Sunteți pe pagina 1din 50

TERM PAPER

on

ETHICS IN ADVERTISEMENTS AND ITS IMPACT ON


INDIAN SOCIETY
by
Akshansh Kawatra
A3104612046
B.Com (Hons) Class of 2015
Under the Supervision of
Dr. Adarsh Arora
In Partial Fulfilment of the Requirements for the Degree of
B.Com (Hons)
at
AMITY COLLEGE OF COMMERCE AND FINANCE,
AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA
2013

DECLARATION

Title of Term Paper : Ethics in Advertisements and Its Impact on Indian Society
I declare
(a) That the work presented for assessment in this Term PaperReport is my own, that
it has not previously been presented for another assessment and that my debts (for
words, data, arguments and ideas) have been appropriately acknowledged
(b) That the work conforms to the guidelines for presentation and style set out in the
relevant documentation.

Date : 30th Sept 2013

Akshansh Kawatra
A3104612046
B.Com (H), Class of 2015

(ii)

(ii)

ACKNOWLEDGEMENT

I, Akshansh Kawatra, am highly obliged to my faculty guide Dr. Adarsh


Arora, who provided his guidance and assistance in spite of his busy
schedules. I acknowledge my cordial gratitude to my faculty guide for his
guidance and timely advice at every stage towards completion of the
project report. I would also like to express my thanks to all the
respondents for their cooperation as without them, the survey would not
have been possible. Finally, I wish to thank one and all who have
contributed, encouraged and inspired me to do this project.

Akshansh Kawatra

(iii)

CERTIFICATE

I Dr. Adarsh Arora hereby certify that Akshansh Kawatra student of B.Com
(Hons) at Amity College of Commerce and Finance, Amity University Uttar Pradesh
has completed the Term Paper Report on Ethics in Advertisements and Its Impact on
Indian Society, under my guidance.

Dr. Adarsh Arora


Professor
ACCF

(iv)

Table of Contents
CONTENTS

Page No.

Chapter 1: Rationale of the Topic

Reasons for choosing this topic

Chapter 2: Review of Literature


Chapter 3: Objective of the Study
Chapter 4: Introduction

Advertising: Meaning & Concept

Classification of Advertisement

Impact of Advertisement
Economic Impact
Social Impact
Psychological Impact
Impact of Advertisement on children

Ethics in Advertisement Sector

Ethical and Moral Principles

Chapter 5: Methodology

(iv)

Sample

Tools Used

Chapter 6: Interpretation and Analysis


Chapter 7: Findings
Chapter 8: Limitations
Chapter 9: Recommendations
Chapter 10: Conclusion
References
Annexure

(iv)

Rationale of the Topic for Study


Advertisements are made to influence the people. If the organization is able to make
an advertisement which is able to attract people the sale of product will definitely
increase. But for just increasing the sales of the products one should not forget some
moral principles. The image building of organization is also important. As
advertisements are affecting Indian people directly so I thought that I should conduct
a survey to know views of people regarding these advertisements.
I hope that I will be able to know their internal views. The need to add ethics in
advertising is essential as we have a duty to live a good moral life. Marketing
professionals also know that ethics brings good business. Unethical ads are often
found to have negative consequences, ranging from adverse publicity to consumer
boycotts, to diminished corporate reputation, and even legal sanctions. Conversely, an
ethical ad can contribute to a good corporate reputation, heighten morale and, thus,
increase repeat business. In this context, the media of social communications have
two options, and only two. Either they help human persons to grow in their
understanding and practice of what is true and good, or they are destructive forces in
conflict with human well being. That is entirely true of advertising. Against this
background, then, we point to this fundamental principle for people engaged in
advertising: advertisers that is, those who commission, prepare or disseminate
advertising are morally responsible for what they seek to move people to do; and
this is a responsibility also shared by publishers, broadcasting executives, and others
in the communications world, as well as by those who give commercial or political
endorsements, to the extent that they are involved in the advertising process.
This summary statement of the problem: "If harmful or utterly useless goods are
touted to the public, if false assertions are made about goods for sale, if less than
admirable human tendencies are exploited, those responsible for such advertising
harm society and forfeit their good name and credibility. More than this, unremitting
pressure to buy articles of luxury can arouse false wants that hurt both individuals and
families by making them ignore what they really need. And those forms of advertising
which, without shame, exploit the sexual instincts simply to make money or which

seek to penetrate into the subconscious recesses of the mind in a way that threatens
the freedom of the individual ... must be shunned.
Advertising also can have a corrupting influence upon culture and cultural values. We
have spoken of the economic harm that can be done to developing nations by
advertising that fosters consumerism and destructive patterns of consumption.
Consider also the cultural injury done to these nations and their peoples by advertising
whose content and methods, reflecting those prevalent in the first world, are at war
with sound traditional values in indigenous cultures. Today this kind of "domination
and manipulation" via media rightly is "a concern of developing nations in relation to
developed ones," as well as a "concern of minorities within particular nations.

REVIEW OF LITERATURE

There have been many well known authors who have earlier done research on this
topic. One of the researches was done by Dr. Geoffrey Klempner titled Advertising
Ethics: Indian Perspective. The article highlighted the pros and cons of advertising to
Indian consumers and this study was published in the year 2004.
Another study in the context of advertising ethics was done by Mr. Vijay Menon titled
Ethics in Advertising which was published in India Today on 15th Jan 1997. He
discussed certain unethical practices in the form of examples and how they proved to
be ineffective.
Some of the famous studies done by authors earlier, are as follows :

"Moral indictments" of advertising: It stimulates unworthy desires, misleads the


consumer, and encourages "consumptionism", By F.P.Bishop.

Persuasive advertising, however, poses a real problem since some of the


persuasive techniques used are intended to by-pass the intellect and reduce
rationality, and may, if successful, lead to improvident actions" by Garrett.

The past studies are the clear indicators of how time has evolved over the years in the
field of advertising and how much important role it plays in our lives today.
The past studies have focused on gaining insights about the companies pursuing
unethical practices for their profits. They stated some of the methods and techniques
that the companies adopt to persuade the customers to buy the products and how well
they have been successful in doing that. But at that point of time, customers were not
that educated and when the study was carried out by me, customers had much of the
knowledge and knew what companies are doing.

OBJECTIVES

(i) To understand the Meaning and Concept of Advertisements.


