SOCIAL RESPONSIBILITY TOWARDS THE CONSUMERS, END USERS, AND GENERAL

PUBLIC

Chapter 19. Deceptive Practices

 What are deceptive practices?

Deceptive practices refers to acts that mislead deliberately or acts that causes one to believe
what is not true, the intention of which is to take unfair advantage of another.
Furthermore, if, in making a contract, a person obtains an unjust advantage because of the
youth, defective mental capacity, or intoxicated condition of the party to the contract, he/she did a
deceptive practice (Boccagna, 2000).
In some cases, it is hard to distinguish deception from providing unintentionally wrong
information. It might be well to remember that being deceptively by strict definition refers to an
action that is planned, calculated, and intentional.

 How is the art of war used in business?

It might be well to mention that some business executives utilize the art of war concepts of
Sun Tzu in strategizing and competing in the business arena. According to Tzu, warfare is the way
of deception; thus, it is best to display incapability to your enemies even though you are capable.
He further states that, when committed to advocating forces, feign inactivity; when the objectives
is nearby, make it appear as if distant; when far away, create the illusion of being nearby.
Warfare must be viewed as a matter of deception, of constantly creating false appearances,
spreading disinformation, and employing trickery and deceit. (Sawyer, 1994).

 Are there guidelines against deceptive practices?

Today, common guidelines on determining deceptive practices can easily be seen on the
existing laws, statutes, regulations, and codes of the state, an example of which are the Republic
Act 7394 of the Consumer Act of the Philippines and US Consumer Product Safety Act of 1972.
Business transaction is any situation in which two or more parties are engaged in
communications, the aim of which is agreement on terms affecting an exchange, or a distribution
of benefits, burdens, roles or responsibilities.
Unethical practices flow from deceit, and they are detrimental both to sound agreement
and good relationship between parties. Business transactions are not one-time meetings but part of
 ongoing relationships, and value creating ‘win-win’ activities are most likely driven by the
continuing nature of such business relationship.
Clarity of purpose and honesty, rather than deception, is central to business transactions,
which means that those strategies that seek to maximize social gain would be better in the long run
than deceptive strategies.

 What are the forms and types of deception in business?

People encounter various forms of deceptive practices in business, such as false advertising
and other misrepresentations, deceptive pricing, charging for goods and services at rats higher than
advertised price, bluffing in negotiation and transaction (Lewicki, 1983).
Deceptive practices are aimed not only at one stakeholder but also at the multiple
stakeholders of business, namely the employees, consumers, competitors, government, and the
general public.
a. Direct or indirect misrepresentation of a product or service by intentionally distorting
some details makes advertising false and deceptive.
b. Another form of deceptive practice is unfair competition, which is a dishonest or
fraudulent rivalry in trade and commerce that usually includes misrepresentation of
one’s product through deceptive packaging, labelling, or other unjust practices.

 Why are deceptive practices contrary to business ethics?

Deceptive practices directly undermine the integrity of the organization. Business history
is replete with cases involving powerful persons, who corrupted sizeable system and structures by
deceptive practices, thereby undermining the integrity of the organization.

Consider ethical management and moral leadership as relevant to business survival and
corporate reputation.
 Chapter 20. Consumer Protection

CONSUMER PROTECTION

- Is a group of laws and organizations designed to ensure the rights of consumers as well as fair
trade, competition and accurate information in the marketplace. The laws are designed to prevent
the businesses that engage in fraud or specified unfair practices from gaining an advantage over
competitors. They may also provide additional protection for those most vulnerable in society.
Consumer protection laws are a form of government regulation that aim to protect the rights of
consumers.
 Is there a customer’s bill of rights?

