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It is my great pleasure to take this opportunity to acknowledge the contribution of number of people who helped me in successful completing of this project. Firstly I would like to express my heartily gratitude and sincere thanks to Mr. Agarwal Sir for allowing me to do this project and gratefully acknowledge the contribution by him without his support and valuable suggestion this project could not be successful. I offer my heart self regards to Mrs Aradhana Albert for her continuous guidance, monitoring and informal discussion which become light for me in the entire duration of this project in overcoming the barrier and reaching this stage. Finally I am sincerely thankful to others who have directly or indirectly helped me in the completion of the project. (SHILPA JINDAL) 1|Page PREFACE The title of my project is ETHICAL ISSUES IN ADVERTISING. Advertising can be defined as any paid form of non personal presentation and promotion of ideas, goods or services through mass media such as newspapers, magazines, television or radio by an identified sponsor So basically advertising is a mass communications device through which companies promote or market their product to the consumer, and this enables them to make informed consumption decisions. As now a days advertisements have a very great impact on the consumer’s behavior; it plays very important role in our Indian economy directly or indirectly. so if it become unethical it leads our society in wrong direction. To overcome these problems certain ethical standards are set up by the government and I want to throw a light on this only. As it is a very wide field so here I am restricted to the electronic media only. We have to think about this unethical problem and this wrong presentation of business. So that we can give good ethics to our youngsters. 2|Page EXECUTIVE SUMMARY TITLE The title of the project is â€Å"ETHICAL ISSUES IN ADVERTISEMENT†. Advertising can be defined as any paid form of non personal presentation and promotion of ideas, goods or services through mass media such as newspapers, magazines, television or radio by an identified sponsor. INTRODUCTION Advertising plays an important part in our everyday lives as it enables us to choose between different ranges of products. These products are promoted through different types of advertisements and cater to all types of markets. On the other hand advertising is plagued with social and ethical issues as it results in over consumption and waste of resources. Advertising creates an environment where it abuses certain values and interests that are not universally agreed upon. For example in 2001 Yves Saint Laurent launched a fragrance called ‘Opium which featured a naked model. This stirred controversy and people found it offensive and sex was being used openly to promote a perfume. For a fashion magazine the advertisement was fine but for billboards it was inappropriate and some social groups found it morally and ethically wrong. Some times advertising draws mixed response from the public, while sometimes it becomes controversial. SCOPE AND OBJECTIVE OF STUDY Many advertisements are designed to generate increased consumption of those products and services through the creation and reinvention of the brand image†. For these purposes, advertisements sometimes embed their persuasive message with factual information. Every major medium is used to deliver these messages, including television, radio, cinema, magazines, newspapers, video games, the Internet, carrier bags and billboards. Advertising is often placed by an advertising agency on behalf of a company or other organization. 3|Page Advertising is a powerful communication force, highly visible and one of the most important tools of marketing communication that helps to sell products, services, ideas and images etc. Many believe that advertising reflects the need of the times. Whether one likes it or not, advertisements are everywhere. They are seen on the walls, on the back of buses, in play grounds, on the occasion of sports event, on roadsides, in the stores and even on aeroplanes. Advertisements are seen in newspapers, in magazines, on the television, on internet and are even heard on radio. The fact is that we are being bombarded with advertisements day in and day out from all imaginable media. The average consumer is exposed to a very large number of advertisements every day, particularly the urban and semi urban population. In spite of this, to the dismay and irritation of some and enjoyment of others, advertisement will continue to make their presence felt in our lives and influence our lives in many unsuspecting ways because of rapid changes in macro- environment and in our perception, impressions, feelings, attitudes and behaviour. It seems almost impossible to remain totally neutral and not take any notice of modern-day advertising. The most visible part of the advertising process is the advertisements that we see, read, or hear and praise or criticise. Many suitable adjectives are used to describe advertising, depending on how an individual is reacting, such as great, dynamic, alluring, fascinating, annoying, boring, intrusive, irritating and offensive, etc. METHODOLOGY For