Progressive Stuff Essay Example
Progressive Stuff Essay Example

Progressive Stuff Essay Example

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  • Published: March 31, 2019
  • Type: Research Paper
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During the Progressive Era (1880-1940), advertisers and auditors encountered challenges regarding the accuracy of their text. Advertisers in North America embraced the notion of "truth in advertising," while auditors disapproved of labeling financial statements as "true and fair." Instead, auditors preferred financial statements that adhered to accepted accounting principles. Interestingly, auditors made more advancements towards professionalization compared to advertisers during this period. This article delves into the debates surrounding truth within both professions during the Progressive Era and investigates the professional and legal implications resulting from each profession's relationship with truth. The Progressive Era spanned from the late 1880s to the late 1930s, characterizing a time marked by institutional, technical, and social innovation.

During this period, developed economies experienced a shift from rural to urban areas and a transition from agricultural to industrial economies. Furthermore

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, various sectional interests emerged, including modern professions. The Progressive Era was marked by the combination of scientific knowledge with traditional values. There was a belief that science and technology could fulfill people's material needs and promote social justice through knowledge. This fusion created an atmosphere where the concept of "truth" seemed achievable. As a result, the modern professions evolved within this framework as occupations that emphasized both ethical and technical aspects of life.

Medicine, the law, and teaching were considered prime examples of the professional model. These successful professions had the ability to define what is considered normal or "right" by utilizing their specialized knowledge and values recognized by society (Richardson 1997). To establish their legitimacy and authority, professions must undergo the process of professionalization. This process may include adopting certain structural elements like codes of ethics or requiring university training t

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assert their claim as professional entities.

In the process, claiming and practicing the "truth" could be a powerful rhetorical weapon. Coinciding with the rise of modern professions, large business firms also emerged (Galambos 1983). These firms had two characteristics that offered opportunities for the developing professions. Firstly, they required large amounts of capital to establish the necessary infrastructure for their operations. In North America, this capital was usually obtained through public offerings in stock markets.

The accounting profession developed in response to the need for financial audits stemming from the reliance on external capital. Its success relied on the ability to enhance the credibility of financial statements, essentially revealing the true financial condition of a company. Additionally, technology enabled large corporations to achieve cost efficiencies; however, this demanded a widespread customer base. To persuade customers without personal experience of a company or its products, convincing them to make purchases was essential.

The advertising industry arose to meet the communication needs of large corporations with investors and customers. Auditors and advertisers emerged as the professions responsible for mediating these connections, both grappling with the issue of the "truth" behind corporate communications. These occupations aimed to become recognized professions by forming professional associations, establishing codes of ethics, and setting educational standards. The literature from this era offers insights into the efficacy of these efforts in professionalizing advertisers and accountants.

According to Palmer (1914), certain members of the advertising industry could be considered professionals. He suggested that in modern times, philanthropists and publicists could be seen as intermediaries between ministers and lawyers, as they both focus on studying the well-being of the community (p. 43).

Carr-Saunders and Wilson (1933, 29) conducted a study

on professions, specifically focusing on those vocations commonly recognized as professions. They dedicated eighteen pages to accountants but did not mention any occupations in the advertising industry. Schultze (1982) later examined the advertising industry's attempts during this time period to establish standardized education and licensing or certification requirements, two of the three characteristics that Schultze identifies as common in a profession (the other being codes of ethics). Schultze concluded that the industry was unsuccessful in achieving professional status, even with university instruction in advertising. Laird (1998, 242) further noted that the various advertising associations formed during this era also failed to establish standards for education and admission to the profession, as well as enforce codes of ethics among their members. The language used by the advertising industry itself during the Progressive Era underscores the gap between their perceived status and their aspirations of professional recognition. Ultimately, only accountants were successful in attaining professional status by the end of the Progressive Era. The success of auditors as professionals and the failure of advertisers creates a paradoxical relationship between these two groups and their stance on truth.

The article explores the connection between the advertising industry and auditors in Canada and the United States. While the advertising industry successfully advocated for legislation on "truth in advertising," auditors were able to lobby against the requirement for attesting to financial statements being "true and fair." This article aims to analyze how these groups engage with the concept of "truth" and how it affects their professionalization. The remainder of the article is structured as follows: a section delves into the philosophical meaning of truth, providing a vocabulary to understand its interpretation

and usage. This is followed by two sections that provide a summary of the history of truth within the advertising industry and auditors.

