This document discusses ethical issues in advertising. It begins by introducing that while advertising attracts consumers, there are also controversies around its impact. It then explores the role of advertising in modern business, including its economic, social and psychological functions. Advertising performs an economic role by creating markets and facilitating exchange. Socially, it reflects and can transfer cultural values, and improves standards of living. Psychologically, it affects consumer personality and behaviors. The document also notes that advertising should not mislead consumers, must be truthful in its promises, and should respect social norms and decency. The Advertising Standards Council of India provides guidelines to regulate advertising ethics. Common ethical issues include using vulgarity to gain attention, providing misleading information, puff

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
1. Economic function
2. Social function
3. 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:
e. By improving standard of living
f. 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.
o Indian society is highly family oriented (example ads: savings for
children, daughter’s marriage)
o Indian society is people-oriented, and not self-oriented
o For the sake of our family and others, we Indians can postpone our own
gratification
o 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)

13. Thank You!