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Ethics in Advertising – It’s Importance and Effectiveness

Last updated on: January 24, 2024

In today’s consumer-driven world, advertising plays a significant role in shaping our perceptions, influencing our choices, and driving economic growth. However, with great power comes great responsibility. Ethical considerations in advertising have gained prominence as businesses strive to strike the right balance between persuasive marketing and responsible messaging. This article delves into the realm of ethics in advertising, exploring its importance, key principles, and real-world implications.

Table of Contents

What are Ethics in Advertising?

Ethics in advertising refer to the moral principles and standards that govern the conduct of advertisers and their communication with consumers. It involves ensuring that advertising messages are truthful, respectful, fair, and responsible, with a focus on protecting consumers’ interests and promoting societal well-being.

The Importance of Ethics in Advertising

Ethics in advertising hold immense significance for several reasons. Firstly, it fosters trust between advertisers and consumers. When advertisements are perceived as truthful, transparent, and respectful, consumers are more likely to develop positive attitudes towards brands and make informed purchasing decisions.

Secondly, ethical advertising contributes to the overall reputation of a company or industry. Advertisers who prioritize ethical practices not only attract loyal customers but also gain credibility and goodwill from the public. In contrast, unethical advertising can damage a brand’s image and lead to long-term negative consequences.

Transparency and Honesty in Advertising

Transparency and honesty are fundamental principles of ethical advertising. Advertisers should ensure that their claims are substantiated, avoiding false or misleading statements. Clear disclosures regarding product features, limitations, and potential risks must be provided to consumers. By maintaining transparency, advertisers establish credibility and build long-term relationships with their audience.

Avoiding Stereotypes and Offensive Content

Ethical advertising refrains from perpetuating stereotypes or using offensive content that may demean or marginalize individuals or communities. Advertisers should strive for inclusivity, embracing diversity in their campaigns and promoting positive social values. By avoiding stereotypes and offensive content, advertisers create an environment that celebrates and respects the diversity of their audience.

Respecting Consumer Privacy

Respecting consumer privacy is another vital aspect of ethical advertising. Advertisers must obtain consent when collecting personal information and ensure the secure handling of data. Transparency about data usage and providing opt-out mechanisms empower consumers to control their personal information, fostering trust and maintaining ethical standards.

Social Responsibility in Advertising

Ethical advertising encompasses social responsibility, where advertisers consider the broader impact of their messages on society. Advertisements should not encourage harmful behaviors, exploit vulnerabilities, or promote products that are detrimental to individuals or the environment. By embracing social responsibility, advertisers contribute positively to the well-being of communities and advocate for sustainable practices.

Balancing Creativity and Truthfulness

Ethical advertising strikes a delicate balance between creativity and truthfulness. While advertisements aim to capture attention and engage audiences, they should never sacrifice accuracy or misrepresent information. Advertisers can employ innovative and imaginative approaches while ensuring that the core message remains honest and authentic.

The Role of Regulatory Bodies

Regulatory bodies play a crucial role in upholding ethical standards in advertising. They establish guidelines and regulations that advertisers must adhere to, ensuring fairness, honesty, and transparency. These bodies monitor and investigate complaints, enforce penalties for violations, and protect consumers from misleading or deceptive advertising practices.

The Impact of Unethical Advertising

Unethical advertising can have far-reaching consequences. It erodes consumer trust, damages brand reputation, and undermines the integrity of the entire advertising industry. Moreover, misleading or manipulative advertisements can harm individuals by promoting unrealistic expectations, fostering insecurities, or exploiting vulnerabilities. Society as a whole suffers when unethical advertising practices prevail.

Case Studies: Ethical Advertising Campaigns

Numerous examples showcase the power of ethical advertising campaigns. The Dove “Real Beauty” campaign challenged traditional beauty standards, promoting self-acceptance and diversity. Patagonia’s “Don’t Buy This Jacket” campaign encouraged conscious consumption by urging consumers to consider the environmental impact of their purchases. These campaigns not only achieved commercial success but also made a positive impact on societal perceptions and behaviors.

Ethical Advertising: Challenges and Opportunities

Ethical advertising faces various challenges in today’s complex landscape. Advertisers must navigate the digital realm, where issues like ad fraud, data privacy, and invasive targeting pose ethical dilemmas. Additionally, the pressure to maximize profits and compete for consumers’ attention can tempt advertisers to employ questionable tactics. However, these challenges also present opportunities for advertisers to differentiate themselves by prioritizing ethics and establishing meaningful connections with their audience.

Educating Consumers about Ethical Advertising

Educating consumers about ethical advertising is vital for fostering a more discerning and informed audience. By increasing awareness about deceptive practices, promoting media literacy, and encouraging critical thinking, consumers can make more conscious choices and hold advertisers accountable for their ethical conduct. Collaboration between industry stakeholders, educational institutions, and advocacy groups can help empower consumers with the knowledge they need.