The text examines the main factors that explain differences in truth-related activities across various occupations. Despite being commonly used, defining truth poses a challenge. Several philosophers acknowledge the absence of a satisfying theory of truth (Horwich 1990, 1). This lack of success can be attributed to the inherent nature of the task itself. Truth theories aim to describe the fundamental essence of truth in all linguistic contexts and address the question: what do we mean when we assert something as true? (n1) Throughout history, three primary types of responses have emerged: correspondence theories, coherence theories, and pragmatic theories (refer to Table 1).

Although there are instances that do not neatly fit into one category or belong to multiple categories, this typology is hindered by such cases. However, for our purposes, it suffices to focus on the prime example of each of the three classes and leave the ambiguous cases for philosophers to contemplate. Among these three classes of truth theories, correspondence theories are both the oldest and most intuitively appealing. Initially advocated by early Greek philosophers (especially Aristotle and the Stoics) and later revived in the modern era by Descartes, Locke, Hume, Russell, Wittgenstein, and others; correspondence views argue that truth is a relationship between what is asserted and some aspect of our world. Essentially, truth is what corresponds to the facts.

The paradigmatic correspondence theorist adheres to ontological realism, meaning they hold the belief that objects exist independently of the human mind. They consider the linguistic assertion and its corresponding state of affairs

as distinct entities. Consequently, the truth of an assertion is determined by assessing the independent world of objects. For instance, if a book is on a desk, asserting this fact would be deemed true since the book genuinely exists on the desk. Nonetheless, despite their initial attractiveness, correspondence theories have a significant drawback that numerous philosophers find dissatisfying: they cannot establish a clear definition for what constitutes a fact.

The correspondence theory of truth asserts that a proposition must correspond with a fact in order to be considered true. In simpler terms, if the book is on the desk, it is deemed true that the book is on the desk. However, critics argue that this theory does not fully capture the essence of truth. They contend that it only recognizes a proposition as true when it pertains to something factual. This limitation has resulted in alternative theories like coherence theories gaining significance. Coherence theorists, exemplified by Bradley and Blanshard, propose that the truthfulness of a proposition relies on its consistency with other propositions accepted as true.

According to Johnson (1992, 25), the book's presence on the desk is true because it aligns with our interconnected beliefs. These beliefs form our "world of awareness" where books, desks, their functions, and their meanings are comprehensible. It is through this framework that we can evaluate the truth of the statement "the book is on the desk." The coherent theory, based on metaphysics of absolute idealism, is influenced by this paradigm.

According to absolute idealism, the object world is reliant on the mind. This means that the concept of independent "brute facts" in the realist's perspective does not exist. Instead, the idealist

proposes an absolute reality where all things derive their identity from their connection to other things. This reality is only accessible through the human mind. With these underlying beliefs, there is no separate object world that can be used to determine truth. Instead, idealists view reality as a vast interconnected web that encompasses everything we currently understand about the absolute.

The assessment of the truth of a proposition depends on its coherence with the body of propositions that form our understanding of absolute truth. However, while coherence is considered a valid method to evaluate some propositions, it may not fully encompass the concept of truth. A comprehensive theory of truth should justify all truths solely based on coherence and not have any exceptions. Critics argue that coherence theory falls short in meeting this criterion.

The coherence theory is frequently criticized for its inability to differentiate between beliefs that are justified based on our current knowledge and beliefs that are actually true. While some coherentists may argue that this criticism arises from a limited understanding of absolute knowledge, skeptics who do not subscribe to idealist metaphysics remain unconvinced. In the early 1900s, American philosophers Peirce, James, and Dewey developed alternative theories of truth influenced by pragmatism, for which they are well-known. Despite each thinker having their own distinct perspective on truth, all pragmatic theories assert that truth is determined by its usefulness in some manner.

According to Peirce, scientific methodology and scientific knowledge were closely connected to the concept of "usefulness". Similarly, Dewey also believed that "truth" is determined through investigation and agreement. In contrast, James defined "usefulness" as "long-term expedience", which expanded the definition of truth to encompass

religion and metaphysics as well. This pragmatic approach to truth differs from the correspondence and coherence theories that the pragmatists opposed. The pragmatic theories do not aim to identify the essential nature of truth (Allen 1993, 63) (Johnson 1992, 64-65).

The pragmatists propose that the practical value of truth can be explained by measuring it through the positive results that a belief can achieve. This understanding of truth is in line with pragmatic philosophy, which asserts that all meaning is based on practicality. Therefore, distinguishing between a "true" and "false" belief must involve a difference in practical application. As a result, "true" beliefs are simply those that lead to successful outcomes in practice. Critics argue that pragmatic theories of truth are too subjective to be considered objective measures of truth. They contend that the usefulness of a belief depends on what is valuable to the individual who holds it.

