TERM PAPER

on

ETHICS IN ADVERTISEMENTS AND ITS IMPACT ON

INDIAN SOCIETY
by
Akshansh Kawatra
A3104612046
B.Com (Hons) Class of 2015
Under the Supervision of
Dr. Adarsh Arora
In Partial Fulfilment of the Requirements for the Degree of
B.Com (Hons)
at
AMITY COLLEGE OF COMMERCE AND FINANCE,
AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA
2013

DECLARATION

Title of Term Paper : Ethics in Advertisements and Its Impact on Indian Society
I declare
(a) That the work presented for assessment in this Term PaperReport is my own, that
it has not previously been presented for another assessment and that my debts (for
words, data, arguments and ideas) have been appropriately acknowledged
(b) That the work conforms to the guidelines for presentation and style set out in the
relevant documentation.

Date : 30th Sept 2013

Akshansh Kawatra
A3104612046
B.Com (H), Class of 2015

(ii)

(ii)

ACKNOWLEDGEMENT

I, Akshansh Kawatra, am highly obliged to my faculty guide Dr. Adarsh

Arora, who provided his guidance and assistance in spite of his busy
schedules. I acknowledge my cordial gratitude to my faculty guide for his
guidance and timely advice at every stage towards completion of the
project report. I would also like to express my thanks to all the
respondents for their cooperation as without them, the survey would not
have been possible. Finally, I wish to thank one and all who have
contributed, encouraged and inspired me to do this project.

Akshansh Kawatra

(iii)

CERTIFICATE

I Dr. Adarsh Arora hereby certify that Akshansh Kawatra student of B.Com
(Hons) at Amity College of Commerce and Finance, Amity University Uttar Pradesh
has completed the Term Paper Report on Ethics in Advertisements and Its Impact on
Indian Society, under my guidance.

Dr. Adarsh Arora

Professor
ACCF

Table of Contents
CONTENTS

Page No.

Chapter 1: Introduction

Rationale of the Topic for Study

Objective of the Study

1-2
3

Executive Summary

Advertising: Meaning & Concept

Classification of Advertisement

6-8

Benefits and Harms

9 - 13

Impact of Advertisement

14 - 19

Economic Impact
Social Impact
Psychological Impact
Impact of Advertisement on children

Ethics in Advertisement Sector

20 - 23

Ethical and Moral Principles

24 - 25

Chapter 2: Review of Literature

26 - 27

Chapter 3: Research Methods and Procedures

28 - 29

Research Design
Research Questions

Instruments Used

Chapter 4: Data Analysis and Findings

30 - 39

Results of Research Questions

Summary of the Findings

Limitations

Chapter 5: Conclusion and Recommendations

40 - 41

Conclusion
Recommendations

References

42

Rationale of the Topic for Study

Advertisements are made to influence the people. If the organization is able to make
an advertisement which is able to attract people then the sale of that product will
increase. But just for the purpose of increasing the sales of the products one should
not forget some moral principles. The image building of organization is also
important. As advertisements are affecting Indian people directly so this survey was
conducted to know the views of people regarding these advertisements.
The need to add ethics in advertising is very essential as we have a duty to live a good
moral life. Unethical ads are often found to have negative consequences, ranging from
adverse publicity to diminished corporate reputation, to consumer boycotts, , and even
legal sanctions. Conversely, an ethical ad can contribute to heighten morale, a good
corporate reputation, and, thus increase repeat business. In this context, the media of
social communications have two options. Either they help human persons to grow in
their understanding and practice of what is true and correct, Or they are destructive
forces in conflict with human well being. Against this background, then, we point to
this fundamental principle for people engaged in advertising: advertisers that is,
those who commission, prepare or disseminate advertising are morally responsible
for what they seek to move people to do; and this is a responsibility also shared by
broadcasting executives, publishers and others in the world of communication, as well
as by those who give commercial or political endorsements, to the extent that they are
involved in the advertising process.
This summary statement of the problem: "If harmful or useless goods are touted to the
public, if less than admirable human tendencies are exploited, if false assertions are
made about goods for sale, those responsible for such advertising harm society and
forfeit their good name and credibility. More than this, unremitting pressure to buy
articles of luxury can arouse false wants that hurt both individuals and families by
making them ignore what they really need.
Advertising also can have a corrupting influence upon cultural values. We have
spoken of the economic harm that can be done to developing nations by advertising
that fosters consumerism and destructive patterns of consumption. Also consider the

cultural injury done to these nations and their peoples by advertising whose content
and methods, reflecting those prevalent in the first world, are at war with sound
traditional values in indigenous cultures. Today this kind of "domination and
manipulation" via media rightly is "a concern of developing nations in relation to
developed ones," as well as a "concern of minorities within particular nations.

OBJECTIVES

(i) To understand the Meaning and Concept of Advertisements.

(ii) To define the various types of Advertisements.
(iii) To classify what effect Advertisements have on people.
(iv) To analyze the Ethical and Moral Principles of Advertisement.

Executive Summary

Men and women who professionally engaged in advertising do have high ethical
standards, sensitive consciences and strong sense of responsibility. But the external
pressures from the clients who commission their work as well as from the competitive
internal dynamics of their profession can create powerful inducements to unethical
behaviour.
That underlines the need for external systems and structures, to support and encourage
responsible practice in advertising and to discourage the malpractices. Voluntary
ethical codes are one such source of support which already exist in a number of
places. They are only effective to the willingness of advertisers to comply strictly.
Advertising is a very important element in today's society, especially in the
functioning of market economy, which is expanding. Advertising plays a constructive
role in the exchange of information and ideas, in economic growth and in the
fostering of solidarity among individuals and groups.
Advertising ethics affects the practice of business, and also our lives. Indeed,
advertising ethics concerns us all. For example, academicians, advertisers, ad agency
personnel, consumers, media personnel, , attorneys and regulators.

