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Chapter 18: Social Impact, Responsibility, and Ethics: Is it Right?

Chapter 18

Social Impact, Responsibility, and Ethics: Is It Right?

CHAPTER CONTENT

KEY OBJECTIVES

1. Name and discuss the key debates related to the social impact of brand

communication.

3. Discuss how advertising is regulated.

CHAPTER OVERVIEW

With a huge potential to make a significant impact on society, brand communicators

shoulder the responsibility for choosing what products and ideas they want to advertise,

what messages they communicate, and how they want to communicate them. In this

chapter, the impact of brand communication on society will be explored, the ongoing

CHAPTER OUTLINE

WHAT IS THE SOCIAL IMPACT OF BRAND COMMUNICATION?

 Brands take on meaning when consumers see that all areas of marketing

communication about the brand are consistent and authentic. Communicators want

the recipients of their messages to feel positive about the brand but not at the expense

of doing what is right both ethically and legally.

 Most communication about brands is either neutral or positive, meaning that brand

stewards recognize that their product, service, or organization has the obligation to

benefit society in some way. They recognize their brand’s duty to demonstrate social

responsibility.

Chapter 18: Social Impact, Responsibility, and Ethics: Is it Right?

What Are the Key Debates about the Social Impact of Marketing Communication?

 Marketing communication, particularly advertising, sometimes draws criticism of its

social impact because of its high visibility. Our intention is to review the criticisms,

while adhering to our belief that advertising is a good force in our society and in our

economy.

 Public relations also plays a major role in a brand’s demonstration of social

Can Advertising Create Demand?

 Some critics charge that advertising causes demand creation, which results when an

external message drives people to feel a need or want, sometimes unnecessarily.

Others reject this notion.

 Companies often conduct significant research to find out what consumers want before

they launch new products. If people do not want the products being marketed, they do

Does Advertising Mirror Social Values or Shape Them?

 Another important debate about advertising’s role in society questions the limits of its

influence. At what point does advertising cross the line between reflecting social

values to creating them? Critics argue that advertising has repeatedly crossed this

line, influencing vulnerable groups such as children and teenagers too strongly.

 Can advertising manipulate people’s choices? Critics of advertising argue that

advertising can create social trends and has the power to dictate how people think and

Chapter 18: Social Impact, Responsibility, and Ethics: Is it Right?

 The shaping-versus-mirroring debate is the most central issue we address in

considering advertising and public relations’ role in society. What drives consumers

to behave as they do? And what are the cultural forces that underlie their decisions?

It’s complicated to decipher. Advertising and societal values are interwoven, so the

answer to this debate may simply be that advertising both mirrors and shapes values.

Does Advertising Cause People to Be Too Materialistic?

 Some argue that advertising heightens expectations and primes the audience to

believe that the answer is always a product. What is left unsaid by an advertisement is

Should Some Audiences Be Protected from Advertising?

 Marketing to youth is one of the most controversial topics in the industry. One reason

why advertising to children attracts so much attention is that children are seen as

vulnerable. Children do not always know what is good for them and what is not.

What are the Key Debates and Issues about Brand Communication Practices?

 Next, we will give you a checklist of issues that can have a negative impact on brands

if the communication does not align with the brand image or respect the audience.

Does Brand Communication Fairly and Accurately Portray People?

Diversity and Stereotypes:

 A stereotype is a representation of a cultural group that emphasizes a trait or group of

traits that may or may not communicate an accurate representation of the group.

Sometimes the stereotype is useful and aids communication by using easily

understood symbolic meaning. But when stereotypes rely upon on a characteristic that

is negative and exaggerated, an entire group is reduced to a caricature.

Chapter 18: Social Impact, Responsibility, and Ethics: Is it Right?

 Concerns about the homogenization of cultural differences are expressed as

marketing imperialism or cultural imperialism. These terms are used to describe

what happens when Western culture is imposed on others, particularly the Middle

Eastern, Asian, and African cultures. They worry that international advertising and

media will encourage their young people to adopt these viewpoints.

Sex Appeal and Body Image:

 Advertising that portrays either gender as sex objects is considered demeaning and

sexist, particular if sex is not relevant to the product. The ethical question is how sexy

is too sexy? Sometimes ads use sex appeal that is relevant to the product, such as

Victoria’s Secret, but explicitly using sex appeal to sell may not always be

appropriate.

 Playing on consumers’ insecurities about their appearance presents advertisers with a

classic ethical dilemma because self-image advertising can be seen as contributing to

self-improvement. However, sometimes such advertising is questionable because it

leads to dangerous practices. Some critics charge that women place their health at risk

to cultivate an unrealistic or even unhealthy physical appearance.

Poor Taste and Offensive Advertising:

 Although certain ads might be in bad taste in any circumstance, viewer reactions are

affected by factors such as sensitivity to the product category, timing, and other

circumstances, such as whether the person is alone or with others when viewing the

message.

 Also, questionable ads become offensive in the wrong context. Advertisers and media

outlets must try to be sensitive to such objections. For example, outraged advertisers

pulled their ads from Fox News Channel’s Glenn Beck program after the host made

Chapter 18: Social Impact, Responsibility, and Ethics: Is it Right?