Customer Bill of Rights

-Created by the Marketing Publications Inc. of United States, which is based in Washington D.C.
-Published in the Customer Communicator
 The customer rights stated in this bill are the following:

1) A customer has the right to courteous treatment by the seller’s representatives at all times
and under all conditions.
2) A customer has the right to the representative’s full time and attention during each and
every transaction.
3) A customer has the right to fast and accurate information about the product or service or
the status of the order.
4) A customer has the right to have his or her expectations met with a product or service of
the quality represented before the purchase.
5) A customer has the right to complain when the product or service does not meet those
expectations and to a prompt remedy when the product or service is indeed at fault.
6) A customer has the right to expect knowledgeability, resourcefulness, problem solving,
concern, and results from those assigned to his or her account.
7) A customer has the right to expect responsiveness and follow-through in emergencies and
special situations.
8) A customer has the right to the benefits of teamwork in the company he or she deals with,
without buckpassing, fingerpointing, or runarounds.
9) A customer has the right to care, accuracy, and attention to detail in filling his or her
orders for services and/or products.
10) A customer has the right to appreciation on the part of those with whom he or she does
business ̶ appreciation both for the business already given and for the business to be given
in the future so long as this Customer Bill of Rights continues to be observed.

Basic Consumer Rights

 Set forth by US President John F. Kennedy in his 1962 message to Congress on consumerism
 It consists of the following:
1) Right to safety- Ensures safety of consumers against injuries caused by the products
when the products are purchased.
2) Right to be informed- This right states that businesses should always provide consumers
with sufficient information to make informed product choices. Product information
provided by a business should always be complete and truthful.
3) Right to choose- The right to free choice among products states that consumers will have
a variety of options provided by different companies from which to choose.
4) Right to be heard- This right ensures the opportunity to the consumers to voice
complaints and concerns about a product in order to have the issue handled efficiently
and responsively.

GOVERNMENT AGENCIES RESPONSIBLE FOR CONSUMER WELFARE AND

PROTECTION

REPUBLIC ACT NO. 7394

THE CONSUMER ACT OF THE PHILIPPINES

ARTICLE 6. Implementing Agencies. — The provisions of this Article and its implementing rules and
regulations shall be enforced by:

(a) the Department of Health with respect to food, drugs, cosmetics, devices and substances;
(b) the Department of Agriculture with respect to products related to agriculture, and;
(c) the Department of Trade and Industry with respect to other consumer products not specified
above.

ARTICLE 148. National Consumer Affairs Council. — To improve the management, coordination and
effectiveness of consumer programs, a National Consumer Affairs Council is hereby created, hereinafter
referred to as the “Council”.

ARTICLE 149. Composition. — The Council shall be composed of representatives from the following
government agencies and non-government agencies:

(a) Department of Trade and Industry;

(b) Department of Education, Culture and Sports;
(c) Department of Health;
(d) Department of Agriculture;
(e) four (4) representatives from consumer organizations of nationwide base to be chosen by the
President from among the nominees submitted by the various consumer groups in the Philippines;
(f) two (2) representatives from business/industry sector to be chosen by the President from among
the nominees submitted by the various business organizations.

ARTICLE 153. Powers and Functions. — The Council shall have the following powers and functions:

(a) to rationalize and coordinate the functions of the agencies charged with consumer programs and
enforcement of consumer related laws to the end that an effective, coordinated and integrated
system of consumer protection, research and implementation and enforcement of such laws shall
be achieved;
(b) to recommend new policies and legislation or amendments to existing ones;
(c) to monitor and evaluate implementation of consumer programs and projects and to take
appropriate steps to ensure that concerned agencies take appropriate steps to comply with the
established priorities, standards and guidelines;
(d) to seek the assistance of government instrumentalities in the form of augmenting the need for
personnel, facilities and other resources;
(e) to undertake a continuing education and information campaign to provide the consumer with,
among others:

1) facts about consumer products and services;

2) consumer rights and the mechanism for redress available to him;
3) information on new concepts and developments on consumer protection; and
4) general knowledge and awareness necessary for a critical and better judgment on
consumption;
 5) such other matters of importance to the consumer’s general well-being.

 Is trust an ethical requirement?

Trust, always unsigned and undocumented, is required in any business transaction. The legal
requirement is always visible to the eyes (as demanded by law), whereas the ethical requirement remains
invisible and is kept in conscience.

The fulfillment of the social responsibility requirement completes the legal requirement. One way
of being wrong in business is to violate the legal requirements of a contract. Investor’s confidence is
not only pegged on competency but also on trust.

Example: An individual has cash of ₱500,000.00 that he wants to invest in a business. He chose to form a
partnership with his best friend because he trusts that the latter’s abilities, skills and experiences in
business will make their business, along with his investment, grow and be successful.