ADVERTISING: MEANING & CONCEPT

INTRODUCTION
The term advertising is derived originally from a Latin word Advert ere which
means to turn the attention. Advertising turns the attention of the reader or the
listeners or viewers towards a product or a service or an idea. Advertising is a form
of communication intended to promote the sale of a product or service to influence the
public opinion to gain political support or to advance a particular cause.
Advertising generally involves an element of cost, although it is also possible to do it
for free. Free advertising is easier to get with an online business than a traditional
offsite concern. However, generally, advertisers will pay broadcasting companies,
publishers or media to provide the advertising platform of a internet, newspaper,
television or radio.
Defining Advertising
American Marketing Association (AMA) in 1963, defines Advertisement as
Advertisement is a non personal presentation of idea, product or services by an
identified sponsor.
Concept of Advertising
1. Advertising consists of written and oral messages that are directed to a target
audience.
2. Advertising persuades the public to purchase a certain product or service.
3. Each advertisement is related to a certain advertiser who is selling the product
or service involved
ADVERTISING

REQUIRES THE ADVERTISER TO PAY THE PUBLISHER IN RETURN

FOR THE ADVERTISEMENT .

Advertising is any paid form or message that presents goods or services of a certain
advertiser or sponsor, and should present the product in such a way as to persuade the
reader or listener to purchase the product.

CLASSIFICATION OF ADVERTISEMENT

1. National Advertising: Manufacturers think that their target is, the whole market of
a country. They select media with a countryside base. Large and established firms
belong to this category. For example, Brooke Bond, L&T, Hindustan Unilever,
Escorts, Associated Cement Companies etc.
2. Local Advertising: Small firms may like to restrict their business to Regional or
State level. Some firms first localize their marketing efforts and once they achieve
success, they spread out to wider horizons. For example, Nirma washing powder,
which initially was sold only in Gujarat and subsequently entered the other markets.
Retail stores also undertake local advertising. The area to be covered would generally
be a town or a city and media would be selected which principally relates to that area.
If we discuss about the preceding years, several newspaper supplements have
appeared which focus on a particular city and are of direct relevance to its inhabitants
like the Bombay Times and Metro. Sometimes large firms may also go in for local
advertising, e.g., when they undertake pre-testing of a product especially consumer
products in selected areas before embarking promotional campaign on a national
level.
3. Global Advertising: Multinational firms treat the world as their market. Firms such
as National Sony or Ford advertise globally, in periodicals like Times, Readers Digest.

Target Group: It is on the basis of target groups aimed at it can further be divided
into sub category as:

a. Consumer Advertising
b. Industrial Advertising
c. Trade Advertising
d. Professional Adverting

(a) Consumer Advertising: A substantial portion of total advertising is directed to the

buyers of consumer products who purchase the products either for their own use or for
their households. Buyers of consumer products are large in number and are widely

distributed over an area, this enhances the importance of advertising as a marketing

tool. Advertisements which are intended to promote sale of the advertised products by
appealing directly to the buyers/consumers is called consumer advertising. It is also
known as brand advertising, which focuses on the development of a long-term brand
image.
(b) Industrial Advertising:
Industrial advertising refers to the advertisements which are issued by the
manufacturers or distributors to buyers of industrial products. This category includes
machinery equipments, industrial intermediates, parts and components etc. Because of
the unique characteristics of industrial buying decision process, the importance of
industrial advertising is comparatively lower than that of consumer advertising.
(c) Trade Advertising:
Advertisements, which are directed by the manufacturers to the distribution channel
members, such as retailers or wholesalers, are called Trade Advertising. The objective
of such advertising is to promote sales by motivating the distribution channel
members to stock more or to attract new retail outlets.
(d) Professional Advertising:
There are certain products for which the consumers themselves are not responsible for
the buying choice. The classic examples are pharmaceuticals where the decision is
made by doctors while the consumers are the patient. Almost similar situation exists
in the field of construction where architects, contractors and civil engineers are the
decision-makers. Firms operating in such market segments,

have to direct their

advertising to these decision makers, who are professional people. Such advertising is
called professional advertising.

Public Relations Advertising (PRA)

Organizations these days are concerned with the type of image they project they have
to communicate or promote their objectives to the general public. Public relations
tries to build rapport with various constituents of public such as customers,
employees, vendors, shareholders, government and public at large. It helps to
maintain this relationship and build a good corporate image. It is done by both
business

and

non-business

organizations.

It

represents

management

and

communicates its policies, problems and performances to the public.

Purposes of PR Advertising
1. It projects a favourable image of the company.
2. It maintains relationship with the trade and suppliers.
3. It generates goodwill for the business.
4. It creates conducive climate for the investing public.
5. It takes up social causes for promotion such as- Female infanticide, Dowry, Cancer
Detection etc . It thus renders community service. It seeks public support for certain
causes.
6. It is concerned with customer service and customer relationship management.

THE BENEFITS OF ADVERTISING

Enormous human and material resources are dedicated to advertising. Advertising is

everywhere in today's world, as Pope Paul VI remarked, "No one now can escape the
influence of advertising." Even people who are not themselves exposed to particular
forms of advertising confront a society, a culture other people affected for good or ill
by advertising messages and techniques of every sort.
Some critics view this state of affairs in unrelieved negative terms. They believe
advertising is a waste of time, talent and money an essentially parasitic activity. In this
view, not only does advertising have no value of its own, but its influence is entirely
harmful and corrupting for everyone. We do not agree. There is truth to the criticisms,
and we shall make criticisms of our own. But advertising also has potential for good,
and sometimes it is realized. Here are some of the ways that happens.
a) Economic Benefits of Advertising
Advertising plays a very important role in the process by which an economic system
guided by moral norms and responsive to the common good contributes to
development of society. It's a important part of the functioning of modern market
economies, which today either exist or are emerging in different parts of the world
and which provided they conform to moral standards based on integral human
development and the common good currently seem to be "the most efficient
instrument for utilizing resources and effectively responding to needs" of a socioeconomic kind.
b) Political Benefits of Advertising
Political advertising can make a contribution to democracy equivalent to its
contribution to economic well being in a market system guided by moral norms. As
free and accountable media in a democratic system help to counteract tendencies
toward the monopolization of power on the part of oligarchies and special interests, so
political advertising can contribute by informing people about the ideas and policy
proposals of candidates and parties, including candidates not previously known to the
public.
c) Cultural Benefits of Advertising

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Because of the impact advertising has on media that depend on it for revenue,
advertisers have an opportunity to make a positive influence on decisions about media
content. This is done by supporting material of excellent intellectual, aesthetic and
moral quality presented with the public interest in view, and by encouraging and
making possible media presentations which are oriented to minorities whose needs
might otherwise go un served. Advertising can itself contribute to the betterment of
society by inspiring and uplifting people and motivating them to act in ways that
benefit everyone. Advertising can brighten lives simply by being tasteful and
entertaining.
d) Moral and Religious Benefits of Advertising
Charitable social institutions, together with those of a religious nature, use advertising
to communicate their messages messages of faith, of patience, of patriotism,
sympathy and neighbourly service, of charity toward the needy, messages regarding
health and education, productive and helpful messages that educate and motivate
people in a variety of valuable ways.

