Ethics Collated Slides

8/10/2019 Ethics Collated Slides

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Advertising & Marketing Ethics Assignment

Brenda Edmund Fiona Kuan Loong Yi Hui

G12

17 October 2014

Ethics & Social Responsibility


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Question 1 Part I

Should the law ban targetedadvertisement, especially in thecase of children?

Question 1 Question 2 Question 3


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What are Targeted Advertisements?

Advertisements that reach certain consumers

based on various traits such as demographics,psychographics, behavioral variables (such as

product purchase history), and other second-

order activities which serve as as proxy for these

traits.



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Clarification

Children: under 12 years old

Focus on Commercial Advertisements: a formof communication with the intention ofpromoting the sale of particular productattached to a brand.



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Recap on Irrational Persuasion


Irrational persuasion occurs when the

advertisement irrationally persuades by denyingindividuals their autonomy.

This is done through the exploitation of deep-seated emotions or sense perceptions.


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Arguments for Banning

Childrens cognitive abilities are poorer and

more susceptible to advertisersirrationalpersuasion.

Psychologists have found that children from 3-7years old gravitate towards toys that transform

themselves into something else.e.g. McDonaldshappy meals



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Macdonalds Video



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Arguments for Banning

Children tend to want products

regardless of their prices and suitability.

They will realize their wants by usingtheir pester power to make their

parents agree to buying the productfor them.



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Is Targeted Advertising Ethical basedon the Kantian Theory?


Maxim: Sellers can promote their products in any

way to children even if it distorts their choices .

Principle of Universality: inefficient allocation of resources.

Principle of Humanity:

o Children are treated as a means to an end.

o Impedes childrens autonomy and impairs their parentsrationality.

UNETHICAL


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Argument Against Banning


Advertisements provide information

about the product. They let the audience, who are children

in this case, know more about the

products in the market.


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Is Targeted Advertising then Ethicalbased on Rule Utilitarianism?


Rule: Sellers can have advertisements thatinform children about their products.

The rule can hold, as it promotes the efficientallocation of resources in society.

ETHICAL

However, do these advertisements really only giveinformation and not distort choices of the children?

No, there is often irrational persuasion in place to

entice the children.


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Our Stand

Advertisements targeted atchildren should be banned.


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Question 1 Part I

Should advertisements be allowed,

for example, in school premises andschool buses?



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What are the Types of Advertisements?

Commercial Advertisements-Children targeted thatirrationally persuade children.

Public Service Advertisementsthose that come witha message concerning public interest.



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Are the Advertisements Ethical basedon Rule Utilitarianism?

Maxim: Advertisements can be carried

out on platforms of educationalinstitutes.

Mills Relative Qualities:

o Children targeted commercial advertisements willgenerate a lower pleasure.

o public service advertisements that promote publicinterest will generate a higher pleasure.



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Are the Advertisements Ethical basedon Rule Utilitarianism?


Children TargetedAdvertisements

Public ServiceAdvertisements

Students Happy Happy

Parents Unhappy Happy

Sellers Happy Happy

Public Unhappy Happy


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Our Stand


Only Public Service Advertisements

should be allowed, in schoolpremises and on school buses.


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Question 1 Part II

Are there other categories in the

general population who should betreated separately in matters relatingto advertisements?



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What is it Meant by Treated Separately?


To be exceptionally careful when advertisementsappeal to these groups of people.

These groups are more vulnerable than thegeneral population.

Hence, sellers should reconsider if they want to

specially target these groups in theiradvertisements, and care has to be taken if theydecide to do so.eg elderly larger front size


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Which Groups should be Treated Separatelyfrom the General Population?


Elderlyo Eyesight disadvantage: Fine print

o Irrational persuasion specially to mattersregarding health and youthfulness

o Example: Commercials that suggest using a

product can make you younger


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Example of Elderly TargetedAdvertisements



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Which Groups should be Treated Separatelyfrom the General Population?


Addicts

Rational thinking ability impaired due toaddiction

Especially vulnerable to products that they areaddicted to as they could not resist temptation.

Loss of autonomy


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Example of Addict TargetedAdvertisements


Irrationally persuades alcoholaddicts that this beer willallow them to be as fast andpowerful as Liu Xiang.

This misleads them into

buying more alcohol whenthey are already addicted.


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Based on Kantian Theory, why mustthese groups be treated separately?

