RESEARCH PROJECT REPORT

ON
ETHICAL ISSUES PREVAILING IN ADVERTISING INDUSTRY
SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION
of
Punjab technical university
By
Rushil Vashisht
94302450237
BBA VI SEMESTER
UNDER THE SUPERVISION OF
Mr.Parminder Singh

Chandigarh Business School

Landran, Mohali
YEAR 2009- 2012
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Certificate of Supervisor

This is to certify that Ms.Rushil Vashisht, Roll No.94302450237 has completed the
research project titled Ethical issues prevailing in advertising industry under my
supervision in partial fulfillment of the BACHELOR OF BUSINESS ADMINISTRATION
degree of Punjab technical university.

Supervisors signature:
Supervisors name:
Supervisors Designation:
Date:
Place:

Forwarded for evaluation by the Dean:

(Deans Signature)
Seal of the Dean

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Declaration

I, hereby declare that the research project report titled Ethical issues prevailing in advertising
industryis my own original research work and this report has not been submitted to any
University/Institute for the award of any professional degree or diploma.

Rushil Vashisht
BBA 6Sem
Chandigarh Business School

Date:

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ACKNOWLEDGEMENT
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. Parminder
Singh 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 all my faculty and friends for their 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 my project
Rushil vashisht

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CHAPTERISATION

Index

Page No.

Certificate issued by Project Guide

/Supervisor

Declaration

II

Acknowledgements

III

Preface

vii

Contents
Introduction( Executive summary)

8-10

Topic An Overview
Research Methodology

Title
Duration of project
Objective
Type of research
Scope of study

Core Study

11-13

14-22

Introduction
Need of Advertising
Significance
Type of advertising

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Ethics

23-60

Limitation Of Study

61-62

Questionnaire Analysis

63-71

Conclusion

72

Bibliography

73

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PREFACE

The title of my project is ETHICAL ISSUES PREVAILING IN ADVERTISING

INDUSTRY.
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 consumers 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.

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EXECUTIVE SUMMARY
TITLE
The title of the project is ETHICAL ISSUES PREVAILING IN ADVERTISING
INDUSTRY. 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

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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.
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

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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 consumers 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. 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. Here I just want to know that how
much these set standards are successful in maintaining the dignity of the Indians beliefs
and their feeling.

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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
11 | P a g e

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.

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
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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 companys 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.
Its 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.

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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.

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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
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 consumers 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.

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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.

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 consumers 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
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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.

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
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

17 | P a g e

visible part of the advertising process is the advertisements that we see, read, or hear and
praise or criticize.

TYPES OF ADVERTISING

There can be several branches of advertising. Mentioned below are the various categories
or
types of advertising.

Celebrity

Broadcast
advertising

Advertising

Print
OutdoorAdvertising
Advertising

TYPES
OF

Infomercials

ADVERTISING

Public
Service
Advertising

Covert
Advertising
Surrogate
Advertising

1. Print Advertising Newspapers, Magazines, Brochures, and Fliers

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The print media have always been a popular advertising

Advertising products via newspapers or magazines is a comm
In addition to this, the print media also offers options like p
brochures and fliers for advertising purposes. Often the new
the magazines sell the advertising space according to the are
the advertisement, the position of the advertisement (front p
page), as well as the readership of the publication

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For instance an advertisement in a relatively new and less popular newspaper would cost
far less than placing an advertisement in a popular newspaper 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 AdvertisingBillboards, Kiosks, Tradeshows and Events

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 companys products. Organizing several events or
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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

Broadcast advertising is a very popular advertising medium that constitutes of several

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.

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

4. Covert Advertising Advertising in

Movies
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Common examples include

Fosters and Kingfisher beer
brands, which are often seen
to promote their brand with
the

help

of

surrogate

advertising.

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 Cruises phone in
the movie Minority Report, or the use of Cadillac
cars in the movie Matrix Reloaded.

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.

5. Surrogate Advertising Advertising Indirectly

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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 brand name and
indirectly remind people of the cigarettes or beer bottles of the same brand.

6. Public Service Advertising Advertising for Social Causes

ent or the summary of an

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relevant messaged about important matters
communication medium to convey socially
makes use of advertising as an effective
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Public service advertising is a technique that

promote various social causes. In USA, the radio

and social welfare causes like AIDS, energy

several countries across the world in order to

conservation, political integrity, deforestation,

increasingly used in a non-commercial fashion in

illiteracy, poverty and so on.

Today public service advertising has been

and television stations are granted on the basis of a fixed amount of Public service
advertisements aired by the channel.

7. Celebrity Advertising

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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.

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Although the audience is getting smarter and smarter and the modern day consumer
getting immune to the exaggerated claims made in a majority of advertisements, there
exist a section of advertisers that still bank upon celebrities and their popularity for
advertising their products.

8. 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
often demonstrate products and their features, and commonly have testimonials from
consumers and industry professionals.

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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 todays
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
contrast to consensus ethical values such basics as trustworthiness, respect,
responsibility, fairness, caring and citizenship personal and professional beliefs vary
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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. Its 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

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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

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.
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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

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.

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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 person's 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 institution's goodwill in its name, trade
name or other intellectual property, nor should advertisements take advantage of the
goodwill earned by other advertising campaigns.

Imitation

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.

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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.

Identification of advertisements

Advertisements should be clearly distinguishable as such, whatever their form and

whatever the medium used; when an advertisement appears in a medium which contains
news or editorial matter, it should be so presented that it will be readily recognized as an
advertisement.

Safety and health

Advertisements should not without reason, justifiable on educational or social grounds,

contain any visual presentation or any description of dangerous practices or of situations
which show a disregard for safety or health.

Children and young people

The following provisions apply to advertisements addressed to children and young people
who are minors under the applicable national law.

Inexperience and Credulity

a. Advertisements should not exploit the inexperience or credulity of children and
young people.
b. Advertisements should not understate the degree of skill or age level generally
required to use or enjoy the product.
i.

Special care should be taken to ensure that advertisements do not mislead

children and young people as to the true size, value, nature, durability and
performance of the advertised product.

ii.

If extra items are needed to use it (e.g., batteries) or to produce the result
shown or described (e.g., paint) this should be made clear.

32 | P a g e

iii.

A product that is part of a series should be clearly indicated, as should the

method of acquiring the series.

iv.