completing this project the required information or the raw data is gathered from the sources like websites , journals, magazines ,text books etc which is the most difficult task of this project making as it is the most time consuming process. but overall this topic is quite interesting to gain knowledge about the ethics in ads the controversial ads also. The purpose of taking this topic is that in the present scenario advertisement has a great impact on the consumer’s behavior so if it becomes unethical it will lead the society in the wrong direction. To overcome these problems certain ethical standards are set up by 4|Page the government or regulation bodies and i want to throw a light on this only. Ethics basically refers to what is right, good or consistent with virtue. Advertising generates complex ethical questions which have to be considered, as this mode of communication commits some highly controversial ethical acts which are damaging to the society as a whole. SUMMARY OF FINDINGS AND RECOMMENDATIONS Here I am restricted to the ethical issues of advertisement related to television media only as this subject has a very wide arena to be focused on. Her I just want to know that how much these set standards are successful in maintaining the dignity of the Indian’s beliefs and their feeling. 5|Page RESEARCH METHODOLOGY TITLE – Ethical Issues In Advertising Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service. Ethics refers to principles that define behavior as right, good and proper. Such principles do not always dictate a single moral course of action, but provide a means of evaluating and deciding among competing options. In the present scenario advertisement has a great impact on the consumer’s behavior so if it becomes unethical it will lead the society in the wrong direction. To overcome these problems certain ethical standards are set up by the government or regulation bodies. DURATION OF PROJECT This is a very long term project so we have been provided with a period of one month for the completion. To make it easy this period was bifurcated into various sections of making blue print, abstract, collecting primary data, secondary data, making preliminary report, secondary report and final report at the end which makes the whole process easy to attempt. OBJECTIVE Advertising plays an important part in our everyday lives as it enables us to choose between different ranges of products. These products are promoted through different types of advertisements and cater to all types of markets. On the other hand advertising is 6|Page plagued with social and ethical issues as it results in over consumption and waste of resources. ‘Advertising creates an environment where it abuses certain values and interests that are not universally agreed upon. Advertisements as Mirrors of prevailing norms Marketers claim that advertising simply mirrors the attitudes and values of the surrounding culture. No doubt advertising, like the media of social communications in general, does act as a mirror. But, also like media in general. It is a mirror that helps shape the reality it reflects, and sometimes it presents a distorted image of reality. Advertisers are selective about the values and attitudes to be fostered and encouraged, promoting some while ignoring others The purpose of taking this topic is that in the present scenario advertisement has a great impact on the consumer’s behavior so if it becomes unethical it will lead the society in the wrong direction. To overcome these problems certain ethical standards are set up by the government or regulation bodies and I want to throw a light on this only. I can differentiate my objectives for taking this topic as follows: †¢ To know the various ethical marketing strategies of the market leaders. †¢ To know how can we make a ethical advertisement. †¢ To know the impact of unethical advertisement on the society. †¢ To enhance my marketing skills. †¢ To know the role of advertisement in the success of any organization. TYPE OF RESEARCH As I took the data from magazines , books, internet links , journals and news papers. It is research of descriptive type. SCOPE OF STUDY Advertising is a powerful communication force, highly visible and one of the most important tools of marketing communication that helps to sell products, services, ideas and images etc. Many believe that advertising reflects the need of the times. Whether one likes it or not, advertisements are everywhere. They are seen on the walls, on the back of 7|Page buses, in play grounds, on the occasion of sports event, on roadsides, in the stores and even on aero planes. Advertisements are seen in newspapers, in magazines, on the television, on internet and are even heard on radio. Here I am focusing mainly on the media as a source of advertising. The fact is that we are being bombarded with advertisements day in and day out from all imaginable media. The average consumer is exposed to a very large number of advertisements everyday, particularly the urban and semi urban population. In spite of this, to the dismay and irritation of some and enjoyment of others, advertisement will continue to make their presence felt in our lives and influence our lives in many unsuspecting ways because of rapid changes in macro- environment and in our perception, impressions, feelings, attitudes and behaviors. It seems almost impossible to remain totally neutral and not take any notice of modern-day advertising. The most visible part of the advertising process is the advertisements that we see, read, or hear and praise or criticize. 