legislation occurs within the framework of the
  Islamic legal code
• Sharia governs duties, morals, behaivor of all
  Muslims in all areas of life including commerce
• Strict taboos toward alcohol, gambling, immodest
  exposure
• Fraud may occur if seller fails to deliver
  everything promised, ads should thus be facutal

26
For example, in Saudi Arabia

• No specific governmental agency controls
  advertising behavior
• Companies tend to self-comply, self-regulate
• The point in terms of international
  advertising/global messages is advertisers must
  acquire cultural knowledge

27
Finally, the ICC

• International Chamber of Commerce, established in
  1919
• Developed the ICC Code of Advertising Practice
• States that all advertisers have an overall duty
  to be decent, honest, legal and truthful
  end