THE HARMS DONE BY ADVERTISEMENT

There is nothing positive or negative about advertising. It is a tool, an instrument: it
can be used well, and it can be used in a negative way. If it can have beneficial results
such as those just described, it also can also have a negative impact on the society. "If
harmful or utterly useless goods are presented to the public, if false assertions are
made about goods, if less than admirable human tendencies are exploited, those
responsible for such advertising harm society and forfeit their good name and
credibility. More than this, unremitting pressure to buy articles of luxury can stimulate
false wants that hurt both individuals and families by making them ignore what they
really need. And those forms of advertising which, without shame, exploit the sexual
instincts simply to make profits or which seek to enter into the subconscious recesses
of the mind in a way that threatens the freedom of the individual ... must be shunned."
a) Economic Harms of Advertising

11

Advertising can betray its role as a source of information by misrepresentation and by

withholding facts. Sometimes, too, the information function of media can be
subverted by advertisers' pressure on publications or programs not to treat of
questions that might prove inconvenient. More often, though, advertising is used not
simply to inform but to persuade and motivate people to act in certain ways: buy
certain products or services and go to certain institutions. This is where particular
abuses can occur.
The practice of "brand"-related advertising can raise serious problems. Often there are
only insignificant differences among products of different brands, and advertising
may attempt to shift people to act on the basis of illogical motives ("brand loyalty,"
status, fashion etc.) instead of presenting differences in price and quality as bases for
choice. Sometimes advertisers speak of it as part of their task to "create" needs for
products and services that is, to cause people to feel and act upon cravings for
items and services they do not really need. "If a direct appeal is made to his instincts
while ignoring in various ways the reality of the person as intelligent and free
then consumer attitudes and life-styles can be created which are objectively improper
and often damaging to his physical and spiritual health."
This is a serious abuse, an affront to human dignity and the common good when it
occurs in wealthy societies. But the abuse is still more grave when consumerist
attitudes and values are transmitted by communications media and advertising to
developing countries, where they worsen socio-economic problems and harm the
poor. "It is true that a judicious use of advertising can stimulate developing countries
to improve their standard of living. But serious harm can be done them if advertising
and commercial pressure become so irresponsible that communities seeking to rise
from poverty to a reasonable standard of living are persuaded to seek this progress by
satisfying wants that have been artificially created. The result of this is that they waste
their resources and neglect their real needs, and genuine development falls behind."
The problem is particularly acute when, as often happens, the dignity and welfare of
society's poorer and weaker members are at stake. It is necessary always to bear in
mind that there are "goods which by their very nature cannot and must not be bought

12

or sold" and to avoid "an admiration of the market" that, aided and abetted by
advertising, ignores this essential fact.
b) Political Harms of Advertising
Political advertising can support and assist the working of the democratic process, but
it also can obstruct it. This happens when, for example, the costs of advertising limit
political competition to wealthy candidates or groups, or require that office-seekers
compromise their integrity and independence by over-dependence on special interests
for funds. Such obstruction of the democratic process also happens when, instead of
being a vehicle for honest expositions of candidates' views and records, political
advertising seeks to distort the views and records of opponents and unjustly attacks
their reputations. It happens when advertising appeals more to people's emotions and
base instincts to selfishness, bias and hostility toward others, to racial and ethnic
prejudice and the like rather than to a reasoned sense of justice and the good of all.

c) Cultural Harms of Advertising

Advertising also can have a corrupting influence upon cultural values. The cultural
injury done to this nation and its people by advertising whose content and methods,
reflecting those prevalent in the first world, are at war with sound traditional values in
native cultures. Today this kind of "domination and manipulation" via media rightly is
"a concern of developing nations in relation to developed ones," as well as a "concern
of minorities within particular nations."
The indirect but powerful influence put forth by advertising upon the media of social
communications that depend on revenues from this source points to another sort of
cultural concern. In the competition to attract ever larger audiences and deliver them
to advertisers, communicators can find themselves tempted in fact pressured,
subtly or not so subtly to set aside high artistic and moral standards and lapse into
superficiality, tawdriness and moral squalor.

13

Communicators also can find themselves tempted to ignore the educational and social
needs of certain segments of the audience the very young, the very old, the poor
who do not match the demographic patterns (age, education, income, habits of buying
and consuming, etc.) of the kinds of audiences advertisers want to reach. In this way
the tone and indeed the level of moral responsibility of the communications media in
general are lowered.
All too often, advertising contributes to the invidious stereotyping of particular groups
that places them at a disadvantage in relation to others. This often is true of the way
advertising treats women; and the exploitation of women, both in and by advertising,
is a frequent, deplorable abuse. "How often are they treated not as persons with an
resilient dignity but as objects whose purpose is to satisfy others' desire for pleasure
or for power? How often the role of woman as wife and mother is underestimated or
even ridiculed? How often is the role of women in business or professional life
depicted as a masculine caricature, a denial of the specific gifts of feminine insight,
compassion, and understanding, which so greatly contribute to the 'civilization of
love'?"

d) Moral and Religious Harms of Advertising

Advertising can be attractive and in compliance with high moral standards, and
occasionally and morally uplifting, but it can also be unpleasant and morally
degrading. Frequently it purposely appeals to such motives as status seeking, envy
and lust. Today, advertisers consciously seek to shock by exploiting.
We note, too, certain special problems relating to advertising that treats of religion or
pertains to specific issues with a moral dimension.
In cases of the first sort, commercial advertisers sometimes include religious themes
or use religious images or personages to sell products. It is possible to do this in
tasteful, acceptable ways, but the practice is obnoxious and offensive when it involves
exploiting religion or treating it flippantly.