8|Page CORE STUDY INTRODUCTION Advertising can be defined as any paid form of non personal presentation and promotion of ideas, goods or services through mass media such as newspapers, magazines, television or radio by an identified sponsor So basically advertising is a mass communications device through which companies promote or market their product to the consumer, and this enables them to make informed consumption decisions. Advertising is a powerful communication force, highly visible and one of the most important tools of marketing communication that helps to sell products, services, ideas and images etc. Many believe that advertising reflects the need of the times. Whether one likes it or not, advertisements are everywhere. They are seen on the walls, on the back of buses, in play grounds, on the occasion of sports event, on roadsides, in the stores and even on aeroplanes. Advertisements are seen in newspapers, in magazines, on the television, on internet and are even heard on radio. The fact is that we are being bombarded with advertisements day in and day out from all imaginable media. The average consumer is exposed to a very large number of advertisements everyday, particularly the urban and semi urban population. In spite of this, to the dismay and irritation of some and enjoyment of others, advertisement will continue to make their presence felt in our lives and influence our lives in many unsuspecting ways because of rapid changes in macro- environment and in our perception, impressions, feelings, attitudes and behaviour. It seems almost impossible to remain totally neutral and not take any notice of modern-day advertising. The most visible part of the advertising process is the advertisements that we see, read, or hear and praise or criticise. Many suitable 9|Page adjectives are used to describe advertising, depending on how an individual is reacting, such as great, dynamic, alluring, fascinating, annoying, boring, intrusive, irritating and offensive, etc. Advertising plays an important part in our everyday lives as it enables us to choose between different ranges of products. These products are promoted through different types of advertisements and cater to all types of markets. . Advertising enables producers to expand their markets and therefore take advantage of economies of scale to reduce unit production costs Many advertisements are designed to generate increased consumption of those products and services through the creation and reinvention of the brand image†. For these purposes, advertisements sometimes embed their persuasive message with factual information. Every major medium is used to deliver these messages, including television, radio, cinema, magazines, newspapers, video games, the Internet, carrier bags and billboards. Advertising is often placed by an advertising agency on behalf of a company or other organization. On the other hand advertising is plagued with social and ethical issues as it results in over consumption and waste of resources. ‘Ethics basically refers to what is right, good or consistent with virtue. Advertising generates complex ethical questions which have to be considered, as this mode of communication commits some highly controversial ethical acts which are damaging to the society as a whole. It promotes overselling, exploitation of vulnerable groups, vulgarity, offending the public, promoting socially harmful values or behavior and intrusion of privacy. Advertising creates an environment where it abuses certain values and interests that are not universally agreed upon. For example in 2001 Yves Saint Laurent launched a fragrance called ‘Opium which featured a naked model. This stirred controversy and people found it offensive and sex was being used openly to promote a perfume. For a fashion magazine the advertisement was fine but for billboards it was inappropriate and 10 | P a g e some social groups found it morally and ethically wrong. Some times advertising draws mixed response from the public, while sometimes it becomes controversial. NEED OF ADVERTISING Advertising is the promotion of a company’s products and services carried out primarily to drive sales of the products and services but also to build a brand identity and communicate changes or new product /services to the customers. Advertising has become an essential element of the corporate world and hence the companies allot a considerable amount of revenues as their advertising budget. There are several reasons for advertising some of which are as follows: †¢ Increasing the sales of the product/service †¢ Creating and maintaining a brand identity or brand image. †¢ Communicating a change in the existing product line. †¢ Introduction of a new product or service. †¢ Increasing the buzz-value of the brand or the company. Significance of Advertising Basically advertising creates wants but does not fulfill them, a person may see an advertisement for a product, it might be glossy and fancy and he might be attracted to buy the product. He might eventually buy it but it will not satisfy him it will just be a waste. It’s a short term material satisfaction which just drives the economy by over consumption of goods and services. It keeps the consumer in doubt about what to buy and in what quantities and this doubt in turn has ethical implications. Four reasons are attributed to the fugacious nature of the way advertising practices are being carried out in developing countries. 