THE APPLICATION OF ETHICS TO THE HIRING PROCESS Traditionally, hiring is a process of questions and answers where the company

ask the questions and the candidates givs the answers. Generally the candidate only show their best qualities and attempt to hide the undesirable ones. In re turn, the interviewer only show most desirable traits of the companiesto convin ce candidate to join . Disonesty should not be the agenda of each party. Unfor tunately, this is still the way of hiring at many companies. The resume is scrutinized for false or misleading information, and if this is fo und then the candidate is rejected . If the information is found to be false a fter hiring, the company may break the relationship . Companies too are respons ible for the information they provide to, the candidate .An interviewing manage r, is responsible to ethically represent the company and its interests to poten tial candidates. The cost for not interviewing ethically can include lawsuits t hat could cost the company very highs Example:- A man was awarded more than Rs10lakhs by the court. His employer had not told him that they were in the process of being taken over by another firm. In this he lost his job just one year after the takeover . He argued that he would not have joined the firm if he had known that this takeover was being disc ussed. Ethics in hiring, staffing & recruitment depends on combination of things& who i s actually involved in hiring process like: the job searcher, hiring manager and recruiter Generally, candidates lie about various aspects in their resume ie. their salary, why they left their last job, their job responsibilities, Their educational achievements, etc. On the other side hiring managers may lie about why they want to hire a new per son ie. They might lie about why the previous person was fired? he won t tell you that the previous person quit the job because they were bored Or because they thought their manager was a jerk either. Be honest to potential candidates. Dont hide info. which candidate needs to deci de whether the position is right not. Mgrs must anticipate the Qs they will be asked, & should be ready to disclose info to candidate to attract them to join. Sometimes the mgmt. tells mgrs. to tell the candidate that is misleading or inco rrect. This is an ugly situation but mgrs must be prepared to deal with it. Mgr must ensure that the info. given to candidate is correct & complete. If he is as ked to lie to a candidate, then he should talk to mgmt. If still not satisfied, consult with HR mgr. A good HR mgr. will tell what is right and how to avoid fu ture litigation against the company or yourself. Ethical dimension to hiring,:- There is a significant ethical dimension to hirin g, for the org. doing the hiring for the individual under consideration and for the individuals that the new hire will impact. Consider these issues: One: From org. point of view:- It look for candidates who will help to achieve org. mission. The key responsibilities, of org. are to be frank, honest and cle ar about the strengths and weaknesses of the org... If the candidates know the t rue state of the org. they can make a fair analysis of their potential fit. For this invite the candidates to talk with as many key persons in the organizat ion as possible to get truthful and open info. so that they get the best picture of what they are getting .The org.don t want a candidate saying that he was su rprised by something six months after joining. Orgs ethical responsibility is to ensure that they get the best possible information Two: From the candidates point of view,:- Ensure that the job being offered is t ruly fitting the person under consideration. If org hire someone who does not fi

t the position, then It have messed with their life. Though, candidate have a re sponsibility to prove their fitness but it is managers job to do the best tho roughness possible to minimize bad fit which will hurt them and the organization . I should be willing to make any investment (time and financial) needed to ensure a good match. On the time front it includes dialogue and discussion the potential staff membe r with references. On the financial side it means testing to determine competencies, . While it ma y not get it right all the time, our commitment is to do all that we can to get it right. A key practice here is- never do the hiring by yourself. Recruiters do not have th e necessary insight to see all the angles, upsides and downsides of a candidate. Involve as many people in the process to ensure the best evaluation. If one o f key members see some problem then do not hire until that problem is solved. Th e most important questions is to answer - whether the candidate has good (EQ) or not? The answer determines a successful hiring. Third: From the team s point of view:- Ensure the potential candidate will be good fit in the org.. That means involve other members of the team in the decisi on. Every hire has an impact on the team. Not involving them is both foolish and potentially harmful. Never hire an individual who cannot work in a healthy team environment no matter what their brilliance or skills. Doing so will disempower ed and hurt the team. The guiding principle in hiring is-that we pay now or we pa y more later.i.e the cost of getting it wrong is high, it Disrupt the staff , Disrupt the org. FOUR KEYS TO HIRING A WINNER The most difficult tasks a manager faces today is finding the right person for t he job. Most follow an interview and trust their instincts. They hire a person a nd hope that with proper training and motivation, the person will succeed. The p roblem in this approach is that we hire people we like and have similar personal ities to our own. The Four Keys are:1) JOB COMPATIBILITY :- The first question is Is the individual compatible with w hat you are asking him or her to do .it is based on the idea that the broader the experience, better the employee. Unfortunately, many employees are poor in care er broadening assignments because their personalities are not compatible with wh at they are being asked to do. They become frustrated and become a mgmt. proble m with an attitude. Usually, the employee leaves before the manager can find the root of the problem. So it is necessary to determine a persons compatibility wit h a new job BEFORE they are hired. This is done by Personality Profile test. First, test your most successful peop le in the position. The results will find their job related traits. Then put th e results through benchmarking" This process creates personality trait standard , by which you can compare applicants to the most successful people already in the job 2) SKILLS, KNOWLEDGE, EXPERIENCE :- The second question is Does the individual h ave the skill set for the job it is determined through good interviewing question s, checking references, and giving a skills test relevant to position. Many ap plicants lack the basic skills for the job. This is done by using Skills aptit ude test . Make sure they have these basic skills before you hire. 3) WORK ETHIC:- The third question we must answer is Will the individual work Thi s is done to determine the applicants work ethic by in-depth interview questions in Personality Profile test given below. Mission/Sense of Purpose Who is the most successful person you know in our industry What is your goal in life Tell me about your 5-year goal Your 10-year goal

Perseverance Tell me about something you have accomplished that required great perseverance Tell me about the jobs you have had that required self-discipline and perseveran ce Time Management How do you prioritize your To Do list Have you taken any seminars on time management Character and Credit History When we conduct our character and credit checks, will we find anything questiona ble Check driving, credit, criminal, and employment history. Check personal references.x 4) RETENTION :- The final question is If I hire this applicant, who is best in or ganization to manage the new candidate, and jump start his/her productivity. Man y times the right applicant, perform excellently in the beginning, and then their productivity gradually decrease to nothing .Personality conflicts account for 50 % of the employee turnover. Often a new candidate had all the right qualities for success. He is assigned to a manager or trainer with whom he is incompatible. I t was found that after 120-180 days, he became de-motivated, disheartened and fi nally left. To prevent this make sure that new candidate and manager are compati ble. This is done by comparing their Personality Profile test results. If the manager and the new candidate are opposites in more than three job relate d traits, then assign the new candidate to another manager or do not hire him. If they are opposites in less than three categories, then tell them how they ar e similar, and how their differences can benefit each other Often, just showing people how they can solve a problem from different angles is enough to promote teamwork and jump start productivity. o . MORAL & ETHICAL CHALLENGES OF A PERFORMANCE EVALUATION\PROMOTION Perf. Eva. Is used by mgmt. and employees for employee career dev., and to help the co. determine staff career paths. Evaluation is a judgment made by mgmt of perf. of employees. This create moral & ethical challenges. Law vs. Ethics:-Perf. evaluations can become ethical and moral problems when used to evade the law. A co. can decide to give regular poor evaluations to a g roup of employees to later have a legal basis for dismissing those employees & o utsourcing their jobs to cheaper cos. The process of releasing employees based o n poor evaluations, & outsourcing work to foreign co. is not illegal. But using strict evaluation processes to regularly find faults with staff perf. to justify removing those employees is unethical. Reward:-Company policy often rewards employees favourable appraisals, and punish poor evaluation. But the co. can find itself in a difficult position when emplo yee s expectations do not match the reward for a good perf. evaluation, .It is t he ethical obligation of the co. to reward good perf. App. but the co. may not f eel the employee worthy of reward and the reward may not be what the employee wa nted. For ex: an employee might be expecting a promotion to manager after a posi tive performance appraisal, But the co. feel that a raise is sufficient reward a nd employee is not ready for magmt. It creates an ethical conflict that could c ause employee turnover. Bias:-Managerial bias is a moral dilemma in performance evaluations. If an emplo yee consistently receives positive appraisals, then managerial bias can cause th e supervisor to look other way during poor performance. On other hand, an emplo yee with the reputation of receiving poor appraisal marks may never be given the chance to improve in the eyes of his supervisor. This kind of bias make top pe rforming employees complacent and can begin to have a negative effect on produc tivity. In some cases, employees that are not given the chance to improve may le ave the company. Personal Conflict:-Professional analysis should always be part of employee per formance evaluation. But, on occasion, the manager may bring personal feelings i nto evaluation to damage the employee s perf. record, and prevent the employee from advancing in the co. The moral issue of allowing personal feelings to corru

pt perf. App. can lead to conflict b/w manager and employee, and possibly legal action in discrimination.

