Ethics in Alcohol Advertising Essay Example

on pressure for institutions to take responsibility for their actions. Since abuses occur, many people believe that such type of business practices are in abundance. For this reason, professional associations, consumer interest groups and self-regulatory groups have a heavy influence on marketing (Laczniak and Murphy, 2006).

This literature focuses on marketing, which is the only business discipline that is most engaged with the linkage between the firm and the environment. The business world is changing because of the increase in customers demand. Marketing ethics have been becoming more important to people. They do not like the idea of corporations exploiting the poor to produce cheaper products. Nor they are comfortable with manufacturing techniques that cause harm to the environment. Marketing which goes beyond the mere provision of information about a product may seek to manipulate our values and behavior.

The aim of this literature is to evaluate the ethical aspects of marketing particularly alcohol marketing. To find out how advertisements manipulate people, the likelihood between the awareness of alcohol marketing and influence on young people drinking behavior and what is the government doing to resolve this issue. Ethics often is a frustrating subject. This is not because people are resistant to it, though talking about ethics can often be discomforting as people “think out loud” while they struggle with dilemmas. History has shown that "unethical" acts were committed throughout.

Many of the ancient Greek philosophers have developed many theories of ethics (Laczniak and Murphy, 2006). One of the early studies defined ethics as the “ "inquiry into theories of what is good and evil and into what is right and wrong, and thus is an inquiry into what

we ought and ought not to do” Beauchamp and Bowie(1983, pp. 3). Similarly, the two decades later ethics defined as “set of moral principles or values. It distinguishes between what is good and bad; determines moral duty and obligations; establishes principles of conduct for an individual and a professional group” Crommelin and Pline (2007, pp. 2-43). Ethics apply to every field. In business, ethics is the study of business decisions, situations, and activities where issues of right and wrong are addressed. Today, the role of organizations in society is clearly on agenda. There is hardly a day when people do not hear or read media reports on corporate misbehavior. Today, there is virtually no industry, market, or business type that has not experienced growing demands to legitimate its practices to society at large.

For example, retailing, banking, tourism, food and beverages, health care and entertainment industries for long considered to be fairly clean and unquestionable, now all face increasing expectations that they set up more responsible practices (Van de Ven, 2008). Companies have responded to this agenda by advocating what is now a common term in business: corporate social responsibility (CSR). The concept of corporate social responsibility is a management idea that has risen to unprecedented popularity throughout the global business community during the past decade.

Most large companies, and even smaller ones, now feature CSR reports, managers, departments or at least CSR projects, and the subject is being promoted more and more as a main area of management, next to marketing, accounting or finance (Lee, 2007). Corporate Social Responsibility in the Marketplace According to instrumental theories, CSR is there to make a profit. Many Ethical theories

debate that the relationship between social and business is important to ethical values. Therefore, companies must accept social responsibility as an ethical obligation.

The marketplace is frequently portrayed as one of the most important arenas for considering CSR. For many, the marketplace is seen as one of the main areas where business irresponsibility is exposed. Research on ethical problems in marketing has hardly been a neglected area. For example, in controversial industries such as alcohol, tobacco or, increasingly fast food, firms are responsible for their products and marketing and the impact of their activities on consumers dominates the CSR agenda.

Should McDonald’s provide only ‘unhealthy’ food or should it also offer salads, fruit and other healthier substitutes? Should Carlsberg help alcoholics and other problem drinkers or reduce consumption of their products? Is British American Tobacco being responsible if they advertise their products in some countries, while others impose bans in the name of public health? These are just some of the marketplace ethical issues facing controversial industries, but similar considerations confront all corporations in some way or another, whether they sell cars, chewing gum or financial services.

The responsive design and marketing of products and services is one of the main responsibilities of the corporation (Van de Ven, 2008). Manipulation in Advertising Today, marketing has become an authority in society. Advertisements tell consumers what to buy, how to have an image of a model; and then help them buy something to substitute it with. A group of studies brought attention to the association between consumers' need, choices and apparent choicelessness in the marketplace (Buttle, 1989 cited in Tadajewski, 2010).