Measuring the Effectiveness of Ethical Advertising

Measuring the effectiveness of ethical advertising involves assessing its impact on consumer behavior, brand perception, and social attitudes. Metrics such as consumer trust, brand loyalty, purchase intent, and societal response can provide insights into the success of ethical advertising campaigns. By analyzing data and feedback, advertisers can refine their strategies and demonstrate the tangible benefits of ethical practices.

Ethical Advertising in the Digital Age

The digital age has revolutionized advertising, presenting both opportunities and challenges for ethical practices. Advertisers must navigate issues such as ad transparency, data privacy, and algorithmic bias. It is crucial to embrace responsible data collection, provide meaningful user experiences, and ensure that algorithms are unbiased and transparent. Adapting ethical principles to the digital landscape is essential for maintaining trust and relevance in the evolving advertising ecosystem.

In conclusion, ethics in advertising play a vital role in shaping the advertising landscape and maintaining a healthy relationship between advertisers and consumers. By adhering to ethical principles, advertisers can build trust, promote transparency, and foster positive societal values. The importance of honesty, transparency, respect, and social responsibility cannot be overstated in the world of advertising.

Ethical advertising not only benefits consumers by providing them with accurate information and empowering them to make informed decisions, but it also benefits advertisers themselves. Advertisers who prioritize ethics can establish a positive brand image, gain customer loyalty, and contribute to the overall reputation of their industry.

However, ethical advertising does face challenges in the digital age, such as data privacy concerns, algorithmic bias, and the need to adapt to evolving technologies. Advertisers must stay vigilant, embrace responsible practices, and adapt ethical principles to the digital landscape.

Educating consumers about ethical advertising is equally important. By raising awareness and promoting media literacy, consumers can become more discerning and make choices aligned with their values. Collaboration between industry stakeholders, educational institutions, and advocacy groups is key to empowering consumers with the knowledge they need.

Measuring the effectiveness of ethical advertising is crucial to demonstrate its impact and refine strategies. Metrics such as consumer trust, brand loyalty, and societal response provide valuable insights into the success of ethical advertising campaigns.

Ultimately, ethics in advertising contribute to a healthier and more sustainable advertising industry. By striking the right balance between persuasion and responsibility, advertisers can build lasting relationships, foster positive change, and create a trustworthy advertising environment.

FAQs Related to Ethics in Advertising

1. can ethics in advertising really make a difference.

Absolutely. Ethics in advertising have the power to shape consumer perceptions, build trust, and foster positive societal change. By adhering to ethical principles, advertisers can create meaningful connections with their audience and contribute to a healthier advertising industry.

2. How can consumers support ethical advertising?

Consumers can support ethical advertising by being aware of deceptive practices, promoting media literacy, and making conscious choices. By supporting brands that prioritize ethical advertising, consumers can influence the industry and encourage responsible practices.

3. What are the consequences of unethical advertising?

Unethical advertising can erode consumer trust, damage brand reputation, and harm individuals by promoting unrealistic expectations or exploiting vulnerabilities. It also undermines the integrity of the advertising industry as a whole.

4. How can regulatory bodies contribute to ethical advertising?

Regulatory bodies play a crucial role in upholding ethical standards in advertising. They establish guidelines, investigate complaints, and enforce penalties for violations, ensuring fairness, honesty, and transparency in advertising practices.

5. What role does social responsibility play in ethical advertising?

Social responsibility is a key aspect of ethical advertising. Advertisers should consider the broader impact of their messages on society, avoid promoting harmful behaviors, and advocate for sustainability and positive social values.

6. How important is ethics in advertising?

Ethics in advertising play a crucial role as they ensure transparency, trust, and credibility in the industry. Adhering to ethical principles helps build positive brand image, fosters long-term customer relationships, and avoids potential legal issues. Ultimately, ethics in advertising are vital for sustaining a reputable and responsible business.

7. What is the ethical side of advertising?

The ethical side of advertising involves promoting products or services while adhering to moral standards and societal norms. It emphasizes honesty, fairness, and respect for consumers’ rights. Ethical advertising avoids deceptive tactics, respects privacy, and provides accurate information, giving consumers the freedom to make informed choices.

8. What is an example of ethics in advertising?

An example of ethics in advertising is ensuring truthfulness in claims. When an advertisement accurately represents a product or service, it maintains ethical standards. For instance, a cosmetics company promoting the anti-aging effects of its product must provide reliable scientific evidence to support their claims. By doing so, they uphold ethical practices and avoid misleading consumers.

9. How do I know if an advertisement is ethical?

To determine if an advertisement is ethical, consider a few factors. First, check for transparency and honesty in the claims made. Look for evidence supporting the advertised benefits or features. Additionally, assess whether the advertisement respects consumers’ privacy and doesn’t engage in intrusive or manipulative tactics. Pay attention to any potential conflicts of interest, such as undisclosed sponsorships. By evaluating these aspects, you can gauge the ethical integrity of an advertisement.