How to Incorporate Boundaries & Ethics Into a Job Description Incorporating ethics into a job description can discourage unwanted candidates f rom applying. A small business should include clear details of what behaviors an d standards are expected of new hires. Ethics can be tied to new hire profiles a nd requirement bullets points, and companies can mention that background checks are part of the vetting process. Mission Statement:- A good way to show ethics into a job description is to inclu de the firms mission statement in an advt. If mission statement does not include any ethical references, the co. should add a few sentences about ethical stand ards & personal integrity in employees. These signal candidates that ethics are highly valued at company Ethics Code:- Job requirements should include ethics to functional skills in d escription. For ex: a job requires subject expertise in auditing fin. Statements . A co .can augments this with a statement about the requirement for the CEO to trust the integrity of reporting. Accuracy requires courage and strength. For ex : a firm can explain that the work environment requires that employees follow an honour code of not lying, cheating or stealing. Background Check:- A good way to include ethics and boundaries in a job descript ion is to mention background checks. A co. insisting on background checks on can didates will discourage unethical workers from applying. The chances are the wro ng employees have some ethical or boundary issues in the past that the candidate s think will be revealed during background check. They will not apply most of th e time. Ethics andJob description The position of ethics officer is of relatively new. It is considered that "cos with effective compliance and ethics programs receive preferential treatment dur ing prosecutions for white-collar crimes." As concerns about corporate disobedie nce and corruption grow & the public becomes more doubtful about the intentions of big business, the need for ethics officers is expected to grow strongly. Cos. can no longer focus on profit maximization only. Business must become socia lly conscious and focus their profit maximization efforts in ethical and sociall y responsible directions. A co. must consider all stakeholders, employees, custo mers and society. SR mgrs take charge of moving a co. toward ethical, sustainabl e practices that reduce pollution, contribute to society & gain adequate profits Responsibilities:- The primary responsibilities of a corporate ethics officer in clude identifying the corporate values of the company incorporating those into a code of ethics, creating training programs to familiarize employees with the company s ethical g oals and guiding employees in making the right decisions where ethics are concerned. accountable for dev.& supervising ethics for org. They look after conformity & function of buss .conduct for org provides leadership and expert advice to make ensure development, explanation a nd execution of ethics and the observance of the policies and programs of the co mpany. performs investigation based on accusations & objections of misdemeanor brough t to his awareness by other bodies. They guide employers to develop code of et hics so that there is a lucid standard & penalty for defiance .

 impose code of ethics & make modifications as needed. They assess the mission, vision, goals & values of a co. & find if the co. is complying with statements or not. investigating reports of unethical activity, creating a system for the reporting of ethical breaches and making periodic reports to top executives on the state of corporate ethical affairs. Qualitative Requirements:- Personal qualities desirable in an ethics officer in clude strong convictions about right and wrong and a desire to see that the interests of all parties are protected in all that the company says and does. Duties and Responsibilities Resource:o They are resource for employees and managers who have questions or ideas for SR. o They investigate, plan and implement programs. o They also consult with other firms that want to improve their SR program s. o They must be leaders in ethical and socially responsible conduct. o When employees have questions about a business practice, he gives them d irection and addresses any changes to be implemented. 2 Coordinate:o They identify opportunities for change and develop and coordinate proje cts. o Managers must compare proposed programs to the corporate mission, vision and goal statements. o Present SR projects to mgmt. for approval, & then coordinate employees, team members & committees to implement the project. If projects require cross-fu nctional teams, he coordinates and directs the teams. o They encourage employees to become involved in social responsibility pro jects. 3 Report:o Create reporting systems. o Implement time lines for specific goals and benchmarks, and o Measure and report the progress to upper management. o Determine what changes need to be made to the plan or goals and report t hese to mgmt. o They work with upper management to institute workforce rewards for socia l responsibility participation. o Identify and reward employees active in social awareness & int. & ext. s ocial projects and programs. 4 Liaise:o They connect with community members, managers, customers, committees and social program planners. o They communicate the company s projects and progress to the community an d society . o Work closely with human resources to encourage employee participation in social programs. They work closely with other departments, including marketing, strategic managem ent and customer service, to evaluate and adapt their practices to align with co rporate social responsibility requirements EXPLOITATION As unjust benefit In political economy, and sociology, exploitation is a social relationship in w hich certain persons are being mistreated or unfairly used for benefit of others . This is one ethical conception of exploitation, i.e the treatment of human be ings as mere means to an endor as mere "objects". In different terms, "exploitati on" refers to the use of people as a resource, with little or no consideration o

f their well-being. Exploitation can also be seen in social relationships where one person is "using" the other for his own personal benefit. Ex: two friends g o for lunch, but one friend always buys and other never pay. When someone is t aking advantage of a person in any way this is exploitation. Basic forms: Taking something from a person or a group that rightfully belongs to them Short-changing people in trade Directly or indirectly forcing somebody to work Using somebody against his will, or without his consent or knowledge Imposing a differential treatment of people to the advantage of some and the dis advantage of others Using somebody to buy/provide things for you and never paying them back. Economics:-Most often, exploitation is used to refer to economic exploitation; i.e, using another person s labour without offering adequate compensation. 2- M ajor perspectives on economic exploitation: Org. or "micro-level" :- In liberal economic thinking, most theories of exploit ation focus on market power of eco. organizations within a market setting. neocl assical theory points to exploitation not based on market power. Str. or "macro-level" :- "new liberal" theories focus on exploitation even in c ontext of free markets. Marxist theory points entire capitalist class as an exp loitative entity, and capitalism as a system based on exploitation. Theories:-Exploitation is the socio-economic phenomenon where people trade thei r labour or loyalty to a powerful entity, such as the state, a corporation or a private company. Some theories of exploitation are structural, while others are organizational . Marxist theory In, economics, exploitation refers to subjection of producers to work for owner s for less compensation than actual amount of work . The producer is forced to sell his or her labour power, & receive a wage survive, while the capitalist exp loits the work performed by the producers by accumulating surplus value of their labour. Therefore, the capitalist makes his living by passively owning the mean s of production and generating profit, which is really the product of the labour which is entitled to all it produces. Normal" exploitation is based in three structural characteristics of capitalist society: 1. ownership of the means of production by a small minority in society, the capitalists; 2. the inability of non-property-owners to survive without selling their la bor-power to the capitalists 3. the state, which uses its strength to protect the unequal distribution o f power and property in society. Because of these, workers have little or no choice but to pay the capitalists su rplus-value (profits, interest, and rent) for survival. They enter production, w here they produce commodities, which allow their employers to realize profit. T hey are always threatened by the "reserve army of the unemployed". The profit t he difference between the value of product made by the worker and the actual wag e that worker receives; Neoclassical theories In neoclassical economics, exploitation is organizational, most common situation is monopoly. The exploiters have bargaining power. Other type of exploiter is the hired employee who takes advantage of the employe r For example, a clerk may be able to "avoid" on the job, secretly violating the labour contract. Developing nations are the focus of debate over exploitation, rly in context of global economy. Critics of foreign companies allege, that MNCs pay far lower wages than develope d nations This, is insufficient for workers to get the local standard of livi ng . It is also argued that work conditions in developing-world factories are mo re unsafe and unhealthier than in the first world. For example, employees were u nable to escape burning factories and thus dyingbecause of locked doors, a common signal that sweatshop conditions exist. . MNCs are exploiting people by unequal human standards (applying lower standards t