14

In cases of the second sort, advertising sometimes is used to promote products and
inculcate attitudes and forms of behaviour contrary to moral norms. That is the case,
for instance, with the advertising of contraceptives and products harmful to health,
and with government-sponsored advertising campaigns for artificial birth control, socalled "safe sex", and similar practices.

ECONOMIC IMPACT OF ADVERTISEMENT

'Advertising' has become a debatable topic. Advertising has positive as well as
negative, social and economic impacts on the society. Considering advertising as a
public welfare is a positive social impact whereas exposing women as a sex tool
comes at the negative side. As far as economic factors are concerned, funding for the
media and stimulating an active and competitive economy, are the major examples.
Various techniques are enforced for influencing consumers that they want the product
which is being advertised. These techniques usually give attention to the benefits that
would be brought to the consumers rather than focusing on the actual products. For
example, an automobile advertisement adverting the mechanical attributes of a
vehicle, most likely concentrates the excitement, reputation and social progression it
may bring to the buyer. There are various blames that advertising is causing a negative
social impact on the lives. The most unfavorable judgment for advertising is that it
hales the public to buy things that they are don't really need. It is arrogated that
advertising plays with emotions and encourages people to think that buying and
depleting are the activities of life.
According to advertisers, they state that people are capable enough to set their mind
and no one can force them to buy products which they dislike or which they think is
not a necessity. Advertisers also think that there are positive impacts of advertising on
our society and culture. For example, advertising also acts as an educator in the sense
that it educates people with what is good and bad for them. There are not only social
benefits of advertising, but it also has some economic benefits too. Without
advertising, the media, including newspapers, radio and television would never be this
strong. Advertising provides revenue for commercial mediums which would

15

otherwise need to be funded by the actual consumer of these mediums. So, we can see
a major economic infrastructure based around advertising, in which the big companies
fund and subsidize the commercial media by the way of advertisements. The major
economic negative aspect of advertising is that it boosts the price of products. The
source of this contention is that, when organizations subsidize the mass media with
advertising, we, the purchaser, subsidize advertising by compensating a grossly
increased price for heavily advertised goods and services. An example of this is that a
box of Washing powder in general costs around Rs. 40/kg whereas the market price of
the product would be Rs 60/kg. The fact behind this is that the remaining proportion
goes in advertising. So, the impact of advertising on our society is in a jumble form,
depending on the functions and implementations of numerous campaigns. Our society
and the marketing of products depend upon advertising. The companies have become
much dependent of advertising that even its negative impacts can never outweigh the
many positive social and economic effects.
We live and flourish in a dynamic economy. Ours has been an economy of relative
abundance which has succeeded in bringing about a material well-being never before
known in history. It is an economy which emphasizes consumption! In this country
consumption does not necessarily mean wearing out goods in a physical sense. We
wear out goods psychologically as well. Usually our clothes are psychologically worn
out and discarded while it is still good. We dispose of our automobiles when they
become outdated rather than when they are physically worn out. How different is this
viewpoint from the practices that are current in other nations, England and France, for
instance! It is difficult for the European to understand the economic importance of the
individual in our country and the American idea of psychological obsolescence. It is
also inexplicable to most that in America we spend nearly eight billion dollars a year
for advertising

Why do we do it? What is advertising's role in our economy? What useful purpose
does advertising serve?

16

1. Advertising creates jobs.

2. Advertising reduces selling costs.
3. Advertising increases company profits.
4. Advertising increases company security.
Finally, our enormous and growing productivity needs advertising to speed up
consumption.
The impact of advertising regulation on economic growth
The aim of this thesis is on the one hand, to study the role of intangible advertisement
investments on economic growth and to see which consequences some regulation
elements of the advertising market can have on the macroeconomic impact of
advertising. After assessing the literature existing on this topic and defining precisely
advertising as a specific investment, we notice that it is impossible to measure the
direct impact of advertising on economic growth. Indeed, the impact of advertising on
these key variables is measurable.

Public perception of the medium

Over the years, the public perception of advertising has become negative. It is seen as
a medium that inherently promotes a lie, based on the purpose of the advertisement
to encourage the audience to submit to a cause or a belief, and act on it to the
advertising partys benefit and consequently the targets disadvantage. They are either
perceived as directly lying (stating opinions or untruths directly as facts), lying by
omission (usually terms or conditions unfavourable to the customer) or Portraying a
product or service in a light that does not reflect reality. It is this increased awareness
of the intention of advertising, as well as advertising regulations that have increased
the challenges that marketers face.

17

PSYCHOLOGICAL IMPACT OF ADVERTISMENT

Psychology in advertising has long been used as an effective way to sell a product or
service. Understanding the original concepts that affect human psychology can help a
company better sell their product or instead can help a consumer understand
marketing strategies that get them to buy a product. Persuasion is the changing of
attitudes by presenting information about another attitude. This information is then
processed one of two ways: centrally or peripherally. If it is processed centrally the
attitude change is more likely to have permanence. If the information is processed
peripherally it will be more susceptible to later change.
One commonly used technique of persuasion is that of authority. Everyone has seen
ads where "2 out 3 doctors recommend..." This is based on the idea that people will
respect the opinions of someone who is assumed to have a lot of knowledge about the
product. People feel better knowing that someone with authority has recommended
what they are about to buy. Of course, the authority person has to have expert
knowledge in that particular field. Would you buy a certain toothpaste because a car
salesman recommended it?
First and foremost an advertisement has to catch your attention. One way in which it
does this is by appealing to your emotions. It can arouse feelings of fear, love,
pleasure, or vanity. Scarcity is the fear that you may miss an opportunity to purchase a
product. "One day sale" and phrases such as, "For a limited time" or "Till stock lasts"
are common uses of this technique. Health advertisements often utilize fear to get the
audiences attention. Once this is accomplished they hope to "scare" the audience
enough to produce an attitude change, be it buying their product, changing your
lifestyle, etc. Beer and cigarette advertisements appeal to desires for fun and pleasure.
The people in these ads are portrayed as having a good time, leading to the belief that
if you purchase these products you too will have a good time. Many advertisements
employ more than one skill in attempting to influence the audience. Plastic surgery
ads are a perfect example. They attempt to persuade by appealing to peoples
vanity/egotism by exposing their fear of aging.