The long-term usefulness of a belief may differ from its immediate usefulness, causing variations in the concept of usefulness among pragmatists. These variations can sometimes be incompatible with each other, posing challenges to pragmatic theories of truth. Despite these objections, the discussed theories aim to explain the nature of truth in all linguistic uses. Consequently, each theory offers its own explanation for what makes a claim or belief true.

The claim "the sun rises in the morning" can be considered from the perspective of three different theories. Each theory has its own reasons for accepting that the proposition is true. Correspondence theorists believe that the assertion is true because it corresponds to an independent state of the world, regardless of who is making the claim. Coherence theorists argue

that the proposition is true because it aligns with other related statements about the positions of the earth, sun, and observer, all of which cohere with one absolute reality. Pragmatists, on the other hand, see the proposition as true because it leads to practical benefits. It allows one to track the passing of the day or know where to look in the sky for the morning sun. These different theories propose distinct criteria for evaluating truth. Correspondence theorists focus on correspondence with an external reality as the relevant criterion.

Coherentists view truth as coherence with accepted belief, while pragmatists evaluate truth based on its usefulness in practice. Both theories consider themselves not just as identifying a criterion of truth, but as capturing the essence of truth. This distinction between truth criteria and the essence of truth has been used by proponents of different theories to accept one set of criteria while rejecting the essence of another theory. However, it is worth noting that most people do not adhere to any specific theory of truth, with only a few philosophers being exceptions.

Most of us have not thought about what defines "truth". However, we often use criteria for truth in our interactions with others. These criteria can be seen in the reasons people give for their beliefs or in the reasons speakers provide for accepting their claims as true. These criteria are important in justifying and persuading others. By analyzing what a speaker says, we can identify the truth criteria they use, even if they haven't considered the nature of truth. This article uses the concept of truth criteria to explain the types of truth claims made

by auditors and advertising agents. In doing so, we avoid assigning specific truth theories to either professional group or to the stakeholder groups they communicate with.

The available historical records do not allow for additional conclusions. In the film Miracle on 34th Street, two miracles occurred. We discover the existence of Santa Claus. Even more astonishing, however, was witnessing the honesty of Macy's managers as they informed customers with complete truthfulness. The concept of truth has been a longstanding concern in advertising and continues to be relevant today.

During the late nineteenth century, North America saw a prevalence of fraudulent advertising. However, this sparked a movement for truth in advertising within the industry. Magazine publishers led campaigns against patent medicine companies in the 1880s, and the effort reached its peak in the 1910s with the Associated Advertising Clubs of America (AACA) pushing for state legislation and establishing vigilance committees. The movement's influence extended to Canada, where the AACA transformed into the Associated Advertising Clubs of the World (AACW) in 1914, and their approach closely mirrored that of the American strategy. Despite the prevalence of deceptive advertising, reputable manufacturers of branded products maintained honesty in their advertising practices (Wood 1958).

Some disreputable companies in the past were relatively harmless, such as an 1880s mail-order company that sold a "Potato-Bug Eradicator" for ten cents. This eradicator turned out to be two pieces of wood with instructions to place the potato bug between them and press together. However, many other companies were dangerous and irresponsible, especially the patent medicine ones. Some of these "medicines" contained up to 40 percent alcohol, while others included poisonous drugs. For example, Brown's Vegetable Cure for

Female Weakness claimed to cure various symptoms such as a dragging sensation in the groin, sparks before the eyes, hysteria, temple and ear throb, a dread of some impending evil, morbid feelings, and the blues (Wood 1958, 331). In 1892, the Ladies' Home Journal made a significant decision to stop accepting advertising from patent medicine companies. Following this decision, they launched a long and bitter campaign through editorials and articles against the entire patent medicine industry. The magazine even critiqued other publications that accepted and published patent medicine advertising.

Lydia E. Pinkham achieved wealth and fame in the 1870s due to her renowned Vegetable Compound, a cure-all. This product was marketed as an effective remedy for Prolapsus Uteri (also known as Falling of the Womb). It was described as pleasant-tasting, effective, and provided immediate relief.

During pregnancy, it provides great assistance in relieving pain during labor. It is also effective for addressing weaknesses in the reproductive organs of both genders. This remedy is unparalleled among all previously available remedies, and it is recognized as the greatest solution worldwide for kidney diseases (Wood 1958, 327). Even after Mrs. Pinkham's death in 1883, the Pinkham company continued to feature her image in their advertisements and encouraged women to seek her advice through written correspondence.

In 1904, the Ladies' Home Journal published a reproduction of some of these advertisements, accompanied by a photograph of Mrs. Pinkham's gravestone, which revealed that she had been deceased for twenty years (Wood 1958,327). This placement of the actual circumstances alongside the claims made in the advertisements effectively and dramatically highlighted their lack of veracity. The true intention of many publishers was to advocate for

the implementation of food and drug regulations in order to eliminate patent medicines from the market. Their efforts bore fruit in 1906 when the U.S. government enacted the Food and Drug Act.