o their third world workers than to their first world ones). People work for lo w wages and unsafe conditions because it is their only alternative to starvation , this cannot be seen as any kind of "free choice" . Forms of human exploitation How To Tell if Exploited By Employer, and What to Do About It 1. Not being paid for the true value of your work:- This is a major way that emp loyers take advantage of their employees. They will pay you less than you think you deserve to make. Every dollar a company saves by not paying you what you des erve, the company keeps as a profit. Its sad and unfair, and a horrible feeling t o know that you arent being properly compensated. 2. Not being credited for your work:- Often when an employee is being exploited by his employer, they will not receive credit for their work or another employee (such as a supervisor) will even take credit for the work of the employee. Thes e types of credit can be anything from not receiving praise or a simple thanks f or work being done, as well as not receiving bonuses and raises when they are de served. 3. Being Overworked:- Another typical way an employer will take advantage of an employee is by overworking them. Overworking an employee can include making them work very long shifts with few breaks, making them work many days without days off, or not providing an adequate work environment or equipment that allows the employee to get his/her work done easily. Often the employee is very tired, leth argic, suffering from muscle pain, stressed or even depressed. 4. Unfair Treatment:- Being treated unfairly at work is indicator of exploitatio n. When an employee is treated unfairly by an employer, it can also include pref erential treatment of certain employees over others, and any other bias that ma kes the employee feel as though they are not being treated fairly in the workpla ce. REMEDIES 1. Understand how you are being exploited.:- If you feel that you are being exp loited but arent sure . Ask yourself these questions to help determine how you ar e being exploited: Are you being paid what you truly deserve for your work? Are you treated unfairly at work? Are you a victim of racism, sexism, or any other prejudice? Do you often feel very tired, suffer from muscle pain or depressed after working ? Do you receive credit and praise for the work you do? 2. Talk to your boss or supervisor:- Talking to a boss about problems at work c an often be an unnerving experience, but it is very important. Talk to your boss with respect, not with an attitude, as this makes you look unprofessional and your concerns will be ignored.Your boss should be willing to discuss your concer ns and help you find a plan to help resolving them. Maybe your boss hasnt noticed that youve been treated unfairly, overworked, or not being paid what you deserve . 4. Talk to Human Resources:- If your company has a HR department, it is always a good idea to discuss with them your concerns and they can help you understand w hat your rights are as an employee and act as a mediator between you and you bos s. 5. Talk to an attorney:- If you have an attorney available , this is another re source that can help you understand your rights as an employee and can help you get legal advice. If you dont have an attorney, there are many free attorney ref erral services you can use. 6. Quit:- This is a radical way to solve your problems at work, but in some situ ations it is the only way. The reason why cos exploit their employees is that t hey know you are afraid to quit and will allow the exploitation to happen. You a re a valuable person. You should never allow anyone to exploit you, especially a n employer. Dont work for an employer out of fear that you think you cannot get another job. There are new jobs available all the time and staffing/employment a gencies that are eager to help find you work.. When are employees exploited?

It is often easy to recognise situations in which employees are being exploited. Examples of signs of exploitation, when employees are required to do dangerous and unhealthy work; required to work long hours; paid too little, are not paid, or payment of their wages is postponed; mistreated, blackmailed, forced or threatened; do not have access to the money on their own bank account; paid black, or are not insured, housed in an industrial building or in an industrial area, or are accommodated badly in another way; placed under pressure in another way. DISCIPLINE The application of discipline ethics is mandatory, but, it must be appropriate. Not too harsh and not too lenient. All justifying and irritating circumstances m ust be properly weighed. It must be consistently applied with no double standard for super stars or mgrs. Similar disciplines should be imposed for similar offe nses under similar circumstances. Discipline should not be used to measure effectiveness or as a threat. It serve as notice that there are serious consequences for intentional wrongdoing, and w ill show that the org. is committed to integrity as internal part of its culture . Follow factors must be considered before imposing discipline on an employee. Assessing Employee Responsibility: Did the employee know what the right action was? Did the employee have correct work instructions and adequate supervisory directi on? Was the employee properly trained? Did the employee intentionally take the wrong action? Was the employee directed to take the wrong action? Assessing Management s Responsibility: Did management direct wrong action? Did management direct the right action? Did management s actions imply that "getting the job done any way you have to" w as acceptable or necessary? Did management acquiesce, allow, or otherwise condone the actions of the employe e? Did the organizational climate (employee treatment, respect, fairness, openness, teamwork, past history) support doing the right thing? Did management fail to recognize visible indicators of potential wrongdoing? Did management fail to act when they recognized visible indicators? A self-disciplined life makes the job of good workplace ethics more attainable. To help you build self-discipline in workplace, consider the following ten tips : 1. Just do it. Consciously decide that you really want to be someone who practic es self-discipline in your attitude and ethics. Let your desire to achieve selfdiscipline motivate you to make good choices. " Make a personal commitment to de velop and bullet-proof personal ethical code of conduct. 2. Learn the rules. Clarify what you will and will not do. Educate yourself so y ou won t make ignorant mistakes. Rules, policies, regulations, and standard oper ating procedures can be vast. But you must resolve that you will never make eth ical decision without knowing the rules . ask your supervisor, legal counsel, o r ethics office for help. 3. Be accountable. Accept responsibly for your behaviour. Don t blame others for your unfortunate actions and decisions. Taking responsibility shows honesty of character, 4. Practice. Self-discipline is something you can teach yourself. No matter how carefully you plan to live an honest, disciplined life, you wont start without ac tually doing several cycles of practice, failure, and success. 5. Eliminate harmful habits. Do not lie. If you use company equipment, supplies, or facilities for personal use, stop it! If you interpret company policies to m

