Business Ethics & Corporate

Governance
"Advertising is a non-moral force, like electricity,
which not only illuminates but electrocutes. Its
worth to civilization depends upon how it is
used."

Ethics in Advertising
Industry

.Introduction “Advertising is the non-personal communication of information usually paid for and usually persuasive in nature about products. services or ideas by identified sponsors through the various media.” Ethics: Moral principles and values that govern the actions of and individual or group individual group.

By 2017. (toi mar 2013) .200 crores .000 crores with both print and TV having a share of 38-40% each.Advertising industry at a glance  The size of the advertising industry in India is estimated to be Rs 36.  Print media continues to account for a larger share at 44. Digital advertising is estimated to post a robust 32. it is estimated that the size of the Indian advertising industry would be Rs 63.7% followed by TV at 38.720 crores from the current level of Rs 2.1% growth to reach Rs 8. There are 140 million cable and satellite homes but the measured universe is 62 million households.2%.170 crores.

Ethics in Advertising  Ethical issues in Advertisement  Regulatory  Remedirs body's governing Advertisement against decptive ads .

2 Main Purposes Regulation .3 Main Areas   Purpose for advertising regulation  To protect competition  To protect consumers from economic or physical harm Regulations are concerned with  Deceptive or unfair content  How advertising is delivered  Protection of susceptible groups (kids.) .Regulation . etc.

e. kids). unhealthy habits  Does it make us more materialistic? 5) Controversy Condoms.ETHICAL ISSUES IN ADVERTISING 3 Ethical Issues: Advocacy  What 2) Accuracy  How  5 Controversial Issues: 1) Puffery does the advertising advocate? "Nothing beats a Bud” 2) Decency Sexual innuendo. alcohol. accurate is the advertising?violence Some of this depends on susceptibility of the audience (i.. seniors. dangerous overall effect? acts. fashion . 3) Acquisitiveness  What is the 3) Stereotyping Portrayals of housewives. racial groups 4) Children Violence.

Advertising Regulatory Bodies Around the World  Advertising Standards Council of India (ASCI)  Federal Trade Commission for United States  Advertising Standards Authority (ASA) for United Kingdom  Advertising Standards Authority ASA) for South Africa .

advertising 5) Patent Office Trademarks 6) Library of Congress Copyrights .Government Regulatory Bodies 1) FDA Packaging and labeling 2) FCC Broadcast advertising 3) Postal Service Magazines. direct mail 4) ATF Liquor labeling.

4 from Allied Professions like outdoor contractors. constituted as follows: . printers.4 from Advertisers . audio-visual producers/distributors. etc.4 from Media and . .4 from Advertising Agencies .ASCI Composition of ASCI The Council is managed by a Board of Governors consisting of 16 elected members. consumer researchers.

4 from Allied Professions like outdoor contractors.4 from Advertising Agencies .4 from Advertisers . etc. printers. consumer researchers.ASCI Composition of ASCI The Council is managed by a Board of Governors consisting of 16 elected members.4 from Media and . . audio-visual producers/distributors. constituted as follows: .

Objectives The objectives of ASCI are to make sure advertisers and advertisements are Truthful and Honest  Not offensive  Not hazardous to society  Fair with competitors  The Complaints the ASCI receives are handled by Consumer Complaints Council (CCC) .

consisting of eminent consumer activists. advertising agencies.ccc The ASCI’s Board of Governors set up a Consumer Complaints Council (CCC) to examine complaints received by the ASCI. The composition of the CCC is as follows:    9 from within the advertising industry representing advertisers. engineers.  12 from society at large. etc . doctors. media owners and allied professions. prominent journalists. educationists. lawyers.

advertising agencies. The composition of the CCC is as follows:    9 from within the advertising industry representing advertisers. lawyers. prominent journalists. educationists.  12 from society at large. engineers. doctors. consisting of eminent consumer activists.ccc The ASCI’s Board of Governors set up a Consumer Complaints Council (CCC) to examine complaints received by the ASCI. media owners and allied professions. etc .

Possible Remedies for Deceptive Ads: 1) Consent Decree FTC asks advertiser to stop. 4) Consumer Redress FTC mandates reimbursement. 2) Cease & Desist FTC gets court order to force advertiser to stop. . 3) Corrective Ads FTC mandates new ads to correct false perceptions.

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