INSTITUTE ADVERTISING ETHICS PRINCIPLES PRACTICES for

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PRINCIPLES and PRACTICES,for ADVERTISING ETHICS, The explosion of new technologies is changing the marketing and advertising. landscape both domestically and globally New media new ideas new. challenges new cultural opportunities are swirling around the industry. and impacting the way it does business, The one constant is transparency and the need to conduct ourselves our. businesses and our relationships with consumers in a fair honest and. forthright manner, This is especially true in today s often hostile environment with revelations. of wrongdoing in particular industries and government programs resulting. in an erosion of public confidence and trust in all our institutions. It is particularly fitting in such times that we remind ourselves of the ethical. behavior that should always guide our personal and business conduct. The eight Principles and Practices presented here are the foundation on. which the Institute for Advertising Ethics IAE was created They are based. on the premise that all forms of communications including advertising. should always do what is right for consumers which in turn is right for. business as well For while we are in an age of unparalleled change this. overriding truth never changes,INSTITUTE for ADVERTISING ETHICS. PRINCIPLES and PRACTICES,for ADVERTISING ETHICS,PRINCIPLE 1.
Advertising public relations marketing communications news and editorial all share a. common objective of truth and high ethical standards in serving the public. Commentary, This principle is based upon The Journalist s Creed enunciated by Walter Williams first Dean of. the Missouri School of Journalism Mike Fancher a veteran journalist from The Seattle Times. has done in depth research regarding The Journalist s Creed as a Fellow of the Donald W Reynolds. Journalism Institute He has concluded that Walter Williams believed that both journalists and. people on the business side of a public journal share the responsibility to serve the public and. both must respect each other s important contributions Fancher writes It s probably important to. remember that Walter Williams was a country editor That means he did a little bit of everything. including selling ads That s one reason a single standard of public service was essential He must. have regarded advertising content as a public service which explains his belief that advertising. news and editorial should alike serve the best interests of readers. This conviction is held today by Jeff Levick President Global Advertising and Strategy AOL and a. 2010 Inductee into the Advertising Hall of Achievement Levick states It s critical for the industry. to acknowledge and accept that advertising is commercial information that must be treated with. the same accuracy and ethics as editorial information. Advertising is extremely important to consumers and to our market place economy It provides. consumers with information about the products and services in which they are interested and it. fosters competition For these reasons government has brought legal actions to prohibit its restraint. by private groups and the Supreme Court has held that truthful commercial speech is protected. under the First Amendment, It is clear that consumers want and expect advertising to be held to high ethical standards Research. supports the high value that consumers place in honest and ethical advertising For example in. research conducted by four student teams at the Missouri School of Journalism honest advertising. ranked as the number one factor that would make a company ethical See also Does Being Ethical. Pay The Wall Street Journal May 12 2008,INSTITUTE for ADVERTISING ETHICS. PRINCIPLES and PRACTICES,for ADVERTISING ETHICS, Advertising has long been committed to high standards of truth and. accuracy in all forms of advertising creating the National Advertising. Division NAD of the Council of Better Business Bureaus and the. National Advertising Review Board NARB in 1971 to foster these. standards across all forms of commercial messaging Nevertheless our. industry must further enhance our advertising ethics if we are to build. consumer trust for our profession and brands The latest research from. the Adweek Media Harris Poll shows that only one in five Americans. trust advertising most of the time and 13 say they never trust it. Inspired advertising professionals will practice and benefit from. enhanced advertising ethics,PRINCIPLE 2, Advertising public relations and all marketing communications professionals have an.
obligation to exercise the highest personal ethics in the creation and dissemination of. commercial information to consumers,Commentary, The role of professionals is central to the practice of high ethical standards by their companies. These principles are meant to serve as guideposts for professionals in carrying out their professional. responsibilities The importance of advertising to consumers and the economy stimulates our. professionals to practice the highest levels of ethics When you believe in what you do when you. know how important your work is you want to do your best in carrying out your responsibilities. Adam Werbach Chief Sustainability Officer Saatchi Saatchi and 2010 Inductee into the. Advertising Hall of Achievement believes in the day to day importance of advertising and high. ethics He states As new professionals enter the advertising world it is imperative they are aware. of the importance of high ethics to their consumers and their careers More and more companies. will be including the issue of ethics in their evaluation of performance The first mission of the. Institute for Advertising Ethics is to educate our professionals as to the importance of truthful. ethical advertising to reinforce that they are professionals in the clearest sense of the word. INSTITUTE for ADVERTISING ETHICS,PRINCIPLES and PRACTICES. for ADVERTISING ETHICS, The Institute also will educate our industry and professionals as to the competitive opportunities. afforded by consumers to those companies practicing enhanced ethical advertising Also. recognition will be provided to companies and individual professionals practicing enhanced ethics. by national awards presented at the annual national conference of the American Advertising. Federation AAF,PRINCIPLE 3, Advertisers should clearly distinguish advertising public relations and corporate. communications from news and editorial content and entertainment both online and offline. Commentary, This addresses an ongoing issue where the line is being blurred between commercial communications.