eet your needs, don t do it anymore. . End the harmful habits immediately. 6. Set and complete goals. There is nothing more satisfying and rewarding than a chieving a hard-earned goal. Completing a goal empowers you and gives courage t o do it again and again. 7. Do what you say you will do. Finish what you start. There is no bigger measu re of your character than the evidence that you are a man of your word. Dependab ility is an invaluable asset in the workplace. It shows ethical honesty. 8. Ignore peer pressure. It s easy to be ethical without the negative influence of others. You can t escape ethical conflicts with your peers at work. Every job involves working with others. Peer pressure is most difficult challenge to per sonal ethical values. You must learn to stick to your principles. 9. Do activities that enhance your self-discipline like exercising, sports, or p racticing a musical instrument. attaining self-discipline in one area of life wi ll translate other areas of life as well. 10. Don t give up. Moral and ethical values are not skin deep. You simply can t walk away from them in tough times Many things in life are negotiable, but your principles are not. Discipline Committee Chair and Members:-Is headed by director and is appointed b y the Board of Directors. Committees Role: 1. review and make recommendations, on the standards and mechanisms of eth ics and discipline . 2. receive, review & recommend proposals on Rules of Professional Conduct, discipline procedures and processes; 3. annual review of complaints, investigate and discipline procedures and recommendations about amendments 4. act as a Review Panel which receive, study and make recommendations on inquiries on issues related to Rules of Professional Conduct, Client Accounts Rules, Advertising Guidelines and matters dealing with a members ethical conduct; 5. prescribe new standards and mechanisms related to ethics & discipline an d make recommendations to other duties time-to-time assigned by BoD. Confidentiality:All business transacted by the Committee is confidential and eac h member of Ethics and Discipline Committee shall sign and abide the terms and c onditions of 30 Agreement as amended from time to time. CODE OF ETHICS in DISCIPLINE Code of Ethics is planned to motivate a superior level of conduct, sensitivity and sound judgment for all employees. The code is intended to complement, all p rofessional code of ethics. All employees must perform their function in a manne r that reflects the highest standards of ethical behavior. All employees must up hold their responsibility as trusted public servants. All employees are obligate d to respect, honor, and uphold it. The Code of Ethics is supported by six core principles. I. Honesty: Be truthful in all actions; be honest and forthright with each other and the general public. II. Public Service: Ensure all actions and decisions are in best interest of pub lic and improve and protect quality of life. III. Respect: Treat all with dignity; be fair and impartial; affirm the value o f diversity in the workplace and ; appreciate uniqueness of each individual; cre ate a work environment that enables all individuals to perform to best of their abilities. IV. Responsibility: Take responsibility for actions; work full day; conduct all actions with impartiality and fairness; report concerns in the workplace, includ ing violations of laws, policies and procedures; seek clarification in doubt; en sure all decisions are unbiased. V. Stewardship: Exercise financial discipline with assets and resources; make ac

curate, clear and timely disclosures to the public; maintain accurate and comple te records; demonstrate commitment to protecting entrusted resources. VI. Trust: Build regard for one another through teamwork and open communication; develop confidence with the public by fulfilling commitments and delivering on promises. ________________________________________ CONTRACT VIEW OF THE FIRMS DUTIES TO ITS CUSTOMERS: The view that the relationship between a business firm and its customers is rela tionship, and the firms moral duties to the customer are those created by this co ntractual relationships. RELIABILITY:The probability that a product will function as the consumer is led to expect that it will function. SERVICE LIFE:The period of time during which the product will function as effect ively as the consumer is to led to expect it to function. MAINTAINABILITY: The ease with which the product can be repaired and kept in ope rating condition. PRODUCT SAFETY: The degree of risk associated with using a product. MORAL DUTIES TO CONSUMERS UNDER CONTRACTUAL THEORY: Duty to comply with express and implied claims of reliability, service life, mai ntainability, and safety. Duty of disclosure Duty not to misrepresent Duty not to coerce DUE CARE THEORY OF THE MANUFACTURERS DUTIES TO CONSUMERS: The view that because manufacturers are in more advantaged position, they have a duty to take special care to ensure that consumers interests are not harmed by t he products that they offer them. AREAS OF PRODUCER RESPONSIBILITY ACCORDING TO DUE CARE THEORY: Design Production Information SOCIAL COSTS VIEW OF THE MANUFACTURERS DUTIES TO CONSUMERS: Manufacturer should pay the costs of any injuries sustained through any defects in the product, even when the manufacturer exercised all due care in the design and manufacture of the product s. Manufacturer should pay the costs of all injuries caused by defect in a product . STRICT LIABILITY: Manufacturers must bear the costs of injuries resulting from p roduct defects regardless of fault. COMMERCIAL ADVERTISING: Communication between a seller and buyers is publicly addressed to a mass audience and is intended to convince to buy sellers produc ts. Public communication aimed at mass audience Intended to induce members of its audience to buy the Sellerss products Succeeds by creating a desire for the sellers product or a belief that a product will satisfy a pre existing desire. DECEPTIVE ADVERTISING: Is a function of the authors intent to make the audience believe what is known to be false. OR a function of The medias communication of the false message. OR a function of The audiences vulnerability to deception. RIGHT TO PRIVACY: Right to determine what, to whom, and how much info. about the mselves will be disclosed to other parties. PSYCHOLOGICAL PRIVACY: Privacy with respect to a persons inner life. PHYSICAL PRIVACY: Privacy with respect to a persons physical activities. IMPORTANCE OF PRIVACY:

 Protects individuals from interference, shame, embarrassment, hurting loved ones , self-incrimination Enables development of personal & professional relationships, distinct social ro les and self determination. .SOCIAL RESPONSIBILITY IN MARKETING The study of marketing ethics evolved in best interest of the consumer. Markete rs made profit, consumers got the product they desired and everyone was happy. T his simple notion has been challenged since the 1960s,. Until the 1960s marketer s were disinterested in social responsibilities or deliberately ignored them. Bu t consumer activists took aggressive stand against the shortcomings of marketing tactics. Today there is a determined attack from well-organised activists . In response, large organisations that had previously believed themselves protected from such activity now have to defend themselves against their global critics. Social responsibility in marketing covers issues such as consumerism, environme ntalism, regulation, political and social marketing. Marketers present marketing as an ethically neutral system or management tool serving market good. Marketing serves societys needs with few ethical strings attached. However, others suggest that marketing is more profoundly value laden and manipulate the consumer . The act of purchase and exchange is what interests marketers; Thus marketing deviates from contributing to good life and becomes guilty of contributing to the destruc tive and wasteful side of consumerist society. This conflict within marketing ha s given rise to debate on societal marketing and marketing ethics, societal mar keting issues, consumer welfare and satisfaction. In last 30 to 40 years, there is still no definitive answer to what exactly is the social responsibility of marketing. One reasons for this may be the difficul ty of deciding which stakeholder interests should take priority, and who should make the final decision if conflict exists between those stakeholder interests. How do we decide who is the most important stakeholder ? ESTABLISHMENT OF ETHICS GUIDELINES There are many marketers who look to establish ethical guidelines and practice, within the industry. Legislation has played a part in raising consumer expectati ons, and regulation has helped in a more socially responsible era in marketing T here are signs that ethics are essential in marketing. Advertisers and print med ia have had to face responsibility for their role in promoting glamorous images . Food manufacturers and marketers have to defend and amend the nutritional conten t of their products (e.g. McDonalds;)MNCs have published codes of conduct to demon strate their commitment to better business behaviour (e.g. Levi Strauss,), As t he field of marketing develops a stronger ethical profile, marketers are finding it harder to ignore the ethics gap between what society expects and what marketin g professionals are delivering. Little interest in ethical behaviour Many consumers still have little interest in ethical behaviour,. One of the prob lems may be that in this age of more abundant and accessible information the con sumer is overwhelmed in ethical product knowledge. There is too much wrong inf ormation and not enough information to persuade and convince consumers that eth ical purchase decisions make a difference. Consumers make little use of importan t product-related information . Ethical information needs to be communicated in a form that breaks through the confusion, and reaches the consumer without creat ing any inconvenience or discomfort . Figure 1. Consumer attitudes to ethical purchasing Business ethics and customer A common view of the firm holds that employees, customers, shareholders, and sup pliers are key organizational stakeholders. While obligations to stakeholders are motivated by organizationa l self-interest, the ethical perspective asserts the rightness or wrongness of s pecific firm actions independently of any social or stakeholder obligations.^ Cu stomers are key stakeholders that help establish the firm s reputation and ident