Maxim: Sellers can make use of

advertisements to take advantage of

consumers fear or irrational considerations.

Principle of Universality: the maxim cannot be universalised. If allsellers did this, the targeted customers will buy products they do notactually need, resulting in an inefficient allocation of resources.

Principle of Humanity: These people are have a more vulnerablemind. Their rationality is impaired when producers specifically tailoradvertisements to exploit their deep-seated emotions and wants.Buyers are treated as a means to an end to generate more profit.



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Our Stand

It is unethical to distort choices of these

groups of consumers. Sellers should be very careful if they want to

target them in advertisements, or choose tonot target these groups at all.

As it is hard to justify advertisement aretargeted at addicts, there should be a banon advertisement that promote addictiveproducts e.g cigarettes



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Question 2

Some 20 years ago, Volvo used TV and printadvertisements depicting a monster BearFoot

truck going over the roofs of various cars ofdifferent makes, with only the Volvo surviving.

Discuss and comment on the above case. In

particular, how ethical do you think Volvo was?Please give your reasons.


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Volvos Case Background

Case of Deceptive Advertising:

A monster truck rides atop the

roofs of the cars lined up itspath.

Only the Volvo car is leftstanding when a monster truckrolls over all the cars.

Illustrated the companysadvertising message of strengthand safety.



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What is Deceptive Advertising?

Deception occurs when a false belief,

which an advertisement either createsor takes advantage of, substantiallyinterferes with the ability of a person tomake rational consumer choices.



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When does Deceptive Advertising Occur?

Deceptive Advertisements can come in theform of:

False Statements

Propositions with figurative interpretations

Half-truths



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Volvo s Deceptive Advertising Modes

Untrue Statements

Half-truths



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Volvos Half-Truth

Volvo initially intended this advertisement to be adramatization of a similar stunt that occurred in Vermont.

This advertisement was then released without informing theconsumers that it is a re-make of the actual event itself.

The silence conducted here by Volvo in not stating thisadvertisement is a dramatic remake of the stunt amounts to

a half-truth. (Half-Truth)



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Volvos Irrational Persuasion

This advertisement creates fear in consumers with thegraphical image of crushed cars and promises to fulfil

certain human needs with the owning of a Volvo wagon.

The needs are:

Emotional Security:Volvo wagon not being crushed after a few run-overs

from Bear-Foot.

Ego-Gratification/Sense of Power:Volvo wagon withstanding the weight of Bear-Foot.



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Are Volvos Actions Ethical based on

the Kantian Theory?

Fails to inform consumer of the scene recreationand consumer led to believe that Volvo cars are

generally strong. Comparison of safety standards between car

models which is material to rational car buyers

purchase decision becomes flawed.

Fails Principle of Universality & Humanity


UNETHICAL


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Volvos Ethical Arguments

Volvo denies knowledge of

rigging.

Alterations to the cars were toenable the production crew toconduct the demonstration

safely and to allow Volvo towithstand the repeated runs ofthe monster truck.



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Maxim: Employers should ensure that workplace

conditions are safe for its employees and personnel

involved in its business dealings.

Principle of Universality: all employers should guaranteesafe working conditions as much as employees areobliged to protect employers interests.

Principle of Humanity: employer is treating employees asan ends by ensuring their safety.

Are Volvos Arguments Ethical based on

the Kantian Theory?



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Rebuttal to Volvos Arguments

Question of Universality

Customers are also stakeholders in thisbusiness dealing(advertisement).

Their comparison of safety standards betweencar models is taken for granted in exchange

for employees safety.


UNETHICAL


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Similar Cases in Advertising


Ice-Cream Mashed Potatoes

Similarity Appearance in the advertisement

Difference Melts easily underthe studio light in

the set of theadvertisement

Does not meltunder the studio

light or any otherconditions.


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Similar Cases in Advertising


Difference in whether it will melt in studio conditionsis not material to the rational consumers purchase

decision for an ice-cream. Rational consumers would expect it to melt after

some time under normal circumstances.

Therefore, modification will not affect his decision.

ETHICAL


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Question 3

There are many slimming services, hair re-growthand weight loss products being marketed inSingapore. Can you find a generally ethical

example, and another which you view to bemuch more unethical? Your examples should befor similar products/services.

Apart from general principles covered in your text,you may also like to use the guidelines stated inthe Singapore Code of Advertising Practice toassist you. Please justify your decision ascomprehensively as you can.