Where results of product use are shown or described, the advertisement

should represent what is reasonably attainable by the average child or
young person in the age range for which the product is intended.

c. Price indication should not be such as to lead children and young people to an
unreal perception of the true value of the product, for instance by using the word
'only'. No advertisements should imply that the advertised product is immediately
within reach of every family budget.

Avoidance of Harm

Advertisements should not contain any statement or visual presentation that could have
the effect of harming children and young people mentally, morally or physically or of
bringing them into unsafe situations or activities seriously threatening their health or
security, or of encouraging them to consort with strangers or to enter strange or
hazardous places.

Guarantees

Advertisements should not contain any reference to a guarantee which does not provide
the consumer with additional rights to those provided by law. Advertisements may
contain the word "guarantee", "guaranteed", "warranty" or "warranted" or words having
the same meaning only if the full terms of the guarantee as well as the remedial action
open to the purchaser are clearly set out in the advertisements, or are available to the
purchaser in writing at the point of sale, or come with the goods.

Unsolicited products

Advertisements should not be used to introduce or support the practice whereby

unsolicited products are sent to persons who are required, or given the impression that
they are obliged to accept and pay for these products (inertia selling).
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Claimed Results

Claims as to energy savings, performance, safety, efficacy, results, etc. which will be
obtained by or realized from a particular product or service should be based on recent and
competent scientific, engineering or other objective data.

Layout and Illustrations

The composition and layout of advertisements should be such as to minimize the

possibility of misunderstanding by the reader. For example, prices, illustrations, or
descriptions should not be so placed in an advertisement as to give the impression that the
price or terms of featured merchandise apply to other merchandise in the advertisement
when such is not the fact. An advertisement should not be used which features
merchandise at a price or terms boldly displayed, together with illustrations of higherpriced merchandise, so arranged as to give the impression that the lower price or more
favorable terms apply to the other merchandise, when such is not the fact.

Asterisks and Abbreviations

An asterisk may be used to impart additional information about a word or term which is
not in itself inherently deceptive. The asterisk or other reference symbol should not be
used as a means of contradicting or substantially changing the meaning of any advertising
statement. Information referenced by asterisks should be clearly and prominently
disclosed. Commonly known abbreviations may be used in advertising. However,
abbreviations not generally known to or understood by the general public should be
avoided.

Environmental behavior

Advertisements should not appear to approve or encourage actions which contravene the
law, self-regulating codes or generally accepted standards of environmentally
responsible behavior.

Responsibility
34 | P a g e

1. Responsibility for the observance of the rules of conduct laid down in the Code rests
with the advertiser, the advertising practitioner or agency, and the publisher, media
owner or contractor.
2. Advertisers should take the overall responsibility for their advertising.
3. Advertising practitioners or agencies should exercise every care in the preparation of
advertisements and should operate in such a way as to enable advertisers to fulfill
their responsibilities.
4. Publishers, medium-owners or contractors, who publish, transmit or distribute
advertisements should exercise due care in the acceptance of advertisements and
their presentation to the public.
5. Those employed within a firm, company or institution coming under the above three
categories and who take part in the planning, creation, publishing or transmitting of
an advertisement have a degree of responsibility commensurate with their positions
for ensuring that the rules of the Code are observed and should act accordingly.

Rules apply to entirety of advertisement

The responsibility for observance of the rules of the Code embraces the advertisement in
its entire content and form, including testimonials and statements or visual presentations
originating from other sources. The fact that the content or form originates wholly or in
part from other sources is not an excuse for non-observance of the rules.

Effect of subsequent redress for contravention

While an advertiser's subsequent correction and appropriate redress for a contravention of

the Code are desirable, they cannot excuse the original contravention of the Code.

Alarmist Marketing

An advertiser should not engage in speculation or provide information intended to cause

alarm and force action. Such actions include overstating the legal implications of a nondefined action.

Substantiation

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Descriptions, claims or illustrations relating to verifiable facts should be capable of

substantiation. Advertisers should have such substantiation available so that they can
produce evidence without delay to the self-regulatory bodies responsible for the operation
of the Code.

ETHICS IN ADVERTISING
ETHICS
IN
ADVERTISING

Puffery

Stereotyping

Promoting
unhealthy
products

Controversial
advertisements

Subliminal
Advertising

Advertising
to
children

1. Puffery :
Puffery as a legal term refers to promotional statements and claims that express
subjective rather than objective views, such that no reasonable person would take
literally. Puffery is especially featured in testimonials. "Puffery" consists of promotional
claims that no one out of diapers takes literally. Your two-year old might believe that
36 | P a g e

polar bears enjoy sipping Coca-Cola. But you know better. Because two-year-olds make
no spending decisions, advertisers have always been free to enliven their ads with
harmless hyperbole.
Under existing UCC law, the burden of proof rests on plaintiffs asserting that particular
advertising claims are factually misleading rather than mere puffery. If the
Commissioners' proposal becomes law, however, every advertising claim will be
presumed to be part of the agreement between the seller and buyer. Buyers will be
presumed to have relied upon even the most obviously absurd advertising exaggerations.
The burden of proof will then be on defendant advertisers to prove that a reasonable
person would not be misled by the challenged advertising claim. Because lawyers will
easily find reasonable-looking plaintiffs to testify that they were misled by this or that
advertisement, advertisers who make any claims beyond dry factual statements risk
severe litigation losses. Advertisers are now liable for harms caused by genuinely
misleading advertising.
For example, Coca-Cola would be liable to consumers for damages caused if it
advertises that Coke cures cancer. Reasonable consumers might be fooled into drinking
more Coke only because of its alleged medicinal properties. But, by definition, puffery
does not mislead reasonable consumers.
Besides, puffery entertains. We all know that Dave doesn't actually cook hamburgers at
Wendy's. We all know that toy rabbit powered by a single Eveready battery will not keep
going, and going, and going. Even if puffery's only function is to entertain, that would be
sufficient reason not to discourage it.
But puffery does far more: it informs consumers as well as promotes product quality.
Before a consumer can buy a product, the consumer must be made aware of the product.
One function of advertising is to create such awareness. In this age of vivid video images
and electronic sounds, sellers must compete hard for consumers' attention. Puffery is one
benign means advertisers use to grab that attention.
Puffery enables an advertiser to grab consumers by their collars and say "Hey, have I got
a great product for you!" If firms are discouraged from placing in their ads all but the
most dry factual claims, consumers will be forced to spend more of their own time and
resources discovering which products are available.
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One consequence will be diminished product innovation. Because consumers are more
familiar with established products than with new products, puffery is pivotal to the
marketing of new products. Fewer resources will be devoted to product innovation if
firms encounter greater legal risks in bringing new products to consumers' attention. As
fewer products are introduced onto the market, established products face less intense
competition. Product quality declines.
Lawyers will be the big winners from any movement away from the existing
uncontroversial legal treatment of puffery. With legal change comes greater legal
uncertainty, and with greater legal uncertainty come more legal disputes. Demands on
already over-burdened courts will grow. Imagine the billing hours lawyers will run up
debating whether or not Chevrolet really is the heartbeat of America. Under the
misleading banner of helping consumers, lawyers will reap big bucks cleaning up a mess
that lawyers themselves are trying to create.
There are some examples which shows puffery