The Tadajewski (2010) study put a light on the issue

of manipulation; that consumers are effectively misled in consumer goods that they do not need or want. Consumers are easily manipulated thinking that they can purchase happiness, success and love when buying the goods and services which are being advertised. According to the author, some consumers cannot identify between the “real” vs. “false” needs. It was argued by some scholars in the past, that it might just be a case of confusion as the marketplace was so suffusing with products and it was difficult to select a product that actually met their requirements.

The author thinks, this issue can be resolved if advertisers start providing consumers with subsequent information about the product to help them in the decision-making process (Tadajewski, 2010). For certain products, children are considered an important target market. This is because their knowledge about the media, selling strategies and for certain products is typically not as well developed as that of adults, they are likely to be more susceptible to psychological appeals and strong images. Ethical issues come to place when they are exposed to questionable marketing.

For example, studies linking association to alcohol and tobacco marketing with youth and consumption resulted in increased public pressure which lead to the regulation of marketing for those products (Hyman 2009). A survey conducted which included members of the American Academy of Advertising by Hyman (2009) showed the important issues with advertising ethics were; advertising to the children, dishonest in advertisements, advertisement of alcohol, advertising of tobacco, sexual stereotyping, ethnic stereotyping, and unconstructive political advertising.

However, Hyman's (2009) study suggests that sometimes ads from even the most reliable advertisers can create an unintended fuss. For example, over seductive

television adverts for unhealthy food are often blamed for an increase in childhood obesity (Kurnit, 2005 cited in Hyman, 2009). In the author’s opinion, advertisers should address and deal with the problem immediately when such unplanned consequences occur (Hyman, 2009). Alcohol Marketing and Ethics Alcohol consumption and alcohol-related harm has become a major concern of our society (Nutt et al. 2010 cited in Smith and Foxcroft, 2009). This brought attention to potential factors which are influencing drinking behavior. One of the factors which have been identified is alcohol marketing (Babor et al. , 2010 cited in Gordon, 2011). Alcohol is no different from other products and needs to be marketed, but at the same time, various ethical issues are related to the marketing of Alcohol as a beverage. A number of studies investigating the impact of the alcohol market have been carried out over the past 25 years.

According to a number of politicians, government bodies and the head of the Church of England, the advertising is to be blamed for the expansion of the total market for alcoholic drinks. Many alcohol companies use animation, humor, celebrity endorsement, rock music and animal characters which attracts underage televisions viewers. Therefore, it is not surprising that teenagers are more likely to remember alcohol commercials and mention them as their favorites (Chen et al. , 2005).

Since alcohol marketing and advertising has an impact on young people drinking behavior is a matter of much debate (Smith and Foxcroft, 2009). In 2003, International Center for Alcohol Policy reported to the World Health Organisation meeting that there is no significant evidence of a relationship between advertising and drinking patterns or abuse of

alcohol among youth (Smith and Foxcroft, 2009). Furthermore, in the beginning, econometric studies examining the relationship b/w total alcohol advertising and drinking behavior didn’t find any effect (Hastings et al. , 2005 cited in Gordon, 2011).

However, numerous studies using the focused group's method, have found a little yet significant link between exposure and awareness of alcohol marketing, and youth drinking habits (Gordon, 2011). In the UK, it is becoming normal for youth to regularly drink to intoxication. Since the early 1990’s, the environment for the consumption of alcohol by young people has dramatically changed. Drinking opportunities have significantly increased, the way products are advertised has changed, with pricing and promotion often leading to a fast consumption of cheap alcohol (Szmigin et al. , 2011).

Impact of Alcohol Marketing on Young people drinking Despite the fact that most of these studies have been conducted in the USA, a recent study from the UK published in Alcohol and Alcoholism has demonstrated that alcohol marketing does influence youth drinking behavior (Gordon, MacKintosh and Moodie, 2010). The National Prevention Research Institute (NPRI) has funded a UK cohort study; to examine the impact of alcohol marketing on young people drinking during the period when most adolescents start experimenting with alcohol from age13-15. The sample was evenly spread by gender; 50% male and 50% female.

In this study, face-to-face interviews were carried out by professional interviewers, accompanied by a self-completion questionnaire to get their sensitive data on drinking behavior. Data collected was recorded on gender, age, ethnicity, social grade and religion. The author established that 97% of young people in the cohort group were aware of at least one form of alcoholic marketing.