ification. For example, today Procter and Gamble is a global powerhouse. Unders tanding customer needs and wants and providing high-quality products is the key to success. Market orientation focuses on understanding customers needs and devel opment of superior solutions to the needs.* this elevates the interests of custo merover others. The ethical perspective asserts the rightness or wrongness of ac tions independent of any social or customer obligations. Importance of customers in the development of ethical programs and social responsibility is not always clear. The ethical climate of the firm is associated with customer loyalty,. As companies engage in competitive markets, intense competition breeds unethical b ehaviour. Ethics in Marketing Ethics in marketing means applying standards of fairness, or moral rights and wr ongs, to marketing. In a market economy, a business may be expected to act in its best interest. The purpose of marketing is to create a competitive advantage. An organization achi eves an advantage when it does a better job than its competitors at satisfying t he requirements of its target markets. As markets grow, there has been greater focus on ethical values rather than simply providing products. This focus has co me for two reasons. FIRST, when an organization behaves ethically, customers develop more positive a ttitudes about the firm, its products, and its services. When marketing practice s depart from standards that society considers acceptable, the market process be comes less efficient sometimes it is even interrupted. Not employing ethical mar keting practices lead to dissatisfied customers, bad publicity, a lack of trust, lost business, or, sometimes, legal action. Thus, most organizations are very sensitive to the needs and opinions of their customers and look for ways to protect their long-t erm interests. SECOND, ethical abuses frequently create pressure to assume greater responsibili ty for their actions. Consumer groups, professional associations, apply influen ce on marketing. Government agencies are charged with enforcing the laws and creating policies to limit unfair marketing practices. Because regulation cannot be developed to cov er every possible abuse, organizations and industry groups develop codes of eth ical conduct or rules for behaviour in decision making. Self-regulation helps a firm avoid extensive government intervention; it also permits it to better res pond to changes in market conditions. An organization s long-term success and pr ofitability depends on this ability . AREAS OF CONCERN IN MARKETING ETHICS . (1) UNFAIR OR DECEPTIVE MARKETING PRACTICES Marketing practices are deceptive if customers believe they will get more value from a product or service than they actually receive. Deception can be misrepres entation, omission, or misleading practice, can occur in marketing mix. Consumer s are exposed to great information about products and firms, they often become d oubtful of marketing claims and selling messages and act to protect themselves f rom being deceived. Thus, when a product or service does not provide expected va lue, customers will often seek a different source. Deceptive pricing practices cause customers to believe that the price they pay f or some product or service is lower than it really is. The deception might take the form of making false price comparisons, providing misleading suggested sell ing prices, omitting important conditions of the sale, or making very low price offers l. Promotion practices are deceptive when the seller intentionally missta tes how a product is constructed or performs, or employs bait-and-switch selling techniques (a technique in which a business offers to sell a product or service , often at a lower price, in order to attract customers who are then encouraged to purchase a more expensive item). False or greatly exaggerated product or serv ice claims are also deceptive. When packages are intentionally mislabelled as to

contents, size, weight, or use information, that constitutes deceptive packagin g. Selling hazardous or defective products without disclosing the dangers, faili ng to perform promised services, and not honouring warranty obligations are also considered deception. (2)OFFENSIVE MATERIALS AND OBJECTIONABLE MARKETING PRACTICES Marketers control what they say to customers as well as and how and where they s ay it. When events, television or radio programming, or publications sponsored b y a marketer, are perceived as offensive, they often create negative reactions .. When people feel that products or appeals are offensive, they pressure Cos to sto p carrying the product. Thus, all promotional messages must be carefully screene d and tested, and communication media, programming, and editorial content select ed to match the tastes and interests of targeted customers. Marketers should und erstand that there are others who are not customers who might receive their appe als and see their images and be offended. Direct marketing is also under examination. Objectionable practices include the timing and frequency of sales letters or commercials, that are offensive or even illegal. Examples of unethical practices are persistent and high-pressure sell ing, annoying telemarketing calls, and television commercials that are too long or too frequent. ETHICAL PRODUCT AND DISTRIBUTION PRACTICES Several product-related issues raise questions about ethics in marketing, most o ften concerning the quality of products and services provided. Among the most fr equentl complaints are about unsafe products, poor quality , & do not contain what is promoted, or become obsolete before they actually need replacing. An or ganization that markets poor-quality or unsafe products is taking the chance tha t it will develop a reputation for poor products or service. In addition, it may be putting itself in danger for claims or legal action. Sometimes, frequent c hanges in product features or performance, make previous models obsolete. Such changes can be misinterpreted as planned obsolescence. Ethical questions may also arise in the distribution process. Performance pressu res lead to ethical dilemmas. For example, pressuring vendors to buy more than they need and pushing items with higher commissions are temptations. Influence vendors to reduce display space for competitors products, promising shipment wh en knowing delivery is not possible by the promised date, or paying vendors to c arry a firm s product rather than one of its competitors are also unethical. Marketing ethics Marketing ethics is the area of applied ethics which deals with the moral princi ples behind the operation and regulation of marketing. Some areas of marketing e thics (ethics of advertising and promotion) overlap with media ethics. Is marketing evil? A popularise anti-marketing stance commonly discussed is that any kind of marke ting is evil. The position is based on the argument that marketing necessarily commits at least one of three wrongs: Damaging personal autonomy. The victim of marketing in this case is the intended buyer whose right to self-determination is infringed. Causing harm to competitors. Excessively fierce competition and unethical market ing tactics are especially associated with saturated markets. Manipulating social values. The victim in this case is society as a whole, or th e environment as well. The argument is that marketing promotes consumerism and w aste. See also: affluenza, ethical consumerism, anti-consumerism. Marketing has a major impact on our self-images, our ability to relate to one an other, and it ruins any knowledge and action that might help to change that clim ate. Marketing/Advertising creates artificiality and influences sexual attitudes. Pricing ethics List of unethical pricing practices. Bid rigging Dumping (pricing policy)

 Predatory pricing Price discrimination Price fixing Price skimming Price war Supra competitive pricing Variable pricing false advertising False advertising or deceptive advertising is the use of false or misleading sta tements in advertising. As advertising has the potential to persuade people into commercial transactions that they might otherwise avoid, many governments aroun d the world use regulations to control false, deceptive or misleading advertisin g. "Truth" refers to essentially the same concept, that customers have the right to know what they are buying, and that all necessary information should be on t he label. False advertising, in the most blatant of contexts, is illegal in most countries . However, advertisers still find ways to deceive consumers in ways that are leg al, or technically illegal but unenforceable. Deceptive Advertising and Ethics Another breach of marketing ethics is deceptive advertising. This form of advert ising is not specific to one target market, and sometimes goes unnoticed by the public. There are a number of different ways in deceptive marketing. One of thes e is the use of humour. In a study, 238 advertisements were assessed and 73.5% o f them were found to have used deceptive marketing. Of those, 74.5% used humour as a masking device to mislead customers. Humour provides an escape or relief a nd advertisers take advantage of this by deceptively advertising a product that can potentially alleviate that constraint through humour. It was also found that all types of humour are used to deceive consumers,. Marketing strategy A list of known unethical or controversial marketing strategies: Anti-competitive practices Bait and switch Planned obsolescence Pyramid scheme Vendor lock-in / Vendor lock-out Viral marketing / guerilla marketing Further issues in marketing ethics Marketing ethics overlaps with environmental ethics w.r.t waste problems associa ted with packaging of products.[31] Some, argued that marketing by pharmaceutical companies is negatively impacting physicians prescribing practices, influencing them to prescribe the marketed dr ugs rather than others which may be cheaper or better for the patient.[32] Ethically thinking is responding to situations that deal with principles concern ing human behavior in respect to the appropriateness and inappropriateness of ce rtain communication and to the decency and indecency of the intention and result s of such actions. In other words, ethics are distinctions between right and wro ng. Businesses are confronted with ethical decision making every day, and whethe r employees decide to use ethics as a guiding force when conducting business is something that business leaders, such as managers, need to instill. Marketers ar e ethically responsible for what is marketed and the image that a product portra ys. With that said, marketers need to understand what good ethics are and how to incorporate good ethics in various marketing campaigns to better reach a target ed audience and to gain trust from customers. Marketing ethics sets the guidelines for which good marketing is practiced. When companies create high ethical standards upon which to approach marketing they a re ethical in marketing. To market ethically and effectively one should be remin ded that all marketing decisions and efforts are necessary to meet and suit the needs of customers, suppliers, and business partners. Ethical behaviour should b e enforced throughout company culture and through company practices.