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2. Stereotyping :
The role advertisements play in the development and perpetuation of gender-role
stereotypes. Jones (1991) noted that an analysis of advertisements by Goffman (1976)
found numerous instances of subtle stereotyping including:
1. Functional ranking the tendency to depict men in executive roles and as more
functional when collaborating with women,
2. Relative size the tendency to depict men as taller and larger than women, except
when women are clearly superior in social status,
3. Reutilization of subordination an overabundance of images of women lying on
floors and beds or as objects of men's mock assaults,
4. The feminine touch the tendency to show women cradling and caressing the surface
of objects with their fingers, and
5. Family fathers depicted as physically distant from their families or as relating
primarily to sons, and mothers depicted as relating primarily to daughters.
HOW THE MEDIA PORTRAY:
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Ethnic and Visible Minorities

This section examines the representation of minority groups in the media industryboth
onscreen, in sitcoms and news reporting, and off-screen, in terms of hiring practices. It
also looks at Canadian government policies and broadcasting industry codes that
encourage diversity.
Aboriginal People
This section examines media attitudes to First Nations, Inuit and Native American
peoples - from early films and television to today's coverage and portrayals. The section
looks at the effect on young people's attitudes of seeing Aboriginal people shown
primarily in cartoons or as sports mascots; and it also discusses the development of
Aboriginal broadcasting in Canada.
Girls and Women
This section explores female stereotypes in entertainment and news media, including
onscreen portrayals of women, their effect on cultural ideas of beauty, and how these
stereotypes influence the social development of young women. The section also examines
the economic interests that drive media attitudes towards women.
Men and Masculinity
This section examines common stereotypes of masculinity on TV, in men's magazines,
and in advertising and sports media. It discusses society's definitions of male roles and
attributes, and the effect that media portrayals have on men's (and young people's)
notions of what masculinity means.
Gays and Lesbians
This section offers a brief overview of how gays and lesbians are portrayed in the media:
the evolution of gay portrayals in film, issues related to gays and lesbians in television,
and how advertising and news coverage treat gays and lesbians.
Whiteness and White Privilege
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This section explores the social norms and expectations associated with being white
including the media's tendency to accord respect and authority to white people, especially
from the middle and upper classes. Onscreen and behind the scenes, white privilege
(along with male privilege, and "straight" privilege) fosters a climate of systemic
discrimination that tends to exclude many diverse views from the media.
Persons with Disabilities
This section examines common stereotypes of persons with disabilities in mass media
and the news. It discusses concerns about media representation of disability, including
lack of participation, as well as looks at solutions to better represent persons with
disabilities.
Children and adolescents as target groups
The childrens market, where resistance to advertising is weakest, is the pioneer for ad
creep. Kids are among the most sophisticated observers of ads. They can sing the
jingles and identify the logos, and they often have strong feelings about products. What
they generally don't understand, however, are the issues that underlie how advertising
works. Mass media are used not only to sell goods but also ideas: how we should behave,
what rules are important, who we should respect and what we should value.
Youth is increasingly reduced to the role of a consumer. Not only the makers of toys,
sweets, ice cream, breakfast food and sport articles prefer to aim their promotion at
children and adolescents. Advertising for other products preferably uses media with
which they can also reach the next generation of consumers. Key advertising messages
exploit the emerging independence of young people. Cigarettes, for example, are used
as a fashion accessory and appeal to young women. Other influences on young people
include the linking of sporting heroes and smoking through sports sponsorship, the use of
cigarettes by popular characters in television programmes and cigarette promotions.
Research suggests that young people are aware of the most heavily advertised cigarette
brands.

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Product placements show up everywhere, and children aren't exempt. Far from it. The
animated film, Food fight, had thousands of products and character icons from the
familiar (items) in a grocery store. Children's books also feature branded items and
characters, and millions of them have snack foods as lead characters.
Business is interested in children and adolescents because of their buying power and
because of their influence on the shopping habits of their parents. As they are easier to
influence they are especially targeted by the advertising business. The marketing
industry is facing increased pressure over claimed links between exposure to food
advertising and a range of social problems, especially growing obesity levels. In 2001,
childrens programming accounted for over 20% of all television watching. The global
market for childrens licensed products was some 132 billion U.S. dollars in 2002.
Advertisers target children because, e. g. in Canada, they represent three distinct
markets:
1. Primary Purchasers ($2.9 billion annually)
2. Future Consumers (Brand-loyal adults)
3. Purchase Influencers ($20 billion annually)
Kids will carry forward brand expectations, whether positive, negative or indifferent Kids
are already accustomed to being catered to as consumers. The long term prize: Loyalty of
the kid translates into a brand loyal adult customer
The average child sees 350,000 TV commercials before graduating from high school,
spends nearly as much time watching TV as attending classes. In 1980 the Indian
province banned advertising for children under age 13. In upholding the constitutional
validity of the Indian Consumer Protection Act restrictions on advertising to children
under age 13 (in the case of a challenge by a toy company) the Court held: ...advertising
directed at young children is per se manipulative. Such advertising aims to promote
products by convincing those who will always believe.
According to health experts the constant promotion of high-calorie food is contributing to
the epidemic of childhood obesity and poor eating habits. This leads to some serious
issues since the consumption of things like Soda leads to bone diseases and high rates of
42 | P a g e

fracture amongst girls. Since the child perceives the ad of a product in a very different
way, the consumption of the product increases. From the perception of the children its a
food item but in reality it is junk food with harmful effects, because the mind does not
register the damaging effects of advertising and consumption of unhealthy food products.
Also a general ethical concern is the tendency of ads to promote acquisition as a virtue
since children view advertising from a much less developed frame of mind. The Alcohol
industry is another area of extensive debate since teenagers see an estimated 75,000
alcohol ads before their legal drinking ages. Alcohol advertising seeks to associate
drinking with desirable qualities or pleasurable experiences since it portrays alcohol
consumption as a part of recreational activities and sporting events. Advertising
commercials may send irresponsible drinking messages to children and lead to health
problems and unreasonable behavior.
The impact of Alcohol advertising is so great that the Budweiser Frog campaign
introduced in 1995 during the super bowl was highly recognizable among children. More
children remember the Budweiser frog than they remember Bugs Bunny. (Children
Health and Advertising.2000).This tells us that no matter what one is selling the method
of promotion and the product will have an impact on young minds and they will register
the images and associate themselves with drinking at an earlier or later stage in life.
These are the some examples of stereotyping :

