Ethical and Economical Repercussions of False Advertisement Claims

Introduction

Modern advertising practices are progressing from the entrepreneurial and decision focus to that of social concern and hence, a more professional orientation. Advertising appears to be in a new phase of development, one emphasizing its contributions to the social system. From personal experience, I can say that advertising is becoming more conscious of ethical considerations and societal responsibilities. It is enriching its scientific and technical approaches to problem-solving with a humanistic thrust of social concern, social roles, and social values. I suppose that advertising management is turning some of its capabilities to problem-solving in the public sector. Some social problems it is approaching alone, others in partnership with the government.

Discussion section

Ethics in advertising

I suppose that such issues as truth in advertising, price-fixing, price discrimination, a variety of sales and merchandising tactics, incomplete marketing information, truth in lending, branding and labeling decisions, and implied product warranties. For me, ethics in advertising can be interpreted as fair human conduct in the light of moral values. Morality refers to the acceptance of and adherence to certain kinds of rules — moral rules — the standards approved by the culture or a large number or group of people, and that are, therefore, based on subjective judgments. Moral rules are those that define good, right, true or appropriate conduct among and within groups and things. That which is socially appropriate, fitting, accepted., at a point in time is moral. Morals, therefore, reflect ethical principles, prescribe what we should or ought to do, and change through time (Spence et al 2004). Ethics often has a negative connotation. First, it is perceived as limiting the actions of marketing executives, of preventing them from maximizing profits. Second, since executives act to make profits and the ethics of making profits are questioned by many, by definition executives are held to acting in an unethical manner. Third, there is the belief held by some, that businesses place people in positions whereby they find it difficult, or even impossible, to do what they feel is right. Marketing executives are placed in situations where they must compromise principles; is it ethical to do so? Compromise, while necessary, brings with it an ethical responsibility to change the circumstances that made compromise necessary to act ethically. I guess that a major ethical problem for marketing executives is the lack of ethical principles. Moral and ethical principles and generalizations are fine as abstract guides and rules, but executives encounter difficulties in trying to apply them to specific situations, to the challenges of handling concrete problems of moral perplexity. A code of relative marketing ethics or situation ethics, ethics applicable to particular sets of circumstances and reflecting the individuals involved in a decision, may govern certain decisions. Permanent, objective, ethical standards are not available. What was deemed ethical at the turn of the century need not be today, and today’s ethical decision may be tomorrow’s unethical solution (Spence et al 2004).

Cutting ethical corners

I suppose that there is no absolute, impersonal, or easy approach to many ethical questions in advertising. For me, cutting ethical corners is not acceptable because this policy misleads consumers and can damage their health and violate their human rights. I suppose that modern companies need a better understanding of individual and corporate responsibility in our modern industrialized society with its group actions and decisions and inextricable interrelationships. In instances involving deceptive or unsavory practices such as fraudulent advertising and misleading pricing practices, the ethical issues and kinds of actions that ought to be taken are clear. In other marketing instances, they are not. It has been suggested that the degree of detachment or the distance from a marketing problem affects the concern for ethical considerations. From my personal experience, I can say that retailers, since they deal directly with consumers, may be more involved in particular ethical dimensions of many decisions than are the manufacturers who made them but are somewhat removed from the actual situation. But this need not be the case, as frustrated consumers often find. Can or should American consumers feel comfortable, physically and psychologically, with a life of relative luxury while they are fully cognizant of the existence of poverty in the midst of plenty, of the occurrence of discrimination in a democratic society, of the feeling of hopelessness and despair among many in our expanding and increasingly productive economy, A fundamental value judgment about marketing and the quality of our lifestyle should not just consider absolutes, such as whether our marketing system has any weaknesses or undesirable aspects (Spence et al 2004)?

Let the buyer beware

On the other hand, the “let the buyer beware” concept is not acceptable in modern-day business because of false advertising and low-quality products presented on the market. I suppose that a company should recover all expenses and compensate for health risks. The objectives of socially responsible advertising include not only profit responsibilities to shareholders, but also high levels of employment, economic and technical progress, economic stability, community development, and improvement, improved living standards, and personal freedom. The problem is that some of them may conflict. There is no concrete standard or test of social responsibility or public welfare businessmen must define it for themselves. There is a gulf that has not been bridged conceptually between individual self-interest and social welfare, between the energizing impact of self-motivation and the damper of social welfare approaches. Similarly, products are considered in terms of primary function versus differentiation and secondary functions; rational action in terms of efficient matching with basic needs versus customers’ perception of their own self-interest; and information in terms of product functions as they fit basic needs versus data that appeal to emotional or psychological aspects of products. They are preoccupied with marketing statesmanship, public welfare, social goods, and social responsibilities. Just as there is a need for marketing executives to discharge a profit responsibility, so is there a need to discharge a social responsibility (Spence et al 2004). The two are intertwined. A major ingredient of social progress is economic progress, which accrues through such market-related activities as competition, innovation, research and development, the desire for achievement, and increasing investments. From my experience, I can say that the marketing manager’s responsibility is not only to the shareholders, nor is it only for profits; rather, it is a responsibility to a broader community of interest and the achievement of social goals as well. First, it constitutes the delivery of a standard of living, a most significant role in society. Second, it includes a social responsibility to those the company comes in contact with, and to the community at large. The influence of marketing transcends the strict sale of products and services. I suppose that since marketing has a profound effect on our culture, it should augment society and stimulate social progress. It must have standards of taste, conduct, and integrity that extend well beyond legal minimums-it must become more responsible and socially aware. Thus it appears that the social role of marketing will be sharpened by the increasing public concern for responsible business actions, by greater awareness of the social implications of management decisions, by rising social expectations, and by better educated, trained, and more socially concerned managers who perform marketing functions. Consumers undoubtedly have many justified complaints (Spence et al 2004).

Conclusion

The research shows that contemporary advertising is a product of a new economic and social climate, of a contemporary culture that demands a strong sense of social conscience, awareness, and commitment. He must accept the posture of stewardship — to create the greatest benefits not merely for himself or his company but for society. I suppose that such increased social perspicuity requires balanced claims of stockholders, employees, customers, and the public. There now exists a conscious recognition and entirely new concern about the impact of marketing on society that does not take issue with the ends of customer satisfaction, the profit focus, competition, and economic growth. Rather, its premise seems to be that the tasks of marketing and its concurrent responsibilities are much broader than purely economic concerns. The relative effectiveness of the marketing system in satisfying consumer wants and needs as compared with other economic systems, and the great freedom of buyer-seller relationships that it promotes, are often forgotten as attention is centered on an extremely small proportion of market transactions that involve intentional business abuse. Corporate profit should be based on ethical issues.

References

Spence, E., van Heekeren, B., Boylan, M. (2004). Advertising Ethics. Prentice Hall; illustrated edition.

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StudyCorgi. 2022. "Ethical and Economical Repercussions of False Advertisement Claims." January 2, 2022. https://studycorgi.com/ethical-and-economical-repercussions-of-false-advertisement-claims/.

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