(ii) To define the various types of Advertisements.
(iii) To classify what effect Advertisements have on people.
(iv) To analyze the Ethical and Moral Principles of Advertisement.

Executive Summary

Men and women who professionally engaged in advertising do have high ethical
standards, sensitive consciences and strong sense of responsibility. But the external
pressures from the clients who commission their work as well as from the competitive
internal dynamics of their profession can create powerful inducements to unethical
behaviour.
That underlines the need for external systems and structures, to support and encourage
responsible practice in advertising and to discourage the malpractices. Voluntary
ethical codes are one such source of support which already exist in a number of
places. They are only effective to the willingness of advertisers to comply strictly.
Advertising is a very important element in today's society, especially in the
functioning of market economy, which is expanding. Advertising plays a constructive
role in the exchange of information and ideas, in economic growth and in the
fostering of solidarity among individuals and groups.
Advertising ethics affects the practice of business, and also our lives. Indeed,
advertising ethics concerns us all. For example, academicians, advertisers, ad agency
personnel, consumers, media personnel, , attorneys and regulators.

ADVERTISING: MEANING & CONCEPT

INTRODUCTION
The term advertising is derived originally from a Latin word Advert ere which
means to turn the attention. Advertising turns the attention of the reader or the
listeners or viewers towards a product or a service or an idea. Advertising is a form
of communication intended to promote the sale of a product or service to influence the
public opinion to gain political support or to advance a particular cause.
Advertising generally involves an element of cost, although it is also possible to do it
for free. Free advertising is easier to get with an online business than a traditional
offsite concern. However, generally, advertisers will pay broadcasting companies,
publishers or media to provide the advertising platform of a internet, newspaper,
television or radio.
Defining Advertising
American Marketing Association (AMA) in 1963, defines Advertisement as
Advertisement is a non personal presentation of idea, product or services by an
identified sponsor.
Concept of Advertising
1. Advertising consists of written and oral messages that are directed to a target
audience.
2. Advertising persuades the public to purchase a certain product or service.
3. Each advertisement is related to a certain advertiser who is selling the product
or service involved
4. Advertising requires the advertiser to pay the publisher in return for the
advertisement.
Advertising is any paid form or message that presents goods or services of a certain
advertiser or sponsor, and should present the product in such a way as to persuade the
reader or listener to purchase the product.

CLASSIFICATION OF ADVERTISEMENT

1. National Advertising: Manufacturers think that their target is, the whole market of
a country. They select media with a countryside base. Large and established firms
belong to this category. For example, Brooke Bond, L&T, Hindustan Unilever,
Escorts, Associated Cement Companies etc.
2. Local Advertising: Small firms may like to restrict their business to Regional or
State level. Some firms first localize their marketing efforts and once they achieve
success, they spread out to wider horizons. For example, Nirma washing powder,
which initially was sold only in Gujarat and subsequently entered the other markets.
Retail stores also undertake local advertising. The area to be covered would generally
be a town or a city and media would be selected which principally relates to that area.
If we discuss about the preceding years, several newspaper supplements have
appeared which focus on a particular city and are of direct relevance to its inhabitants
like the Bombay Times and Metro. Sometimes large firms may also go in for local
advertising, e.g., when they undertake pre-testing of a product especially consumer
products in selected areas before embarking promotional campaign on a national
level.
3. Global Advertising: Multinational firms treat the world as their market. Firms such
as National Sony or Ford advertise globally, in periodicals like Times, Readers Digest.

Target Group: It is on the basis of target groups aimed at it can further be divided
into sub category as:

a. Consumer Advertising
b. Industrial Advertising
c. Trade Advertising
d. Professional Adverting

a. Consumer Advertising: A substantial portion of total advertising is directed to the


buyers of consumer products who purchase
the products either for their own use or for their households. Buyers of consumer
products are large in number and are widely distributed over an area, this enhances the
importance of advertising as a marketing tool. Advertisements which are intended to
promote sale of the advertised products by appealing directly to the buyers/consumers
is called consumer advertising. It is also known as brand advertising, which focuses
on the development of a long-term brand image. White Star Line developed a brand
image of power, scientific wonder, and unparalleled luxury for Titanic.
b. Industrial Advertising:
Industrial advertising refers to the advertisements which are issued by the
manufacturers or distributors to buyers of industrial products. This category includes
machinery equipments, industrial intermediates, parts and components etc. Because of
the unique characteristics of industrial buying decision process, the importance of
industrial advertising is comparatively lower than that of consumer advertising.
c. Trade Advertising:
Advertisements, which are directed by the manufacturers to the distribution channel
members, such as retailers or wholesalers, are called Trade Advertising. The objective
of such advertising is to promote sales by motivating the distribution channel
members to stock more or to attract new retail outlets.
d. Professional Advertising:
There are certain products for which the consumers themselves are not responsible for
the buying choice. The classic examples are pharmaceuticals where the decision is
made by doctors while the consumers are the patient. Almost similar situation exists
in the field of construction where architects, contractors and civil engineers are the
decision-makers. Firms operating in such market segments,

have to direct their

advertising to these decision makers, who are professional people. Such advertising is
called professional advertising.
Public Relations Advertising (PRA)

Organizations these days are concerned with the type of image they project they have
to communicate or promote their objectives to the general public. Public relations
tries to build rapport with various constituents of public such as customers,
employees, vendors, shareholders, government and public at large. It helps to
maintain this relationship and build a good corporate image. It is done by both
business

and

non-business

organizations.

It

represents

management

and

communicates its policies, problems and performances to the public.