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IMPACT OF ADVERTISING ON CHILDREN

Advertising has become so vital part of our life and society that we cannot imagine
any event, magazine, TV serial, Cinema etc. without advertising. Advertising is a vital
marketing tool as well as influential communication medium. The degree of impact of
advertising on adults may be problematic but the outcome is devastating for children.
Television is no more just a source of entertainment for children. They showcase the
must haves for a kid making them a consumer even before they have reached the age
of 4.
Thus, it is very important for the parents to know their childs exposure to media and
to provide direction on age-appropriate use of all media, including television, radio,
music, video games and the Internet.
Parents must be aware of the commercial messages found in all advertising - print,
movies, videos, music videos, computer games and the Internet. These messages
depict how cool it is to use alcohol and tobacco products, promote consumption of
candy and other unhealthy foods, and sanitize violence. All this could create addicts
as well as physically and mentally unhealthy people. Other then this there are certain
issues that affect the children such as:
Violence
Over the past two decades, studies have examined how violent programming on TV
affects children and young people. While a direct "cause and effect" link is difficult to
establish, there is a growing consensus that some children may be vulnerable to
violent images and messages. Researchers have identified three potential responses to
media violence in children:

Increased fearalso known as the "mean and scary world" syndrome

Children, particularly girls, are much more likely than adults to be portrayed
as victims of violence on TV, and this can make them more afraid of the world
around them.

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Desensitization to real-life violence

Some of the most violent TV shows are children's cartoons, in which violence
is portrayed as humorousand realistic consequences of violence are seldom
shown.

Increased aggressive behaviour.

This can be especially true of young children, who are more likely to exhibit
aggressive behaviour after viewing violent TV shows or movies.

Sexual content
Kids today are bombarded with sexual messages and images in all mediatelevision,
magazines, advertisements, music, movies and the Internet. Parents are often
concerned about whether these messages are healthy. While television can be a
powerful tool for educating young people about the responsibilities and risks of sexual
behaviour, such issues are seldom mentioned or dealt with in a meaningful way in
programs containing sexual content.

ETHICS IN ADVERTISEMENT SECTOR

20

A principle is a common rule which applies to a number of specific cases. We

observed that principles can be closely related to ethical concepts, a point which was
reinforced in when we considered whether, for example, justifying a moral claim on
the basis of the concept of a right to life is just another way of saying that in most
circumstances killing is wrong. This demonstrates one way in which concepts and
principles can be related-that they can be different ways of expressing the same idea.
There is another way in which they may be related-perhaps there are some very
general moral principles which lie beneath a number of more specific principles and
concepts. Killing is wrong is a moral principle, and thus, in accordance with our
definition, it is a general rule which applies to specific cases. But there is a sense in
which it is also specific. It tells us about a scrupulous class of actions which are
wrong, rather than providing a principle of such overview that we can work out from
it whether any proposed action is wrong. Is there a general principle of this kind?
We shall examine two ethical theories each of which offers its own unique, and overarching, ethical principle. These are not the only ethical theories which philosophers
have put forward, but we concentrate on them because the principles they offer are
clearly addressed to individuals, and intended as a basis for decisions as to what is the
right thing to do in any situation. This chapter thus gives some insight into moral
theory and the opportunity to practice the skill of applying principles to specific cases.

Business Ethics

21

Business ethics is the behavior that a business adheres to in its daily dealings with the
world. The ethics of a particular business can be diverse. They apply not only to how
the business interacts with the world at large, but also to their one-on-one dealings
with a single customer. Many businesses have gained a bad reputation just by being in
business. To some people, businesses are concerned with making money, and that is
the bottom line. It could be called capitalism. Making money is not wrong . It is the
manner in which some businesses conduct themselves that brings up the question of
ethical behavior. Good business ethics should be a part of every business. There are
many factors to consider. When a company does business

that is considered

unethical, does this make the company unethical by association? Some people would
say yes, the business has a responsibility and it is now a link in the chain of unethical
businesses. Many global businesses, including most of the major brands that the
public use, can be seen not to think too highly of good business ethics. Many major
brands have been fined millions for breaking ethical business laws. Money is the
major deciding factor.
If a company does not abide by the business ethics and breaks the laws, they usually
end up being fined. Many companies have broken anti-trust, ethical and
environmental laws and received huge fines. The problem is that the amount of
money these companies are making outweighs the fines. Billion dollar profits blind
the companies to their lack of business ethics, and the dollar sign wins. A business
may be a multi-million seller, but does it use good business ethics and do people care?
There are popular soft drinks and fast food restaurants that have been fined time and
again for unethical behavior. Business ethics should eliminate exploitation, from the
sweet shop children who are making sneakers to the coffee serving staff who are
being ripped off in wages. Business ethics can be applied to everything from the trees
cut down to make the paper that a business sells to the ramifications of importing
coffee from certain countries.

SOME ETHICAL AND MORAL PRINCIPLES

22

The media of social communications have two options, either they help human
persons to grow in their understanding and practice of what is true and good, or they
are destructive forces in conflict with human well being. That is entirely true of
advertising. Against this background, then, we point to this fundamental principle for
people engaged in advertising: advertisers that is, those who commission, prepare
or disseminate advertising are morally responsible for what they seek to move
people to do; and this is a responsibility also shared by publishers, broadcasting
executives, and others in the communications world, as well as by those who give
commercial or political endorsements, to the extent that they are involved in the
advertising process.
a) Truthfulness in Advertising
Even today, some advertising is simply and intentionally untrue. Generally
speaking, though, the problem of truth in advertising is somewhat more delicate: it
is not that advertising says what is visibly false, but that it can twist the truth by
implying things that are not so or withholding relevant facts.
To be sure, advertising, like other forms of expression, has its own conventions and
forms of stylization, and these must be taken into account when discussing honesty.
People take for granted some thetorical and symbolic overstatement in advertising;
within the limits of recognized and accepted practice, this can be allowable.
But it is a fundamental principle that advertising may not intentionally seek to
deceive, whether it does that by what it says, by what it implies, or by what it fails to
say. "The proper exercise of the right to information demands that the content of what
is communicated be true and, within the limits set by justice and charity, complete. ...
Included here is the obligation to avoid any manipulation of truth for any reason."