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One reply to “ethics in advertising – it’s importance and effectiveness”.

Refreshing read! It’s inspiring to see the center of attention on moral marketing practices. Integrity in reality units manufacturers aside in the modern-day market.

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6 Ethics in Advertising

To begin our lesson on advertising ethics, let’s talk about weasels.

Study the following presentation slides by using the forward button or clicking on sections of the control bar.

Weasel words are a prime example of advertising hype. View the brief video “Ad Hype: True or False?” from the Federal Trade Commission.

AN UNDERAGE AUDIENCE

An interesting case study for advertising law and ethics involves Juul, a company that makes electronic cigarettes. In 2020, the Massachusetts attorney general’s office filed a lawsuit alleging that the company had bought online advertisements on websites for Nickelodeon, Cartoon Network and Seventeen magazine. This lawsuit came amid other accusations that the company targeted underage customers beginning around 2015. Read this NBC news article published shortly after the Massachusetts lawsuit was filed:

• Juul bought ad space on kids’ websites, including Cartoon Network, lawsuit alleges – NBC News

As an addendum to this case study, in 2022 Juul settled a multistate youth vaping inquiry for $438.5 million.

WHO BENEFITS?

As you can see from the examples and videos thus far in the lesson, a multitude of ethical concerns are connected to advertising.

Advertisements can persuade consumers to change attitudes and/or purchase products. An ethical, well-planned ad should benefit some members of an audience. Sometimes, however, the lure of financial gain or improved reputation can lead advertisers to unethical strategies.

The following video, created by Professor Mark Grabowski of Adelphi University in New York, provides an overview of ethical issues in advertising. Grabowski suggests that as an advertising professional, “You’re responsible not just for what you sell, but how you sell it.”

In the conclusion, Grabowski argues that “it’s largely up to advertisers themselves to ensure ethically responsible practices in their profession.”

To help you understand problematic, irresponsible advertising, you can study the following list of examples published in 2020 by USA Today.

• Misleading marketing: Cheerios, 5-Hour Energy drink among products tagged with outrageous claims – USA Today

PROFESSIONAL PRINCIPLES AND PRACTICES

Although some media professionals prefer to keep advertising in a separate category from journalism, the first principle of the Institute for Advertising Ethics says, “Advertising, public relations, marketing communications, news, and editorial all share a common objective of truth and high ethical standards in serving the public.” Read the ethical guidance on the institute’s website:

• Principles and Practices – Institute for Advertising Ethics

The introduction stresses that “all forms of communications, including advertising, should always do what is right for consumers, which in turn is right for business as well.”

As a quick summary, the Institute for Advertising Ethics suggests that advertising professionals should follow these general guidelines:

• Distinguish advertising from news content.
• Disclose payment or receipt of free products that would affect endorsements (from celebrities and social media influencers, for example).
• Treat consumers fairly based on the target audience for the ad and the nature of the product or service being advertised.
• Protect consumers’ privacy and be transparent when asking consumers to share personal information.

If you are considering a career in advertising, you can read a more complete version with abundant commentary .

Deceptive use of the word free often surfaces in disputes about advertising ethics.

For example, in 2022 the Associated Press reported that TurboTax would pay $141 million to U.S. customers “who were deceived by misleading promises of free tax-filing services.” An investigation suggested that through its ad slogan for “Free, Free, Free,” TurboTax was “using deceptive tactics to steer low-income tax filers away from the federally supported free services for which they qualified — and toward its own commercial products, instead.”

• Intuit to pay $141M settlement over ‘free’ TurboTax ads – Associated Press

TurboTax’s settlement tab in Arkansas was $1 million to be split among approximately 35,000 Arkansans.

CLOSER TO HOME (if you live in Arkansas)

Ideally, online reviews should be written by real consumers and provide authentic opinions about products and services they have purchased. However, some business owners, PR workers and others can’t resist the temptation to game the system unethically. While this may seem relatively harmless at first glance, consider how fake reviews devalue a system that many online viewers rely on to make spending decisions. Fake reviews are essentially advertisements masquerading as consumer opinions.

As an extreme example, you can read this story about a University of Central Arkansas business instructor who offered extra credit to students who wrote fake reviews. The article is from the student-run independent newspaper.

• UCA professor offers bonus points for fake reviews – UCAnews.live

SOCIAL MEDIA INFLUENCERS

Transparency has become a recurring ethical concern for social media influencing. Ethical standards for social influencers are still evolving among conscientious media professionals. They key ingredient is transparency. If an influencer is paid for a post, that needs to be clear to the audience.

As an example from 2022, several prominent social media influencers were part of a social media campaign financed by the Chinese Consulate in New York, although the influencers’ followers weren’t aware of that.