Purposes of PR Advertising
1. It projects a favourable image of the company.
2. It maintains relationship with the trade and suppliers.
3. It generates goodwill for the business.
4. It creates conducive climate for the investing public.
5. It takes up social causes for promotion such as- Female infanticide, Dowry, Cancer
Detection etc . It thus renders community service. It seeks public support for certain
causes.
6. It is concerned with customer service and customer relationship management

THE BENEFITS OF ADVERTISING


Enormous human and material resources are devoted to advertising. Advertising is
everywhere in today's world, so that, as Pope Paul VI remarked, "No one now can
escape the influence of advertising." Even people who are not themselves exposed to
particular forms of advertising confront a society, a culture other people affected for
good or ill by advertising messages and techniques of every sort.
Some critics view this state of affairs in unrelieved negative terms. They condemn
advertising as a waste of time, talent and money an essentially parasitic activity. In
this view, not only does advertising have no value of its own, but its influence is
entirely harmful and corrupting for individuals and society. We do not agree. There is
truth to the criticisms, and we shall make criticisms of our own. But advertising also
has significant potential for good, and sometimes it is realized. Here are some of the
ways that happens.
a) Economic Benefits of Advertising
Advertising can play an important role in the process by which an economic system
guided by moral norms and responsive to the common good contributes to human
development. It is a necessary part of the functioning of modern market economies,
which today either exist or are emerging in many parts of the world and which
provided they conform to moral standards based upon integral human development
and the common good currently seem to be "the most efficient instrument for
utilizing resources and effectively responding to needs" of a socio-economic kind.
b) Political Benefits of Advertising
"The Church values the democratic system inasmuch as it ensures the participation of
citizens in making political choices, guarantees to the governed the possibility both of
electing and holding accountable those who govern them, and of replacing them
through peaceful means when appropriate." Political advertising can make a
contribution to democracy analogous to its contribution to economic well being in a
market system guided by moral norms. As free and responsible media in a democratic
system help to counteract tendencies toward the monopolization of power on the part

10

of oligarchies and special interests, so political advertising can make its contribution
by informing people about the ideas and policy proposals of parties and candidates,
including new candidates not previously known to the public.
c) Cultural Benefits of Advertising
Because of the impact advertising has on media that depend on it for revenue,
advertisers have an opportunity to exert a positive influence on decisions about media
content. This they do by supporting material of excellent intellectual, aesthetic and
moral quality presented with the public interest in view, and particularly by
encouraging and making possible media presentations which are oriented to
minorities whose needs might otherwise go un served. Moreover, advertising can
itself contribute to the betterment of society by uplifting and inspiring people and
motivating them to act in ways that benefit themselves and others. Advertising can
brighten lives simply by being witty, tasteful and entertaining. Some advertisements
are instances of popular art, with a vivacity and lan all their own.
d) Moral and Religious Benefits of Advertising
In many cases, too, benevolent social institutions, including those of a religious
nature, use advertising to communicate their messages messages of faith, of
patriotism, of tolerance, compassion and neighborly service, of charity toward the
needy, messages concerning health and education, constructive and helpful messages
that educate and motivate people in a variety of beneficial ways.

THE HARMS DONE BY ADVERTISEMENT


There is nothing intrinsically good or intrinsically evil about advertising. It is a tool,
an instrument: it can be used well, and it can be used badly. If it can have, and
sometimes does have, beneficial results such as those just described, it also can, and
often does, have a negative, harmful impact on individuals and society. Communio et
Progressio contains this summary statement of the problem: "If harmful or utterly
useless goods are touted to the public, if false assertions are made about goods for

11

sale, if less than admirable human tendencies are exploited, those responsible for such
advertising harm society and forfeit their good name and credibility. More than this,
unremitting pressure to buy articles of luxury can arouse false wants that hurt both
individuals and families by making them ignore what they really need. And those
forms of advertising which, without shame, exploit the sexual instincts simply to
make money or which seek to penetrate into the subconscious recesses of the mind in
a way that threatens the freedom of the individual ... must be shunned."
a) Economic Harms of Advertising
Advertising can betray its role as a source of information by misrepresentation and by
withholding relevant facts. Sometimes, too, the information function of media can be
subverted by advertisers' pressure upon publications or programs not to treat of
questions that might prove embarrassing or inconvenient. More often, though,
advertising is used not simply to inform but to persuade and motivate to convince
people to act in certain ways: buy certain products or services, patronize certain
institutions, and the like. This is where particular abuses can occur.
The practice of "brand"-related advertising can raise serious problems. Often there are
only negligible differences among similar products of different brands, and
advertising may attempt to move people to act on the basis of irrational motives
("brand loyalty," status, fashion, "sex appeal," etc.) instead of presenting differences
in product quality and price as bases for rational choice. Advertising also can be, and
often is, a tool of the "phenomenon of consumerism," as Pope John Paul II delineated
it when he said: "It is not wrong to want to live better; what is wrong is a style of life
which is presumed to be better when it is directed toward? having' rather than ?being',
and which wants to have more, not in order to be more but in order to spend life in
enjoyment as an end in itself."14 Sometimes advertisers speak of it as part of their
task to "create" needs for products and services that is, to cause people to feel and
act upon cravings for items and services they do not need. "If ... a direct appeal is
made to his instincts while ignoring in various ways the reality of the person as
intelligent and free then consumer attitudes and life-styles can be created which are
objectively improper and often damaging to his physical and spiritual health."

12

This is a serious abuse, an affront to human dignity and the common good when it
occurs in affluent societies. But the abuse is still more grave when consumerist
attitudes and values are transmitted by communications media and advertising to
developing countries, where they exacerbate socio-economic problems and harm the
poor. "It is true that a judicious use of advertising can stimulate developing countries
to improve their standard of living. But serious harm can be done them if advertising
and commercial pressure become so irresponsible that communities seeking to rise
from poverty to a reasonable standard of living are persuaded to seek this progress by
satisfying wants that have been artificially created. The result of this is that they waste
their resources and neglect their real needs, and genuine development falls behind."
Similarly, the task of countries attempting to develop types of market economies that
serve human needs and interests after decades under centralized, state-controlled
systems is made more difficult by advertising that promotes consumerist attitudes and
values offensive to human dignity and the common good. The problem is particularly
acute when, as often happens, the dignity and welfare of society's poorer and weaker
members are at stake. It is necessary always to bear in mind that there are "goods
which by their very nature cannot and must not be bought or sold" and to avoid "an
idolatry' of the market" that, aided and abetted by advertising, ignores this crucial fact.
b) Political Harms of Advertising
Political advertising can support and assist the working of the democratic process, but
it also can obstruct it. This happens when, for example, the costs of advertising limit
political competition to wealthy candidates or groups, or require that office-seekers
compromise their integrity and independence by over-dependence on special interests
for funds. Such obstruction of the democratic process also happens when, instead of
being a vehicle for honest expositions of candidates' views and records, political
advertising seeks to distort the views and records of opponents and unjustly attacks
their reputations. It happens when advertising appeals more to people's emotions and
base instincts to selfishness, bias and hostility toward others, to racial and ethnic
prejudice and the like rather than to a reasoned sense of justice and the good of all.
c) Cultural Harms of Advertising