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3. Promoting unhealthy products:

Due to the globalization of the economy the globe is indeed becoming a smaller place,
marketers have to bear in mind national, local and cultural sensitivities. marketers do
have to act with celerity in gaining footholds in emerging markets such as China and
India, care has to be taken in ensuring that the mores, etiquettes of the land are not
encroached upon. The incorporation of newer technologies has meant that a number of
issues such as invasion of privacy and credibility have arisen.
In India, for example, a large multinational corporation ran an ad campaign that depicted
a young woman who because of her dark facial complexion was unable to find jobs. But
as the ad showed, as soon as the woman started using the facial whiteness cream
manufactured by the corporation, she got the job of her choice. Needless to say, there was
a big backlash against it and the ad campaign had to be scrapped. On an ethical
standpoint, marketers have to exercise restraint in exploiting such social paradigms to
their commercial advantage.

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Surrogate Advertisements In India alcohol and cigarette advertisements were banned

outright some years back. However, alcohol and cigarette companies alike are using the
avenue of surrogate advertisements to press forward their case. For the viewer though,
the subtle pointer towards the real deal is enough as the surrogate advertisements leave
no ambiguity in their minds.
Promotions of Alcohol, Tobacco-Creating Demand for Vice Cigarettes are one of the
most heavily marketed products in China and other developing nations. An increasing
percentage of those marketing dollars is dedicated to what are probably the most
sophisticated consumer marketing databases in the business world. Tobacco advertising is
no longer just the province of multi-million dollar ad budgets pushing the Marlboro Man,
Joe Camel's phallic face or the women in the Virginia Slims' ads who have come a long
way. It is equally the province of direct marketers, pushing free packs to targeted
prospects and mailing slick magazines-published by tobacco companies-to influence the
behaviour and retain the loyalty of tens of millions of smokers And the problem is
pandemic-is is prevalent in both developing as well as developed countries alike. In the
US for example, cigarette smoking is responsible for the deaths of almost half a million
people a year. Tobacco use is responsible for more than one in six deaths in the United
States. Smoking accounts for 30% of all cancer deaths. It is a major cause of heart
disease, and it is associated with conditions ranging from colds and gastric ulcers to
chronic bronchitis, emphysema and vascular disease. Smoking caused an estimated
264,087 male and 178, 311 female deaths in the United States each year from 1995 to
1999. The U.S. Congress Office of Technology Assessment estimates the cost of smoking
(direct and indirect) to the economy at $150 billion a year. Each day more than 3,000
teenagers in the U.S. become addicted to cigarettes. The tobacco industry argues that its
advertising is not aimed at recruiting these young new smokers. Its representatives say,
disingenuously, that advertising by individual tobacco companies targets adults only and
serve only to encourage regular smokers to switch brands or to retain brand loyalty.
However it has been seen that perception of cigarette brand advertising actually is higher
among young smokers and that changes in market share resulting from advertising occur
mainly in this segment. Cigarette advertising thus undoubtedly encourages youth to
smoke. In a survey conducted by the Journal of the American Medical Association, it was
45 | P a g e

stated that the success of the tobacco industry is dependent on recruiting people who
don't believe that tobacco kills-thus enticing children, developing nations populations,
and disadvantaged members of society to smoke is the only way for tobacco companies
to make up for the number of smokers who quit or die
Tobacco advertisements are another ethical concern as far as advertising is concerned
since a large number of cigarette advertisements tend to appeal to the teenagers by
emphasizing youthful vigor and independence. A large number of tobacco advertisements
it is believed are directed towards the younger population and this is a luring technique
which encourages the teenagers to start smoking at an early age. Companies spend
billions of pounds on tobacco advertisements. Tobacco company since they directed their
advertisements to children as young as 14 years old.
As this 14-24 age group matures, they will account for a key share of the total cigarette
volume for at least the next 25 yearsThus our strategy becomes clear for our
established brands: direct advertising appeal to younger smokers.
So this makes it clear that tobacco advertising is another ethical problem at a massive
scale and effects children as young as 12-14 years old. Another problem with advertising
is that of the food items as children are very valuable to the food industry and this
constitutes to unhealthy eating habits in children as young as7-12 year old. The food
advertisements that children see are normally of foods that are high in sugar and fat
contents and this leads to obesity among children.

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The caption says If you got

crushed in the clinch with your soft
pack, try our hard pack. The play
on the words hard and soft is
difficult to overlook; the ad seems
to be promising virility and potency
to the prospective male purchaser
of Benson & Hedges.

The picture portrays a young man

and woman embracing each other.
If you just glanced at the
expression on the mans face for a
moment or two, you would probably
assume that he is smug, as though
he were thinking If you smoked
Benson &Hedges you too would
have beautiful women chasing after
you. If you study the expression on
his face, however, you will discover
that it is somewhat ambiguous. He
could be smug, but he also could
be a bit nervous. It is possible that
the aggressive advances of the
lovely young woman are making
him uncomfortable.

Advertising creates an environment

4. Controversial advertisements:

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
47 | P from
age
advertising draws mixed response
the public, while sometimes it becomes
controversial.

5. Subliminal Advertising:

One of the controversies

surrounding the existence of
subliminal perception is its
definition. Subliminal means "below
threshold."

