The document discusses ethical issues in advertising. It covers the role of advertising in modern business, including its economic, social and psychological functions. Advertising plays an important role by communicating information about products to consumers and creating markets. However, there are also controversies around its impact. The document outlines guidelines from the Advertising Standards Council of India to ensure advertising is truthful, not offensive or indecent, and observes fairness. Common ethical issues include misleading consumers, using vulgarity or stereotypes, and advertising controversial products like alcohol.

1. Ethical Issues in Advertising

2. INTRODUCTION There is no doubt that advertising attracts all of us in number of ways, but there are also number of controversies associated with advertising Generally, these controversies are concerned about the impact of advertising on economy, society and ethics

3. ROLE OF ADVERTISING IN MODERN BUSINESS WORLD Advertising is primarily a means by which sellers communicate to prospective buyers. What they communicate? “ The worth of their goods and services” Contd…

4. ROLE OF ADVERTISING IN MODERN BUSINESS WORLD Economic function Social function Psychological function

5. ROLE OF ADVERTISING IN MODERN BUSINESS WORLD Economic function Advertising communicates the message in persuasive language It create wide markets as the information is delivered to people far and wide It inclines people favorably to the products and affect our attitudes Therefore, advertising performs an economic function by being an art of persuasion Advertising is also an economic process—it helps the product to become known and it facilitates exchange between those who need the product and those who can satisfy the need Provides employment opportunities (in advertising industry)

6. ROLE OF ADVERTISING IN MODERN BUSINESS WORLD Social function Advertising affects the core cultural values and subsidiary cultural values Advertising is a mirror to the society in which it operates…it reflects the cultural values of that society Advertising can also transfer some cultural values of one society to other Advertising has improved our standard of living e.g. we buy TV, AC, Computers, Cars etc after getting interested in these products through advertising We have accepted new ideas such as microwave, electric shaving, detergents etc through advertising

7. ROLE OF ADVERTISING IN MODERN BUSINESS WORLD Social function Advertising protects the consumer by educating them and by forcing the manufacturers to maintain quality and to be fair Therefore….. Advertising brings about consumer welfare in two ways: By improving standard of living By improving product quality

8. ROLE OF ADVERTISING IN MODERN BUSINESS WORLD Psychological function Advertising is closely linked to consumer behavior, therefore, it affects personality of consumer, his concept of self, his attitudes, beliefs, opinions, his life-style etc Advertising appeals to our physiological and psychological motives

9. ADVERTISING AND SOCIETY Advertisements are not just the sellers They reflect the society Whatever is used in society is reflected in advertising e.g. Indian society is highly family oriented (example ads: savings for children, daughter’s marriage) Indian society is people-oriented, and not self-oriented For the sake of our family and others, we Indians can postpone our own gratification We are also fun loving (example ads: Lux, Coke, Denim Jeans etc)

10. ETHICS IN ADVERTISING Should not mislead the consumer What it promises must be there in the performance of products Ad should not be indecent and obscene As advertising is also a social process, it must honor the norms of social behavior, and should not offend our moral sense ASCI (Advertising Standards Council of India) regulates the advertising in India  has the set guidelines

11. ASCI GUIDELINES To ensure the truthfulness and honesty of representations and claims made by advertisements and to safeguard against misleading advertising. To ensure that advertisements are not offensive to generally accepted standards of public decency. To safeguard against indiscriminate use of advertising for promotion of products which are regarded as hazardous to society or to individuals to a degree or of a type which is unacceptable to society in large. To ensure that advertisements observe fairness in competition so that consumers need to be informed on choices in the market place and the canons of generally accepted competitive behavior in business are both served.

12. ETHICAL ISSUES IN ADVERTISING Advertising is a highly visible business activity and any lapse in ethical standards can often be risky for the company. Some of the common examples of ethical issues in advertising are give below: Vulgarity/Obscenity used to gain consumers’ attention Misleading information and deception Puffery Stereotypes Racial issues Controversial products (e.g. alcohol, gambling, tobacco etc)

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