13

Advertising also can have a corrupting influence upon culture and cultural values. We
have spoken of the economic harm that can be done to developing nations by
advertising that fosters consumerism and destructive patterns of consumption.
Consider also the cultural injury done to these nations and their peoples by advertising
whose content and methods, reflecting those prevalent in the first world, are at war
with sound traditional values in indigenous cultures. Today this kind of "domination
and manipulation" via media rightly is "a concern of developing nations in relation to
developed ones," as well as a "concern of minorities within particular nations."
The indirect but powerful influence exerted by advertising upon the media of social
communications that depend on revenues from this source points to another sort of
cultural concern. In the competition to attract ever larger audiences and deliver them
to advertisers, communicators can find themselves tempted in fact pressured,
subtly or not so subtly to set aside high artistic and moral standards and lapse into
superficiality, tawdriness and moral squalor.
Communicators also can find themselves tempted to ignore the educational and social
needs of certain segments of the audience the very young, the very old, the poor
who do not match the demographic patterns (age, education, income, habits of buying
and consuming, etc.) of the kinds of audiences advertisers want to reach. In this way
the tone and indeed the level of moral responsibility of the communications media in
general are lowered.
All too often, advertising contributes to the invidious stereotyping of particular groups
that places them at a disadvantage in relation to others. This often is true of the way
advertising treats women; and the exploitation of women, both in and by advertising,
is a frequent, deplorable abuse. "How often are they treated not as persons with an
inviolable dignity but as objects whose purpose is to satisfy others' appetite for
pleasure or for power? How often the role of woman as wife and mother is
undervalued or even ridiculed? How often is the role of women in business or
professional life depicted as a masculine caricature, a denial of the specific gifts of
feminine insight, compassion, and understanding, which so greatly contribute to the ?
civilization of love'?"

14

d) Moral and Religious Harms of Advertising


Advertising can be tasteful and in conformity with high moral standards, and
occasionally even morally uplifting, but it also can be vulgar and morally degrading.
Frequently it deliberately appeals to such motives as envy, status seeking and lust.
Today, too, some advertisers consciously seek to shock and titillate by exploiting
content of a morbid, perverse, pornographic nature.
What this Pontifical Council said several years ago about pornography and violence in
the media is no less true of certain forms of advertising:
"As reflections of the dark side of human nature marred by sin, pornography and the
exaltation of violence are age-old realities of the human condition. In the past quarter
century, however, they have taken on new dimensions and have become serious social
problems. At a time of widespread and unfortunate confusion about moral norms, the
communications media have made pornography and violence accessible to a vastly
expanded audience, including young people and even children, and a problem which
at one time was confined mainly to wealthy countries has now begun, via the
communications media, to corrupt moral values in developing nations."
We note, too, certain special problems relating to advertising that treats of religion or
pertains to specific issues with a moral dimension.
In cases of the first sort, commercial advertisers sometimes include religious themes
or use religious images or personages to sell products. It is possible to do this in
tasteful, acceptable ways, but the practice is obnoxious and offensive when it involves
exploiting religion or treating it flippantly.
In cases of the second sort, advertising sometimes is used to promote products and
inculcate attitudes and forms of behavior contrary to moral norms. That is the case,
for instance, with the advertising of contraceptives, abortifacients and products

15

harmful to health, and with government-sponsored advertising campaigns for artificial


birth control, so-called "safe sex", and similar practices.

ECONOMIC IMPACT OF ADVERTISEMENT


In recent times, the word 'Advertising' has become a fiercely mooted topic.
Advertising has positive as well as negative, social and economic impacts on our
society. Considering advertising as a public welfare is a positive social impact
whereas exposing women as a sex tool comes at the negative side. As far as economic
factors are concerned, funding for the media and stimulating an active and
competitive economy, are the major examples.
Assorted techniques are enforced for persuading consumers that they want the product
which is being advertised. These techniques usually give attention to the benefits that
would be brought to the consumers rather than focusing on the actual products. For
instance, an automobile advertisement adverting the mechanical attributes of a
vehicle, most likely concentrates the exhilaration, reputation and social progression it
may bring to the buyer. This swarming advancement is habitually sexual, or involving
the opposite gender to attract the consumers with the glamorous women/men's fancy
car. There are various blames that advertising is causing a negative social impact on
the lives. The chief unfavorable judgment for advertising is that it hales the public to
buy things that they are not their real want. It is arrogated that advertising plays with
emotions and encourages people to think that buying and depleting are the activities
of life.
According to advertisers, they state that people are capable enough to set their mind
and no one can force them to buy anything which they dislike or which they think is
not a necessity. Advertisers also think that there are positive impacts of advertising on
our society and culture. For example, it can be used to generate awareness among the
public that which product is OK or to which they should say NO. In other words,
advertising also acts as an educator in the sense that it educates people what is good
and what is bad for them and puts a ceiling on the harmful products like smoking and
drinking etc. There are not only social benefits of advertising, but it also has some

16

economic advantages. Without advertising, the media, including newspapers,


television and radio would never be much strong. Advertising provides revenue for
commercial mediums which would otherwise need to be funded by the actual
consumer of these mediums. So, we can see a major economic infrastructure based
around advertising, in which the big companies fund and subsidize the commercial
media by the way of advertisements. The major economic negative aspect of
advertising is that it boosts the price of goods and services. The source of this
contention is that, when organizations subsidize the mass media with advertising, we,
the purchaser, subsidize advertising by compensating a grossly increased price for
heavily advertised goods and services. An easy example of this is that a box of Tide
washing powder generally costs around Rs. 30/kg while the market price of the
product would be Rs 50/kg. The fact behind this is that the remaining proportion goes
in heavy advertising in television and print media. So, the impact of advertising on
our society is in a jumble form, depending on the functions and implementations of
numerous campaigns. Our society and the marketing of products depend very badly
upon advertising. The companies have become much dependent of advertising that
even its negative impacts can never outweigh the many positive social and economic
effects.
We live and prosper in a dynamic economy. Ours has been an economy of relative
abundance which has succeeded in bringing about a material well-being never before
known in history. It is an economy which emphasizes consumption! In this country
consumption does not necessarily mean wearing out goods in a physical sense. We
wear out goods psychologically as well. Usually our clothes are psychologically worn
out and discarded while the material is still good. We dispose of our automobiles
when they become obsolete rather than when they are physically worn out. How
different is this viewpoint from the practices that are current in other nations, England
and France, for instance! It is difficult for the European to understand the economic
importance of the individual in our country and the American idea of psychological
obsolescence. It is also incomprehensible to most that in America we spend nearly
eight billion dollars a year for advertising
Why do we do it? What is advertising's role in our economy? What useful purpose
does advertising serve?