 What is the moral lesson we get from the movie Class Action?

The 1991 blockbuster film Class Action, starring Gene Hackman and Mary Elizabeth
Mastrantonio as father and daughter tandem of lawyers, can be an interesting point of departure. One
crucial segment of the story is when the CEO of the car manufacturer Argo admitted that it is far cheaper
to circumvent the law, cheat, and win a court case by paying attorneys than to retrieve the defective
electrical circuit from the 120,000 units of the 1985 car model Meridian. The mechanical defect has
subsequently resulted to physical injury and death of some clients who bought it without being told of the
factory deficiency.

Example:

https://news.abs-cbn.com/business/12/01/15/mitsubishi-denies-montero-sport-defective-unsafe

https://www.rappler.com/nation/120930-dti-officials-cases-montero-sport-sua

 What did Ralph Nader say?

It is good business sense when you know how to protect consumers from their own ignorance and
indiscretion. It is an honorable and decent act not to take advantage of their weaknesses. This is the
message of Ralph Nader (1959), an advocate for consumer protection in the United States, when he
reminded business in 1950s:

“Innumerable precedents show that the consumer must be protected at times from his own
indiscretion and vanity.”

He included in his message the safety measures and standards that some products like drugs,
meat, railroad and other interstate carriers and motor vehicles must undergo before their release in the
market.

Example: https://www.sunstar.com.ph/article/404830
 http://manilastandard.net/news/metro/191049/-xmas-lights-spark-makati-fire-.html

 What are the essential rights of consumers?

Consumer protection means the efforts of government, public-interest organizations, individuals and
businesses to establish, protect and enforce the rights of people who buy products such as food or services
such as healthcare and insurance.

THE RIGHT TO SAFETY

No responsible government or business wants a poisoned or maimed population. Therefore, it is

only logical that all products and services offered for sale should not pose undue risk of physical harm to
consumers or their families. Products that cause injuries include impure food, defectively-manufactured
automobiles and tires, drugs that have harmful side effects, and unsafe appliances.

Department of Trade and Industry is an agency who is responsible for ensuring the safety of most
products in the philippines that tasked to :

 protect the public from unreasonable risk of injury caused by consumer products
 assist consumers in comparing the safety of various items
 develop uniform safety standards
 promote research about the causes and prevention of product-related deaths, illnesses, and injuries.

Food and Drug Administration is an agency who is responsible that all processed foods, drugs, medical
devices and cosmetics are safe and properly labeled. Also, manufacturers have the responsibility to ensure
that their products are both of high quality and at the same time safe.

 What is the consumer’s right to be informed?

Consumers need sufficient information in order to choose wisely among the competing products and
services available. Marketplace contains different complex products and advertising is usually not
informative enough for consumer purposes. Therefore, consumers often lack the information required to
compare the quality of products and services, to determine their true cost, or to be assured of their suitability
or safety.

 What is the consumer’s right to choose?

Competition is the best regulator of the marketplace. When many companies are selling a product, the
effort of each to attract more customers keeps prices at the lowest level. When a market is not competitive,
sellers can set the price as high as they wish, up to the level where consumers simply will not buy the
product.

 What is the consumer’s right to be heard?

Those who have been cheated, screwed or who have bought a product or service that does not perform
properly have the right to seek a refund, replacement of the product, or other remedy. But at times, they
can't claim the right to be heard because the manufacturers or makers will not cooperate in resolving the
complaint. For this reason, the only recourse is to settle things in the legal way.

National and local governments have established offices or agencies to help protect consumers or to
resolve disputes between consumers and businesses. The communications media like newspaper, television
and radio often aid consumers through services such as "action lines".

OTHER RIGHTS OF CONSUMERS

Right to Basic Needs

Every consumer has access to basic goods and services necessary for survival, such as food, water,
energy, clothing, shelter, health-care, education and sanitation. Goods and services must meet the standard
of quality promised such that there is value for money in the purchase.