b) The Dignity of the Human Person

23

There is an "vital requirement" that advertising respect the human person, his right
duty to make a responsible choice, his interior freedom; all these goods would be
violated if man's lower inclinations were to be exploited, or his capacity to reflect and
decide compromised." These abuses are not merely hypothetical possibilities but
realities in much advertising today. Advertising can defy the dignity of the human
person both through its content what is advertised, the manner in which it is
advertised and through the impact it seeks to make upon its audience. We have
spoken already of such things as appeals to lust, envy and greed, and of techniques
that manipulate and make use of human weakness. In such circumstances,
advertisements readily become "vehicles of a deformed outlook on life, on the family,
on religion and on morality an outlook that does not respect the true dignity and
destiny of the human person."
c) Advertising and Social Responsibility
Social responsibility is a broad concept that we can note here only a few of the many
issues and concerns pertinent under this heading to the question of advertising. The
ecological issue is one. Advertising that fosters a generous life style which wastes
resources and despoils the environment offends against important ecological
concerns. "In his desire to have and to enjoy rather than to be and grow, man
consumes the resources of the earth and his own life in an excessive and disordered
way. ... Man thinks that he can make arbitrary use of the earth, subjecting it without
restraint to his will, as though it did not have its own requisites and a prior God-given
purpose, which man can indeed develop but must not betray."
As this suggests, something more fundamental is at issue here: authentic and integral
human development. Advertising that reduces human progress to acquiring material
goods and cultivating a lavish life style expresses a false, destructive vision of the
human person harmful to individuals and society alike. When people fail to practice
"a rigorous respect for the moral, cultural and spiritual requirements, based on the
dignity of the person and on the proper identity of each community, beginning with
the family and religious societies," then even material abundance and the
conveniences that technology makes available "will prove unsatisfying and in the end
contemptible." Advertisers, like people engaged in other forms of social

24

communication, have a serious duty to express and foster an authentic vision of

human development in its material, cultural and spiritual dimensions.

Codes and Policies for Research Ethics

The following is a rough and general summary of some ethical principles that various
codes address.

HONESTY
Strive for honesty in all methodical communications. Honestly report data,
results, methods and procedures, and publication status. Do not fabricate,
fiddle, or misrepresent data. Do not deceive colleagues, granting agencies,
or the public.

OBJECTIVITY
Strive to avoid bias in tentative design, data analysis, data interpretation,
peer review, recruits decisions, grant writing, expert testimony, and other
aspects of research where objectivity is expected or required. Avoid or
restrain bias or self-deception. reveal personal or financial interests that
may influence research.

INTEGRITY
Keep your promises and agreements,
uniformity of thought and action.

act with seriousness, strive for

CAREFULNESS
Avoid careless errors and negligence; carefully and critically examine your
own work and the work of your peers. Keep good records of research
activities, such as data collection, research design, and correspondence
with agencies or journals.

OPENNESS
Share data, results, ideas, tools, resources. Be open to criticism and new
ideas.

LEGALITY
Know and obey relevant laws and institutional and governmental policies.

25

RESPONSIBLE MENTORING
Help to educate, mentor, and advise students. Promote their welfare and
allow them to make their own decisions.

RESPECT FOR INTELLECTUAL PROPERTY

Honor patents, copyrights, and other forms of intellectual property. Do not
use unpublished data, methods, or results without permission. Give credit
where credit is due. Give proper acknowledgement or credit for all
contributions to research. Never plagiarize.

SOCIAL RESPONSIBILITY
Strive to promote social good and prevent or mitigate social harms
through research, public education, and advocacy.

NON-DISCRIMINATION
Avoid prejudice against colleagues or students on the basis of sex,
ethnicity, race or factors that are not related to their scientific aptitude
and integrity.

COMPETENCE
Maintain and improve your own professional proficiency and knowledge
through lifelong education and learning; take steps to promote
competence in science as a whole.

ANIMAL CARE
Show proper esteem and care for animals when using them in research.
Do not conduct gratuitous or poorly designed animal experiments.

HUMAN SUBJECTS PROTECTION

When conducting research on human subjects, curtail harms and risks and
capitalize on benefits; respect human dignity, privacy, and autonomy; take
precautions with vulnerable populations; and strive to distribute the
benefits and burdens of research fairly.

ETHICAL DECISION MAKING IN RESEARCH

Although codes, policies, and principals are important and valuable, like
any set of rules, they do not cover every situation that arises in research,
they often conflict, and they necessitate considerable explanation. It is
therefore important for researchers to learn how to understand, assess,
and apply various research rules and how to make decisions about how to
act in various situations. The vast majority of decisions that people must

26
make in the conduct of research involve the clear-cut application of ethical
rules.

REVIEW OF LITERATURE

History of ethics in advertising goes back to 1949, when F. P. Bishop published a

book on advertising ethics.

He recorded moral indictments of advertising as

creating worthless desires which deceive the consumer and encourages them to
consumptionism. Later in 1961, Thomas Garrett, a philosophy professor and priest,
studied some of the ethical problems such as economic growth, urging, consumption,
and potential monopoly power, noting that the Bishopss book cannot grab what is
known to be the ultimate.

The subject of ethics in advertising has a long history, and many of the same ethical
concerns and criticisms of advertising have persisted through many decades and into
the twenty-first century. More than 55 years ago, F. P. Bishop, formerly a Member of
Parliament and editor of The Times of London, published one of the first books on
advertising ethics where he chronicled several "moral indictments" of advertising: It
stimulates

unworthy

desires,

deceive

the

consumer,

and

encourages

"consumptionism." This 11-chapter book titled The Ethics of Advertising (1949)

examined many of the issues that some believe still curse advertising agencies, and
his introduction addresses what many people would consider a major question
currently facing advertising:
''Advertising has come to occupy a key position in the great argument of today-the squabble about the right balance between social control and individual liberation.
Up till now the effect of its use has conclusively been to promote individual
autonomy, at the expense, of good order and social discipline.''

