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7/30/2019 Ethical Issues Inadvertising 100924035030 Phpapp02

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Ethical Issues in Advertising


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INTRODUCTION

There is no doubt that advertising attracts all of us in number of

ways, but

there are also number of controversies associated with

advertising

Generally, these controversies are concerned about the impact

of advertising on economy, society and ethics


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ROLE OF ADVERTISING IN

MODERN BUSINESS WORLD

Advertising is primarily a means by which sellers communicate to

prospective buyers.

What they communicate?

The worth of their goods and services

Contd


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ROLE OF ADVERTISING IN MODERN

BUSINESS WORLD

1. Economic function

2. Social function

3. Psychological function


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BUSINESS WORLD

1. Economic function

Advertising communicates the message in persuasive language

It create wide markets as the information is delivered to people far and wide

It inclines(pursuade) people favorably to the products and affect our

attitudes

advertising performs an economic function by being an art of persuasion

Advertising is also an economic processit helps the product to becomeknown and it facilitates exchange between those who need the product and

those who can satisfy the need

Provides employment opportunities (in advertising industry)


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BUSINESS WORLD

2. Social function

Advertising affects the core cultural values

Advertising is a mirror to the society in which it operatesit reflects thecultural values of that society

Advertising can also transfer some cultural values of one society to other

society

Advertising has improved our standard of living

e.g. we buy TV, AC, Computers, Cars etc after getting interested in these products through

advertising

We have accepted new ideas such as microwave, electric shaving, detergents etc through

advertising


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BUSINESS WORLD

Social function

Advertising protects the consumer by educating them and by forcing the

manufacturers to maintain quality and to be fair

Therefore..

Advertising brings about consumer welfare in two ways:

a. By improving standard of living

b. By improving product quality


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BUSINESS WORLD

3. Psychological function

Advertising is closely linked to consumer behavior, therefore,

it affects personality of consumer, his concept of self, hisattitudes, beliefs, opinions, his life-style etc

Advertising appeals to our physiological and psychological

motives


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ADVERTISING AND SOCIETY

Advertisements are not just the sellers

They reflect the society

Whatever is used in society is reflected in advertising

e.g.

o Indian society is highly family oriented (example ads: savings for

children, daughters marriage)

o Indian society is people-oriented, and not self-oriented

o For the sake of our family and others, we Indians can postpone our

own gratification

o We are also fun loving (example ads: Lux, Coke, Denim Jeans etc)


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ETHICAL ISSUES IN ADVERTISING

Advertising is a highly visible business activity and any lapse in

ethical standards can often be risky for the company.

Some of the common examples of ethical issues in advertising are

give below:

Vulgarity/Obscenity used to gain consumers attention

Misleading information and deception

Puffery

Stereotypes

Racial issues

Controversial products (e.g. alcohol, gambling, tobacco etc)


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ill effects of advertising-

Effect on culture

Food habits

Costume style

Wrong product positioning

Language

Undermining the position of women and Aged Person

Effect on children


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Moral Degradation

Promotes Materialism

Promotes social evils

Misapplied facts

Feeling of insecurities

Backdoor popularity of brands of prohibited products

Bait advertising

Nuisance of outdoor advertising


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ETHICS IN ADVERTISING

Advertising Should not mislead the consumer

What it promises must be there in the performance of products

Ad should not be indecent and obscene

As advertising is also a social process, it must honor the norms

of social behavior, and should not offend our moral sense

ASCI (Advertising Standards Council of India) regulates the

advertising in India has the set guidelines


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Advertising Standards Council of

India (ASCI) GUIDELINES

To ensure the truthfulness and honesty of representations and claims

made by advertisements and to safeguard against misleading

advertising.

To ensure that advertisements are not offensive to generally accepted

standards of public decency.

To safeguard against indiscriminate use of advertising for promotion of

products which are regarded as hazardous to society or to individuals

to a degree or of a type which is unacceptable to society in large.

To ensure that advertisements observe fairness in competition so thatconsumers need to be informed on choices in the market place and the

canons of generally accepted competitive behavior in business are both

served.


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SUGGESTION FOR CONTROLLING

EXCESSIVE ADVERTISING

Charging service tax at progressive rate

Treating advertising expenditure as deferred revenue

expenditure

Treating excessive ad-expenses as non permissible item

Fixation of quotas of product categories

Rationing of time and space on media

Limit on advertising by trde association


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SUGGESTION FOR CONTROLLING

UNETHICAL ADVERTISING

Advertising should reveal the truth.

In case of guarantees/warranties main term and condition

should be disclosed.

Bait ads. Should be avoided.

Advertiser should follow code of conduct.

Advertising should follow public decency.

Direction of ASCI should be followed.

Advertising claims should be supported with proper evidence.

No advertiser should indulge in any unfair trade practice.


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Thank You!

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