When Edgy Advertising Sends the Wrong Message - Assignment Example

Business ethics in business al affiliation: Business ethics: The magazine of corporate responsibility, June 17, Retrieved on 29 June 2013 from < http://business-ethics.com/> Throughout the history of mankind, there have been ideas as to what constitutes rights and wrong. In order to function properly, businesses need to define proper and improper behaviours. Underlying the laws and rules in the business world is a set of moral values rooted in ethics. Ethics entail dealing with good and bad and with moral obligation and then making the good (right) decision. Businesses and corporations have become under scrutiny and criticism for their conduct, which is deemed as unethical. In the wake of competition, the need for higher profits to increase shareholders’ wealth, as well as other conflicting interests of various stakeholders place businesses at ethics crossroads. Businesses must act ethically to all stakeholders, yet the different stakeholders have differing interests. To balance the needs of the various stakeholders becomes a challenge for businesses, which usually results in corporate scandals that have ethical and other long lasting effects. It is for that reason, that this discussion explores the recent ethical issues in businesses, in the United States. The following is a comprehensive list of recent ethical issues, the moral issue, as well as what should be done to resolve the moral dilemma. Gael, O.B. (2013). When edgy advertising sends the wrong message. Retrieved on 29 June 2013 from< http://business-ethics.com/2013/05/17/1631-when-edgy-advertising-sends-the- wrong-message/>. Edgy advertising Section 1 Marketers looking for edgy corporate advertising usually risk character and shut doors on social responsibility in search for a breakthrough moment. While drawing up competitive advertisements, corporations yearn to be in the limelight, but such advertisements end up bringing unexpected and negative upshots among the audiences or the intended recipients. Recent miscarriages of advertisements are such as the McDonald’s, Pepsi, general motors, ford and Hyundai. The above corporations’ recent advertisements were originally intended to be humorous, although they were unwrapped as insensitive and offensive typecasts. Section 2 An advertisement by the Pepsi Corporation dubbed the Mountain Dew ad has attracted criticism of propagating racism and venerating cruelty against women. The ad features an African American wrapper, and is deemed as the most insensitive and racist ad in united states. McDonald’s advert “You are not alone” has been criticized on grounds that it makes light of people suffering from mental illness. General motors run an advert with 1930s settings and incorporates a contemporary remix of a 1930s song that makes references to Chinese people. The general moral issue in the general motors and the Pepsi advert are that they are portraying a racial stereotype. At the current age of globalization and civilization, all human beings are considered as one regardless of their color orientation. The adverts thus bypass this verity and instead advance racism at this modern day and age. One notable correlation between racism and Pepsi and general motors’ is the fact that two are multinationals, operating and selling to customers of all races. Their products may be perceived negatively by people from the stereotyped communities. Section 3 In order to ensure that these situations do not arise, the regulatory body responsible for overseeing adverts should set standards and penalties whenever standards violations arise. Ludke, R. (2013). The Politics Of Corporate Campaign Disclosure: Keep An Eye On The 2013 Proxy Season. Retrieved on 29 June 2013 from< http://business- ethics.com/2013/03/19/1330-the-politics-of-corporate-campaign-disclosure-keep-an-eye- on-the-2013-proxy-season/>. Insider trading Section 1 Organizations, especially service organizations such as audit forms have in the recent past been involved in scandals and dealings of insider trading. A recent account of insider trading happened at KPMG audit firm. The scandal involved a former partner; London Scott, who was responsible for southern California region audit practice. Ethical blindness, greed and carelessness resorted and energized Scott to violate ethical standards. Scott leaked top secret information about Deckers; Manhattan Beach Skechers and Los Angeles Herbalife to his friend Shaw Brian. As a result of the information leak, Shaw unjustly enriched $ 1.27 million from the quarter earnings secret. The insider trading led to the withdrawal of audit opinions on Skechers and Herbalife signed by Scott on behalf of KPMG. Section 2 Offering insider information with regards to financial information before its release to the public is a moral issue as it results in unjust enrichment of some people against other stakeholders. In auditing, integrity and fairness are primary principles that every auditor must uphold. As such, insider dealing violates the fairness doctrine in treating equals, equally, as well as violating integrity principles. In addition, insider dealing affects the playing field, which must exist in relation to personal and corporate contacts of an auditor and the public. A notable correlation between insider trading and auditing firms is that such acts damages the repute of the entire accounting profession. Moreover, accountants and auditors are the custodians and watchdogs of shareholders interests in organizations. Destroying the trust and reputation bestowed on them may create a breeding ground for other malpractices within the organization, which hurts shareholders wealth. Section 3 In order to solve such an ethical dilemma, an audit firm should remunerate their partners well to avoid falling into temptations of greed. It is also necessary for the audit firm to revise its employment laws to ensure constant rotation of audit partners. Grabell, M. (2013). Wal-Mart accepted clothing from banned Bangladesh factories. Retrieved on 29 June 2013 from< http://business-ethics.com/2013/06/17/1606-walmart-accepted- clothing-from-banned-bangladesh-factories/>. Substandard products Section 1 Wal-Mart has come under massive criticism for offering products; especially clothing that do not measure up. Wal-Mart drives down the durability and quality of consumer goods by demanding ever lower prices from its suppliers. The world’s largest retailer has come under criticism for accepting clothing from banned factories, which were banned on the basis of safety problems and labor violations. It has been established that the Bangladesh factories continue shipping products to