ADVERTISING ETHICS REASONS RATIONALIZATIONS BIASES AND HEURISTICS Group

ADVERTISING ETHICS: REASONS, RATIONALIZATIONS, BIASES, AND HEURISTICS Group P- Tj, Amy, Sang-Hoon, Yao, Stefanie and Derrick

Introduction • 6 mini advertising scenarios • Done from the perspective of the business person in the case • They all deal with ethical issues in advertising – Relatively small – Common – Realistic

Scenario 1 Overview • Bradley has been hired as an account planner in a large agency • He has overheard about an assignment which was conducted by his colleagues • The colleagues found difficulty conducting the survey • Idea: When collecting data, they tell the public they are students • The assignment was then finished perfectly • Ethical issues remain

Scenario 1 Identification of conflicts and stakeholders • • Build or damage company’s reputation Way of doing business or unfair to the competitors? Harm done to customers? Colleagues motivations VS company’s benefits Change: The public expects more honesty from companies Main conflict- By telling the respondents that they are students, they are essentially lying

Alternatives Scenario 1 He could analyze the pros and cons with management and decide that the behavior is ethical Tell management to avoid deceiving the respondents and take action He can remain silent

Alternative Choice Tell management to avoid deceiving the respondents and take action • Talk to management about his concerns • Make suggestions for dealing with this situation • Make the decision to not lie to the respondents

Scenario 2 Overview • Sarah is leading a team that is creating a marketing campaign for a teenage clothing line whose sales have been stagnant • Ultra thin models have been selected and have always been used for this brand in previous campaigns • She is concerned about the negative impact super skinny models have on young girls self esteem and ideas of beauty • She doesn’t feel comfortable using these types of models

Scenario 2 Identification of Conflicts and Stakeholders Sarah- Could lose her reputation, the respect of her teammates, and possibly her job Consumers (Teenage girls)- Campaign could negatively affect their body image and how they feel about themselves The Agency- Could lose the business of the clothing line if the campaign is unsuccessful The Clothing brand- Could lose money or brand image Change: Society's awareness to body issues and influence of models Main conflict- Using unhealthy models while marketing to teenage girls

Alternatives Scenario 2 Talk to the clothing line about choosing different models Don’t speak up and use the models they have always used Change the models without talking to the clothing line

Alternative Choice Talk to the clothing line about choosing different models • Show the clothing line the studies that show models affect body image in young girls • Show examples of other successful campaigns with healthy size models • Using different models could be new way for the brand to increase sales

Scenario 3 Overview • Lauren is a director of graphic services at a major agency • She and her team recently encountered a budgeting problem with candy company client • The problem was solved by adding an extra bill to other large company client • Lauren heard this practice is usual for graphic services agency.

Scenario 3 Identification of conflicts and stakeholders • Maintain or ruin agency’s professional image by hiding the mistake • Lauren VS. Automotive company • Moral responsibility? Change: Law is more strict with issues of this nature Main conflict- Improper allocation of expenses and going again accounting principles

Alternatives Scenario 3 Report the mistake to candy company client Come up with morally reasonable strategy to correct the mistake without the candy company knowing Pretend like nothing was done wrong

Alternative Choice Report the mistake to candy company client • Lauren should report the mistake that they made to candy company immediately by providing reasonable solutions with positive language

Scenario 4 Overview • Tim is working with a venerable agency and he is concerned with the ethics regarding the strip parties • Some of the agency’s key employees have been going to strip clubs • These activities are being hosted by a key vendor- a printer • Cost $5, 000 each and last about 4 hours • Tim must decide how to handle this situation

Scenario 4 Identification of conflicts and stakeholders • The strip clubs entertainment sounds like a bribe to continue doing business with the agency • This sexist behavior excludes and objectifies women • Main stakeholder: the agency Change: Women’s involvement in the business world Main conflict- The agency may lose relationship with the printer by objecting to such parties.

Alternatives Scenario 4 Keep silent To go to talk to the printer and say that the strip club is not acceptable Tim can write the argument in a report or a memo and submit to supervisor

Alternative Choice Tim can write the argument in a report or a memo and submit to supervisor • In addition, Tim could write a partition against this strip club entertainment • The agency’s staff who disagree with such type of entertainment could sign the partition

Scenario 5 Overview • Meet Rachel: M. A. in Advertising and taken a job at a major agency in account services • She was specifically hired to work as an assistant account executive to promote a new sports car with a buzz marketing technique • The people hired would have to agree not to tell anyone that they had been given the car to drive or hired by a company to create a favorable word of mouth • Her client loves the idea

Scenario 5 Identification of conflicts Main conflict- This new marketing technique could be deceiving and unethical because the participants might have to lie • Supporting the behavior: • No real harm done/ no laws broken • Helping people with getting information about something they are already interested in • Favorable word of mouth would be harder to achieve without the ‘secret’

Scenario 5 Identification of stakeholders Rachel: Could get a reputation for an unethical business behavior and lose her job if the marketing project fails Marketing company: Could lose credibility The public: Could feel like they were deceived and not buy the car Car company: Lying might make the company look bad resulting in negative repercussions Critics: Their judgment and credibility will be tarnished in the future if they argue that it is unethical and the company/Rachel gets away with it Change: This is a new way of business, and it is tough to say what will come of this in the future

Alternatives Scenario 5 Decided that this plan is ethical and move forward with the advertising plan Decide that is unethical and do not use the advertising plan Talk to management about implementing a better plan if someone does ask if the participant is working for the car company

Alternative Choice Talk to management about implementing a better plan if someone does ask if the participant is working for the car company • Do not give away the fact that the participant is working for the marketing campaign • In the case that someone does ask, a plan will be in place on how to deal with that situation – Change the subject – Tell the person and ask them not to tell anyone else

Scenario 6 Overview • Rodrigo works for the broadcast department • Works on large scale projects for government agencies • Supervisor handed back timesheets for “revisions” • Told to increase timesheets by 20% , would have taken an average worker twice as long • Rumours of other companies taken advantage of government agencies • Ethical issues

Scenario 6 Identification of conflicts and stakeholders • The company’s reputation is at stake • Tempted to increase timesheet by 20% – Earn more revenue for your department – Earn the respect from your supervisor • Lose out on bonuses, possible layoffs to broadcast department – IE. Your job & supervisor’s job is on the line – Also conflict with your supervisor? Change: Not much change has occurred with this over time; lying has always been unacceptable Main conflict- Changing the hours worked is lying

Alternatives Scenario 6 Tell the supervisor that you don’t feel comfortable changing the time sheets Go above your supervisor to your boss and discuss the situation Change the timesheets as planned

Alternative Choice Go above your supervisor to your boss and discuss the situation • Might cause a problem because it does overstep your supervisor • In the end, this is the ethical choice

Questions • Thank you for listening to our presentation. • Any questions?