Pricing-based methods Hidden fees and surcharges Service providers often tack on the fees and surcharges that are not disclosed t o the customer in the advertised price. One of the most common is for activation of services such as mobile phones, but is also common in broadband, telephony, gym memberships, and air travel. In most cases, the fees are hidden in fine prin t, though in a few cases they are so confused and obfuscated by ambiguous termin ology that they are essentially undisclosed. Hidden fees are frequently used in airline and air travel advertising.[1] In the case of motor vehicles, hidden cha rges may include taxes, registration fees, licenses, insurance or other costs as sociated with getting a vehicle on the road.[2] Airlines and car hire firms that disadvantage customers through[3]: Unfair contract terms, notably with respect to consumer compensation. Use customer data for purposes other than they were obtained for. Apply unfair fees, charges and penalties on transactions. Place artificial restrictions on the time period during which customers can subm it claims. For delivered items in the US, the amount of shipping and handling fees is typic ally not disclosed (although the fact that there will be such charges is disclos ed). The deceptive part is that they will often claim an item is "free", when, i n fact, the S&H charges enable them to make a tidy profit. "Going out of business" sales In many cases, marketers which are hired to sell merchandise from a closing stor e will actually raise the prices on items that were already marked-down on clear ance. Marked-down, means the marketers increases the price, then "discounts" it from there. Also if a customer find he or she has been overcharged marketers refuse to accept returns,. This is used by most advertisers trying to prove the acceptability of their products. Misuse of the word "free" The usual meaning of "free" is "devoid of cost or obligation". However, retailer s often use the word for something which is merely included in the overall price . One common example is a "buy one, get one free" sale. The second item is not " free" under the normal definition, since, to obtain it, the buyer is obliged to pay the full cost of the first item. OTHER DECEPTIVE METHODS ADVERTISING Manipulation of measurement units and standards In an example, in the US, car engine displacement was changed from US customary units to metric, during the 1980s, to disguise that they were dramatically downs ized. This was done while most other automotive measurements remained in US cust omary units. In an example of standards manipulation, US car rental agencies routinely refer to cars as one class larger than they are, as defined by the United States Envir onmental Protection Agency standards. For example, they would refer to a car as "full-sized", while the EPA would call the same car "mid-sized". Fillers and over-sized packaging Some products are sold with fillers, which increase the legal weight of the prod uct with something that costs the producer very little compared to what the cons umer thinks that he or she is buying. Food is an example of this, where meat is injected with broth or even brine (up to 15%), Malt and cocoa butter have been used as filler in peanut butter. Undefined terms Many terms do have some meaning, but the specific extent is not legally defined, leading to their abuse. A frequent example was "organic" food. "Light" food als o is an even more common manipulation. The term has been variously used to mean low in calories, sugars, carbohydrates, salt, texture, thickness (viscosity), or even light in color. Tobacco companies, for many years, used terms like "low ta r", "light", "ultra-light", "mild" or "natural" in order to imply that products with such labels had less detrimental effects on health., but in recent years it was proved that those terms were considered misleading.[8] Incomplete comparison

"Better" means one item is superior to another in some way, while "best" means i t is superior to all others in some way. However, advertisers frequently fail to list the way in each they are being compared (price, size, quality, etc.) and, in the case of "better", to what they are comparing . So, without defining how t hey are using the terms "better" or "best", the terms become meaningless. An ad which claims "Our cold medicine is better" could be just saying it s an improvem ent over taking nothing at all. Inconsistent comparison In an inconsistent comparison, an item is compared with many others, but only co mpared with each on the attributes where it wins; leaving the false impression t hat it s the best of all products, in all ways. Misleading illustrations One common example is that of serving suggestion pictures on food product boxes, which show additional ingredients beyond those included in the package. If a c ustomer fails to notice or understand this, they may incorrectly assume that all depicted items are included. Another example is advertised images of hamburgers , which may show the items to be larger than they really are. False colouring When used to make people think food is riper, fresher, or otherwise healthier th an it really is, food colouring can be a form of deception. When combined with a dded sugar or corn syrup, bright colours give the subconscious impression of hea lthy, ripe fruit, full of antioxidants. Angel dusting This is a process where an ingredient which would be beneficial, in a reasonable quantity, is instead added in an insignificant quantity which will have no cons umer benefit, so they can make the claim that it contains that ingredient, and m islead the consumer into expecting that they will gain the benefit. Bait-and-switch This is a technique where they advertise an item which is unavailable when the c onsumer arrives at the store, who is then sold a similar product at higher price . Guarantee without a remedy specified If they don t say what they will do if the product fails to meet expectations, t hen they are free to do very little. "No risk" Advertisers frequently claim there s no risk to trying their product, when clear ly there is. For example, they may charge your credit card for the product, offe ring a full refund in not satisfied. However, the risks of such an offer are num erous. You may not get the product at all, they may be bill you for things you d on t want, you may need to call them to authorize a return and be unable to do s o, you may not be refunded the shipping and handling costs, you may be responsib le for the return shipping, etc. Undisclosed dishonest business practices For ex:-banks will sometimes reorder charges against your account so that the l argest charge occurs first, causing your account to be overdrawn, and then all s ubsequent smaller charges will then incur a stiff overdraft penalty, too. They m ay also delay deposits to create an overdraft situation. REGULATION OF ADVERTISING There has been a lot of anxiety about the effects of advt. Like violence, advt. is supposed to have a particular effect on the minds of younger and less educate d audiences. Ads can transcend the medium in which they first appear by inviting all kinds of comment and headlines. Legal, Decent, Honest and Truthful To monitor and control advertising a number of different regulatory bodies have been established. Many countries have an Advertising Standards Authority, who li sten to complaints from the public, and establish whether or not a particular ad or campaign should be withdrawn.. All this leads to a network of rules and legislation which must be negotiated by an agency to produce a campaign. There are extremely strict rules regarding the

advertising of tobacco, alcohol, medicines/medical services and products aimed specifically at children. Advt. law is a complex area. Govt. is concerned to pro mote the advt. industry as ethical and offering value for money. The regulatory bodies screen TV ads before they are submitted for broadcast, but print advertising largely goes through unscreened. The ASA rely heavily on comp laints to take action against an ad, . The problem is obvious: the ASA only act s AFTER an ad has appeared, and AFTER a certain number of people have complained about it. Hence, by the time they rule that an advertisement is offensive, or u ntruthful, the campaign is over and the ads long gone. Also, an ad is an ad, and costs money to place in a newspaper. However, news stories about that ad are fr ee, and will bring a brand to public notice. Ad-agencies are more willing to v iolate the code to grab audience attention through shock values. Several companies have long acknowledged this, and have deliberately used contro versial campaigns. Ethics in advertising and promotion Ethical pitfalls in advertising and promotion: Issues over truth and honesty.. Issues with violence, sex and profanity.. Taste and controversy. Negative advertising techniques, Direct marketing Shills and astroturfers Deceptive Advertising and Ethics Another breach of marketing ethics is use of deceptive advertising. This form of advertising is not specific to one target market, and can sometimes go unnotice d by the public. There are different ways in deceptive marketing; one of these m ethods is the use of humour. In a study advertisements were assessed and 75% us ed deceptive marketing practices. These advertisements used humour to mislead cu stomers. This study is based on the idea that humour provides an escape or relie f from some problem, and advertisers take advantage of this by deceptively adver tising a product that can solve that problem through humour. It was also found t hat all types of humour are used to deceive consumers, and there are certain typ es of humour that are used in deceptive claims. It is important to understand that humour is not the only method that is used to discourage consumers minds from what a product actually offers. Before making im portant purchases, one should always conduct their own research for better under standing of what they are purchasing.