Right to Seek Redressal

Customer has the right to voice out any complaints and deserve compensation for any
misrepresentation and unsatisfactory public and private services, the unfair practices of the seller, including
the right to adequate legal representation.
Right to Consumer Education

Customers should be adequately educated about the basic customer rights they enjoy. The consumers
should gain acquisition of the skills they require to make informed consumer in the marketplace.
Right to Healthy Environment

Businesses have the responsibility to formulate policies in the production and regulation of goods and
services that are hazardous to the natural environment. The consumers have the right to live in a healthy,
pollution-free environment which will enhance the quality of their lives and their generations.

https://ceecare.com/publications/view/8-basic-rights-of-the-consumer/e0fe29dc-0a1e-4779-ab7e-
d13484b018f1

 What is the business social responsibility before transaction?

It is impossible to discover the risks that attend the use of a product before consumer buys and used it

Scenario:
 Thousands of people have already used product with component of asbestos. A scientific study
correlates the incidence of cancer and exposure to asbestos.

Most urgent social responsibility: Covers two areas of production and information before doing any
business

 PRODUCTION
o It is the duty if the manufacturers not only to guarantee the customers satisfaction but also
to take precautionary measures to make sure that the customers are not harmed by the
products they sell

-Ensures right to safety

PRECAUTIONARY MEASURES

- Applied to the design, choice of tested materials, manufacturing process, quality control of the product

-Stops necessary to ensure the product leaving their factory is 100 percent accurate, undamaged, Safe and
sound and at least confirm with generally accepted standards

INFORMATION

- The company makes only those promotional literature or advertisement that not contain any deceptive
description, claims or illustration

- Price and purchase terms should made clear and completely indicated

- Making the consumers well informed

- Ensures fundamental right of consumers to be informed

Remember: Company must be sure it produces and sells only those product and services that are not harmful
to health, safety and growth of the consumers.

 What is the business social responsibility during transaction?

4 DUTIES TO CONSUMERS

 PRIMARY DUTY:

1.) The social duty to comply with the terms of the sales / sales contract.

-Manufacturers and their representatives must live up to the expressed claims they make about their
products and services.

-Business is duty bound to courteously deal and trade with cuatomers at all times and under all conditions.
*Customer Satisfaction- Buying public can claim the full attention of business during each and every
transaction.

 SECONDARY DUTIES:

2.) The social duty to fully disclose the nature of a product or service

-It involves "transparency" of the business

-It is part of the company's social responsibility to explain and demonstrate accurately and completely the
product or service offered.

-Price, credit Price, terms of payment, return rights, after-sale service and delivery must be disclosed.

-Labels must disclose the nature of a particular product and service.

3.) The social duty to avoid misrepresentation

-It is the company's social responsibility not to intentionally deceive the consumers.

-They should refrain from using any misleading, deceptive or unfair sales practices.

4.) The social responsibility to avoid coercion and undue influence

*COERCION- The practice of persuading someone to do something by using force and threats.

*UNDUE INFLUENCE- Influence by which a person is induced to act otherwise than by their own free
will or without adequate attention to the consequences.

-Business should not take advantage at the emotional state of the buying public.

- Buyers should be allowed to think twice or maybe thrice.

-Business should let customers exercise their right to choose and choose intelligently.

-It is part of corporate citizenship not to abuse the clients' trust.

 What is the business social responsibility after transaction?

-Business is still obligated to have an efficient feedback system in order to resolve complaints and to
compensate if needed.

 FEEDBACK SYSTEM
-It is preferred by almost every consumer that the maker is clear and specific in terms of warranty, details
and limitation of after-sales service.
- Companies can provide feedback system to address customers' complaints and do corrective actions

- A business " Performance Indicator"

 RESOLVING COMPLAINTS

-Every company has no choice but to patiently listen to all complaints regarding its product amd services.

-This can be in the form of hotlines and brigade of customer service operators to resolve complaints.

 COMPENSATORY JUSTICE

-Business is also obligated to assume the social responsibility when injuries happen due to defects in the
products.

-Consumer protection must be comprehensible in this context.

Chapter 21. Ethics in Advertising and Marketing

 ADVERTISING ETHICS

ETHICS - moral principles that govern a person's behavior or how the activity is conducted.