• China used TV, TikTok stars in discreet Olympics campaign – Associated Press

The article includes this:

Instagram requires that influencers tag the sponsor, and both TikTok and Instagram require their users to register the posts as a paid partnership with the company. Most influencers, however, flout those rules — leaving social media users in the dark about who is paying for the posts they see in their feeds.

Another ethical concern is that social media influencers sometimes accept money for products or services they know nothing about. Perhaps the most prominent case involved the overhyped Fyre Festival in 2017. Models and influencers, such as Bella Hadid and Kendall Jenner, promoted the festival through social media, blindly trusting that the event was legitimate. As it turned out, the Fyre Festival was a scam, and its organizer was sent to jail for fraud.

• Has Fyre Festival burned influencers? – BBC

Ultimately, the Fyre Festival became the subject of two interesting documentary films but did not lead to clearer ethical or legal standards for social media influencing.

And we’ll close with a quick influencer example from January 2023. The example involves TikTok, mascara and deceptive eyelashes in an influencer’s post. The Rolling Stone magazine headline below emphasizes a connection to concepts in this chapter.

• TikTok’s eyelash controversy is really about truth in advertising – Rolling Stone

Perhaps this is the moral of the story: Even though influencers (and those who employ and manage them) are not news journalists, they should still maintain ethical standards for truth and transparency.

CLOSING REVIEW

Write about it.

Answer each of the following numbered items with approximately five sentences for each response. When possible, strengthen your responses with brief supporting content from this chapter.

1. You studied weasel words in advertising. Now find an example of an advertisement that you think incorporates weasel words in delivering its message. If possible, include an image or provide a link to the the ad design or video with your response. Explain how the ad deceives consumers by giving a vague promise or making a claim that is difficult to measure.

2. If you were an executive, would you be in favor of your company incorporating social media influencers into its advertising campaigns? If so, for what types of products do you think it would be useful and appropriate? Conversely, for what types of products do you think it would be inappropriate? Based on IAE guidelines and content from this chapter (such as the Fyre Festival example), what ethical concerns would you have with using a social media influencer, and how could you alleviate those concerns in the planning and decision-making process?

3. Pick ONE of the following options and respond by providing clear support from the Institute for Advertising Ethics (IAE) Principles and Practices:

Option A – Based on IAE guidelines , is it ever appropriate to use sex for attention-grabbing content in advertising if the product itself is not related to sex? In case you need a specific example, you can apply your response to this Carl’s Jr. ad that generated controversy when it aired during the 2015 Super Bowl. (Warning – some readers may be offended by the contents of the ad.)

Option B – You read a brief example involving Juul. Suppose you work for an ad agency tasked with developing a campaign for Juul. How would you follow IAE guidelines while still crafting a successful campaign for Juul? Is that possible?

Ethics in Journalism and Strategic Media Copyright © by Dave Bostwick is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

Ethical Marketing: 6 Examples of Brands that had Controversial Marketing Campaigns

Here’s what NOT to do when it comes to practicing ethics when marketing. We’ve picked out 6 case studies that happened in Singapore that we can learn from. This is part 1 of a 2-part series on Ethical Marketing. To learn more about how you can be mindful about ethics when marketing, head over to part 2 here.

With COVID-19 sticking around for longer than we hoped, it’s likely that even more businesses will shift towards operating online . That translates to more digital content vying for our eyeballs. As a digital marketer, it’s crucial that your content grabs the attention of your target audience.

When businesses fail to keep ethics in check, it can make them stand out in the wrong way. In this world where “customer is king”, a misstep can be detrimental for their brand. Take for example the multiple sagas House of Seafood (Punggol) was embroiled in – the use of claw machines for customers to catch live crabs , the upselling of surgical masks during the height of the pandemic and more recently, taking their crabs for a walk . The restaurant has drawn flak from the public for throwing marketing stunts that are “in poor taste”. Consumers have taken to platforms such as Google Reviews, Facebook and TripAdvisor to voice their discontent, calling for petitions to revoke their license.

Unfortunately, it’s been rather common that businesses have gotten into trouble for unethical marketing. Let’s take a look at a few instances in Singapore where campaigns or companies faced criticism for unethical practices in sales and promotions.

1. Mediacorp Ad: Racial Insensitivity

The portrayal of blackface was popularised in the 19th century after the creation of a genre in entertainment: blackface minstrel shows. White performers darkened their skin with shoe polish, grease paint or burnt cork, and illustrated behaviour that perpetuated caricatures of African Americans. Humiliating and unjust stereotypes portrayed involved undesirable characteristics such as hypersexuality, criminality and laziness.

While it’s now deemed an intolerable act of discrimination in the United States, challenging the longstanding racism that’s plagued the country remains an uphill battle.

Though we don’t share the same racial history as the United States, the concept of blackface isn’t foreign to us here in Singapore. It just manifests in another form: brownface.