ETHICS AND ADVERTISING: MORAL MUTENESS, MORAL MYOPIA, AND MORAL IMAGINATION Advertisers face ethical issues common to all professionals, but they also face questions related to unique aspects of advertising. Despite discussion of ethics in advertising, little is known about how advertisers react to ethical issues w hen they arise. A study was conducted to address this neglected area. The focus was to examine how advertising practitioners perceive, process, and think about ethical issues. They conducted interviews with 51 advertisers in 29 advertisin g agencies in different cities. The interviewees came from varied departments (e .g., creative, media, account services, account planning) and all seniority leve ls. Overview of Findings They found two constant and related problems regarding sensitivity to ethical is sues among advertising professionals. They called these problems moral mutenessUnwillingness of practitioners to acknowledge and discuss ethical pr blems, moral myopiaInability even to clearly see ethical issues when they arise. The problems, though wide-spread, were not universal, and it was found that the type of ad-agency was important in enhancing ethical awareness. The basic causes of myopia and muteness were explained by assumptions and, perceptions. Moral myopia ranged from short-sightedness to near blindness regarding ethical i ssues. The and most likely issues in focus were at the individuals personal se

lf interest. Less close and less likely to be seen were issues regarding ad-mes sages and org. practices of agencies and clients. Moral myopia was found at all three levelsi.e individual, the org., and societymoral short-sightedness was most acute at the societal level. When issues are not seen, they are not discussed, and the absence of discussion shows the inability to recognize the presence of e thics. ETHICALLY RESPONSIBILITY TOWARDS CONSUMERS? Many companies use the following list of customers rights to be socially responsi ble. A socially responsible business provides goods and services in line with a socie tys values. Socially responsible businesses are concerned about how customers are protected and how employees are treated. There are laws that protect rights o f customers and employees, as well as the environment, from unethical business p ractices. All Businesses should consider social responsibility as an important p art of operations. Ways in which customers rights are protected are: Customer Protection There is value and need of protecting customers rights which is the basis of cons umer rights laws. The Right to be Safe This right applies to the goods and services purchased by consumers. Injury or d amage to consumers because of use of products or services are the responsibility of the manufacturer (product liability). Hence companies do comprehensive produ ct testing to find any flaws or problems in their products before selling them o n the open market. The Right to be Informed Consumers have the right to information about the products that they buy. If pro duct or goods information is not clearly and completely available to consumers, they can sue the company. The Right to Choose In a competitive world, consumers have a right to choose among competing brands of goods and services. Ethical businesses encourage customers to "shop around," in order to find what they want to buy. Other companies may mislead and lie to c ustomers in order to coerce them to buy a product which the customer may not wan t or need. This coercion is called fraud and is illegal. .The Right to be Heard Many companies are concerned about customer satisfaction. Some have responded to customer complaints about service and fraud. In some cases, groups within the c ompany are assigned to address customer complaints and rebuild customer trust an d loyalty to their products. Innovation and change in service and new product de velopment occur as a direct result of these efforts. Employee Protection Typically, the areas of concern for employers regarding employee protection are these: equal employment opportunity for all citizens (regardless of their race, religio n, sex or sexual orientation); respect for employees diversity (religious and cultural), safety and health in the workplace; and high-quality products and services with consideration for environmental prot ection. Equal employment opportunity for all citizens All citizens, regardless of race, religion, sex or sexual orientation, have a ri ght to be considered for employment. This means that employers are not allowed t o discriminate against an applicant on the basis of these factors. For example, it is illegal for an employer to refuse to hire a person because he/she is a me mber of a racial minority. Respect for employee diversity Employees have the right to work in an environment where their individual values are respected. In general, this means that an employee is not singled out or tr eated differently because of his/her race, religion, sex, or sexual orientation.

For example, an employee is allowed to take a holiday for religious observances . Safety Issues Historically, many employees have been subjected to extremely unsafe work condit ions. Sweatshops produced life threatening working conditions for work with no f ire exits and crowded work areas. Often this included young children working lon g hours for very low pay. Worker safety is now a priority for almost all employ ers. Quality of Life Issues In recent years, concern for employees quality of life has become more common amo ng employers. Businesses want their employees to be productive and to balance fa mily and work life responsibilities. As a result, some companies have developed "flex-time" schedules, day care centres for children inside the company, on site education and training programs for employees, and opportunities for work leave when a family emergency requires the employee to be with a new baby, a dying pa rent or other relative. False advertising examples The growing competitiveness amongst the big market players have lead them to mis lead their customers in the form of false advertising. This type of advertisemen t makes use of misleading statements that people easily fall prey to. The false advertisements are so articulated to make it look so truthful and real that even the true, advertisements looks like false advertising. These types of advertise ments are so made to make believe the customers that they are somehow profiting from the transaction. Deceptive advertisements cheats the customers of quantity or quality, a customer might feel he made good deal but in real sense he might h ave paid a lot more money. Usually, there are many forms of false advertising the manufacturers use to dec eive their customers with false claims. The most common forms is INFLATED PRICE COMPARISON, the retailers tend to raise the price of the product and then offer the products at a lower sale price to the customers to which customers believe t hat they are getting a good deal out of merchandise sale but supposedly they are paying the same cost. The inflated price can be practiced when the customers ha ve loyalty cards to shop at grocery stores or other retail outlets. The inflated costing saves them a little money. The other forms of false advertising are sel ling the products with a rebate. The companies do not give rebate at the point o f purchase but needs to be claimed by the customer. Some companies do not give r ebates on time and so customers are made to pay full price later on. Other form s of false advertising are: Customers often get attracted to Buy one Get one Free, in this ; the price of th e product is doubled or inflated to a specific amount to cover the cost of free item. Most advertisements use misrepresentation techniques by falsely claiming the a ctual origin, the use of the product, the benefits, the quality, etc.example:- a manufacturer using a beauty model to showcase that she reduced weight using the ir products. People get lured by the false claims made by companies, the best way to stay ale rt is:- compare the different products pricing, their uses, benefits, facts, clai ms made, etc. You can report any cases of mal-functions or misrepresentations by companies to the Department of Consumer Affairs. DEFINING UNETHICAL PRACTICES IN ADVERTISING Ethics in advertising can sometimes be borderline between what is right or wrong . There are rules and guidelines in place for the advertising companies to follo w so they don t upset or offend any viewers. But, what is as unethical advertisi ng? Well, using advertising in a way that is misleading and uses false claims to get the public to buy the product they are trying to sell is unethical, because of its misuse of the information that is presented to the public. Ads that are used in the political realm can sometimes be misleading and use fal se information or bend the truth to get the public to sway their votes towards t hem. This can be considered unethical as they are giving false information to t he public, which is done a lot in political advertisement.