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The advertising industry, a prominent and powerful industry, engages in deceptive

subliminal advertising which most us are unaware of. By bypassing our unconscious
mind using subliminal techniques, advertisers tap into the vulnerabilities surrounding our
unconscious mind, manipulating and controlling us in many ways. Since the 1940's
subliminal advertising blossomed until now, when you can find subliminal in every major
advertisement and magazine cover. Legislation against the advertisers has had no effect in
curbing the use of subliminal. In this Information Age, it seems people are no longer in
control of the people. It is obvious that by tapping into the consumer's unconscious mind
without their knowledge, the advertisers are engaging in deceptive practices. It is also an
invasion of privacy. But, is this legal? The answer is no. There are numerous legislation
that prohibit advertisers from using subliminal messages in their ads. Subliminal are
inherently deceptive because the consumer does not perceive them at a normal level of
awareness, and thus is given no choice whether to accept or reject the message, as is the
case with normal advertising.

6. Advertising to children:

Children are easily persuaded

and have a large pull on today's
markets, as is known by all
advertisers, even ones who do
not intend for their products to
be consumed by children. In
creating an audience at such a
young age, producers are
aiming to have a loyal audience
of grown adult.

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Advertising to children is the act of marketing or advertising products or services to

young people. In 2000, children under 13 years old impacted the spending of over $600
billion in the United States alone. This has created a large incentive to advertise to
children which has led to the development to a multimillion dollar industry. The
increasing controversy over the ethics of continued advertising to children has even led to
its banning in some European countries. Children are easily persuaded and have a large
pull on today's markets, as is known by all advertisers, even ones who do not intend for
their products to be consumed by children. In creating an audience at such a young age,
producers are aiming to have a loyal audience of grown adults. The creation of loyal
consumers can be both positive and negative. The issue of advertising to children has
raised much controversy since the 1970s.Children form the major chunks of the target
group for advertisers. Many advertisements aimed towards children are a sole proof of
this fact. The prime motive of any advertisement is to convince the viewer about the
quality of the product and instill that urge in him/her to purchase the same. Today,
advertising plays an important role in the society, as it tends to influence young minds in
particular.
The first prime motive of advertising is to attract attention. With children, the messages
need to be conveyed in a different manner. Goods are particularly packaged in order to
appeal to the younger generation. Children today, are more specific about their needs and
wants. Children are therefore reckoned to be a major buying force by advertisers.
However, advertising can also have a negative influence over young minds if parents are
not really careful and do not teach their children about the importance of money. In many
cases, children tend to misinterpret the messages conveyed through the advertisement.
For example, a child may prefer only a specific pair of branded jeans as compared to
other clothing available in stores. He/she may want to live the life that is projected in the
advertisements. The child may dictate to his/her parents about personal preferences in
clothing, food, toys etc.

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Criticism of advertising

Hyper-commercialism and the commercial tidal wave

It is becoming harder to escape

from advertising and the media.
Public space is increasingly
turning into a gigantic billboard
for products of all kind. The
aesthetical and political
consequences cannot yet be
foreseen.

Criticism of advertising is closely linked with criticism of media and often

interchangeable. They can refer to its audio-visual aspects (e. g. cluttering of public
spaces and airwaves), environmental aspects (e. g. pollution, oversize packaging,
increasing consumption), political aspects (e. g. media dependency, free speech,
censorship), financial aspects (costs), ethical/moral/social aspects (e. g. sub-conscious
influencing, invasion of privacy, increasing consumption and waste, target groups, certain
products, honesty) and, of course, a mix thereof. Some aspects can be subdivided further
and some can cover more than one category.
As advertising has become increasingly prevalent in modern Western societies, it is also
increasingly being criticized. A person can hardly move in the public sphere or use a
medium without being subject to advertising. Advertising occupies public space and more
and more invades the private sphere of people, many of which consider it a nuisance.
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Ad creep: There are ads in schools, airport lounges, doctors offices, movie theaters,
hospitals, gas stations, elevators, convenience stores, on the Internet, on fruit, on ATMs,
on garbage cans and countless other places. There are ads on beach sand and restroom
walls. One of the ironies of advertising in our times is that as commercialism increases,
it makes it that much more difficult for any particular advertiser to succeed, hence
pushing the advertiser to even greater efforts.

[21]

Within a decade advertising in radios

climbed to nearly 18 or 19 minutes per hour; on prime-time television the standard until
1982 was no more than 9.5 minutes of advertising per hour, today its between 14 and 17
minutes. With the introduction of the shorter 15-second-spot the total amount of ads
increased even more dramatically.
Other growing markets are product placements in entertainment programming and in
movies where it has become standard practice and virtual advertising where products
get placed retroactively into rerun shows. Product billboards are virtually inserted into
Major League Baseball broadcasts and in the same manner, virtual street banners or logos
are projected on an entry canopy or sidewalks, for example during the arrival of
celebrities at the 2001 Grammy Awards. Advertising precedes the showing of films at
cinemas including lavish film shorts produced by companies such as Microsoft or
DaimlerChrysler. The largest advertising agencies have begun working aggressively to
co-produce programming in conjunction with the largest media firms

[22]

creating

Infomercials resembling entertainment programming.

Its standard business management knowledge that advertising is a pillar, if not the
pillar of the growth-orientated free capitalist economy. Advertising is part of the bone
marrow of corporate capitalism.Contemporary capitalism could not function and global
production networks could not exist as they do without advertising.

Advertising and constitutional rights

Advertising is equated with constitutionally guaranteed freedom of opinion and speech.
Therefore criticizing advertising or any attempt to restrict or ban advertising is almost
always considered to be an attack on fundamental rights and meets the combined and
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concentrated resistance of the business and especially the advertising community.

Currently or in the near future, any number of cases are and will be working their way
through the court system that would seek to prohibit any government regulation of ...
commercial speech (e. g. advertising or food labeling) on the grounds that such regulation
would violate citizens and corporations First Amendment rights to free speech or free
press.