In 2019, brownface appeared in an advertisement, promoting e-payment as a convenient option for all. The banner featured an ethnically Chinese actor who darkened his skin to portray a Singaporean Indian man . The ad sparked public outcry for its racist undertones in the portrayal of Indians and Malays.

Like blackface, brownface is dehumanising and unethical because it uses someone’s skin tone as a costume. Whatever intentions the advertisers had is irrelevant, as the ad is fundamentally offensive. It effectively reduced the representation of an entire ethnic minority group to just their skin colour .

For the uninitiated, wearing brownface might be easily perceived as harmless fun that doesn’t warrant the huge reaction it got from the public. Even in their apology for this e-payment ad, the agency mentioned choosing this Chinese actor specifically as he could represent characters “in a light-hearted way”. In other words, though there was no joke behind the ad, having a comedic actor wear brownface gave viewers the idea that it was meant to be laughed at.

Unfair and inadequate race representation reflects poorly on a company, particularly in a country strongly advocating racial harmony like Singapore. It’s important to factor in an additional layer of sensitivity when working on marketing efforts to ensure that no particular group feels excluded or discriminated against .

2. Circles.Life Ad: Acts of Tokenism

Being ethical isn’t only about striking while the iron is hot. It should be something weaved into your company’s DNA, and reinforced consistently at every stage of the marketing process.

Tokenism is defined as the superficial practice of making a symbolic effort to do something, in order to give the impression that certain values are honoured by a company. In the context of marketing, it could look like exploiting the differences among people to highlight inclusivity and diversity, without actually committing to it.  

In early June 2021, Singapore’s fourth telco Circles.Life received a lot of heat when they released an ad stating they were “100% for the people”. It was reportedly a collective effort between “a Filipino, a Malay and a Chinese”.

View this post on Instagram A post shared by Circles.Life (@circleslifesg)

This post was the telco’s attempt at trendjacking after racial issues had become significantly more sensitive. Cases of blatant racism like that of Beow Tan’s harassment of minorities , and a racist male verbally abusing and kicking a lady had surfaced, making race the topic on everyone’s minds. In a bid to appear inclusive, the advertisement did the exact opposite , coming off as mere tokenism instead.

When Circles.Life overtly stated the post was done by individuals from different races, they wanted to highlight their ethical and racially diverse hiring practices. But it backfired, as that’s how hiring employees should be in the first place . Furthermore, some detractors also pointed out that the post highlighted social hierarchies in Singapore. In the post, minority groups were classified as the lower-ranked employees working under the majority racial group in Singapore. Releasing this ad to promote their “race-blind” hiring at such a time was inappropriate, and did not serve its purpose.

While Circles.Life did not have ill intentions, the ad was not well designed and offensive, especially in a multiracial country like ours.

3. “Fire Sales”: False Advertisements

You’ve probably seen signs promoting a “Closing Down Sale”, or others touting a “Fire Sale”. These posters have been used by three retail brands – ABC Bargain Centre, ValuDollar and ABC Express – to attract more people to patronize their stores.

The “Closing Down Sale” lasted almost two years . These claims were effective for sales, but they were inaccurate and unethical. Customers made purchases under the belief that the deals and discounts lasted only for a short while, when in actual fact, they were not. These promotion tactics have since been discontinued to stop misleading consumers.

Amidst the surge in popularity of e-commerce, there have been more unscrupulous sellers. A 2019 study conducted by consultancy Frontier Economics reported that two in three consumers fell prey to unfair business practices while shopping online .

These false claims consisted of the following:

• Discounts ( “Buy NOW and save UP TO 60%!” )
• Deals ( “Buy THREE for the price of TWO!” )
• Time-limited Offers ( “Quick, this deal is ENDING in 30 MINUTES!” )
• Stock Running Low ( “Grab the LAST ONE in stock NOW!” )

Promotions get a ton of attention, and it is how shady sellers earn their money. These deals rush consumers to make decisions on the fly, because their minds are focused on the fear of losing out.

“Last one? Faster buy faster buy”

“WAH DISCOUNT? Must buy!”

Unfortunately, these false deals are especially effective in a society such as Singapore, which embodies the kiasu mentality .

This is due to an idea called “loss aversion” , which states people would rather avoid making a loss than gain something .

In reality, these “opportunities” don’t exist.

The prices reflected in these “discounts” and “deals”? They were the original prices sellers looked at, marked to profit without drawing suspicion.

“Time-based offers”? “Last in stock”? Many will notice they go on indefinitely. Any customer visiting the page, earlier or later, will see these phrases remain unchanged.

By marketing your products with these unethical tactics, you are not being fair to your customers. This is because they’ll be making decisions based on false information, and are being misled. Marketing your products with honesty matters if you want to build long-term relationships with your customers. What keeps them coming back ultimately, is being able to count on a company to have the best interests for their customers beyond mere profits.