An advertisement should be able to identify the target audience . But, sometim es this is not always done. Advertising towards children should be clear what th e product is and what is for. As children can sometime misrepresent and not quit e understand what the ad is saying, especially under the age of 12. However, som e might say that it is unethical to target children under the age of 12 as, they may not understand what an ad is and view it in a way that they are not suppose d to. However advertisement is constantly been shown for children like in campai gns for beverages and food in posters at schools and some debate if advertising in schools is unethical. By not putting the right amount of information makes the public believe somethin g in a different way because of what has been said. This may lead them into a wr ong direction and buying a product that is not right for them. Using total lies in advertising is part of unethical advertising . Lying about w hat the product, gives false information and makes them believe that something i s true when it is not. Which should be avoided in advertising as it will eventua lly give them a bad reputation, because of its misuse of information. Ethics have always been an important aspect of every business activity, although the term has meant different things at in different lands to different people. Nonetheless, as ethical concerns are an inseparable element of business, adverti sing cannot ignore them. Sadly, the advertising industry has rarely cared to loo k beyond immediate marketing objectives. The argument in the industry is that it is the government s job to judge what is right and what is wrong. Shirking its own responsibility for regulation, the industry has belittled business values an d agencies have harmed their balance sheets. Ethics in Advertising Ethics means a set of moral principles which govern a persons behavior or how the activity is conducted. And advertising means a mode of communication be tween a seller and a buyer. Thus ethics in advertising means a set of well defined principles which govern t he ways of communication taking place between the seller and the buyer. Ethics i s the most important feature of the advertising industry. Though there are many benefits of advertising but then there are some points which dont match the ethic al norms of advertising. An ethical ad is the one which doesnt lie, doesnt make fake or false claims and is in the limit of decency. Nowadays, ads are more exaggerated and a lot of puffing is used. It seems like t he advertisers lack knowledge of ethical norms and principles. They just dont und erstand and are unable to decide what is correct and what is wrong. The main area of interest for advertisers is to increase their sales, customers, and demand for the product by presenting a well decorated, puffed and colorful ad. They claim that their product is the best, having unique qualities than the competitors, more cost effective, and more beneficial. But most of these ads are false, mislead customers and unethical. The best example of these types of ads is the one which shows evening snacks for the kids, they use coloring to make the product look attractive on television and convince them to buy the product without giving a second thought. Ethics in Advertising is directly related to the purpose of advertising and the nature of advertising. Sometimes exaggerating the ad becomes necessary to prove the benefit of the product.. Ethics also depends on what we believe. If the advertisers make the ads on the b elief that the customers will understand, persuade them to think, and then act o n their ads, then this will lead to positive results and the ad may not be calle d unethical. But at the same time, if advertisers believe that they can fool the ir customers by showing any impractical things like just clicking fingers will m ake your home or office fully furnished or just buying a lottery ticket will mak e you a millionaire, then this will be unethical. Generally, big companies never lie as they have to prove their points to various ad regulating bodies. Truth is always said but not completely. Sometimes its be tter not to reveal the whole truth in the ad but at times truth has to be shown for betterment.

Pharmaceutical Advertising - they help creating awareness, but one catchy point here is that the advertisers show what the medicine can cure but never talk abou t the side effects of that same thing or the risks involved in intake of it. Children - children are the major sellers of the ads and the product. They have the power to convince the buyers. But when advertisers are using children in the ir ad, they should remember not to show them alone doing there work on their own like brushing teeth, playing with toys, or infants holding their own milk bottl es as everyone knows that no one will leave their kids unattended while doing al l these activities. So showing parents also involved in all activities or things being advertised will be more logical. Alcohol - till today, there hasnt come any liquor ad which shows anyone drinking the original liquor. They use mineral water and sodas in their advertisements wi th their brand name. These types of ads are called surrogate ads. These type of ads are totally unethical when liquor ads are totally banned. Even if there are no advertisements for alcohol, people will continue drinking. Cigarettes and Tobacco - these products should be never advertised as consumptio n of these things is directly and badly responsible for cancer and other severe health issues. These as are already banned in countries like India, Norway, Thai land, Finland and Singapore. Ads for social causes - these types of ads are ethical and are accepted by the p eople. But ads like condoms and contraceptive pills should be limited, as these are sometimes unethical, and are more likely to loose morality and decency at pl aces where there is no educational knowledge about all these products. Looking at all these above mentioned points, advertisers should start taking res ponsibility of self regulating their ads by: design self regulatory codes in their companies including ethical norms, truth, decency, and legal points keep tracking the activities and remove ads which dont fulfill the codes. Inform the consumers about the self regulatory codes of the company Pay attention on the complaints coming from consumers about the product ads. Maintain transparency throughout the company and system. When all the above points are implemented, they will result in: making the company answerable for all its activities will reduce the chances of getting pointed out by the critics or any regulatory body. will help gain confidence of the customers, make them trust the company and thei r products. Advertisement is considered unethical in the following situations; When it has degraded or underestimated the substitute or rival s product. When it gives false or misleading information on the value of the product. When it fails to give useful information on the possible reaction or side effect s of the product. And When it is immoral. Ways of misleading the consumers (1).Many a time, traders attracts the customers by advertising goods at a very l ow price, but they stock only few of such e items . When the advertised goods ar e sold out, consumers are steered towards the higher-priced stock or lower quali ty goods.Retailers must ensure that reasonable supply of products is available d uring the sales, and retailers should not purposely avoid it. Retailers should m ake it clear in the advertisement that how many items on sale are available or w hen the sale ends. (2) Sale offer should be for a limited period. Advertisement should declare that sale offer is for a limited time period. The period of the offer should be made clear in the advertisement only when the advertised goods are available for a l imited period or stocks . (3) Traders often offer insignificant price reduction. To illustrate, a trader m ay advertise that the price of product is reduced to Rs.99.95, when the normal s elling price is Rs.100.. The trader must include the normal selling price and di scounted price in his offer .The trader sale offer is misleading if the trader c laims the product is below cost, when the price is not below cost after discount

s, rebates and other allowances it is misleading if the trader simply shows a fi ctitious higher price as normal selling price in the advertisement. (4). Advertisement must clearly indicate the total price of goods or services. A ll price comparison must be truthful and must not intentionally or unintentional ly mislead the consumers. Under the Fair Trade Practices Act, retailers have an obligation to ensure that they do not mislead or make false representations to c ustomers with respect to price of the goods. The consumers who shop around and c ompare the prices of various products are less likely to be deceived by misleadi ng claims consumers should also be aware of what is a reasonable price of goods and not take any advertised discounts at face value. (5) . While many sales are legitimate or genuine, the consumers should not get a ttracted to such sales offers i.e., "Hurry...very few days remain for sale . Th e consumers should be aware of what to expect when retailers place items on sale and how to avoid being misled by discount advertisements. A marketer should tak e care to ensure that when goods or services are advertised to be available at a discount or as being on sale, it is a genuine discount or sale. REMEDIES TO OVERCOME DECEPTIVE ADVERTISEMENTS (1). Cease-and- Desist Orders:- The cease-and-desist orders, which prohibit the respondent from engaging any more in deceptive practice, are actually the only f ormal procedure established by the Federal Trade Commission Act for enforcing th e prohibition of deceptive acts and practices. (2).Restitution:- Restitution means the consumer is compensated for any damage c aused to him by the product that had advertised claims not adequately substantia ted. Restitution is rarely considered because of its severity. (3) Affirmative Disclosures:- If an advertisement has provided insufficient info rmation to the consumers, an affirmative disclosure might be issued Affirmative disclosure require clear and conspicuous disclosure of omitted information. Of ten the involved information relates to the deficiency or limitations of the pro duct or service possibly relating to matters of health or safety. (4) Corrective Advertising:- Corrective Advertising requires the advertisers to verify past deception by making suitable amendment in any of its future commerci al. Self Regulation in Advertising It is our responsibility to regulate our operations. And we must do it ourselves . Self regulation is not a quick-fix solution; it will be completely ineffective with out commitment from and the integrity of one and all. Self Regulation may require the following; The development of a self-regulatory code of conduct covering all forms of media that is sensitive to ethics, legalities, decency and truthfulness in advertisin g. Provision for monitoring and accountability, including a policy allowing for the removal of ads that violate the code. Greater participation of advertising professionals in the regulatory process. The inclusion of non-industry players in the process Consumer awareness of the self regulation system. Simplification of the complaint process against ads. Transparency throughout the entire system. These reforms will achieve three goals. They will make the industry accountable for its actions. They will make regulators and critics think twice before attack ing the industry and finally they will lead the public to trust ads, advertisers and agencies.