-right or wrong -good or bad

ADVERTISING - a mode of communication between a seller and a buyer Thus, ADVERTISING

ETHICS means a set of well defined principles which govern the ways of communication taking place
between the buyer and the seller. "What is right or good in the conduct of the advertising function? It
is concerned with questions of what ought to be done, not just with what legally must be done" -
Cunningham (1999)

 COMMERCIAL ADVERTISING

-is a span of television programming produced and paid by an organization. It conveys a message,
aimed to market product or service.
 -non-personal communication

-main purpose is to inform, persuade and influence the people to buy their products and services

-can encounter via television, social media sites like Facebook, Youtube, etc., cinema, radio,
billboards, newspaper, etc.

 ELEMENTS OF COMMERCIAL ADVERTISING

-nonpersonal communication and promotion -publicly addressed to mass audience -paid for by
some identified sponsor, usually by business organizations

-purpose is to unfluence the behavior of the buying public

-deliverd through a paid medium -communication is established through such media as newspapers,
radio, cinema, television, bimps, sports or fashion event, billboards, direct mail, electronic catalogue,
or via internet

 What is persuasive advertising?

Persuasive advertising aims to create a need for the product or service. It is directed to feelings and
the unconscious motivations of the customers, tends to be emotional. Advertisers refer this kind of
advertising as the “hard shell” or “subliminal ads”. This type of advertising seeks to bypass the
reflective and intelligent powers of the customers.

 How do we know whether the ad’s intention is to inform?

To briefly discuss the answer, there is an example of a competition in the mid-1980s where
Wendy’s distinguished itself in tv commercials during the so-called burger war with McDonald’s and
Burger King. The company won several awards for its “Where’s the beef?” campaign, which helped
Wendy’s register the highest consumer awareness levels in advertising history up until that time, and
easily raise its market share in the fastfood industry to about 10 percent in 1985.
Commercial advertising used by Wendy’s and its competitors and other industries, has been
described as a form of “information” and the advertiser as “one who supplies the information”. When
you hear the question “Where’s the beef?” the implication is that the principal function of advertising
is to provide more intelligent info to the consuming public.

 Do ads usually carry substantial information?

When you switch on the TV you would discover that more than half of all TV commercials do not
contain vital information whatsoever about the advertised product. Commercials do no usually
incorporate much substantial information about the product on sale for the reason that their first
function is not really to inform, but rather to persuade, create a need among the consumers, make them
believe that the product is the means to satisfy that need. In general, the basic function is to persuade
 more than to inform, such that whatever information commercial ads happen to convey is secondary to
this function.

 What are the ethical practices in persuasive advertising?

Ethics in advertising means a set of well-defined principles which governs the ways of
communication taking place between the seller and the buyer.

People in general believe that advertising stimulates socioeconomic growth. They insist that
persuasive commercials are amoral, and nothing is unethical about them. But, there are also people who
think that advertising borders the unethical and socially irresponsible and can become a form of
economic sabotage.

As we have said earlier, "hard sell" or persuasive advertising appeals more to the emotions, that
it pushes the consumers to be more impulsive when buying. "Advertising not only moves products but
changes attitudes and habits, creates appetites, stimulates needs, and affects the lives of entire societies"
- Hechanova, former Secretary of Finance (cited in Maximiano, 2001)

8 Principles and Practices for Advertising

Principle 1 – Advertising, public relations, marketing communications, news, and editorial all share
a common objective of truth and high ethical standards in serving the public.

Principle 2 – Advertising, public relations, and all marketing communications professionals have
an obligation to exercise the highest personal ethics in the creation and dissemination of commercial
information to consumers.

Principle 3 – Advertisers should clearly distinguish advertising, public relations and corporate
communications from news and editorial content and entertainment, both online and offline. As we
continue to blur the line between commercial communications and editorial content, consumers are
increasingly being misled and treated unethically. To avoid consumer confusion and mistrust, the
industry must strive to clearly separate paid advertising from actual news

Principle 4 – Advertisers should clearly disclose all material conditions, such as payment or receipt
of a free product, affecting endorsements in social and traditional channels, as well as the identity of
endorsers, all in the interest of full disclosure and transparency. The popularity of social media and
word-of-mouth marketing raises questions about the credibility of content. Advertisers must be
transparent about whether bloggers are expressing their own opinions or are being compensated by a
brand. There must also be full disclosure regarding the authenticity of comments on Facebook, Twitter
and other social media platforms