An example for this debate is

advertising for tobacco or alcohol but
also advertising by mail or fliers
(clogged mail boxes), advertising on
the phone, in the internet and
advertising for children. Various legal
restrictions concerning spamming,
Not only the business community resists
advertising on mobile phones,
addressing
children, tobacco, alcohol
restrictions of advertising. Advertising as a
have been introduced by the US, the
means of free expression has firmly established
EU and various other countries.
itself in western society. Surveys e. g. reveal
that advertising is generally seen as a welcome
information and seldom as a nuisance. At worst
it is seen as a necessary evil to be endured and
most often its entertaining value is pointed out. Hardly any by-law restricting advertising
fails to appease possible critics by pointing out the positive effects and the necessity of
advertising in its foreword. The government deserves constant vigilance when it comes to
such regulations, but that it is certainly not the only antidemocratic force in our society.
Corporations and the wealthy enjoy a power every bit as immense as that enjoyed by the
lords and royalty of feudal times and markets are not value-free or neutral; they not
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only tend to work to the advantage of those with the most money, but they also by their
very nature emphasize profit over all else. Hence, today the debate is over whether
advertising or food labelling, or campaign contributions are speech...if the rights to be
protected by the First Amendment can only be effectively employed by a fraction of the
citizenry, and their exercise of these rights gives them undue political power and
undermines the ability of the balance of the citizenry to exercise the same rights and/or
constitutional rights, then it is not necessarily legitimately protected by the First
Amendment. In addition, those with the capacity to engage in free press are in a
position to determine who can speak to the great mass of citizens and who cannot.
Critics in turn argue, that advertising invades privacy which is a constitutional right. For,
on the one hand, advertising physically invades privacy, on the other, it increasingly uses
relevant, information-based communication with private data assembled without the
knowledge or consent of consumers or target groups.
Dependency of the media and corporate censorship
Almost all mass media are advertising media and many of them are exclusively
advertising media and, with the exception of public service broadcasting are privately
owned. Their income is predominantly generated through advertising; in the case of
newspapers and magazines from 50 to 80%. Public service broadcasting in some
countries can also heavily depend on advertising as a source of income (up to 40%).In the
view of critics no media that spreads advertisements can be independent and the higher
the proportion of advertising, the higher the dependency. This dependency has distinct
implications for the nature of media content. In the business press, the media are often
referred to in exactly the way they present themselves in their candid moments: as a
branch of the advertising industry.
Journalists have long faced pressure to shape stories to suit advertisers and owners. The
vast majority of TV station executives found their news departments cooperative in
shaping the news to assist in non-traditional revenue development. Negative and
undesired reporting can be prevented or influenced when advertisers threaten to cancel
orders or simply when there is a danger of such a cancellation. Media dependency and
such a threat becomes very real when there is only one dominant or very few large
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advertisers. The influence of advertisers is not only in regard to news or information on

their own products or services but expands to articles or shows not directly linked to
them. In order to secure their advertising revenues the media has to create the best
possible advertising environment. Another problem considered censorship by critics is
the refusal of media to accept advertisements that are not in their interest.
Because of these dependencies a widespread and fundamental public debate about
advertising and its influence on information and freedom of speech is difficult to obtain,
at least through the usual media channels; otherwise these would saw off the branch they
are sitting on. The notion that the
commercial basis of media, journalism,
and

communication

could

have

troubling implications for democracy is

excluded from the range of legitimate
debate just as capitalism is off-limits
as a topic of legitimate debate.

Performances, exhibitions, shows, concerts,

conventions and most other events can hardly take
The commercialization of culture
place without sponsoring. The increasing lack of public
and sports
funding or support makes the arts and cultural events
dependant on private business. Thus, arts and culture
are put into the service of sales promotion. Wherever
sponsors finance publicly born arts and culture they buy
the service of attraction. Artists are graded and paid
Corporations
promote
renowned
according to their arts value for commercial purposes.
artists, therefore getting exclusive
rights in global advertising campaigns.
Broadway shows, like La Bohemia
featured commercial props in its set.
Advertising

itself

is

extensively

considered to be a contribution to
culture. Advertising is integrated into
fashion. On many pieces of clothing the company logo is the only design or is an
important part of it. There is only little room left outside the consumption economy, in
which culture and art can develop independently and where alternative values can be
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expressed. A last important sphere, the universities, is under strong pressure to open up
for business and its interests
Competitive sports have become unthinkable without sponsoring and there is a mutual
dependency. High income with advertising is only possible with a comparable number of
spectators or viewers. On the other hand, the poor performance of a team or a sportsman
results in less advertising revenues.
Occupation and commercialization of public space

Digital technologies are used on buildings to sport urban wall displays. In urban areas
commercial content is placed in our sight and into our consciousness every moment we
are in public space. Through longterm commercial saturation, it has
become implicitly understood by
the public that advertising has the
right to own, occupy and control
every inch of available space. The

Every visually perceptible place has potential for

steady normalization of invasive advertising. Especially urban areas with their structures but
also landscapes in sight of through fares are more and
advertising dulls the publics
more turning into media for advertisements. Signs, posters,
perception of their surroundings, billboards, flags have become decisive factors in the urban
appearance and their numbers are still on the increase.
re-enforcing a general attitude of
Outdoor advertising has become unavoidable. Traditional
powerlessness toward creativity
billboards and transit shelters have cleared the way for
and change, thus a cycle develops more pervasive methods such as wrapped vehicles, sides
of buildings, electronic signs, kiosks, taxis, posters, sides of
enabling advertisers to slowly and
buses, and more.
consistently increase the saturation
of advertising with little or no
public outcry.
The massive optical orientation
toward advertising changes the
function of public spaces which
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are utilized by brands. Urban landmarks are turned into trademarks. The highest pressure
is exerted on renowned and highly frequented
public spaces which are also important for the
identity of a city (e. g. Piccadilly Circus, Times
Square, Alexanderplatz). Urban spaces are
public commodities and in this capacity they are
subject to aesthetical environment protection,
mainly through building regulations, heritage
protection and landscape protection. It is in this
capacity that these spaces are now being
privatized. They are peppered with billboards
and signs, they are remodeled into media for

The childrens market, where

resistance to advertising is weakest, is
the pioneer for ad creep. Kids are
among the most sophisticated
observers of ads. They can sing the
jingles and identify the logos, and they
often have strong feelings about
products. What they generally don't
understand, however, are the issues
that underlie how advertising works.

advertising.

Children and adolescents as target groups

Mass media are used not only to sell goods but also ideas: how we should behave, what
rules are important, who we should respect and what we should value. Youth is
increasingly reduced to the role of a consumer. Not only the makers of toys, sweets, ice
cream, breakfast food and sport articles prefer to aim their promotion at children and
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adolescents. Advertising for other products preferably uses media with which they can
also reach the next generation of consumers. Key advertising messages exploit the
emerging independence of young people. Cigarettes, for example, are used as a fashion
accessory and appeal to young women. Other influences on young people include the
linking of sporting heroes and smoking through sports sponsorship, the use of cigarettes
by popular characters in television programmes and cigarette promotions. Research
suggests that young people are aware of the most heavily advertised cigarette brands.
Product placements show up everywhere, and children aren't exempt. Far from it. The
animated film, Food fight, had thousands of products and character icons from the
familiar (items) in a grocery store. Children's books also feature branded items and
characters, and millions of them have snack foods as lead characters. Business is
interested in children and adolescents because of their buying power and because of their
influence on the shopping habits of their parents. As they are easier to influence they are
especially targeted by the advertising business. The marketing industry is facing
increased pressure over claimed links between exposure to food advertising and a range
of social problems, especially growing obesity levels.