11 | P a g e 1. The role of Information and Communication technologies: As ICTs evolve so do marketing practices. If yesterday it was television that revolutionized the way advertisements could create a lasting impact on the consumer, then today the internet and phone text messages are doing just that. 2. The world today is an increasingly global village: Social and ethnic boundaries are fast falling in the wake of cable television and the like. 3. Rapid economic expansions in countries like China and India have meant that marketers have to quickly respond to the changing socio-economic scenarios. Millions of people have entered the middle class and millions more are poised to do so. For marketers, the consequences can be mind boggling-as incomes and spending powers rise, marketers have to respond to increasing demands from consumers. 4. Better and improved marketing research has meant that the entire populace is not seen in totality but rather as a congeries of different types of consumers. TYPES OF ADVERTISING There can be several branches of advertising. Mentioned below are the various categories or types of advertising. 12 | P a g e Celebrity Broadcast advertising Advertising Print OutdoorAdvertising Advertising TYPES OF Infomercials ADVERTISING Public Service Advertising Covert Advertising Surrogate Advertising 13 | P a g e 1. Print Advertising – Newspapers, Magazines, Brochures, and Fliers and less popular newspaper would cost far less than placing an advertisement in a popular newspaper The print media have always been a popular advertising medium. Advertising products via newspapers or magazines is a common practice. In addition to this, the print media also offers options like promotional brochures and fliers for advertising purposes. Often the newspapers and the magazines sell the advertising space according to the area occupied by the advertisement, the position of the advertisement (front page/middle page), as well as the readership of the publications. For instance an advertisement in a relatively new with a high readership. The price of print ads also depend on the supplement in which they appear, for example an advertisement in the glossy supplement costs way higher than that in the newspaper supplement which uses a mediocre quality paper. 2. Outdoor Advertising–Billboards, Kiosks, Tradeshows and Events 14 | P a g e Outdoor advertising is also a very popular form of advertising, which makes use of several tools and techniques to attract the customers outdoors. The most common examples of outdoor advertising are billboards, kiosks, and also several events and tradeshows organized by the company. The billboard advertising is very popular however has to be really terse and catchy in order to grab the attention of the passersby. The kiosks not only provide an easy outlet for the company products but also make for an effective advertising tool to promote the company’s products. Organizing several events or sponsoring them makes for an excellent advertising opportunity. The company can organize trade fairs, or even exhibitions for advertising their products. If not this, the company can organize several events that are closely associated with their field. For instance a company that manufactures sports utilities can sponsor a sports tournament to advertise its products. 3. Broadcast advertising – Television, Radio and the Internet The radio jingles have been very popular advertising media and have a large impact on the audience, which is evident in the fact that many people still remember and enjoy the popular radio jingles Broadcast advertising is a very popular advertising medium that constitutes of several 15 | P a g e branches like television, radio or the Internet. Television advertisements have been very popular ever since they have been introduced. The cost of television advertising often depends on the duration of the advertisement, the time of broadcast (prime time/peak time), and of course the popularity of the television channel on which the advertisement is going to be broadcasted. The radio might have lost its charm owing to the new age media however the radio remains to be the choice of small-scale advertisers. 4. Covert Advertising – Advertising in Movies Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels like movies, television shows or even sports. There is no commercial in the entertainment but the brand or the product is Subtly ( or sometimes evidently) showcased in the entertainment show. Some of the famous examples for this sort of advertising have to be the appearance of brand Nokia which is displayed on Tom Cruise’s phone in the movie Minority Report, or the use of Cadillac cars in the movie Matrix Reloaded. 