 An ad can be offensive to the general public, even if the targeted audience accepts it.

Brand communicators would be wise to conduct research to gauge the standards of

Is Communication Honest and Transparent?

 Even though most advertisers try to create messages that communicate fairly and

accurately, communicators must pay close attention to what is considered

unacceptable to avoid unethical or even illegal behavior. Advertising claims are

Misleading claims and puffery:

 Consumers have sometimes been targets of unfair, deceptive, or fraudulent practices

in the marketplace. Examples include misleading claims in weight-loss advertising or

burying hidden costs such as shipping fees. The Federal Trade Commission, a

government regulatory body, attempts to protect the public from such unfair

practices. Misleading claims are also a problem outside of the United States.

 Not all exaggerated claims are considered misleading. Puffery is defined as

advertising or other sales representations that praise the item to be sold with

subjective opinions, superlatives, or exaggerations in a vague and general way, while

Comparative advertising:

 Although it is perfectly legitimate to compare a marketer’s product favorably against

a competitor, regulations govern the use of comparative advertising if it can be

challenged as misleading. Advertisers face the common threat that competitors will

misrepresent their products. Comparative advertising that is misleading can be

challenged.

 Advertisers face the common threat that competitors will misrepresent their products.

Although no one expects a competitor to be totally objective, advertisers have legal

Chapter 18: Social Impact, Responsibility, and Ethics: Is it Right?

419

 Advertisers who engage in comparative advertising know that research in support of

their competitive claims must be impeccable. Under the law, companies/plaintiffs are

required to prove five elements to win a false advertising lawsuit about an ad

containing a comparative claim. They must prove that:

1. False statements have been made about either product.

3. The deception was “material” or meaningful.

5. The suing company has been or likely will be injured as a result of the false

statements, either by loss of sales or loss of goodwill.

Endorsements and Demonstrations:

 An endorsement or testimonial is any advertising message that consumers believe

reflects the opinions, beliefs, or experiences of an individual, group, or institution.

However, if consumers can reasonably ascertain that a message does not reflect the

announcer’s opinion, the message isn’t an endorsement and may even be misleading.

 The increasing prominence of digital media raises another ethical dilemma. Is it

acceptable for company representatives to pose as consumers or pay bloggers to post

 Federal regulations require that endorsers must be qualified by experience or training

to make judgments, and they must actually use the product. If endorsers are

comparing competing brands, they must have tried those brands as well. Those who

endorse a product improperly may be liable if the government determines there is a

deception.

Chapter 18: Social Impact, Responsibility, and Ethics: Is it Right?

 One technique some advertisers use to sidestep restrictions on demonstrations is to

insert disclaimers, or “supers,” which are verbal or written words in the ad that

indicate exceptions to the advertising claim.

Native Advertising and Branded Content:

 Native advertising has emerged as a form of digital communication as marketers and

publishers seek new ways to engage audiences. Native advertising is similar to news,

Fake News:

 Examples of fake news – hoaxes, propaganda, and disinformation – are not hard to

find. The FTC has the authority to stop these deceptive practices. Creating false

stories clearly runs counter to the Public Relations Society of America’s Code of

Ethics that advocates preserving the free flow of unprejudiced information.

What Are Some Product-Specific Issues Related to Social Responsibility?

 Marketers need to consider carefully what they choose to produce and advertise.

Some key areas of concern include controversial products, unhealthy or dangerous

Controversial Products

 Before an agency can create an ad for a client, it must consider the nature of the client

company and its mission, marketing objectives, reputation, available resources,

competition, and most importantly, its product line. In cases where the agency works

on a controversial account, there are still ethical ways to approach the business.

Unhealthy or Dangerous Products

 One way to make ethical decisions is to choose the route that minimizes potential

harm. For example, McDonald’s and Wendy’s have reacted to charges of culpability

in the nation’s obesity problem by making changes in their menu items.

 One of the most heated advertising issues in recent years has been restrictions on

tobacco advertising. Proponents of the ban on cigarette advertising argue that because

Chapter 18: Social Impact, Responsibility, and Ethics: Is it Right?

 In recognition of the growing public concerns about cigarette marketing, tobacco

companies have voluntarily curbed their advertising and pulled ads from magazines

with high levels of youth readership and from most outdoor billboards. Most major

tobacco companies also run antismoking ads aimed at teenagers.

 The ethics of advertising liquor is another concern. The biggest issue for the spirits

industry is charges of advertising to underage drinkers. Liquor executives contend

 The beer industry has been the target of strong criticism for several years. Although it

is unlikely that beer advertising will be banned, some companies sensitive to public

opinion have initiated proactive programs that educate and discourage underage

drinkers.

Prescription Drugs

 In 1997, the government loosened its controls on pharmaceutical advertising. As a

result, the amount of prescription drug advertising has skyrocketed. While these print

and television ads have been very successful in increasing sales, various consumer

groups, government agencies, and insurance companies have been quite critical of

them.

COMMUNICATOR’S ETHICAL RESPONSIBILITIES

 Ethics are the “shoulds” and “oughts” of behavior. They are “the right thing to do.”

