ADVERTISING ETHICS: REASONS, RATIONALIZATIONS, BIASES, AND HEURISTICS

ADVERTISING ETHICS:REASONS, RATIONALIZATIONS, BIASES, AND HEURISTICS Group P- Tj, Amy, Sang-Hoon, Yao, Stefanie and Derrick

Introduction • 6 mini advertising scenarios • Done from the perspective of the business person in the case • They all deal with ethical issues in advertising • Relatively small • Common • Realistic

Overview • Bradley has been hired as an account planner in a large agency • He has overheard about an assignment which was conducted by his colleagues • The colleagues found difficulty conducting the survey • Idea: When collecting data, they tell the public they are students • The assignment was then finished perfectly • Ethical issues remain Scenario 1

Scenario 1 Identification of conflicts and stakeholders • Build or damage company’s reputation • Way of doing business or unfair to the competitors? • Harm done to customers? • Colleagues motivations VS company’s benefits Change: The public expects more honesty from companies Main conflict- By telling the respondents that they are students, they are essentially lying

Alternatives Scenario 1

Alternative Choice • Talk to management about his concerns • Make suggestions for dealing with this situation • Make the decision to not lie to the respondents Tell management to avoid deceiving the respondents and take action

Overview • Sarah is leading a team that is creating a marketing campaign for a teenage clothing line whose sales have been stagnant • Ultra thin models have been selected and have always been used for this brand in previous campaigns • She is concerned about the negative impact super skinny models have on young girls self esteem and ideas of beauty • She doesn’t feel comfortable using these types of models Scenario 2

Scenario 2 Identification of Conflicts and Stakeholders Sarah- Could lose her reputation, the respect of her teammates, and possibly her job Consumers (Teenage girls)- Campaign could negatively affect their body image and how they feel about themselves The Agency- Could lose the business of the clothing line if the campaign is unsuccessful The Clothing brand- Could lose money or brand image Change: Society's awareness to body issues and influence of models Main conflict- Using unhealthy models while marketing to teenage girls

Talk to the clothing line about choosing different models Alternative Choice • Show the clothing line the studies that show how models affect body image in young girls • Show examples of other successful campaigns with healthy size models • Using different models could be new way for the brand to increase sales

Overview • Lauren is a director of graphic services at a major agency • She and her team recently encountered a budgeting problem with candy company client • The problem was solved by adding an extra bill to other large company client • Lauren heard this practice is usual for graphic services agency. Scenario 3

Scenario 3 Identification of conflicts and stakeholders • Maintain or ruin agency’s professional image by hiding the mistake • Lauren VS. Automotive company • Moral responsibility? Change: Law is more strict with issues of this nature Main conflict- Improper allocation of expenses and going again accounting principles

Report the mistake to candy company client Alternative Choice • Lauren should report the mistake that they made to candy company immediately by providing reasonable solutions with positive language

Overview • Tim is working with a venerable agency and he is concerned with the ethics regarding the strip parties • Some of the agency’s key employees have been going to strip clubs • These activities are being hosted by a key vendor- a printer • Cost $5, 000 each and last about 4 hours • Tim must decide how to handle this situation Scenario 4

Scenario 4 Identification of conflicts and stakeholders • The strip clubs entertainment sounds like a bribe to continue doing business with the agency • This sexist behavior excludes and objectifies women • Main stakeholder: the agency Change: Women’s involvement in the business world Main conflict- The agency may lose relationship with the printer by objecting to such parties.

Alternative Choice • In addition, Tim could write a partition against this strip club entertainment • The agency’s staff who disagree with such type of entertainment could sign the partition Tim can write the argument in a report or a memo and submit to supervisor

Overview • Meet Rachel: M.A. in Advertising and taken a job at a major agency in account services • She was specifically hired to work as an assistant account executive to promote a new sports car with a buzz marketing technique • The people hired would have to agree not to tell anyone that they had been given the car to drive or hired by a company to create a favorable word of mouth • Her client loves the idea Scenario 5

Scenario 5 Identification of conflicts • Supporting the behavior: • No real harm done/ no laws broken • Helping people with getting information about something they are already interested in • Favorable word of mouth would be harder to achieve without the ‘secret’ Main conflict- This new marketing technique could be deceiving and unethical because the participants might have to lie

Scenario 5 Identification of stakeholders Rachel: Could get a reputation for an unethical business behavior and lose her job if the marketing project fails Marketing company: Could lose credibility The public: Could feel like they were deceived and not buy the car Car company: Lying might make the company look bad resulting in negative repercussions Critics: Their judgment and credibility will be tarnished in the future if they argue that it is unethical and the company/Rachel gets away with it Change: This is a new way of business, and it is tough to say what will come of this in the future

Alternative Choice • Do not give away the fact that the participant is working for the marketing campaign • In the case that someone does ask, a plan will be in place on how to deal with that situation • Change the subject • Tell the person and ask them not to tell anyone else Talk to management about implementing a better plan if someone does ask if the participant is working for the car company

Overview • Rodrigo works for the broadcast department • Works on large scale projects for government agencies • Supervisor handed back timesheets for “revisions” • Told to increase timesheets by 20% , would have taken an average worker twice as long • Rumours of other companies taken advantage of government agencies • Ethical issues Scenario 6

Scenario 6 Identification of conflicts and stakeholders • The company’s reputation is at stake • Tempted to increase timesheet by 20% • Earn more revenue for your department • Earn the respect from your supervisor • Lose out on bonuses, possible layoffs to broadcast department • IE. Your job & supervisor’s job is on the line • Also conflict with your supervisor? Change: Not much change has occurred with this over time; lying has always been unacceptable Main conflict- Changing the hours worked is lying

Alternative Choice • Might cause a problem because it does overstep your supervisor • In the end, this is the ethical choice Go above your supervisor to your boss and discuss the situation

Questions • Thank you for listening to our presentation. • Any questions?

ADVERTISING ETHICS: REASONS, RATIONALIZATIONS, BIASES, AND HEURISTICS