Opposition and campaigns against advertising

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The greatest damage done by advertising is precisely that it incessantly demonstrates the
prostitution of men and women who lend their intellects, their voices, their artistic skills
to purposes in which they themselves do not believe, and that it helps to shatter and
ultimately destroy our most precious non-material possessions: the confidence in the
existence of meaningful purposes of human activity and respect for the integrity of man.
The struggle against advertising is therefore essential if we are to overcome the
pervasive alienation from all genuine human
needs that currently plays such a corrosive role
in our society. But in resisting this type of
hyper-commercialism we should not be under
any illusions. Advertising may seem at times to
be an almost trivial of omnipresent aspect of
our economic system. Yet, as economist A. C.
Pigou pointed out, it could only be removed
altogether if conditions of monopolistic
competition inherent to corporate capitalism
were removed. To resist it is to resist the inner
logic of capitalism itself, of which it is the pure

According to critics, the total

commercialization of all fields of society,
the privatization of public space, the
acceleration of consumption and waste of
resources including the negative influence
on lifestyles and on the environment has
not been noticed to the necessary extent.
The hyper-commercialization of the culture
is recognized and roundly detested by the
citizenry, although the topic scarcely
receives a whiff of attention in the media or
political culture.

expression.
Taxation as revenue and control
Public interest groups suggest that access to
the mental space targeted by advertisers should be taxed, in that at the present moment
that space is being freely taken advantage of by advertisers with no compensation paid to
the members of the public who are thus being intruded upon. This kind of tax would be a
Pigovian tax in that it would act to reduce what is now increasingly seen as a public
nuisance. Efforts to that end are gathering more momentum, with Arkansas and Maine
considering bills to implement such a taxation. Florida enacted such a tax in 1987 but was
forced to repeal it after six months, as a result of a concerted effort by national
59 | P a g e

commercial interests, which withdrew planned conventions, causing major losses to the
tourism industry, and cancelled advertising, causing a loss of 12 million dollars to the
broadcast industry alone.
In the U. S., for example, advertising is tax deductible and suggestions for possible limits
to the advertising tax deduction are met with fierce opposition from the business sector,
not to mention suggestions for a special taxation. In other countries, taxation at least is
taxed in the same manner services are taxed and in some advertising is subject to special
taxation although on a very low level. In many cases the taxation refers especially to
media with advertising (e. g. Austria, Italy, Greece, Netherlands, Turkey, Estonia). Tax on
advertising in European countries:

Belgium: Advertising or billboard tax on public posters depending on size and

kind of paper as well as on neon signs

France: Tax on television commercials based on the cost of the advertising unit

Italy: Municipal tax on acoustic and visual kinds of advertisements within the
municipality and municipal tax on signs, posters and other kinds of
advertisements the tariffs of which are under the jurisdiction of the municipalities

Netherlands: Advertising tax with varying tariffs on certain advertising measures

(excluding ads in newspapers and magazines) which can be levied by
municipalities depending on the kind of advertising (billboards, neon signs etc.)

Austria: Municipal announcement levies on advertising through writing, pictures

or lights in public areas or publicly accessible areas with varying tariffs depending
on the fee, the surface or the duration of the advertising measure as well as
advertising tariffs on paid ads in printed media of usually 10% of the fee.

Sweden: Advertising tax on ads and other kinds of advertising (billboards, film,
television, advertising at fairs and exhibitions, flyers) in the range of 4% for ads in
newspapers and 11% in all other cases. In the case of flyers the tariffs are based
on the production costs, else on the fee

Spain: Municipalities can tax advertising measures in their territory with a rather
unimportant taxes and fees of various kinds.

Handle a controversial advertising

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Thai society is caught in a political and legal conundrum. Amidst the great need to bring
about social harmony and settlement of political conflict, there exist the political issues
and legal technicalities which need to be carefully scrutinized and tackled.
The issues are most delicate as to the pragmatic consideration vis--vis the preservation
of the sacrosanct principle, which at times could be self-contradictory and even mutually
exclusive.
The criminal offences, on the other hand, have to be viewed from a different perspective.
Criminal cases can be considered wrong or evil in itself while political offences are
wrong because prohibited save those which are criminally directly liable; and hence the
former may have to be taken with a more rigorous and even rigid approach, while the
latter may be given a more convenient review.
At any rate, even in the case of political offences, there is no guarantee that the lenient
consideration will be agreed upon by all the sides concerned. Adversarial political parties
may be averse to lifting the ban on those party executives who have been barred from
getting involved in politics. At the same time, those young politicians who are upstarts of
the former parties which have been dissolved, may find it distasteful to welcome back
those senior colleagues who would automatically become their competitors, making slim
their chances of being candidates for the House of Representatives and the cabinet. The
former party executives who lost their political rights may face formidable enemies from
within, rather than from outside. This political irony is a non-laughable hilarity, most
notably for those old-timers.
But somehow, some kind of a compromise will hopefully come about. The conundrum
has to be correctly read and the controversy has to be successfully handled. Society has to
return to business as usual. The democratic process has to come back on track. But the
controversial issues are delicate and need to be handled with finesse. The question is
whether the political atmosphere and the public mood are all out for the goal of lessening
political strife, social cleavage and ideological differences. Therein lies the answer of the
future of Thai politics and democracy.
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Future of advertising
Global advertising
Advertising has gone through five major stages of development: domestic, export,
international, multi-national, and global. For global advertisers, there are four, potentially
competing, business objectives that must be balanced when developing worldwide
advertising: building a brand while speaking with one voice, developing economies of
scale in the creative process, maximizing local effectiveness of ads, and increasing the
companys speed of implementation. Born from the evolutionary stages of global
marketing are the three primary and fundamentally different approaches to the
development of global advertising executions: exporting executions, producing local
executions, and importing ideas that travel.
Advertising research is key to determining the success of an ad in any country or region.
The ability to identify which elements and/or moments of an ad that contributes to its
success is how economies of scale are maximized. Once one knows what works in an
advertisement that idea or ideas can be imported by any other market. Market research
measures, such as Flow of Attention, Flow of Emotion and branding moments provide
insight into what is working in an ad in any country or region because the measures are
based on the visual, not verbal, elements of the advertisement.