17

1. Advertising creates jobs.


2. Advertising reduces selling costs.
3. Advertising increases company profits.
4. Advertising increases company security.
Finally, our enormous and growing productivity needs advertising to speed up
consumption.
The impact of advertising regulation on economic growth
The aim of this thesis is on the one hand, to study the role of intangible advertisement
investments on economic growth and on the other hand to see which consequences
some regulation elements of the advertising market can have on the macroeconomic
impact of advertising. After assessing the literature existing on this topic and defining
precisely advertising as a specific investment, we notice that it is impossible to
measure the direct impact of advertising on economic growth. Indeed, the impact of
advertising on these key variables is measurable.

Public perception of the medium


Over the years, the public perception of advertising has become very negative. It is
seen as a medium that inherently promotes a lie, based on the purpose of the
advertisement to encourage the target audience to submit to a cause or a belief, and
act on it to the advertising partys benefit and consequently the targets disadvantage.
They are either perceived as directly lying (stating opinions or untruths directly as
facts), lying by omission (usually terms or conditions unfavorable to the customer) or
Portraying a product or service in a light that does not reflect reality. It is this
increased awareness of the intention of advertising, as well as advertising regulations
that have increased the challenges that marketers face.

18

PSYCHOLOGICAL IMPACT OF ADVERTISMENT


Psychology in advertising has long been used as an effective means to sell a product
or service. Understanding the underlying concepts that affect human psychology can
help a company better sell their product or alternatively can help a consumer
understand marketing strategies that get them to buy products. Persuasion is the
changing of attitudes by presenting information about another attitude. This
information is then processed one of two ways: centrally or peripherally. If it is
processed centrally the attitude change is more likely to have permanence. If the
information is processed peripherally it will be more susceptible to later change.
One commonly used technique of persuasion is that of authority. Everyone has seen
ads where "2 out 3 doctors recommend..." This is based on the idea that people will
respect the opinions of someone who is assumed to have a lot of knowledge about the
product. People feel better knowing that someone with authority has recommended
what they are about to buy. Of course, the authority person has to have expert
knowledge in that particular field. Would you buy a certain toothpaste because a car
salesman recommended it?
First and foremost an advertisement has to catch your attention. One way in which it
does this is by appealing to your emotions. It can arouse feelings of fear, love,
pleasure, or vanity. Scarcity is the fear that you may miss an opportunity to purchase a
product. "One day sales" and phrases such as, "For a limited time only" or "Limited
supply" are common uses of this technique. Health advertisements often utilize fear to
get the audiences attention. Once this is accomplished they hope to "scare" the
audience enough to produce an attitude change, be it buying their product, changing
your lifestyle, etc. Bear and cigarette advertisements appeal to peoples desires for fun
and pleasure. The people in these ads are portrayed as having a good time, leading to
the belief that if you purchase these products you too will have a good time. Many
advertisements employ more than one technique in attempting to persuade the
audience. Plastic surgery ads are a perfect example. They attempt to persuade by
appealing to peoples vanity/egotism by exposing their fear of aging.

19

IMPACT OF ADVERTISING ON CHILDREN


Advertising has become so integral part of our life & society that we cannot imagine
any event, newspaper, magazine, TV serial, Cinema etc. without advertising.
Advertising is a vital marketing tool as well as powerful communication medium. The
degree of impact of advertising on adults may be problematic but the outcome is
devastating for children. Television is no more just a source of entertainment for
children. They showcase the must haves for a kid making them a consumer even
before they have reached the age of 3.
Thus, it is important for the parents to know their childs exposure to media and to
provide guidance on age-appropriate use of all media, including television, radio,
music, video games and the Internet.
Parents must be aware of the commercial messages found in all advertising - print,
movies, videos, music videos, computer games and the Internet. These messages
depict how cool it is to use alcohol and tobacco products, promote consumption of
candy and other unhealthy foods, and sanitize violence. All this could create addicts
as well as physically and mentally unhealthy people. Other then this there are certain
issues that affect the children such as:

Violence
Over the past two decades, hundreds of studies have examined how violent
programming on TV affects children and young people. While a direct "cause and
effect" link is difficult to establish, there is a growing consensus that some children

20

may be vulnerable to violent images and messages. Researchers have identified three
potential responses to media violence in children:

Increased fearalso known as the "mean and scary world" syndrome


Children, particularly girls, are much more likely than adults to be portrayed
as victims of violence on TV, and this can make them more afraid of the world
around them.

Desensitization to real-life violence


Some of the most violent TV shows are children's cartoons, in which violence
is portrayed as humorousand realistic consequences of violence are seldom
shown.

Increased aggressive behavior


This can be especially true of young children, who are more likely to exhibit
aggressive behavior after viewing violent TV shows or movies.

Sexual content
Kids today are bombarded with sexual messages and images in all mediatelevision,
magazines, advertisements, music, movies and the Internet. Parents are often
concerned about whether these messages are healthy. While television can be a
powerful tool for educating young people about the responsibilities and risks of sexual
behaviour, such issues are seldom mentioned or dealt with in a meaningful way in
programs containing sexual content.

21

ETHICS IN ADVERTISEMENT SECTOR

We defined a principle as a general rule or recommendation which applies to a


number of specific cases. We also observed that principles can be closely related to
moral concepts, a point which was reinforced in the last chapter when we considered
whether, for example, justifying a moral claim on the basis of the concept of a right to
life is just another way of saying that in most circumstances killing is wrong. This
illustrates one way in which concepts and principles can be related-that they can be
different ways of expressing the same idea. There is another way in which they may
be related-perhaps there are some very general moral principles which underlie a
number of more specific principles and concepts. Killing is wrong is a moral
principle, and thus, in accordance with our definition, it is a general rule which
applies to specific cases. But there is a sense in which it is also specific-it tells us
about a particular class of actions which are wrong, rather than providing a principle
of such generality that we can work out from it whether any proposed action is wrong.
Is there a general principle of this kind?
We shall examine two moral theories each of which offers its own distinctive, and
supposedly over-arching, moral principle. These are not the only moral theories which
philosophers have put forward, but we concentrate on them because the principles
they offer are clearly addressed to individuals, and intended as a basis for decisions as
to what is the right thing to do in any particular situation. This chapter thus gives
some insight into moral theory and also the opportunity to practice the skill of
applying principles to specific cases.