4. Subway’s Meat Stack Sub: Hypocrisy

Ideally, there shouldn’t be discrepancies between advertised details and what a customer receives. I’m a big foodie, and I love an occasional trip to Subway. Getting a wide variety of ingredients and flavours in one edible submarine is all I ask for.

In September 2020, there was a new Sub – the “Meat Stack Sub” . In their slew of marketing campaigns, both online and offline , Subway stated it involved more meat and less advertising.

Yet, I saw these ads in many places around Singapore. Subway Singapore had also hired not one , but two well-known locals to promote the new Sub.

There was a contradiction : the ads about the Sub were made to look low in effort and cost, but there was so much ongoing promotion for it.

This campaign also gave the impression that the money saved on ads allowed the Sub to have a lot more meat in it. Because of that, people would think the sandwich is value for money. Yet, the Meat Stack was the most expensive option on the menu .

In my personal encounter with it, there wasn’t a significant increase in meat included either. It was clear that the advertisement had been exaggerated. This is a situation where the campaign had overstated things, and results turned out to be underwhelming. Subway had promoted one thing and produced another. The onus of accurate representations is on the company to deliver what was marketed. Though the ad was playful, it set unrealistic expectations on the experience of the product . In misleading the consumers, they alienated loyal consumers who answered the call to their ads for a Meat Stack.

5. Singapore Telcos: Smearing Competitors

Standing out in an increasingly crowded and competitive market is what makes or breaks businesses. However, it’s unethical to resort to underhand means to edge out competitors. The Singapore major Telco players in 2014 – SingTel, StarHub and M1 – were embroiled in a dispute over social media smears against SingTel’s competitors.

To promote a new mobile plan, SingTel employed social media agency Gushcloud to launch a campaign. Gushcloud had then incentivised social media influencers to make complaints on telco competitors StarHub and M1. SingTel engaged in what is called a “smear campaign” , defined as the deliberate attempt to undermine the credibility and reputation of its competitors by spreading false and disparaging comments.

SingTel's chief executive later made a public apology to StarHub and M1, both of which agreed not to pursue the matter. SingTel had also terminated their partnership with Gushcloud, with the latter taking full responsibility for the campaign.

Smear campaigns are unclassy and they often bite back at those who launch the campaign. In an ironic twist, during that period, SingTel’s own users flooded their social media page with immense dissatisfaction over SingTel’s services. The lesson here? You don’t have to love your competitors, but there are better ways to explore how you can beat the competition fairly, by focusing on improving within. When you highlight the positives and focus on delivering stellar customer service, the excellence of your product or service speaks for itself.

6. Beauty Salons: Aggressive Selling

In the past, my mother used to patronise this one hair salon near our house. I remember she always came back complaining.

They would sound something like this:

“Aiya, go cut hair only they want me to sign package again”

“This package haven’t end, they tell me buy another already”

The staff at the hair salon were often hard-selling packages to its customers. Some were nice, while others were more aggressive. But they all pressed customers just as much. I thought that it was just at this particular salon. Apparently, this was commonplace in the beauty industry.

Many hair salons and beauty parlours often adopt an aggressive approach to increase a customer’s lifetime value and engagement with their business.

The Consumers Association of Singapore (CASE) has mentioned that the beauty industry is often one of the “top” industries with complaints. In fact, in 2020, three beauty salons admitted to these unfair practices against customers . This was after many complaints were lodged for close to two years. Beyond pressuring customers to buy more treatments, some were charged additional costs. The salons had also charged consumers for even more packages without consent.

A fundamental rule that contributes to a strong, lasting business is to build rapport with your customers. Hard selling is unethical as it puts a high amount of pressure on customers; as if you’re shoving products down their throats. Psychologically, this puts customers on guard as they feel like their decisions are being dictated for them. They’re then more compelled to shut off and reject your pitch.

Doing Your Part as an Ethical Digital Marketer

While browsing through the case studies above, it’s easy to think: “Well duh, of course that’s unethical. Who in their right mind would approve these marketing efforts?” If it was that straightforward to determine the dichotomy between what’s ethical and what’s not, we wouldn’t be witnesses to these instances in marketing campaigns time and time again.

Some of the examples mentioned above are large corporations that have layers of personnel who gave their collective approval. You too, as digital marketers, are just as susceptible to making mistakes like these. The trick is acknowledging that it’s possible for you to make such mistakes and constantly checking yourself – be it adopting a customer’s perspective or taking a step back to evaluate a situation from the bigger picture of values and ethics.

How well you do depends on your marketing efforts, but it’s also based on how consumers receive it . If a particular marketing tactic doesn’t sit well with you, listen to that voice inside you and have a second take.

This is part 1 of a 2-part series on Ethical Marketing. To learn more about how you can be mindful about ethics when marketing, head over to part 2 here .

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In-FUR-mercials: Advertising & Adoption

When the Lied Animal Shelter faces a spike in animal intake, an advertising agency uses its moral imagination to increase pet adoptions.