16 | P a g e surrogate Common examples include of Fosters and Kingfisher beer help Indirectly brands, which are often seen Advertising to promote their brand with – the Advertising advertising. 5. Surrogate Surrogate advertising is prominently seen in cases where advertising a particular product is banned by law. Advertisement for products like cigarettes or alcohol which are injurious to heath are prohibited by law in several countries and hence these companies have to come up with several other products that might have the same advertising as an effective energy communication medium to convey AIDS, socially relevant messaged about like 17 | P a g e important matters and social welfare causes Causes integrity, – Advertising for Social political 6. Public Service Advertising conservation, bottles of the same brand. deforestation, illiteracy, poverty and people of the cigarettes or beer so on. ent or the summary of an interesting point. You can position the text box anywhere in the document. Use the Text Box Tools tab to change the formatting of the pull quote text box. ] brand name and indirectly remind Today public service advertising has been increasingly used in a non-commercial fashion in several countries across the world in order to promote various social causes. In USA, the radio and television stations are granted on the basis of a fixed amount of Public service advertisements aired by the channel. 7. Celebrity Advertising 18 | P a g e and the modern day consumer getting immune to the exaggerated claims made in a majority of advertisements, there exist a section of advertisers that Using celebrities for advertising involves signing up celebrities for advertising campaigns, which consist of all sorts of advertising including, television ads or even print advertisements. Although the audience is getting smarter and smarter still bank upon celebrities and their popularity for advertising their products. Infomercials There are two types of infomercials, described as long form and short form. Long form infomercials have a time length of 30 minutes. Short form infomercials are 30 seconds to 2 minutes long. Infomercials are also known as direct response television (DRTV) commercials or direct response marketing. The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. Infomercials describe, display, and 19 | P a g e often demonstrate products and their features, and commonly have testimonials from consumers and industry professionals. ETHICS 1. INTRODUCTION In this era of globalization multinational competition, ethical practices in business are assuming importance as relationships with various suppliers customers are shaped by ethical practices mutual trust. So, ethical decision taking assumes importance in today’s corporate world. 2. What Is Ethics? Ethics refers to principles that define behavior as right, good and proper. Such principles do not always dictate a single moral course of action, but provide a means of evaluating and deciding among competing options. The terms ethics and values are not interchangeable. Ethics is concerned with how a moral person should behave, whereas values are the inner judgments that determine how a person actually behaves. Values concern ethics when they pertain to beliefs about what is right and wrong. Most values, however, have nothing to do with ethics. For instance, the desire for health and wealth are values, but not ethical values. 3. The Importance of Universality Most people have convictions about what is right and wrong based on religious beliefs, cultural roots, family background, personal experiences, laws, organizational values, professional norms and political habits. These are not the best values to make ethical decisions by — not because they are unimportant, but because they are not universal. In 20 | P a g e contrast to consensus ethical values — such basics as trustworthiness, respect, responsibility, fairness, caring and citizenship — personal and professional beliefs vary over time, among cultures and among members of the same society. They are a source of continuous historical disagreement, even wars. There is nothing wrong with having strong personal and professional moral convictions about right and wrong, but unfortunately, some people are moral imperialists who seek to impose their personal moral judgments on others. The universal ethical value of respect for others dictates honoring the dignity and autonomy of each person and cautions against selfrighteousness in areas of legitimate controversy. 