27

About 20 years ago, a debate about the merits of advertising took place in the Journal
of Marketing. Richard Pollay (1986) wrote an inuential article unfolding the
positions of humanities and social science scholars on advertisings unintentional
social and cultural consequences. He concluded that - These ideas also deserve
consideration because of their sober-in and substantial nature. Taken as a whole, they
comprise major indictment of advertising (p. 31). Pollays analysis spawned a
comment by Morris Holbrook (1987), who safeguarded advertising as pluralistic not
monolithic, aimed at segments and not the mass market, rejecting pop not high
culture, and mirroring not manipulating values. Pollays rejoinder(1987) provided a
point-by-point commentary on Holbrooks opinion, but more signicantly, it focused
on values. Reargued that advertising communicates values and increases the saliency
of certain values. He observed:
Of all the aspects of advertising that might be studied, values have the most
philosophical implications and are the most significant to the larger academic
community and the community at large.

28

Research Methodology (Questionnaire)

Sample: Youth (Above 18 years and below 30 years)

Sample Area: Amity University

Sample Size: 50

Sample Technique: Convenience Sampling

The type of sampling used in the project was convenience sampling.

The samples were undertaken on the basis of the convenience which can
give best possible results.

29

TOOLS USED DURING THE PROJECT

1. Questionnaire:

The questionnaires comprised of both, structured questions and unstructured

questions:

a) Structured Questions: The structured questions are those questions that impose
a limit on the respondent to answer the question. It is usually in the form of
Yes/No questions.

b) Unstructured Questions: Unstructured questions are the ones in which the

respondent is free to give as much answer as he/she wants without imposing any
kind of limit on him/her.

c) Open Ended Question: Another form of question involved the respondent to

answer a particular question within the space provided.

Statistical Tools
1. Bar graphs:

Bar graphs were used for the interpretation of the questionnaires in the project.

They were used to show the result from different number of respondents in the
form of numbers.

2. Pie chart:

Pie chart was another form of statistical figure used in most of the questions.

It was used to present the results in the form of percentages.

30

DATA ANALYSIS AND FINDINGS

1.

What type of media do you usually follow?

a. News Paper

c. Radio

b. Television

d. Internet

e. Others

Type of Media Most Followed

20
Newspaper

Radio

Television

30

Internet

Other

2
48

Maximum number of respondents used television, followed by Newspaper and

Internet.
Lowest number of respondents used radio.

31

2. How do you view the level of ethics in advertising?

10

Very Low

71

Low

Average

Column2
7

High

Very High

10

20

30

40

50

60

70

Most of the respondents believed that companies advertising their

products/services do not follow all the important norms related to ethics.

Respondents said that in todays advertisements, ethics is nowhere to be seen.

Companies are now trying to get profits through the use of unethical elements
portrayed in the ads.

80

32

Some felt that companies do not have concern for its customers which can be
seen in the advertisement and said that companies only believe in fooling
people and leads them to include unethical practices.

3.

Which of the following issue in general advertising would you consider

being unethical?

a) Ads for abortion services or family planning.

b) Ads for cosmetic surgery or other elective surgery.
c) Ads for medical products and services.
d) Ads for personal care and hygiene products.
e) Ads for professional services (lawyers, doctors, etc)
f) Advertising to children
g) Use of sexual themes in ads
h) Racial stereotyping ads
i) Other

A- According to respondents,

63 believed that advertisements involving sexual themes are more unethical.

Lot of sexual content can be seen these days which is not a part of our culture.

20 felt that there is a lot of racial discrimination being showed in

advertisements.

10 felt that companies are influencing negative impact on small children

through their ads as they are immature. Because of some unethical element
present in ads related to children, it is leading to negative consequences.

7 believed that ads involving abortion or family planning theme at times

should be presented in a different way because companies advertising
products/services present them in an obscene manner.

33

4.

Which form of impact of advertisement has been the most on you?

Form of Impact
Economic impact

Social impact
12% 16%

Psychological impact
42%

30%
Advertising
to children

42% respondents felt that psychological impact was more on them due to
advertisements followed by social impact (30%), economic impact (16%) and
advertising to children (12%).

5.

Have you ever decided not to buy a product/service due to an advertisement

that you perceived as unethical?

Purchased product even after finding its ad unethical?

Yes
55%

45%

No

34

55% said that they dont purchase a product/service if they feel that the
advertisement is unethical or is claiming to provide something that is not
present or is harmful where as 45 % did not care about the unethical element
being present in the ad or being influenced in their purchasing decision.

6.

In the future, would you refrain from buying a product/service because you

perceive its advertisements as unethical?

Future Purchase Intention

Yes

No

38%
62%

Large number of respondents believed that advertisements involving unethical

practices or elements will not make them purchase the product. They felt that
ads having transparency or clarity will be welcomed and will get the highest
sales.

35

7.

How these unethical advertisements should be stopped?

80
70
60
50
40
30
20
10
0

74

15
4

Column2

Most of the respondents said that there should be some strict laws involved for
handling such ads. The current laws by censor board and government are not
very strict because some of the companies are still continuing to show some of
their unethical ads.

Rest of the respondents believed that companies should be taken to court for
falsely claiming something or for any other unethical practices. Huge
imposition of fine was another alternative they suggested.

Very few wanted the companies to ban the product.

36

8.

Would you invest in a fund company with high ethical standards if it

presented slightly lower returns than a fund company with low ethical standards if
it yields higher returns?

25%
Yes

No
75%

This question was included to check how much value respondents give to
ethics when it involves them.

75% respondents were not willing to risk their investment or get fooled by the
advertisement that shows high profits without showing any negative results.

37

9.

It is possible for a business to be both ethical and profitable

45

42

40
35

32

30
25
20

14

15

10

10

5
0
Strongly Agree

Agree

No Opinion

Disagree Strongly Disagree

Maximum respondents thought that business can accumulate profits even if it

follows ethical practices.

10. What suggestions would you like to give to stop or avoid from being
influenced by unethical ads?

A- Following were some of the important suggestions made by the respondents-

Research proper pros and cons of the product before buying it.

Unethical ads should be banned and more stringent laws should be made.

There should be proper legal authorities to look into the matter and prohibit
such ads.

There should be awareness from public regarding unethical practices so that

people dont get influenced from such ads.

Dont buy the products of those unethical companies. They will lose the value
in the market and will then learn a lesson.
Customers should not follow the ads blindly.