The Animal Foundation is a nonprofit organization operating Nevada’s largest open-admission animal shelter, the Lied Animal Shelter and pet adoption center. The Lied Animal Shelter is located in Las Vegas and is financed by taxpayers, grants, and individual donors. It provides a refuge for thousands of lost, unwanted, neglected, and abandoned animals every year.

In recent years, the Lied Animal Shelter has been plagued by a variety of problems from overcrowding due to a spike in animal intake as residents in the greater Las Vegas area (Clark County) surrendered or lost their pets. Analysts believed that the recession of 2008 was a major contributing factor to pet abandonment. April Corbin, writing for Las Vegas Weekly , reported:

“The Las Vegas Valley has a problem with domestic animals: we have more that we seem able or willing to handle, and those without homes mostly end up at the Lied Shelter. On any given day, it may be the busiest animal holding facility in the nation. …Some blame the recession, which led to the foreclosures of more than 150,000 homes in Clark County between January 2007 and May 2014, triggering the wholesale abandonment of animals.”

In 2013, the Lied Animal Shelter took in over 40,000 abandoned or lost animals. From that population, more than 10,000 animals were adopted, nearly 5,000 were reunited with their owners, and over 2,500 were transferred to other facilities. But 21,000 animals—more than half of the animals brought to the shelter—were euthanized. Many in Clark County were discouraged by the seemingly insurmountable problems that the Lied Animal Shelter faced.

Leaders at R&R Partners, a full-service, international advertising agency headquartered in Las Vegas, believed that their persuasive communication skills could help solve Animal Foundation’s problem. R&R took on the nonprofit as a pro bono client with goals of promoting pet ownership and driving traffic to the Animal Foundation’s pet adoption website, NewPetNow.com. The agency staff conducted qualitative research in the form of focus groups with R&R employees who were pet owners. They came up with the strategy of framing pet adoption not about love and companionship but about pets’ many household uses (e.g., alarm system, sleeping mask, vacuum cleaner) with a tongue-in-cheek tone. The agency staff created an integrated communication campaign of “In-FUR-mercial” spoofs that portrayed pets as multi-purpose products for the home. Below are links to examples of the “Pet Dog” and “Pet Cat” In-FUR-mercials, and examples of print ads (Exhibits 1 and 2) follow in the Reference section.

https://www.youtube.com/watch?v=ChMYMHvpJ0c

https://www.youtube.com/watch?v=MlD3BZHtcqA

After the release of the ads in early 2015, the campaign immediately received critical acclaim from industry analysts. ADWEEK contributor Gabriel Beltrone stated, “The writing is sharp and funny, the acting perfectly overdone, and the voiceover as cheesy as possible—dead-on parody.” The In-FUR-mercials also received CynopsisMedia’s award for the Best 30-Second Spot.

The campaign connected with audiences in Las Vegas and generated positive press for the Animal Foundation and the Lied Shelter, helping them to achieve their goal of increasing pet adoption. The percentage of available pets adopted increased by 9.39 percent during 2015, which meant that more than 1,000 additional animals were adopted.

Leaders at R&R Partners acknowledged that the campaign also resulted in important benefits for the agency that extended beyond the success and visibility of the campaign. Morale and comraderie within the agency were increased and the agency’s reputation as a responsible corporate citizen was reinforced. Sarah Catletti, an account supervisor at R&R Partners, described the benefits to the agency:

“Welcoming the Animal Foundation to R&R Vegas’ list of clients was a great way to boost morale within the agency. The pro bono client was chosen through an employee voting system. Since the Animal Foundation was the organization that received the largest number of votes, the entire agency was invested and excited to hear about the work, even those who weren’t directly involved with the account.”

Discussion Questions

1. What is moral imagination? In your opinion, did the employees at R&R Partners exercise moral imagination in the work that they did for the Animal Foundation? Why or why not?

2. What benefits did the “In-FUR-mercial” campaign provide and for whom? Explain.

3. In this case study, what did moral imagination have in common with other types of creativity and innovation? Explain.

4. This case is about pro bono work that an advertising agency did for a pro bono client. That is, the agency did the work for free. Do you think that an advertising agency could exercise moral imagination in its work for corporate clients that pay the agency? If so, how? If not, why?

5. Can you think of an example of another company or advertising campaign that has demonstrated moral imagination? Explain.

Related Videos

Moral Imagination

Moral imagination is our ability to think outside the box and envision ways to be both ethical and successful.