Principle 5 – Advertisers should treat consumers fairly based on the nature of the audience to whom
the ads are directed and the nature of the product or service advertised. Extra care must be used when
advertising to children and other vulnerable audiences to avoid misleading or mistreating them.
Advertisers should also use discretion based on the nature of the product or service, especially alcohol
and prescription drugs.
 Principle 6 – Advertisers should never compromise consumers’ personal privacy in marketing
communications, and their choices as to whether to participate in providing their information should be
transparent and easily made. As marketers develop increasingly advanced means of online behavioral
targeting, consumers worry about their privacy.

Principle 7 – Advertisers should follow federal, state and local advertising laws, and cooperate with
industry self-regulatory programs for the resolution of advertising practices. The Federal Trade
Commission, Better Business Bureau and Food & Drug Administration are just a few of the regulatory
bodies that advertisers can look to for guidance regarding ethical practices.

Principle 8 – Advertisers and their agencies, and online and offline media, should discuss privately
potential ethical concerns, and members of the team creating ads should be given permission to express
internally their ethical concerns.

 Is it unethical to play upon the human weaknesses and vulnerabilities?

They base their arguments on several instances when persuasive advertising becomes unethical
and business disregards corporate responsibility towards society. When, for instance, it encourages
women, usually housewives, to be less reflective and more impulsive in buying specific brand of basic
necessities like food and clothing, or when commercials play upon our hidden weaknesses and frailties
such as our anxieties, aggressive feelings, dread of nonconformity and infantile hang-overs in order to
sell products.

"Philippine advertising may be producing adverse effect by misdirecting national resources

required for production into unnecessary consumption or, by creating a preference for foreign brands,
may be developing foreign instead of local industries and enterprises to the detriment of Filipino
entrepreneurs, when it could be playing a more positive and constructive role as an educational vehicle
for promoting farm management, banking habits, investment in government bonds, and so forth"
(SixtoRoxas, 2001)

 When do infomercials become untruthful?

An infomercial is a form of advertisement which is aimed at educating the customer about a product
or a series of products via television in the form of a program. Infomercial typically lasts longer than a
regular advertisement and thus is more detailed.

The fundamental truth often be violated in a number of hidden and subtle ways (Pontifical Council
for Social Communications, 1997). (1) is through false statements or misleading exaggerations and (2)
Indirect misrepresentation of a product or service by intentionally distorting some details is a defilement
of the truth making an informative and a deceptive advertising. Needless to say, CSR and corporate
citizenship are on the side of truth and fairness.

https://www.warc.com/newsandopinion/news/how_emotional_and_informational_ads_perform_i
n_print/41303

https://www.thedrum.com/news/2018/10/31/android-toddler-apps-rapped-over-distracting-and-
persuasive-ads
 https://www.mdgadvertising.com/marketing-insights/eight-principles-of-advertising-ethics/

 ARE THERE HALF TRUTHS?

- There are no half-truths and no gray areas. If information is not true, it is false, hence false
advertising is dishonesty, plain lying or cheating, and social irresponsible. Advertising is indeed a form
of informative communication and it can either be as truthful or deceptive as any other forms of
communication.

 WHAT ARE INSTANCES WHEN INFOMERCIALS BECOM SOCIALLY

IRRESPONSIBLE?

- Advertisers should know that their ads must be readily perceptible as commercial announcements.
It is socially responsible to create any misimpression that their print commercials are news, editorial
items, or public service announcements.

- All contenders claim that they are "No.1" with respect to their products and services. The claim
being No. 1 must be objectively verifiable and be substantiated. Substantiation for a "No. 1" sales claim
must confirm that the claimant is leasing in both (1) physical units sold and (2) in the resulting peso
volume on an accumulative basis, and the claim shall cover at least the immediately preceding 12-
month period.

 USING LOOK-ALIKE MODEL MAY BE DECEIVING. WHY?