on the one hand and news editorial and entertainment on the other If consumers are unaware the. news or entertainment they are viewing actually is advertising they are being misled and treated. unethically First consumers could attach more credibility to the content if they believe it to have been. written as a news story Second they will not have their minds set in a business mode to evaluate the. claim as they would do if recognizing it as a paid for persuasive ad. Walter Williams Dean of the Missouri School of Journalism 1908 1935 denounced this unethical. practice in a speech given on October 22 1919 to the Associated Advertising Clubs of Iowa as he. stated A newspaper cannot be independent in the opinion of the public if it carries advertising. disguised as editorial comment or news It is a species of dishonesty no less because it is sometimes. practiced for a newspaper to express pay opinions in disguised advertising and thereby deceive its. readers The readers have a right to demand frankness as opposed to deception Honesty convinces. permanently Deceptive advertising lowers the standing of a newspaper Collection 2533 Williams. Speeches folder 627 Western Historical Manuscript Collection Columbia. Unfortunately with the dramatic explosion of media sources blurring of commercial and editorial. content is more of an issue today than it was in Walter Williams time The concerns continue to. this day with advertising in the form of news articles unsubstantiated claims in press releases and. unattributed commercial content on social networking sites all of which have been the subject of. regulatory or self regulatory activity,INSTITUTE for ADVERTISING ETHICS. PRINCIPLES and PRACTICES,for ADVERTISING ETHICS,PRINCIPLE 4. Advertisers should clearly disclose all material conditions such as payment or receipt of a. free product affecting endorsements in social and traditional channels as well as the identity. of endorsers all in the interest of full disclosure and transparency. Commentary, The explosion of word of mouth marketing and blogging about commercial products and services. creates special concerns about the blurring of advertising and editorial content Of particular concern. is the need for advertisers to be transparent about the conditions for creating online endorsements for. example through bloggers or social media It is often not clear whether people are endorsing on their. own or if they are being compensated by a brand company or are even part of the brand company. organization The anonymity of the online world requires extra efforts for practicing ethics said Marc. Pritchard Global Marketing Officer Procter Gamble This area is going to get even more complicated. in the months and years ahead said Peter Blackshaw Former Chairman Council of Better Business. Bureaus Disclosure with bloggers may well be the easy part How do you responsibly disclose when. 140 million global members of Twitter are restricted to 140 characters per tweet and any attempts. at disclosure gets lost in the first pass along Acknowledge forcefully that responsible advertisers. must be extremely proactive on this front and perhaps even over compensate. Recently the National Advertising Division NAD the industry s self regulatory arm and the. Electronic Retailing Self Regulation Program ERSP have taken a number of self regulatory. actions when a company is either sponsoring a site or paying for product review by bloggers without. a clear conspicuous and meaningful disclosure of that fact. The Federal Trade Commission the chief federal regulator of advertising has also amended its. Endorsement and Testimonial Guides to require bloggers to disclose when they are paid by a. company and when they work for the company whose product is being blogged also when they. are given the product free of charge, Individual companies have developed specific disclosure codes for use in their endorsement. advertisements and by bloggers on behalf of their products. The Word of Mouth Marketing Association WOMMA also has developed an ethics code that. covers this principle,INSTITUTE for ADVERTISING ETHICS.
PRINCIPLES and PRACTICES,for ADVERTISING ETHICS,PRINCIPLE 5. Advertisers should treat consumers fairly based on the nature of the audience to whom the. ads are directed and the nature of the product or service advertised. Commentary, This includes advertising to children who have been stated by the advertising industry s Children s. Advertising Review Unit CARU to be especially vulnerable by virtue of their inexperience. immaturity susceptibility to being misled or unduly influenced and lack of cognitive skills to. evaluate the credibility of advertising Children s understanding depends on the manner in which. the ad is designed and disseminated, Advertisers should always practice the highest ethics when advertising to children Today children. are connected to products on TV radio print and the internet This includes ads on cell phones. G rated DVDs and when playing computer games and video games on company websites where the. products are featured As provided in the CARU Guidelines and reported self regulatory actions. advertising should be clearly distinguished in the eyes of children from news content and from. entertainment and games For example CARU has found the content and presentation of certain. print ads in children s magazines to mimic articles and children s TV ads to be structured like a. newscast segment, The Children s Food and Beverage Advertising Initiative is an outstanding illustration of how. the food industry modified its advertising directed to children under twelve to encourage healthier. dietary choices and healthy lifestyles Begun in 2006 with ten participating companies today. seventeen food and beverage marketers have agreed voluntarily to advertise to children 12 and. under only better for you products This is a demonstration of advertising ethics by the industry. that is monitored by the Council of Better Business Bureaus. Advertising also should treat consumers fairly based on the nature of the product or service. Products that should be advertised in a highly ethical manner include alcoholic beverages An. illustration of industry ethical efforts are the self regulatory codes adopted by the beer distilled. spirits and wine industries that among other things limits all alcoholic beverage ads on television. to programs with 70 adult audiences,INSTITUTE for ADVERTISING ETHICS.
PRINCIPLES and PRACTICES,for ADVERTISING ETHICS, Prescription drug advertising directed to consumers DTC also is a prime example of advertising. requiring high ethics This is a major category of television and print advertising that while. providing beneficial information to consumers about medical products and procedures is getting. considerable attention from regulators and lawmakers The pharmaceutical industry has published. for ADVERTISING ETHICS PRINCIPLE 1 Advertising public relations marketing communications news and editorial all share a common objective of truth and high ethical standards in serving the public Commentary This principle is based upon The Journalist s Creed enunciated by Walter Williams first Dean of the Missouri School of Journalism Mike Fancher a veteran journalist from The

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