38

FINDINGS OF THE SURVEY

1. After completely analyzing data it can be said that the people are aware of unethical
elements being shown in ads which are creating negative impact on society and
majority of them have got awareness from television.
2. People think that ads related to sex products are most unethical. These ads are not
trying to stop youth for going in a wrong direction but they are encouraging them.
Other Important Findings:
1. Most people said that the government should bring in more stringent laws to stop
these ads and take action against the companies. Other possibilities according to
people were in the form of taking the companies to the court and imposing heavy fine
on them.
2. Most of the people said that they dont purchase a product which they perceive as
unethical in some or other form. They also said that even in future, they will restrain
themselves from purchasing products that they perceive unethical.
3. Survey shows that 42 people believe that companies being ethical can also be
profitable. They need not adopt unethical practices for their profits.
4. One question was included to check how much ethical people really are in the form
of investing in a company with high ethical standard while presenting low returns and
investing in a company with low ethical standards while presenting higher returns.
The result shows that even today, no matter how much benefit person might get, they
will not like to get themselves attached or involved in a company who pursue
unethical practices. 75% people felt this.
5. 42% believed that advertisements have a psychological impact on them followed
by social impact.

39

LIMITATIONS

Every project faces some limitation and this project was no exception. Some of the
limitations faced were -

Since the responses were only from one part of Delhi, the report cannot be
generalized for whole Delhi and NCR.

Respondents may have given bias information.

Some of the respondents were not willing to devote time for the survey. Most
of the time, they were busy and were not willing to respond.

There could have been vast exploration on the topic but due to limited time
availability, it could not be explored more for study.

At times, they were not able to understand the questions which enforced me to
make the question understand to the respondent in detail.

40

RECOMMENDATIONS

Recommendation to the Companies:

Be ethical. Unethical practices will not help in achieving customer loyalty.

Unethical elements and practices will damage the companys brand name.
Once damaged, it will be difficult to achieve that goodwill again.

Do follow the rules and regulations laid down by the government. Breaking
those laws will land them in huge trouble and it will be difficult for them to
get out of the jail.

Some of the elements that are showcased in advertisements affect children in

negative way. Make sure to stick to the message without creating a negative
effect.

Recommendation to the Customers:

Dont get easily influenced by the advertisements. Cross check many times
before making a purchase decision.

Learn from the experiences of other people. They can better tell whether the
company has falsely promised or not.

Make sure to write down to the company in the case unethical elements in the
form of obscenity, fraud etc. This will make them realize their mistake.

Make sure that children dont get negatively influenced from the
advertisements.

Recommendation to the Government:

41

To Check whether companies are abiding to the rules and regulations related
to advertisements.

Introduce more stringent laws which if broken should lead to negative

consequences for the companies.

Do take strong actions on the companies in the form of banning the product,
heavy imposition of fine and even liquidating the company.
CONCLUSION

Advertising is an important element in today's world, especially in the functioning of

Market Economy, which is expanding. Moreover, for the reasons, we believe
advertising can, and often does, plays an important role in economic growth, in the
exchange of information and ideas, and in the fostering of solidarity among people.
From the study, it can be seen that it is causing harm to individuals and to the
common good. People today are no more uneducated. With time, they have become
more knowledgeable. Its not easy nowadays to adopt unethical practices for the
businesses. Be it false promises, obscenity, fraudulent practices etc. People today do
know about all this and playing with their morals and values will lead the companies
to pay heavy prices.
Advertising ethics affects the practice of our lives, and the practice of business, in
subtle and prominent ways. Indeed, advertising ethics concerns us all. Like, ad
agencies, academicians, advertisers, consumers, media personnel, and regulators in
different ways.
Using unethical practices to persuade the customer to purchase the product can be
done once. But with the negative experience that the consumer will feel will not make
that him/her go and purchase that product again. Eventually, the company will lose
the customer. It is very important for the company to be ethical to their customers to
achieve their customer loyalty which itself brings profits and it can be seen from the
result of the study.

42

So, the final conclusion can be derived in the sense that companies are required to be
ethical, no matter how much competition they face. Unethical practice will bring the
customer only once but an ethical practice will bring the customer again. Companies
are required to follow the laws brought by the government as unethical practice can
land them into huge trouble in the form of liquidation, ban of product etc. So, be
ethical and be profitable.

REFERENCES

Articles :
Khothari, C.R. (2006). Research Methodology, Page no. 67-69
Arun Kumar, L. Tyagi (2003). Advertising Management.
Menon, Vijay (1997). Ethics in Advertising
Klempner, Geoffrey (2004). Ethics and Advertisement.

Websites :
http://www.ddindia.gov.in/Business/Commercial+And+Sales/Code+for+C
ommercial+Advertisements.htm
http://www.etstrategicmarketing.com/smNov-Dec2/art7.html
http://www.icmr.icfai.org/casestudies/catalogue/Business
%20Ethics/BECG002.htm
www.brandbuilding.com/books/food.html

43

QUESTIONNAIRE

1. What type of media do you usually follow?

a. News Paper

c. Radio

b. Television

d. Internet

e. Others

2. How do you view the level of ethics in advertising?

a. Very high

c. Average

b. High

d. Low

3.

Which of the following issue in general advertising would you consider being

unethical?
a
b
c
d
e
f
g
h
i

e. Very Low

Ads for abortion services or family planning.

Ads for cosmetic surgery or other elective surgery.
Ads for medical products and services.
Ads for personal care and hygiene products.
Ads for professional services (lawyers, doctors, etc)
Advertising to children
Use of sexual themes in ads
Racial stereotyping ads
Other

44

4.

Which form of impact of advertisement has been the most on you?

a. Economic Impact
b. Social Impact
c. Psychological Impact
d. Advertising to children

5.

Have you ever decided not to buy a product/service due to an advertisement that

you perceived as unethical?

a. Yes
b. No

6.

In the future, would you refrain from buying a product/service because you

perceive its advertisements as unethical?

a. Yes
b. No

7.

How these unethical advertisements should be stopped?

a. Product should be banned

b. Definite laws should be there
c. Face the court
d. Huge fine should be imposed.

8.

Would you invest in a fund company with high ethical standards if it presented

slightly lower returns than a fund company with low ethical standards if it yields
higher returns?
a. Yes
b. No

9.

It is possible for a business to be both ethical and profitable

a. Strongly Agree

45

b. Agree
c. No opinion
d. Disagree
e. Strongly Disagree
10. What suggestions would you like to give to stop or avoid from being influenced
by unethical ads?