Bibliography

The Animal Foundation’s 2013 Annual Report https://issuu.com/theanimalfoundation/docs/2014_annualreport

About The Animal Foundation http://animalfoundation.com/about/

Pets are Exciting Multi-use Tools in these Fantastic Infomercials for an Animal Shelter: Every House Needs One http://www.adweek.com/adfreak/pets-are-exciting-multi-use-tools-these-fantastic-infomercials-animal-shelter-163663

The No-Kill Dilemma: Can Las Vegas Save All Its Shelter Animals? http://lasvegasweekly.com/news/2014/aug/07/no-kill-dilemma-can-las-vegas-save-shelter-animals/#/0

Animal Shelter Infomercial Spoofs Show Incredible Household Uses for Cats and Dogs https://www.good.is/articles/animal-shelter-infomercials

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Business Ethics: Marketing Ethics

• IIT Library Resources
• Web Resources
• Marketing Ethics

Case Studies

• Whistleblowing

A selection of case studies discussing marketing ethics.  The majority of these cases were developed for the APPE Ethics Bowl . 

• Roach Baiting A case study discussing an instance of guerrilla marketing tactics. Case study developed for the 2010 APPE Intercollegiate Ethics Bowl.
• Shock Marketing An instance of shock marketing used by a clothing company raises some controversy. Case study developed for the 2009 Regional APPE Intercollegiate Ethics Bowls.
• Prescription Drug Advertising Case looks at the ethics of direct-to-consumer advertising. Case from the 2008 Regional APPE Ethics Bowls.
• Redux Beverages Case of a beverage company naming an energy drink "Cocaine" to help boost sales. Case study developed for the 2008 Regional APPE Intercollegiate Ethics Bowls.

Marketing Codes of Ethics

Professional Codes of Ethics dealing with marketing practices.

• American Marketing Association Ethical Norms and Values for Marketers
• Better Business Bureau Code of Advertising Code of ethics developed by the Better Business Bureau, focusing on best practices for advertising for member businesses.
• Data Marketing and Analytics Guidelines for Ethical Business Practice.
• Direct Selling Association Code of Ethics
• Word of Mouth Marketing Association Code of Ethics and Standards of Conduct of WOMMA

Other Online Resources

• Ethics Resources -American Marketing Association A collection of online resources on legal and ethical issues in marketing compiled by the American Marketing Association for students and instructors.
• Corporate Responsibility Center of the Direct Marketing Association A collection of resources on corporate responsibility maintained by the Direct Marketing Association.

Rights of and Services for Consumers

• National Do Not Call Registry The National Do Not Call Registry allows consumers to register phone numbers in a national registry that puts them on a list of numbers that telemarketers are not allowed to contact.
• The CAN-SPAM Act A description written by the U.S. Federal Trade Commission that describes how businesses can comply with the CAN-SPAM Act that governs how businesses can use email for advertising purposes.
• Better Business Bureau Resources for Consumers compiled by the Better Business Bureau, including the ability to file a complaint against a business.

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Talking the Walk Case Study #31 – Leader Guide

Ethical AI in the GPT Store -- A Case Study into WebPilot and WebGPT🤖

I’ve made a video that can be watched on YouTube. It’s lengthy, but I think it’s important.

Some context:

I’ve been building in the OpenAI ecosystem for over a year now. I’m the creator of WebGPT🤖 which is featured in this video, full disclosure. And I’ve got some real concerns and earnest questions that I raise in it, as a fan and big supporter of OAI and its stated mission.

But in my experience, they are falling quite short of that mission. And almost nobody is talking about it. I am sharing my experience and perspective humbly, and not intending it spitefully. But if my experience as a builder in their ecosystem is to reflect the experience of all, then the future is very bleak for ethics, quality, and transparency.

Every platform on which OpenAI has influence, this video and my criticisms have been silenced. My attempts to reach out to them directly have all fallen on deaf ears. It is not my desire to do this sort of thing in the court of public opinion. I stand very little to gain here, and realize that this puts me in a default negative light as I have every motive to be biased as a competing developer of some of the GPT’s I mention in this video.

But please try to look past that potential for bias, and realize that, I’m also just not wrong in this case. Everything I have presented here is 100% true. Documented. And is just a fraction of my journey. The video is already 15 minutes so I packed as much into it as I could to provide enough context into what it is I’m trying to convey.

We beat OpenAI to their Browse with Bing model. To be clear, WebGPT🤖 (formerly known as “Web Requests” when it was the Plugin Store, not the GPT Store) was built before ChatGPT ever had connectivity. We beat WebPilot to market as well. Every step of the way we have been not only first, but also best in class. And yet, this journey we’ve been on has been nothing but trouble, inequity, and un-just. And I’d be lying if I said that didn’t take its toll on me.

Before anyone chimes in with “life’s not fair” – I get it. I’m not posting this as some fish for sympathy or looking for a pity party. I’m sincerely saying; this isn’t right, it’s not the future we want for AI or AGI, and I still sincerely extend my hand with an olive branch inside it toward OAI and the others in the community who truly share a vision for an ethical, safe, prosperous future for humanity. And not just grift.

Don’t take my word for it – try WebGPT🤖 yourself . And then again, ask this question: Why isn’t this featured more? Why isn’t this team supported by OAI? Just simply, why?

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