University of Cebu- Banilad

College of Business and Accountancy

Gov. Cuenco Avenue Banilad Cebu City

BA 423 – INTERNATIONAL BUSINESS

AND TRADE

CASE STUDY OF CULTURAL; NORMS,

FAIR AND LOVELY and ADVERTISING

by:

Anthony Mantuhac BS-Accountancy 2ND year

Presented to:

Ms. Amabella Grace N. Siaton, MBA

BA 423 Instructor

June 30, 2020

QUESTIONS:
(1) Evaluate the ethical problems linked to Fair and Lovely advertising and how it is
was affected by culture.
Typically, the ethical problems that linked to Flair and Lovely advertising that
affects its culture are the following: First, a recent research by electronic journal of
business ethics and organization studies has reveals that fairness cream sellers over state
product benefits. Second, Illiterate and poor segment of society actually buys their
product and misleading statements and also these creams play with customer emotion.
Third, it contains ingredients such as Steroids, bleaching agents, mercury, and many
harmful products. Also, Fair and Lovely advertisements is being exploited. But then
again, when an organization behaves ethically, customers develop more positive attitudes
about the firm, its products, and its services. When marketing practices depart from
standards that society considers acceptable, the marketing process becomes less efficient
sometimes it is even interrupted. Moreover, ethical abuses frequently lead to pressure
(social or government) for institutions to assume greater responsibility for their actions.
As a result, consumer interest groups, professionals, associations, and self-regulatory
groups exert considerable influence on marketing. There are issues regarding different
marketing practices but there should not any ethical issues in selling of products which
are mildly effective. Calls for social responsibility have also subjected marketing
practices to a wide range of federal and state regulations designed to either protect
consumer rights or to stimulate trade. These problems or circumstances that had faced by
or linked to Flair and Lovely advertising in which affects their culture.
Culture generally refers to patterns of human activity and the symbolic structures
that give such activities significance and importance. So, cultural norms and values are
very important because cultural norms are passed from one generation to another, it was
shared, sanctioned and integrated systems of beliefs and practices that characterize a
cultural whereas cultural values held standards of what is acceptable or not, important or
not, right or wrong, etc. in a community or society. But unfortunately, it is not ethical to
exploit any cultural norms or values through an advertisement. Advertisement is
important for marketing promotion but by exploiting any cultural norms and values, it
will not be accepted at all. So typically this is not ethical to show or use any kind of
advertisement which exploits cultural norms, values and other things to promote any
kinds of products. If any company does this kind of thing then they will be risk of any
legal action by any other people and that may also cause a very bad reputation for the
company for the future business.

(2) Recommend potential business strategies to overcome the problems or suggest

tips on how to confront these on the perspective of International business
practitioner.

Definitely, Fair and Lovely had faced a lot of challenges including its Social
responsibility and ethical problems that affects their cultural norms and values. That’s
why. My possible recommendation potential business strategies to overcome those
problems and circumstances to confront these on the perspective of International

2
Business Practitioners are the following: First, in the case of their cultural norms and
advertising , I do believe that selling a product that is only mildly effective is ethical
because some products such a beauty creams take differently depending on the person
and their skin. The Fair and Lovely case is a good example on how companies can extend
its market share through fixing a mistake. The company used advertising and marketing
practices that degraded the women’s figure. With a little research it is possible to
understand why this approach failure. Due to historical issue, India is one of the countries
where women are fighting harder than the Westerns to achieve a space in a marketplace,
as well as in society.
After all the changes made by the AIWA’S, the company changed its marketing
strategy, for another one related directly to the Indians women’s issues. For me, it was a
great twist because they changed the message sent in their ads, portraying a confident and
happy woman. A foundation was created and offering training, counseling and
scholarship for low-income women. Different sizes of the product were created, making
it available for the mass. In addition, entrepreneur training was available through the
Project of Shaki, giving women the possibility of making program fit from selling the
product. Therefore, to the practices already created by the company I would suggest, a
TV program where the average women would tell about their experiences with the
product. Moreover, I would develop a campaign exploring the different types of women,
demystifying the beauty stereotype reigned in India. Thus, we should respect our culture
on how we respect ourselves.