22

Business Ethics
Business ethics is the behavior that a business adheres to in its daily dealings with the
world. The ethics of a particular business can be diverse. They apply not only to how
the business interacts with the world at large, but also to their one-on-one dealings
with a single customer.Many businesses have gained a bad reputation just by being in
business. To some people, businesses are interested in making money, and that is the
bottom line. It could be called capitalism in its purest form. Making money is not
wrong in itself. It is the manner in which some businesses conduct themselves that
brings up the question of ethical behavior. Good business ethics should be a part of
every business. There are many factors to consider. When a company does business
with another that is considered unethical, does this make the first company unethical
by association? Some people would say yes, the first business has a responsibility and
it is now a link in the chain of unethical businesses. Many global businesses,
including most of the major brands that the public use, can be seen not to think too
highly of good business ethics. Many major brands have been fined millions for
breaking ethical business laws. Money is the major deciding factor.
If a company does not adhere to business ethics and breaks the laws, they usually end
up being fined. Many companies have broken anti-trust, ethical and environmental
laws and received fines worth millions. The problem is that the amount of money
these companies are making outweighs the fines applied. Billion dollar profits blind
the companies to their lack of business ethics, and the dollar sign wins. A business
may be a multi-million seller, but does it use good business ethics and do people care?
There are popular soft drinks and fast food restaurants that have been fined time and
time again for unethical behavior. Business ethics should eliminate exploitation, from
the sweet shop children who are making sneakers to the coffee serving staff who are
being ripped off in wages. Business ethics can be applied to everything from the trees
cut down to make the paper that a business sells to the ramifications of importing
coffee from certain countries.

23

SOME ETHICAL AND MORAL PRINCIPLES


The media of social communications have two options, either they help human
persons to grow in their understanding and practice of what is true and good, or they
are destructive forces in conflict with human well being. That is entirely true of
advertising. Against this background, then, we point to this fundamental principle for
people engaged in advertising: advertisers that is, those who commission, prepare
or disseminate advertising are morally responsible for what they seek to move
people to do; and this is a responsibility also shared by publishers, broadcasting
executives, and others in the communications world, as well as by those who give
commercial or political endorsements, to the extent that they are involved in the
advertising process.
a) Truthfulness in Advertising
Even today, some advertising is simply and deliberately untrue. Generally
speaking, though, the problem of truth in advertising is somewhat more subtle: it
is not that advertising says what is overtly false, but that it can distort the truth by
implying things that are not so or withholding relevant facts.
To be sure, advertising, like other forms of expression, has its own conventions and
forms of stylization, and these must be taken into account when discussing
truthfulness. People take for granted some rhetorical and symbolic exaggeration in
advertising; within the limits of recognized and accepted practice, this can be
allowable.
But it is a fundamental principle that advertising may not deliberately seek to deceive,
whether it does that by what it says, by what it implies, or by what it fails to say. "The

24

proper exercise of the right to information demands that the content of what is
communicated be true and, within the limits set by justice and charity, complete. ...
Included here is the obligation to avoid any manipulation of truth for any reason."

b) The Dignity of the Human Person


There is an "imperative requirement" that advertising respect the human person, his
right duty to make a responsible choice, his interior freedom; all these goods would be
violated if man's lower inclinations were to be exploited, or his capacity to reflect and
decide compromised." These abuses are not merely hypothetical possibilities but
realities in much advertising today. Advertising can violate the dignity of the human
person both through its content what is advertised, the manner in which it is
advertised and through the impact it seeks to make upon its audience. We have
spoken already of such things as appeals to lust, vanity, envy and greed, and of
techniques that manipulate and exploit human weakness. In such circumstances,
advertisements readily become "vehicles of a deformed outlook on life, on the family,
on religion and on morality an outlook that does not respect the true dignity and
destiny of the human person."
c) Advertising and Social Responsibility
Social responsibility is such a broad concept that we can note here only a few of the
many issues and concerns relevant under this heading to the question of advertising.
The ecological issue is one. Advertising that fosters a lavish life style which wastes
resources and despoils the environment offends against important ecological
concerns. "In his desire to have and to enjoy rather than to be and grow, man
consumes the resources of the earth and his own life in an excessive and disordered
way. ... Man thinks that he can make arbitrary use of the earth, subjecting it without
restraint to his will, as though it did not have its own requisites and a prior God-given
purpose, which man can indeed develop but must not betray."

25

As this suggests, something more fundamental is at issue here: authentic and integral
human development. Advertising that reduces human progress to acquiring material
goods and cultivating a lavish life style expresses a false, destructive vision of the
human person harmful to individuals and society alike. When people fail to practice
"a rigorous respect for the moral, cultural and spiritual requirements, based on the
dignity of the person and on the proper identity of each community, beginning with
the family and religious societies," then even material abundance and the
conveniences that technology makes available "will prove unsatisfying and in the end
contemptible." Advertisers, like people engaged in other forms of social
communication, have a serious duty to express and foster an authentic vision of
human development in its material, cultural and spiritual dimensions.

Codes and Policies for Research Ethics


The following is a rough and general summary of some ethical principles that various
codes address.
HONESTY
Strive for honesty in all scientific communications. Honestly report data, results,
methods and procedures, and publication status. Do not fabricate, falsify, or
misrepresent data. Do not deceive colleagues, granting agencies, or the public.
O BJECTIVITY
Strive to avoid bias in experimental design, data analysis, data interpretation, peer
review, personnel decisions, grant writing, expert testimony, and other aspects of
research where objectivity is expected or required. Avoid or minimize bias or selfdeception. Disclose personal or financial interests that may affect research.
I NTEGRITY
Keep your promises and agreements; act with sincerity; strive for consistency of
thought and action.
C AREFULNESS

26

Avoid careless errors and negligence; carefully and critically examine your own work
and the work of your peers. Keep good records of research activities, such as data
collection, research design, and correspondence with agencies or journals.
O PENNESS
Share data, results, ideas, tools, resources. Be open to criticism and new ideas.
R ESPONSIBLE M ENTORING
Help to educate, mentor, and advise students. Promote their welfare and allow them to
make their own decisions.

