Ethical Issues in Advertising

INTRODUCTION

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

ways,

there are also number of controversies associated with

advertising

Generally, these controversies are concerned about the impact

of advertising on economy, society and ethics
 Ethics in Advertising

Ethics in advertising means a set of well defined principles

which govern the ways of communication taking place
between the seller and the buyer

According to Vilhjalmur Stefansson ,Ethical advertising

uses the truth to deceive the public whereas Unethical
advertising uses falsehoods to deceive the public
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
ROLE OF ADVERTISING IN MODERN
BUSINESS WORLD

1. Economic function

2. Social function

3. Psychological function
 ROLE OF ADVERTISING IN MODERN
BUSINESS WORLD

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 people favorably to the products and affect our attitudes

Therefore, advertising performs an economic function by being an art of

persuasion

Advertising is also an economic processit helps the product to become

known and it facilitates exchange between those who need the product and
those who can satisfy the need

Provides employment opportunities (in advertising industry)

 ROLE OF ADVERTISING IN MODERN
BUSINESS WORLD

Social function
Advertising affects the core cultural values and subsidiary cultural values

Advertising is a mirror to the society in which it operatesit reflects the

cultural values of that society

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

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
 ROLE OF ADVERTISING IN MODERN
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

ROLE OF ADVERTISING IN MODERN
BUSINESS WORLD

Psychological function
Advertising is closely linked to consumer behavior,

it affects personality of consumer, his concept of self, his

attitudes, beliefs, opinions, his life-style etc

Advertising appeals to our physiological and psychological

motives
ETHICS IN ADVERTISING

Should not mislead the consumer

What it promises must be there in the performance of product

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
Controlling Body to Check Ethical
Issues in Indian Advertising

Advertising Agencies Association of India (AAAI)

Advertising Standard Council of India (ASCI)

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 that

consumers need to be informed on choices in the market place and the
canons of generally accepted competitive behavior in business are both
served.
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)

ETHICAL ISSUES IN ADVERTISING
Advertisements using
Children Dangerous Stunts
CONT...
Glorifying Glamorous
Vulgarity looks
 CONT...
Usage of inappropriate
Stereotypes Subliminal Advertising
Thank You!