Wal-Mart, even after Wal-Mart claims to stop business with the international firms. Section 2 This ethical practice affects Wal-Mart’s customers in that they do not get the real value for their money, largely increasing the amount of stuff Americans purchase and discard. In addition, wal-mart disregards the plight of poor factory workers in Bangladesh as a global retailer. The continued purchase of substandard products also shows that wal-mart unfair practices of positive reporting while acting on the contrary. Section 3 One way to end such a dilemma is for the customs authority to strengthen its measures on the quality of imports to avoid dumping. The American chamber of commerce and bureau of standards also needs to be watchful of such businesses to ensure safety of products. Use of corporate power to influence government decisions Section 1 Monsanto has come under heavy criticism on its negative impact on the environment. President Obama signed the Monsanto protection act into law amid criticism by environmentalists. The bill exempts biotech companies from litigation with regard to production, sale and distribution of GE seeds and plants. Monsanto is the sole seed company that has a heavy presence in genetic engineering. Section 2 The moral issue behind the Monsanto act is that the law will give the massive corporation a free reign to continue the production of essentially dangerous products. Environmentalists caution that wide use of GE crops has negative implications on the environment. Monsanto uses its corporation power to influence the government and to keep critics at bay. Following the adversity of GE products manufactured by Monsanto; the corporation works with political groups and governments in strategic sectors, such as the environmental protection agency to avoid regulation, and influence public opinion. Monsanto destroys the moral fabric of Americans by ensuring that it can make and sell products according to its own conditions. By pushing to exempt itself from litigation, Monsanto eliminates a vital check by the judiciary, which is a pertinent component on checking decisions that might negatively impact human lives and the environment. Section3 In order to eliminate this dilemma, the human rights and environmental lobby groups should push the government to amend the Monsanto protection act to allow for litigation. This will ensure that the corporation will produce environmentally sustainable and healthy products. Scheer, R. & Moss, D. (2013). The gulf of Mexico three years after the BP oil spill. Retrieved on 29 June 2013 from< http://business-ethics.com/2013/05/28/1747the-gulf-of-mexico- three-years-after-bp-oil-spil/>. Environmental sustainability issues Section 1 Several Companies have come under criticism on their ethics on environmental sustainability. One such company is the BP, whose oil spill happened in 2010 in the Gulf of Mexico. The corporation is blamed for doing little to repair marine life and ecosystems damage. Wildlife and marine populations are continuously being affected by the spill, despite the corporation doing a thorough job in removing visible oil from water. Infant dolphins and gulf killifish death rates have remained above average since the spill. Section 2 The moral issue is that BP continues to publish sustainability reports in its CSR, and rarely does it mention about the spill that has had negative impacts on the human and wildlife populations. This puts CSR in under scrutiny as just a mere green washing practice for corporations to praise themselves in the eyes of the public. Moreover, BP is listed among the best corporate citizens, leaving questions moral questions as to whether CSR is a true reflector of ethical behavior by corporations. Section 3 Corporations should ensure that all safety avenues are adhered to before transporting such ecologically dangerous products. In addition, companies dealing in products of such nature should keep accident and rescue operation at hand always in order to ensure that deviations are corrected when accidents happen. Corporate campaign financing and disclosure Section 1 Unrestricted corporate campaign contributions may have benefits and repute risks. Companies that engage in financing political campaigns are faced with the dilemma of whether and how to disclose political activities. Financing political campaign poses an ethical issue with regards to disclosure practices and the overall profitability of the firm. Financing political parties by corporations is a moral issue as it influences elections and utilizes shareholder’s money. The party that is supported by the corporate finance may seek favors incase it forms the government, which may be an avenue for corruption or other kinds of malpractices. In addition, accounting practices necessitate that only business expenses should be recorded and recognized for tax purposes. Section 2 Whether to disclose political financing then becomes a key ethical issue because directors may embezzle funds in the name of political financing. Moreover, political financing entails the use of shareholder’s money, which is not an objective for the business. Section 3 In order to avoid this dilemma, the government and the corporate world can draw up laws and disclosure requirements to govern political party financing. References Gael, O.B. (2013). When edgy advertising sends the wrong message. Retrieved on 29 June 2013 from< http://business-ethics.com/2013/05/17/1631-when-edgy-advertising-sends-the- wrong-message/>. Grabell, M. (2013). Wal-Mart accepted clothing from banned Bangladesh factories. Retrieved on 29 June 2013 from< http://business-ethics.com/2013/06/17/1606-walmart-accepted- clothing-from-banned-bangladesh-factories/>. Ludke, R. (2013). The Politics Of Corporate Campaign Disclosure: Keep An Eye On The 2013 Proxy Season. Retrieved on 29 June 2013 from< http://business- ethics.com/2013/03/19/1330-the-politics-of-corporate-campaign-disclosure-keep-an-eye- on-the-2013-proxy-season/>. Mintz, S. (2013). KPMG insider trading scandal damages the reputation of the accounting profession. Retrieved on 29 June 2013 from< http://business- ethics.com/2013/05/06/10935-kpmg-insider-trading-scandal-damages-the-reputation-of- the-accounting-profession/>. Scheer, R. & Moss, D. (2013). The gulf of Mexico three years after the BP oil spill. Retrieved on 29 June 2013 from< http://business-ethics.com/2013/05/28/1747the-gulf-of-mexico- three-years-after-bp-oil-spil/>. Scheer, R. & Moss, D. (2013). Why are environmentalists upset over the “Monsanto protection act’? Retrieved on 29 June 2013 from< http://business-ethics.com/2013/04/29/2113- why-are-enviornmentalists-upset-over-the-monsanto-protection-act/>. Read More