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Slimming CentresAre they Ethical?

Advertisements

Guarantee Claims

Pricing



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Slimming Advertisements



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Being plump is unfavourable in society as depicted by thewoman who had problems in her work and family due toher plump figure.

Implicit societal effect of manipulating a sense of worth andself-esteem based on your figure.


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Does this go against the SCAP?


Despite negative implications of this video, it is not inviolation of Singapore Code of Advertising Practices

(SCAP). It was a genuine experience of a customer who had

undergone LWM treatments.


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Is this Ethical based on RuleUtilitarianism?

Rule: Business can use advertisements to distortpeoples perception of their personal needs.


Stakeholders Reaction Reason

Current & potentialobese customers

Unhappy Decrease in self-esteem

Public Unhappy Perpetuate social stigma againstfat people

London WeightManagement

Happy Higher sales

UNETHICAL


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Is this Ethical based on the RuleUtilitarianism?

Rule: Sellers can use advertisements toprovide information that can help customers

make a rational purchasing decision.


Stakeholders Reaction Reason

Customer Happy Information on benefits in makinga rational purchase

Public Happy Information on benefits in makinga rational purchase

Slim Couture Happy Higher sales

ETHICAL


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The nice footage depicting the pretty ladyenjoying her treatments may lead to irrational

persuasion through exploiting sense perception,which is slightly unethical

Overall, it is ethical as the main focus and aim oftheir advertisement was to inform customers of

their treatment benefits

ETHICAL


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Guarantee Claims


Both brands claimto give 100%guaranteed results,or customers will

get their moneyback.


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Guarantee Claims Issue

The guarantee statements are vague half-truths.

Both firms do not qualify what they mean by results orexplain how much money they will return the client ifthere are no results achieved.

It may end up with a situation where the customer will beunable to get her money back despite a lack of

satisfactory or significant results.

Hence, there is an issue of deceptive advertising withhalf-truths here.



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Is this Ethical under the Kantian Theory?


Maxim: Retailers can leave out certaininformation or terms that can materially affect

consumers purchase choices.

Principle of Universality: the maxim cannot beuniversalised as consumers may purchase servicesthey do not need and it leads to an inefficientallocation of resources.

Principle of Humanity: Customers are treated as ameans to an end and these half-truths impair therationality of the customers.

UNETHICAL


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Guarantees give the impression that thetreatments will definitely work.



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The remedial action (money back) is not clearly

defined in the advertisement. Limitations to the results guaranteed are not stated

clearly either.

Guarantee claims do not go in line with the SCAP.



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Pricing


$28 for 10 slimmingtreatments.

3-piece fat-burningset as a free gift.

The original price isquoted to be $668.


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Transparent Pricing Issue

The $28 deal only covers the first few slimmingtreatments.

The cost of the rest of the subsequent treatmentsare not stated.

Tactic of Luring: to entice the customer with acheap initial deal, before selling a much higherpriced full package.



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Is this Ethical based on the Kantian Theory?

Maxim: To gain more business, retailers can discounttheir services initially and not disclose their subsequent

high charges to customers.

Principle of Universality: the maxim cannot beuniversalised as if all sellers did that, there will be a lack oftrust between buyers and sellers.

Principle of Humanity: Buyers interests in discounted itemsshould not be taken advantage of to treat them as ameans for profit rather than an end.


UNETHICAL


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i i i


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Did that go against the SCAP?

Although unethical, what LWM did was not againstthe SCAP.

The customer did get to enjoy the first 10 treatmentsat $28 in the end.


Q ti Q ti 2 Q ti 3


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Pricing

No discount gimmicks. Full treatment schedules are stated clearly.

Prices stated are to be paid upfront before customers start anytreatments.


Q ti 1 Q ti 2 Q ti 3


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Is the Pricing Ethical based on the

Kantian Theory?


Maxim: To gain more business, retailers candiscount their services initially and not disclosetheir subsequent high charges to customers.

Sellers are unethical for using discounts to lure customers asthe above maxim cannot be universalised.

Here, Slim Couture does not lure to gain more business.

Respects customers autonomy and rationality to decide ifthey want to purchase the package at the fixed price.

ETHICAL

Q ti 1 Q ti 2 Q ti 3


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Conclusion


is more ethical than


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THANK YOU

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