Defining what is right can be challenging. Morals are frameworks for right actions

and are more the domain of religion and philosophy. Moral systems provide a

framework for behavior.

 Although ethics reflect what is right and wrong, the difficulty lies in making choices

from equally compelling or competing options. We know that doing the right thing is

ethical but it is sometimes hard to know what the right thing is. The textbook lists a

Chapter 18: Social Impact, Responsibility, and Ethics: Is it Right?

Personal and Professional Ethics

 Ethical decisions are usually complex and involve navigating a moral maze of

conflicting forces. They demand the ability to engage in what ethicists call “moral

reasoning.” As a professional, you must be aware of industry standards as well as

ethical questions that underlie the core issues already discussed in this chapter.

 More important is that personal judgment and moral reasoning rest on an intuitive

sense of right and wrong, a moral compass that tells you when an idea is misleading,

Professional Code of Ethics

 Industry standards can help with a decision about ethical behavior. Many professions

have written a code of ethics to help guide practitioners toward ethical behavior,

including the American Association of Advertising Agencies (AAAA), the Public

Relations Society of America, and the Word of Mouth Marketing Association.

International Standards and Codes

 Standards of professional behavior are found not only in the United States or other

Western countries. Many other countries around the globe, including Singapore,

Malaysia, Brazil, and the Netherlands, have codes related to ethics or professional

behavior.

WHY AND HOW IS BRAND COMMUNICATION REGULATED?

 Although it would be ideal if individuals and companies always made socially

responsible choices, sometimes that does not occur, and for that reason regulatory or

legal action is needed.

Chapter 18: Social Impact, Responsibility, and Ethics: Is it Right?

423

Figure 18.3 identifies the organizations with oversight responsibility for advertising

and groups them in terms of five specific categories: government, media, industry,

public or community groups, and the competition.

Brand Communication’s Legal Environment

 Making and enforcing laws is the domain of the government. Congress makes laws

and regulatory agencies in the executive branch of the federal government enforce

laws related to advertising. The following list summarizes important advertising

legislation, most of which shows the growing authority of regulatory bodies, such as

the FTC, to regulate advertising.

 The Pure Food and Drug Act forbids the manufacture, sale, or transport of

adulterated or fraudulently labeled foods and drugs in interstate commerce.

 The Federal Trade Commission Act establishes the commission, a body of

specialists with broad powers to investigate and to issue cease-and-desist orders to

enforce Section 5, which declares that “unfair methods of competition in

commerce are unlawful.”

 The FTC Improvement Act provides Congress with veto power over FTC

regulation rules. It was enacted to limit FTC powers to regulate “unfairness”

issues in designing trade regulation rules on advertising.

 The Telemarketing and Consumer Fraud and Abuse Protection Act specifies

that telemarketers may not call anyone who requests not to be contacted.

 Do Not Call Registry Act (2003) Authorizes the FTC to implement and enforce a

do-not-call registry.

Chapter 18: Social Impact, Responsibility, and Ethics: Is it Right?

Trademark and Copyright Protection

 A trademark is a brand, corporate or store name, or distinctive symbol that identifies

the seller’s brand and thus differentiates it from the brands of other sellers. A

trademark must be registered through the Department of Commerce, which gives the

organization exclusive use of the mark, as long as the trademark is maintained as an

identification of a specific product.

 Audio trademarks are protected, as are uniform resource locators (URLs).

Brand Communication and the First Amendment

 The most basic federal law that governs advertising and other forms of marketing

communication is the First Amendment to the U.S. Constitution, which says that

Congress shall make no law “abridging the freedom of speech or of the press.”

 First Amendment protection extends to commercial speech, which is speech that

promotes commercial activity. However, that protection is not absolute and is often

restricted.

 Except for political communication, the Supreme Court has essentially ruled that only

truthful commercial speech, not misleading or deceptive statements, is protected.

Because the nation’s courts continue to reinterpret how the First Amendment applies

in different cases, advertisers need to keep close track of legal developments.

International Laws and Regulations

 As advertisers, agencies, and media become more and more global, it will be

imperative that the players understand the local ethical standards and laws in the

countries in which they operate. Marketing practices, such as pricing and price

advertising, vary in their legal and regulatory restrictions.

Chapter 18: Social Impact, Responsibility, and Ethics: Is it Right?

 Some product categories, such as OTC drugs, are particularly difficult to work with

because regulations about their marketing and advertising are different in every

country. Advertising for certain types of products is banned.

The Regulatory Environment

 In addition to specific legislation that affects the practice of marketing

communication, there are also government bodies that oversee the application of

The Federal Trade Commission (FTC)

 The FTC is the primary agency governing the advertising industry. Its main focus

with respect to advertising is to identify and eliminate ads that deceive or mislead the

consumer. Some FTC responsibilities include:

 Unfairness: Initiate investigations against companies that engage in unfair

competition or deceptive practices.

 Specifically, the FTC oversees false advertising. In recent years, that oversight has

focused on health and weight-loss business practices, 900 telephone numbers,

telemarketing, and advertising targeting children and the elderly. The FTC hosts the