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LIMITATION OF STUDY

No doubt this topic is very interesting as it is related to the ads which has a very great
impact on the consumers behavior and we all watches ads many times in a day but as we
all know this is a very wide field to take information about all controversial ads and the
issues related to the same 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 aero
planes. Advertisements are seen in newspapers, in magazines, on the television, on
internet and are even heard on radio, So the only limitation of the study is its wideness.
Due to this reason I am restricted to the television media as its source.
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QUESTIONNAIRE ANALYSIS

1. Do you like to watch advertisements ?

A. Yes

B. No

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Yes

No

As advertisements are interesting and give you the information about the product and its
features there by 65 % people adjudged that they like to watch in between break or
intervals.

2. Which medium of advertisement is preferable to you ?

A. News Paper

B. Internet

C. Television

Magazine 10%

D. Magazine

Newspaper 15%

65 | P a g e

Television 55%

Internet 20%

Its hard to find time for newspaper and magazines, moreover in their offices people watch
advertisements on internet whereas T.V. is the successful medium for watching
advertisements.

3. Do advertisements really mean what it states?

A. Yes

B. No

66 | P a g e

Yes

No

65 % people know that what so ever they are watching in advertisements about
the product and their efficiency it is not up to the mark or 100 %, as they are
interesting thats why they watch it.

4. According to you which advertisements affects children the most, the one in which
there is an inclusion of:
A. Celebrities

B. Sports man

C. Business Person

(50%)Celebrities
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5. Are the Advertisements interesting or you switch to another channel?

A. Yes

B. No

NO

Yes

Its hard to switch as the advertisements are interesting but the nature of a viewer is to
alternately watching channel.

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6. Is it ethical to

show the use

of alcohol in
advertisements?
A. Yes

B. No

Yes

No

The use of alcohol is enjoy full not watchful, it gives negative impact on kids as they take
it granted and try to taste it which is adversfull.

7. Is it ethical to use the kind of sex activities in advertisements?

A. Yes

B. No

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Yes

No

The companies should have to take care of showing double

meaning advertisements and also the main concern is showing
sex related activities in advertisement as it makes difficult to
watch.

8. Should Government check and take measures to control the unethical advertisements?

A. Yes

B. No

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Yes

NO

As we are getting modernize day by day and taking the use of alcohol and sex
as granted, but one thing sure that we are not in a position to accept it that it
will be shown on advertisements so government should have to take
appropriate measures to check.

9. Do you feel comfortable while watching advertisements along with your kids and
family?
A. Yes

B. No

71 | P a g e

No

Yes

The companies should have to take care of showing the use of alcohol, double meaning
advertisements and also the main concern is showing sex related activities in
advertisement as it makes uncomfortable to watch along with family and kids.

10. Should unethical advertisements be banned from all advertisement sources.

A. Yes

B. No

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Everyday you can see new unethical advertisement which include alcohol and sex related
activities also the double meaning advertisements.
Government should have to take step and banned all these as they are making our new
generation unsocial.

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CONCLUSION

Good Marketing Citizens All in all, it can be seen that ethical issues in marketing in the
context of developing countries is highly sensitive to cultural, social and ethical issues.
The larger issue is thus not merely an occidental versus an oriental one. For the marketing
fraternity to be a good ethical citizen, the onus lie on themselves-for indeed, marketers
have to stop indulging in unethical practices and start respecting local mores and values.
Although today no one can ignore the importance of advertisement. In this globalized
world advertisements play an important role of the success of any organization. These
day a different sector has develop to handle the advertising of the company and a lot of
money spend on that sector as seeing the importance of this.
One the one hand we accepts the importance of advertising but on the other hand we
cant avoid its bad impact on the society and culture. Due to the high competition today
companies are accepting cheap and unethical equipments for advertising. These ads give
a wrong message to the society and to the new generation who are the future of the
upcoming society. If today new generation gains a wrong moral values and wrong
method of living they will harm their health as well as mental analyzing power. And in
future they will enable to give right message to their traits.
We have to think about this unethical problem and this wrong presentation of business.
So that we can give a good ethics to our youngers.

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Bibliography

(a)Books:

The Changing Face of Advertising:

Integrated Marketing Communication:

Principles of Advertising & IMC:

by V Partha Sarathy
by ICFAI University Press
by Tom Duncan

(b)Magazines :

Advertising Express:

Issue 6 June 2007(Impact of Surrogate Advertisements on Consumer Buying

Behaviour)

(A new Realm in Advertising)

Issue 1-Jan 2006Emo-Rational Appeal in Advertising

by ICFAI University Press

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(c) References :

http://www.icmrindia.org/courseware/Marketing
%20Communications/Marketing%20CommunicationsDS21.htm

http://nethgr.com/download/rhul/essay/MN345/B.%20Ethical
%20Issues%20of%20Advertising.doc

http://www.warc.com/LandingPages/Generic/Advertising_&_
Marketing_Communications/Advertising/Legal_and_ethical_is
sues/

http://www.oppapers.com/essays/Ethical-Issues-AdvertisingCommunication/179224

http://www.aef.com/on_campus/classroom/speaker_pres/data/6
000

http://wiki.answers.com/Q/What_are_the_ethical_issues_in_m
arketing

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QUESTIONNAIRE

1. Do you like to watch advertisements ?

A. Yes

B. No

2. Which medium of advertisement is preferable to you ?

A. News Paper

B. Internet

C. Television

D. Magazine

3. Do advertisements really mean what it states?

A. Yes

B. No

4. According to you which advertisements affects children the most, the one in which
there is an inclusion of:
A. Celebrities

B. Sports man

C. Business Person

5. Are the Advertisements interesting or you switch to another channel?

A. Yes

B. No

6. Is it ethical to show the use of alcohol in advertisements?

A. Yes

B. No

7. Is it ethical to use the kind of sex activities in advertisements?

A. Yes

B. No

8. Should Government check and take measures to control the unethical advertisements?
A. Yes

B. No

77 | P a g e

9. Are you feel comfortable while watching advertisements along with your kids and
family?
A. Yes

B. No

10. Should unethical advertisements be banned from all advertisements sources.

A. Yes

B. No

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