4. Why Be Ethical? People have lots of reasons for being ethical: †¢ There is inner benefit. Virtue is its own reward. †¢ There is personal advantage. It is prudent to be ethical. It’s good business. †¢ There is approval. Being ethical leads to self-esteem, the admiration of loved ones and the respect of peers. †¢ There is religion. Good behavior can please or help serve a deity. †¢ There is habit. Ethical actions can fit in with upbringing or training. There are obstacles to being ethical, which include: †¢ The ethics of self-interest When the motivation for ethical behavior is self-interest, decision-making is reduced to risk-reward calculations. If the risks from ethical behavior are high or the risks from unethical behavior are low and the reward is high moral principles succumb to expediency. †¢ This is not a small problem 21 | P a g e Many people cheat on exams, lie on resumes, and distort or falsify facts at work. The real test of our ethics is whether we are willing to do the right thing even when it is not in our self-interest. †¢ The pursuit of happiness It depends on how one defines happiness. Our values, what we prize and desire, determine what we think will make us happy. We are free to pursue material goals and physical sensations, but that alone rarely (if ever) leads to enduring happiness. It more often results in a lonely, disconnected, meaningless existence. The morally mature individual finds happiness in grander pursuits than money, status, sex and mood-altering substances. A deeper satisfaction lies in honoring universal ethical values, that is, values that people everywhere believe should inform behavior. That unity between principled belief and honorable behavior is the foundation for real happiness. †¢ Ethical Principle in Advertising All advertising should be legal, decent, honest and truthful. Every advertisement should be prepared with a due sense of social responsibility and should conform to the principles of fair competition, as generally accepted in business. No advertisement should be such as to impair public confidence in advertising. †¢ Decency Advertisements should not contain statements or visual presentations which offend prevailing standards of decency †¢ Honesty Advertisements should be so framed as not to abuse the trust of consumers or exploit their lack of experience or knowledge. †¢ Social Responsibility 22 | P a g e 1. Advertisements should not condone any form of discrimination, including that based upon race, national origin, religion, sex or age, nor should they in any way undermine human dignity. 2. Advertisements should not (without justifiable reason) play on fear. 3. Advertisements should not appear to condone or incite violence, or to encourage unlawful or reprehensible behavior. 4. Advertisements should not play on superstition. †¢ Truthful presentation Advertisements should not contain any statement or visual presentation which directly or by implication, omission, ambiguity or exaggerated claim is likely to mislead the consumer, in particular with regard to: 1. characteristics such as: nature, composition, method and date of manufacture, range of use, efficiency and performance, quantity, commercial or geographical origin or environmental impact; 2. the value of the product and the total price actually to be paid; 3. delivery, exchange, return, repair and maintenance; 4. terms of guarantee; 5. copyright and industrial property rights such as patents, trade marks, designs and models and trade names; 6. official recognition or approval, awards of medals, prizes and diplomas; 7. the extent of benefits for charitable causes. 8. Advertisements should not misuse research results or quotations from technical and scientific publications. Statistics should not be so presented as to exaggerate the validity of advertising claims. Scientific terms should not be used to falsely ascribe scientific validity to advertising claims. †¢ Comparisons 23 | P a g e Advertisements containing comparisons should be so designed that the comparison is not likely to mislead, and should comply with the principles of fair competition. Points of comparison should be based on facts that can be substantiated and should not be unfairly selected. †¢ Unassembled Merchandise When advertised merchandise requires partial or complete assembly by the purchaser, the advertising should disclose that fact, e. g. , unassembled, partial assembly required. †¢ Testimonials Advertisements should not contain or refer to any testimonial or endorsement unless it is genuine, verifiable, relevant and based on personal experience or knowledge. Testimonials or endorsements that have become obsolete or misleading through passage of time should not be used †¢ Portrayal or imitation of personal property Advertisements should not portray or refer to any persons, whether in a private or a public capacity, unless prior permission has been obtained; nor should advertisements without prior permission depict or refer to any persons property in a way likely to convey the impression of a personal endorsement. †¢ Exploitation of goodwill Advertisements should not make unjustifiable use of the name, initials, logo and/or trademarks of another firm, company or institution nor should advertisements in any way take undue advantage of another firm, person or institutions goodwill in its name, trade name or other intellectual property, nor should advertisements take advantage of the goodwill earned by other advertising campaigns. †¢ Imitation 24 | P a g e 1. Advertisements should not imitate the general layout, text, slogan, visual presentation, music and sound effects, etc. , of any other advertisements in a way that is likely to mislead or confuse the consumer. 2. Where advertisers have established distinctive advertising campaigns in one or more countries, other advertisers should not unduly imitate these campaigns in the other countries where the former may operate, thus preventing them from extending their campaigns within a reasonable period of time to such countries