R ESPECT

FOR I NTELLECTUAL

P ROPERTY

Honor patents, copyrights, and other forms of intellectual property. Do not use
unpublished data, methods, or results without permission. Give credit where credit is
due. Give proper acknowledgement or credit for all contributions to research. Never
plagiarize.
C ONFIDENTIALITY
Protect confidential communications, such as papers or grants submitted for
publication, personnel records, trade or military secrets, and patient records.
R ESPONSIBLE P UBLICATION
Publish in order to advance research and scholarship, not to advance just your own
career. Avoid wasteful and duplicative publication.
Social Responsibility
Strive to promote social good and prevent or mitigate social harms through research,
public education, and advocacy.
Non-Discrimination
Avoid discrimination against colleagues or students on the basis of sex, race, ethnicity,
or other factors that are not related to their scientific competence and integrity.

27

C OMPETENCE
M AINTAIN

AND

IMPROVE

YOUR

OWN

PROFESSIONAL

COMPETENCE

AND

EXPERTISE THROUGH LIFELONG EDUCATION AND LEARNING ; TAKE STEPS TO


PROMOTE COMPETENCE IN SCIENCE AS A WHOLE .

L EGALITY
Know and obey relevant laws and institutional and governmental policies.

A NIMAL C ARE
Show proper respect and care for animals when using them in research. Do not
conduct unnecessary or poorly designed animal experiments.
H UMAN S UBJECTS P ROTECTION
When conducting research on human subjects, minimize harms and risks and
maximize benefits; respect human dignity, privacy, and autonomy; take precautions
with vulnerable populations; and strive to distribute the benefits and burdens of
research fairly.
ETHICAL DECISION MAKING

IN

RESEARCH

Although codes, policies, and principals are very important and useful, like any set of
rules, they do not cover every situation that arises in research, they often conflict, and
they require considerable interpretation. It is therefore important for researchers to
learn how to interpret, assess, and apply various research rules and how to make
decisions about how to act in various situations. The vast majority of decisions that
people must make in the conduct of research involve the straightforward application
of ethical rules.
Research Methodology

Sample: Youth (Above 18 years and below 30 years)

28

Sample Area: Amity University

Sample Size: 50

Sample Technique: Convenience Sampling

The type of sampling used in the project was convenience sampling.

The samples were undertaken on the basis of the convenience which can
give best possible results.

TOOLS USED DURING THE PROJECT

1. Questionnaire:

29

The questionnaires comprised of both, structured questions and unstructured


questions:

a) Structured Questions: The structured questions are those questions that impose
a limit on the respondent to answer the question. It is usually in the form of
Yes/No questions.

b) Unstructured Questions: Unstructured questions are the ones in which the


respondent is free to give as much answer as he/she wants without imposing any
kind of limit on him/her.

c) Open Ended Question: Another form of question involved the respondent to


answer a particular question within the space provided.

Statistical Tools
1. Bar graphs:

Bar graphs were used for the interpretation of the questionnaires in the project.

They were used to show the result from different number of respondents in the
form of numbers.

2. Pie chart:

Pie chart was another form of statistical figure used in most of the questions.

It was used to present the results in the form of percentages.

INTERPRETATION AND ANALYSIS

1.

What type of media do you usually follow?

30

a. News Paper

c. Radio

b. Television

d. Internet

e. Others

Type of Media Most Followed

20
Newspaper

Radio

Television

30

Internet

Other

2
48

Maximum number of respondents used television, followed by Newspaper and

Internet.
Lowest number of respondents used radio.

2. How do you view the level of ethics in advertising?

31

10

Very Low

71

Low

Average

Column2
7

High

Very High

10

20

30

40

50

60

70

Most of the respondents believed that companies advertising their


products/services do not follow all the important norms related to ethics.

Respondents said that in todays advertisements, ethics is nowhere to be seen.


Companies are now trying to get profits through the use of unethical elements
portrayed in the ads.

Some felt that companies do not have concern for its customers which can be
seen in the advertisement and said that companies only believe in fooling
people and leads them to include unethical practices.

3.

Which of the following issue in general advertising would you consider

being unethical?

80

32

a) Ads for abortion services or family planning.


b) Ads for cosmetic surgery or other elective surgery.
c) Ads for medical products and services.
d) Ads for personal care and hygiene products.
e) Ads for professional services (lawyers, doctors, etc)
f) Advertising to children
g) Use of sexual themes in ads
h) Racial stereotyping ads
i) Other

A- According to respondents,

63 believed that advertisements involving sexual themes are more unethical.


Lot of sexual content can be seen these days which is not a part of our culture.

20 felt that there is a lot of racial discrimination being showed in


advertisements.

10 felt that companies are influencing negative impact on small children


through their ads as they are immature. Because of some unethical element
present in ads related to children, it is leading to negative consequences.

7 believed that ads involving abortion or family planning theme at times


should be presented in a different way because companies advertising
products/services present them in an obscene manner.

4.

Which form of impact of advertisement has been the most on you?

33

Form of Impact
Economic impact

Social impact
12% 16%

Psychological impact
42%

30%
Advertising
to children

42% respondents felt that psychological impact was more on them due to
advertisements followed by social impact (30%), economic impact (16%) and
advertising to children (12%).

5.

Have you ever decided not to buy a product/service due to an advertisement

that you perceived as unethical?

Purchased product even after finding its ad unethical?

Yes
55%

45%

No

55% said that they dont purchase a product/service if they feel that the
advertisement is unethical or is claiming to provide something that is not
present or is harmful where as 45 % did not care about the unethical element
being present in the ad or being influenced in their purchasing decision.

34

7.

In the future, would you refrain from buying a product/service because you

perceive its advertisements as unethical?

Future Purchase Intention

Yes

No

38%
62%

Large number of respondents believed that advertisements involving unethical


practices or elements will not make them purchase the product. They felt that
ads having transparency or clarity will be welcomed and will get the highest
sales.

8.

How these unethical advertisements should be stopped?

35
80
70
60
50
40
30
20
10
0

74

15
4

Column2

Most of the respondents said that there should be some strict laws involved for
handling such ads. The current laws by censor board and government are not
very strict because some of the companies are still continuing to show some of
their unethical ads.

