Social Responsibility Towards The Consumer, End Users & General Public

Social Responsibility Towards the Consumer,
End Users & General Public
Objectives:
The students will be able to:
1. Distinguish the deceptive practices used by
manufacturers and sellers and integrate social
responsibility towards consumers, users and the
general public.
2. Recognize the importance of knowing the rights and
powers of consumers and buyers.
Deceptive Practices
Refers to acts that mislead

deliberately or acts that cause
one to believe what is not true
or cause one not to believe
what is true, the intention of
which is to take unfair
advantages of another (Ekman,
1992).
What are Deceptive Practices?
What are Deceptive Practices?
- Exaggeration
- Concealment of pertinent facts
- Misstatements
Being Deceptive by strict definition
refers to an action that is
Planned
Calculated
Intentional
How is the Art of War used in
business?
 Warfare must be viewed as a matter of deception
of constantly creating false appearances,
spreading disinformation, and employing trickery
and deceit. When crafted with creativity and
effectively implemented, the enemy will neither
know where to attack nor what formation to
employ, and will accordingly be condemned to
making fatal errors. (Sawyer 1994)
Are there guidelines against
deceptive practices?
Are there guidelines against
deceptive practices?
 Republic
Act 7394 or Act of the Philippines and US
Consumer Product Safety Act 1972.
 Business Transaction is any situation in which two or

more parties are engaged in communications, the aim
of which is agreement on terms affecting an
exchange, or distribution of benefits, burdens, roles,
or responsibilities.
Why are deceptive
practices contrary to
business ethics?
Ethical Management and
moral leadership as relevant
to business survival and
corporate reputation.
What are your
consumer
rights?
Trust, always unsigned and
undocumented, is required by any
transaction. The legal requirement is
always visible to the eyes (as demanded
by law).
The mechanical defect has
subsequently resulted to
physical injury and death of
some clients who bought it
without being told of the
factory deficiency.
What did Ralph Nader say?
It is good or business sense when

you know how to protect
consumers from their own
ignorance and indiscretion. It is an
honorable and a decent act not to
take advantage of their own
weaknesses.
What is business responsibility
during transaction?
during transaction?
 The social duty to comply with the terms of the
sales/sales contract.
 The social duty to fully disclose the nature of a product

or service.
 The social duty to avoid misrepresentation.
 The social duty to avoid coercion and undue influence.

during transaction?
during transaction?
Feedback System
Resolving Complaints
Compensatory Justice
What is Advertising Ethics?
What is Advertising Ethics?
What is right or good in the conduct of the

advertising function. It is concerned with
questions of what ought to be done, not just with
what legally must be done. (Cunningham, 1999)
What is commercial
advertising?
What is commercial
advertising?
Persuasive Communication from seller to
buyer on a non-personal basis.
(Oxenfeldt,1966)
What is Persuasive
Advertising?
What is Persuasive
Advertising?
This type of advertising (and
most ads are of this type), more
or less, seeks to bypass the
reflective and intelligent powers
of the consumer. (Murphy, 2004)
Do ads usually carry substantial
information?
Is it unethical to play upon the
human weaknesses and
vulnerabilities?
Is it unethical to play upon the
human weaknesses and
vulnerabilities?
 Without any doubt, ad agencies have to do their
homework. When ad psychologist do a lot of
research, diagnosing human vulnerability and
weak spots, the purpose is to manipulate, or
least to influence, the buyers.
When do infomercials become
untruthful?
When do infomercials become
untruthful?
One way is through false statements or
misleading exaggerations.
Are there half-truths?
Are there half-truths?
 There are no half-truths and no gray areas.
If information is not true, it is false.
Using a look-alike models may be
deceiving. Why?
Using a look-alike models may be
deceiving. Why?
Testimonial claims can
only be genuine and
untruthful, and should be
categorically stated as the
personal experience or
opinion of the endorser.
Are obscene and disparaging ads morally
acceptable?
Are obscene and disparaging ads
morally acceptable?
OBSCENE ADS – Social responsibility is defective
when advertising allows profanity obscenity and
vulgarity or any presentation that is offensive to the
universal standard of decency.
DISPARAGING ADS – It is neglect of social

responsibility for any print, TV, or radio commercials to
directly or indirectly ridicule, criticize, or attack any
individual or group of individuals on the basis on
gender, social or economic class, religion, race, or
nationality.
How does unethical advertising assault
human dignity?
How does unethical advertising
assault human dignity?
The moral responsibility of advertisers become

acute where particularly vulnerable groups or
classes of persons are concerned: children and
young people, the elderly, the poor, the cultural
disadvantaged. (Murphy, 2004)
PANA has formulated a Statement of Advertising Principles
in the form of Code of Ethics as follows:
 A GOOD ADVERTISING recognizes both its economic and social

responsibility to help reduce distribution costs and to serve public interest.
 A GOOD ADVERTISING depend its success on public confidence. Hence, it
cannot permit those practices that tend to impair such confidence.
 A GOOD ADVERTISING aims to inform the consumer and help him buy
intelligently.
 A GOOD ADVERTISING tells the truth. It is accurate, honest and trustworthy.
It avoids exaggerations, misstatement of facts, as well as possible deception
through implication and omission.
 A GOOD ADVERTISING conforms not only to the law but to the generally
accepted standards of good taste and decency and to the moral and aesthetic
sentiments of the country.
 A GOOD ADVERTISING helps to uphold the dignity of the individual and
contributes to the building of a civilized society.
When did the biggest
advertising profit happen in
history?
-Persian Gulf War on January 16, 1991
-CNN raise from $4,000 to $20,000 (30 seconds)

THANK YOU!

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Social Responsibility Towards the Consumer,

End Users & General Public

Refers to acts that mislead

- Concealment of pertinent facts

 Business Transaction is any situation in which two or

It is good or business sense when

 The social duty to fully disclose the nature of a product

 The social duty to avoid misrepresentation.

 The social duty to avoid coercion and undue influence.

What is right or good in the conduct of the

DISPARAGING ADS – It is neglect of social

The moral responsibility of advertisers become

 A GOOD ADVERTISING recognizes both its economic and social

-Persian Gulf War on January 16, 1991

-CNN raise from $4,000 to $20,000 (30 seconds)

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