Moreover, 47% of non-drinker started drinking between baseline and follow-up. And involvement with alcohol marketing at baseline increased their risk of initiation of drinking at follow-up.

An increase in frequency was recorded in participants who drank less often than fortnightly at baseline. Logistic regression showed that uptake of fortnightly drinking was more likely among those with higher involvement with alcohol marketing at baseline (Gordon, MacKintosh and Moodie, 2010). On the contrary, an agency Portman Group (linked to the alcohol beverage industry) presented an argument that alcohol marketing only helps consumers to choose a brand, rather than encouraging consumption (Portman Group. , 2010 cited in Gordon, 2011).

The author did not find any link between awareness of alcohol marketing either with levels of consumption or initiation of drinking. This topic was further debated in London at the annual conference of Alcohol concern in November 2010. It was concluded that it is true that no association was found between awareness and involvement with alcohol marketing at baseline and the ‘amount’ of alcohol in units consumed at follow-up. Though, the briefing note was failed to demonstrate that links were found between ‘involvement’ with alcohol marketing and both ‘uptake’ of drinking and increased ‘frequency’ of drinking.

Moreover, ‘awareness’ of alcohol marketing at baseline was also related to an increased frequency of drinking. These results offered support to the research hypothesis that alcohol marketing is related to the uptake of drinking (Gordon, 2011). However, alcohol producers have once also presented another view that is, the effects found by such studies are insignificant, and that other factors such as peer influence and parental play a major role in driving behavior (Bobo and Husten, 2000

cited in Gordon, 2011). In Anderson et al. tudy, evidence showed that even after controlling the peer and parental influence, little but significant association of alcohol marketing couldn’t be ignored (Anderson et al. , 2009). Besides, a couple of recent systemic reviews have all shown the association of advertising exposure and drinking in young people (Anderson et al. , 2009; Smith and Foxcroft, 2009 cited in Gordon, 2011). This evidence was further supported by an Australian cross-sectional study, which also found a link between alcohol marketing and increased alcohol consumption (Jones and Magee, 2011 cited in Gordon, 2011).

Alcohol Marketing Regulations In recent years, alcohol marketing has dramatically increased in innovation, complexity and diversification over a range of media and new technologies (Casswell and Maxwell, 2005). An increase in expenditure on alcohol advertising has also been recorded in countries not subject to restriction. In 1999, according to the Federal Trade Commission figure, in the USA alcohol manufacturers spent 2 or 3 times of their measured media expenditure on unmeasured promotions e. g. sponsorships, internet advertising, point of sales materials, product placement and other means.

The alcohol industry is extensively using non-traditional media which is getting popular among youth. These new practices are more likely to have a significant impact on young people’s drinking behavior (Casswell, 2004 cited in Caswell and Maxwell, 2005). The main feature of this type of contemporary marketing is the brand concept that is evolving to become a living entity to which people can relate and build a relationship over overtime. These brands are more evident in youth culture because they construct their self-identity.

The marketers want their brand itself an experience and lifestyle ((Tadajewski,

2010). Moreover, alcohol manufacturers are continuously coming up with new products, to recruit new consumers to the drinking market, which is becoming more of an issue. The research was done on 2 new products in the UK and illustrated that how those two brands fit the needs of specific age groups, including underage drinkers within the youth (Jackson et al. , 2000 cited in Casswell and Maxwell, 2005). The alcohol producers have gone to a whole new level with the inventiveness of their new product names and packaging.

Alcoholic drinks which are aimed at the young market are usually promoted by colorful, stylish, or innovative packaging e. g sachets, test tube shots etc. (Casswell and Maxwell, 2005). Restrictions on Traditional advertising Regulations on traditional advertising have been more focused upon than the full marketing mix. Several countries such as Switzerland, France, Nepal and Norway have realized acknowledged the power of broadcast media and therefore, put a ban on alcohol advertising. In some countries, jurisdictions banned only specific alcoholic beverages adverts (Caswell and Maxwell).