Rest of the respondents believed that companies should be taken to court for
falsely claiming something or for any other unethical practices. Huge
imposition of fine was another alternative they suggested.

Very few wanted the companies to ban the product.

36

9.

Would you invest in a fund company with high ethical standards if it

presented slightly lower returns than a fund company with low ethical standards if
it yields higher returns?

25%
Yes

No
75%

This question was included to check how much value respondents give to
ethics when it involves them.

75% respondents were not willing to risk their investment or get fooled by the
advertisement that shows high profits without showing any negative results.

37

10.

It is possible for a business to be both ethical and profitable

45

42

40
35

32

30
25
20

14

15

10

10

5
0
Strongly Agree

Agree

No Opinion

Disagree Strongly Disagree

Maximum respondents thought that business can accumulate profits even if it


follows ethical practices.

10. What suggestions would you like to give to stop or avoid from being
influenced by unethical ads?

A- Following were some of the important suggestions made by the respondents-

Research proper pros and cons of the product before buying it.

Unethical ads should be banned and more stringent laws should be made.

There should be proper legal authorities to look into the matter and prohibit
such ads.

There should be awareness from public regarding unethical practices so that


people dont get influenced from such ads.

Dont buy the products of those unethical companies. They will lose the value
in the market and will then learn a lesson.
Customers should not follow the ads blindly.

38

FINDINGS OF THE SURVEY

1. After completely analyzing data it can be said that the people are aware of unethical
elements being shown in ads which are creating negative impact on society and
majority of them have got awareness from television.
2. People think that ads related to sex products are most unethical. These ads are not
trying to stop youth for going in a wrong direction but they are encouraging them.
Other Important Findings:
1. Most people said that the government should bring in more stringent laws to stop
these ads and take action against the companies. Other possibilities according to
people were in the form of taking the companies to the court and imposing heavy fine
on them.
2. Most of the people said that they dont purchase a product which they perceive as
unethical in some or other form. They also said that even in future, they will restrain
themselves from purchasing products that they perceive unethical.
3. Survey shows that 42 people believe that companies being ethical can also be
profitable. They need not adopt unethical practices for their profits.
4. One question was included to check how much ethical people really are in the form
of investing in a company with high ethical standard while presenting low returns and
investing in a company with low ethical standards while presenting higher returns.
The result shows that even today, no matter how much benefit person might get, they
will not like to get themselves attached or involved in a company who pursue
unethical practices. 75% people felt this.
5. 42% believed that advertisements have a psychological impact on them followed
by social impact.

39

LIMITATIONS

Every project faces some limitation and this project was no exception. Some of the
limitations faced were -

Since the responses were only from one part of Delhi, the report cannot be
generalized for whole Delhi and NCR.

Respondents may have given bias information.

Some of the respondents were not willing to devote time for the survey. Most
of the time, they were busy and were not willing to respond.

There could have been vast exploration on the topic but due to limited time
availability, it could not be explored more for study.

At times, they were not able to understand the questions which enforced me to
make the question understand to the respondent in detail.

40

RECOMMENDATIONS

Recommendation to the Companies:

Be ethical. Unethical practices will not help in achieving customer loyalty.

Unethical elements and practices will damage the companys brand name.
Once damaged, it will be difficult to achieve that goodwill again.

Do follow the rules and regulations laid down by the government. Breaking
those laws will land them in huge trouble and it will be difficult for them to
get out of the jail.

Some of the elements that are showcased in advertisements affect children in


negative way. Make sure to stick to the message without creating a negative
effect.

Recommendation to the Customers:

Dont get easily influenced by the advertisements. Cross check many times
before making a purchase decision.

Learn from the experiences of other people. They can better tell whether the
company has falsely promised or not.

Make sure to write down to the company in the case unethical elements in the
form of obscenity, fraud etc. This will make them realize their mistake.

Make sure that children dont get negatively influenced from the
advertisements.

Recommendation to the Government:

41

To Check whether companies are abiding to the rules and regulations related
to advertisements.

Introduce more stringent laws which if broken should lead to negative


consequences for the companies.

Do take strong actions on the companies in the form of banning the product,
heavy imposition of fine and even liquidating the company.
CONCLUSION

Advertising is an important element in today's world, especially in the functioning of


Market Economy, which is expanding. Moreover, for the reasons, we believe
advertising can, and often does, plays an important role in economic growth, in the
exchange of information and ideas, and in the fostering of solidarity among people.
From the study, it can be seen that it is causing harm to individuals and to the
common good. People today are no more uneducated. With time, they have become
more knowledgeable. Its not easy nowadays to adopt unethical practices for the
businesses. Be it false promises, obscenity, fraudulent practices etc. People today do
know about all this and playing with their morals and values will lead the companies
to pay heavy prices.
Advertising ethics affects the practice of our lives, and the practice of business, in
subtle and prominent ways. Indeed, advertising ethics concerns us all. Like, ad
agencies, academicians, advertisers, consumers, media personnel, and regulators in
different ways.
Using unethical practices to persuade the customer to purchase the product can be
done once. But with the negative experience that the consumer will feel will not make
that him/her go and purchase that product again. Eventually, the company will lose
the customer. It is very important for the company to be ethical to their customers to
achieve their customer loyalty which itself brings profits and it can be seen from the
result of the study.

42

So, the final conclusion can be derived in the sense that companies are required to be
ethical, no matter how much competition they face. Unethical practice will bring the
customer only once but an ethical practice will bring the customer again. Companies
are required to follow the laws brought by the government as unethical practice can
land them into huge trouble in the form of liquidation, ban of product etc. So, be
ethical and be profitable.

REFERENCES

Articles :
Khothari, C.R. (2006). Research Methodology, Page no. 67-69
Arun Kumar, L. Tyagi (2003). Advertising Management.
Menon, Vijay (1997). Ethics in Advertising
Klempner, Geoffrey (2004). Ethics and Advertisement.

Websites :
http://www.ddindia.gov.in/Business/Commercial+And+Sales/Code+for+C
ommercial+Advertisements.htm
http://www.etstrategicmarketing.com/smNov-Dec2/art7.html
http://www.icmr.icfai.org/casestudies/catalogue/Business
%20Ethics/BECG002.htm
www.brandbuilding.com/books/food.html

43

S-ar putea să vă placă și