- Testimonial claims can only be genuine and truthful, and should be categorically stated as the
personal experience or opinion of the endorser. There was a case of former US First Lady Jacqueline
Onassis who sued Christian Dior for violating her privacy and reprimanded Dior for dishonesty and
untruthfulness after showing a model looking like Ms. Onassis using its product. Justice Greenfield has
ruled: "No one has an inherent constitutional right to pass himself off for what he is not."

 Are obscene and disparaging ads morally acceptable?

There is no doubt that advertisements play a pertinent role in the success of a product and it requires
social responsibility, but it is undeniable that there’s a substantial percentageof businesses that do not adhere
to any kind of social accountability. Obscene and disparaging advertisements are seriously considered as
unethical and a deficiency in social responsibility of some unscrupulous businesses.

Obscene ads are defective kind of advertising that are offensive by the accepted standard of
decency and morality, these includes profanity, obscenity and vulgarity. Indecent exposure of the human
body shall not be allowed. Some exposure of the human body may be allowed in advertisements when it is
relevant to the product or service being advertised, the situation being portrayed or the audience being
addressed. However, suggestive portrayals shall not be allowed. Advertisements should not depict or
exploit persons as sex objects and should not carry any sexual double entendres.
 Disparaging ads are advertisements that are used to directly or indirectly criticize or any individual
or group on the basis of gender, social class, religion, race or nationality.Advertisements should not directly
or indirectly disparage, ridicule or unfairly attack competitors or non-competitors, competing or non-
competing products or services, including distinguishing features of their advertising campaigns such as
specific layout, copy, slogan, visual presentation, music/jingle or sound effects.

 Is it ethical to declare that smoking and drinking are essential to social acceptance?

It is deceitful to say that smoking and drinking is essential to social acceptance, that drinking or
smoking symbolizes adulthood or refraining from these is a sign of weakness. It is not rare to see this sort
of irresponsibility on ads. It should also be acknowledged that young people (under legal age) are inevitably
exposed to these advertisements even if cigarette and liquor industry does not condone promotion of their
products to them

Advertising Board of the Philippines (AdBoard) - Code of Ethics in Advertising

Section13. Alcoholic Beverages

1. Advertisements should not state that drinking is essential to social success or acceptance that drinking is
a genuine symbol of masculinity or that refraining from drinking is a sign of weakness.

2. Advertisements for alcoholic beverages should not depict the act of drinking such as the liquid entering
the mouth and/or being swallowed, explicitly or implicitly.

3. Advertisements should not feature or promote excessive drinking.

4. Advertisements should not claim that drinking brings about therapeutic, sedative, tranquilizing or
stimulating effects or that drinking enhances sexual prowess or appeal.

5. Advertisements for local beverages may not be aimed at or directed to minors as the target audience.
Specifically models and talents who are minors and those who portray authority figures or roles meant to
appeal specifically to minors (e.g., folk or comic book heroes, war/national heroes, law enforcers) may not
appear in such advertisements.

6. Advertisements should not in any manner represent or imply that drinking and driving are safe
compatible activities.

7. Alcoholic beverage advertisements should carry the device “DRINK MODERATELY”

8. “Drink moderately” in all television advertisements should be shown/flashed in a separate frame with no
other copy or visual at the end of a material.

Section 14. Cigarettes And Tobacco Products

1. Advertisements should not suggest that smoking is essential to social success or acceptance, that smoking
is a genuine symbol of adulthood or that refraining from smoking is a sign of weakness.

2. Advertisements shall not claim directly or indirectly that smoking is necessary for work and relaxation.

3. Cigarette and tobacco product advertisements should not depict the act of puffing, inhaling or exhaling
smoke or having a lit cigarette in the mouth. Radio advertisements shall not depict, by use of sound effects,
the pleasure and attraction of smoking.

4. Cigarette/Tobacco advertisements should not feature or promote excessive smoking. Neither shall
advertisements seek to encourage non-smokers to smoke, or exaggerate the attraction of smokers or
otherwise seek to persuade people to start smoking.

5. Advertisements should not suggest that smoking bring about therapeutic, sedative, tranquilizing or
stimulating effects or that smoking enhances sex appeal. Advertisements shall not claim directly or
indirectly any health advantage of one cigarette brand over other brands.