In 2004, the Global Status Report on alcohol policy, published by World Health Organization stated that out of 118 countries who responded to a survey on alcohol, only 1 in 4 had bans on distilled spirits advertising on national radio and television. But some jurisdictions did ban beer and wine advertising. This report found that only 13-16% of countries relied on voluntary codes, whereas 12-57% did not have any restrictions (W. H. O, 2004 cited in Caswell and Maxwell, 2005). In the United States, alcohol industries such as spirits and beer were required to have voluntary codes, until 2003.

The codes involved that ads could

only be presented in media, where 50% of the viewers were of legal purchase-age. The Federal Trade Commission requested to reduce the percentage from 50 to 30, in order to reduce the exposure of alcohol advertising on youth (Caswell and Maxwell, 2005). Similarly, a voluntary code was placed in UK to prevent the placement of ads in youth-oriented print media. In Switzerland, wine and beer are not allowed to be advertised on paraphernalia such as baseball caps and T-shirts, or at events and places frequented by youth.

Codes of content commonly involve commitments not to link alcohol with sexual and social success, or with driving, or with younger people, and not to show intoxication. Since regulations cannot be formed to place on every possible abuse, industries and organizations frequently develop codes of ethical conduct that can help them in decision making (Caswell and Maxwell, 2005). . In France, jurisdictions have attempted to control the advertising of alcohol bypassing France’s Loi Evin – “the alcohol policy law” in 1991. This law has severe content; all drinks over 1. % alcohol by volume are considered as alcoholic beverages, no advertisement should be targeted at younger people, adverts only refer to product features rather than the lifestyle, and a health message must be included on each ad to the effect that “Alcohol abuse is dangerous for health” (Johansen, 2009) . Lifestyle advertising is also prohibited in Switzerland (Casswell and Maxwell, 2005). Restrictions on Unmeasured Media At present, it is not easy to monitor or to control less visible and unmeasured media including texting and e-mail. There is only a minimal restriction on unmeasured media marketing.

In some countries such as

UK, to reduce the exposure of alcohol to youth, some websites promoting alcohol include a screener. However, a research from the United States has shown that these screeners are more off-putting for older groups than young people. In the UK, the broadcast is now co-regulated with Ofcom, its role is to set standards for the advertising of food and drink producers (Casswell and Maxwell, 2005). Another key issue is new product development and there has been some efforts made to extend the coverage of voluntary codes.

In 1996, Portman Group introduced a code in the UK, to address packaging, naming and merchandising. Similarly, in New Zealand, there are guidelines for the packaging and naming of alcoholic drinks, which have been supported by major New Zealand producers and retailers. Conclusion It can be concluded that ethics is extremely important. This literature shows that without ethics in marketing people would not have morals, which could harm the customer as well as the business itself. Some obvious ethical issues discussed above involved clear-cut attempts to deceive or take advantage of a situation.

The alcohol market usually targets children and young people because they represent the market of tomorrow or drinkers of the future. It is like an investment they make to assure cash in the future. Most studies on alcohol marketing mentioned above have relied on a qualitative method, with a small sample. Further, research is needed with a big sample from different parts of the world, for cross-examination and significant results. The literature presented above has clearly shown a significant relationship between alcohol marketing and young people drinking behavior.

However, most researchers have based their theories on the consumption of

alcohol; they failed to address the increased health risk factors associated with it such as heart and vascular diseases, stroke, liver cirrhosis, and some liver-related cancers. For example, alcohol-related death rates in Scotland are twice as high as in England and Wales and have doubled over the last 15 years. Around 1 in 20 Scots die an alcohol-attributable death, from causes ranging from cancer to car accidents (The Scottish Government, 2011). For this reason, the government should address stronger marketing regulations.

For example, advertising of distilled spirits must be confined to the accurate description which is directly relevant to the product and its attributes. Furthermore, the display of a lifestyle like people drinking and talking in the bar, landscapes that have no direct connection with the drink should not be allowed. The topic chosen was very broad and this literature has successfully tried to expose the main issues of marketing and ethics we are facing today and gave the possible solutions for future work.

References

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2. Beauchamp, T. L. and Bowie, N. E. , 1983. Ethical Theory and Business. 2nd ed. Englewood Cliffs: N. J. Caswell, S. and Maxwell, A. , 2005. Regulation of Alcohol Marketing: A global View. Journal of Public Health Policy, 26(3), pp. 343-358.
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