Business Ethics & Advertising
The ethics of advertising -- usually addressed more broadly as the ethics of marketing -- are the ethics that relate to the practice of marketing a product or service to a consumer. Marketing ethics is a branch of business ethics. Businesses that practice good marketing ethics will attempt to advertise in such a way as to not deceive or offend the consumer, or encourage other negative consequences.
Other People Are Reading
-
Features
-
According to the University of Wyoming, many companies try to adhere to certain ethical guidelines in their advertising, just as they strive to meet ethical standards in other areas of their businesses, such as in accounting or hiring practices. However, what constitutes ethical advertising is highly subjective. Because all advertising is to some extent persuasive in nature, drawing an ethical guideline between what is good rhetoric and what is misleading can be difficult.
History
-
According to O.C. Ferrell, a professor of marketing at the University of New Mexico, the study of marketing ethics has traditionally lagged slightly behind the study of business ethics. While a formal academic study of business ethics began in the early 20th century, it wasn't until 1967 that an academic offered a first comprehensive model for what constituted ethical marketing. Since then, however, debates about advertising ethics have flourished.
-
Types
-
According to the Encyclopedia of Business and Finance, there are a number of methods of unethical advertising. For example, advertising that deceives the consumer, such as making false or misleading claims about a product or service may be unethical. In addition, advertising that is offensive to certain parties, such as the use of stereotypes, is unethical. Also deemed unethical is advertising that encourages consumers to partake in harmful practices, such as consuming harmful substances.
Considerations
-
According to Ferrell, a number of different parties contribute to the debate on what constitutes ethical practices in advertising. Some government agencies, such as the Federal Trade Commission, offer guidelines on what constitutes deceptive marketing. Self-regulatory organizations, such as the Better Business Bureau, do this, too. In addition, many consumer groups, such as the Consumers Union, voice opinions on the ethics of various advertising practices.
Effects
-
According to the University of Wyoming, unethical advertising practices can harm a company, either by damage to its reputation or through legal action. For example, Coca-Cola faced a spate of negative publicity with the revelation that the highly touted purification process for their Dasani bottled water was almost nonexistent. In addition, the New Jersey attorney general's office sued Blockbuster Video in 2005 over their "No More Late Fees" campaign, which the state deemed deceptive.
-
