Advertising and Ethics: Does it really matter to business?
The story starts with a news article, Coca-Cola dodges federal false advertising claim on its so-called “pomegranate” juice. This article talks about how Coca-Cola misleadingly advertises “pomegranate” juice, which is actually made by 99.4% of apple juice and grape juice. How does that affect consumers? Do “ethics” really affect the business?
In business areas such as employment relations, finance and advertisement, ethics issomething that has been fiercely discussed for decades. Among others, the discussion concerning misleading advertising claim is perhaps the most heated one.
The video, Advertising and Ethics, talks about how corporations send consumers misleading information, and this situation has not been changed for decades. Business textbooks say that telling the truth benefits corporations in the long run and may help them building trust with customers. I don’t think it is always the case. For sure, it is not the first time Coca-Cola lies to customers about its product. If you take a look at third-parties’ reports, they reveal many negative stuff about Coca-Cola. Does Coca-cola ever tell you these? Does that affect Coca-Cola’s leading position in beverage industry?
My answer would be “no, not necessarily”. It seems like that giving misleading advertising claim may cause ruining effect of business in the long run. However, it might not in some cases. Because consumers naturally defend themselves against advertisements and most of them assume everything said in advertisements has been exaggerated already. Consumers don’t believe in advertisements, so they won’t feel disappointed when they see misleading information. Also, a company won’t necessarily go down if it misleadingly advertises its products.
I think the most effective way that motivates corporations to advertise honestly is through improving the sense of responsibility and enforcing legal measures in this regard. There is an old saying in China, “Loving money is human, but it must be earned in a right way”.
(Source from: http://www.naturalnews.com/035962_Minute_Maid_pomegranate_juice_false_advertising.html)