6. All cigarette advertisements should carry, at the end, the statement, “GOVERNMENT WARNING:
CIGARETTE SMOKING IS DANGEROUS TO YOUR HEALTH

7. Advertisements for cigarettes and tobacco products will not be aimed at or directed to minors as the target
audience.

8. Advertisements shall not exploit the youth younger than 18 years of age who are especially vulnerable,
whether on account of their youth or immaturity, or as a result of any physical, mental or social handicap
in any form of cigarette advertising.

9. Models and talents who are minors or appear to be minors and those who portray authority figures or
roles meant to appeal especially to minors (e.g., folk or comic book heroes, war/national heroes, law
enforcers) will not appear in such advertisements.

10. No advertisements on cigarettes shall appear in any children’s programs, or in children’s magazines, or
publications directed specifically to children and minors.

11. Cigarette advertising in television should not be aired in programs whose audiences are predominantly
below eighteen (18) years of age.

 How does unethical advertising assault human dignity?

Unethical advertising can violate human dignity through content and its impact to the audience.
This kind of advertising appeals to lust, vanity, envy, and greed. It seeks to misrepresent or distort message
that is being transmitted to fit their agenda through unacceptable imagery and by the use of subversive
techniques that manipulate and exploit human weakness.

 When did the biggest advertising profit happen in history?

 Persian Gulf Warwas a heavily televised war, when US television networks began covering it in
1991; they preempted normal programming and ran very few commercials. Some advertisers halted
advertising during the crisis. Networks lost millions of dollars in advertising revenues.

It was Cable News Network (CNN) which gained the most popularity for their coverage, because
they did not do what the majority of networks were doing. They were able to raise its 30-second spot rates
from about $4000 to $20000 and indeed its wartime coverage is often cited as one of the landmark events
in the development of the network.

 What is good advertising according to PANA?

According to Philippine Institute of National Advertisers (PANA), good advertising recognizes

both economic and social responsibility, it practices public confidence in advertising goods and services,
and the belief that interests of consumers should be the primary concern of advertisers. Good advertising
aims to inform the consumers and help them buy intelligently by telling the truth, conforming to the law
and to the generally accepted standard of morality and decency.Good advertising does not allow any activity
which involves the exploitation of the goodwill attached to any firm and disparagement of competition is
discouraged.

PANA has formulated "A Statement of Advertising Principles" in the form of a Code of Ethics, which runs
as follows:

GOOD ADVERTISING recognizes both its economic and social responsibility to help reduce distribution
costs and to serve the public interest.

GOOD ADVERTISING depends for its success on public confidence. Hence, it cannot permit those
practices that tend to impair such confidence.

GOOD ADVERTISING aims to inform the consumer and help him buy intelligently.

GOOD ADVERTISING tells the truth. It is accurate, honest and trustworthy. It avoids exaggerations,
misstatement of facts, as well as possible deception through implication or omission.

GOOD ADVERTISING conforms not only to the law but to the generally accepted standards of good taste
and decency and to the moral and aesthetic sentiments of the country. It avoids any practice or statement
which may be offensive to the public as a whole or to any particular group, class or race.

GOOD ADVERTISING seeks public acceptance on the basis of positive and constructive statements made
on the merits of the product or service advertised, rather than by disparagement of competition.

GOOD ADVERTISING does not allow any activity which involves the exploitation of the goodwill
attached to any other firm, product or service. It does not imitate or simulate trademarks, firm names,
packages, labels, and such advertising devices as illustrations and copy, layouts or slogans.
GOOD ADVERTISING helps to uphold the dignity of the individual and contributes to the building of a
civilized society.

http://jmbm.blogspot.com/2015/01/human-dignity-in-advertising-not.html

https://creativecadio.weebly.com/uploads/1/0/2/2/10226800/adboard_advertising_code_of_ethics__manu
al.pdf
 Group 2

SOCIAL RESPONSIBILITY TOWARDS THE CONSUMERS, END USERS, AND GENERAL

PUBLIC

Hate, Carl Jhervin M.

Dionido, Louell Loy E.

Reyes, Rey Vincent

Aurelio, Rhythm

Javier, Zamantha

Tagle, Reggie

Tamayo, Marife

Solivio, Janine E.

Victoriano, Reoselyn