In 1889, the United States passed the Pure Food and Drug Act, which aimed to protect the public from unsafe food and drug products, as well as false advertisements related to these products. Similarly, the Canadian government introduced the Proprietary Medicines Act two years later for the same purpose. Both governments sought to ensure that advertising was truthful in order to safeguard consumers and promote public confidence. The advertising industry itself also recognized the importance of truth in advertising, as evidenced by concerns expressed in 1888 by Printers' Ink, the first trade journal of the industry. In its inaugural issue, Printers' Ink emphasized that it was a mistake for businesses to rely on deceptive advertisements and instead advocated for honest promotion of genuine products.

The capable yet conscientious advocate in the field of law utilizes all their skills to present their client's case favorably, while staying true to the evidence. Similarly, the advertiser should promote their products or services in the most persuasive and skillfully arranged manner possible, but without misrepresenting their qualities. Advertisers were not required to downplay their claims, but rather to be honest. This concept of truth consisted of using only the actual properties possessed by the product. This idea, rooted in the correspondence criteria of truth, would resurface in 1911 when PI and AACA joined forces.

The AACA was established in 1905 when numerous local advertising clubs in different U.S. cities joined together to create a national association. By 1911, the AACA

had over 100 member clubs with numerous members. In 1914, the association's name was changed to Associated Advertising Clubs of the World after the Toronto Advertising Club joined and the annual convention took place in Toronto.

By 1916, the membership of AACW exceeded 15,000 individuals. While the initial purpose of the local clubs may have been social in nature, the formation of AACA aimed to progress the advertising profession by means such as imparting professional skills, rectifying abuses, exposing fraudulent advertising, and establishing a bureau for the registration of advertising men (Schultze 1982, 196). Thus, the goal was to professionalize the advertising industry. Despite advocating for formal education from its inception, agreement amongst members on its implementation never materialized. Some members believed that the industry should provide study materials and choose instructors.

During that period, universities started introducing business programs but were hesitant to include advertising. Most universities were not open to letting businesses shape their curricula. Between 1900 and 1910, when universities did start teaching advertising, it was done in two different ways. Business schools taught advertising as a part of management and marketing studies. Meanwhile, journalism departments in some institutions incorporated advertising into their curriculum focused on newspaper publishing. As a result, two distinct approaches to instruction emerged, leaving the advertising industry with little influence over the formal education it had anticipated controlling.

According to Schultze (1982, 206), the hope of advertisers to establish themselves as a profession was an unattainable dream, even with the introduction of university instruction. Similar to Pinnochio, advertisers believed that they could achieve professional status if they simply told the truth. The American Association of Advertising Clubs (AACA), established in 1905,

pledged to expose fraudulent schemes and their perpetrators. These deceptive practices were described in the following ways:

  1. Misleading statements, insinuations, and illustrations that create false impressions of value or service beyond what the product inherently offers.
  2. Claims of cures and remedies, as well as promises of beauty and health benefits, that lack scientific foundation.
  3. Partial truths regarding scientific information that imply benefits not supported by scientific evidence.
  4. Claims of general underselling that cannot be proven and include false insinuations and impressions. (Kenner 1936, xvii-xviii)

The common thread in these examples is the discrepancy between advertised claims and actual realities. Science was viewed as the ultimate authority in determining the truth. However, the motivations driving the industry during this early period were not clearly articulated beyond a desire for professional recognition.

In a speech delivered at the 1911 AACA convention, the connection between truth and professional status was emphasized. The speaker stated that in order to be considered a profession, it is necessary to establish a code centered around the concept of truth. All other commendable qualities will naturally follow. Another speaker at the same event articulated that if the advertised goods correspond exactly to their description, the advertising professional would essentially function as an auditor or expert accountant. Their main objective would be to convey the truth of the matter to their employer, who is not just the one paying the salary, but also the general populace whose purchasing power enables the salary to exist.

(Quoted in Kenner 1936,

22) The basis for truth in advertising seemed to be the criterion of correspondence between the actual product and the advertised claim. It is worth noting that accountants were cited as role models for professionalism in advertising. However, the accounting profession debated and ultimately rejected the idealized role of auditors mentioned in this quotation. As early as 1907, the AACA endorsed the use of legislation to penalize false advertising.

However, the early actions of the AACA were primarily focused on self-regulation. They implemented codes, statements of principles, and held annual conventions that were reminiscent of religious crusades aimed at promoting truth in advertising. At the 1913 convention, the AACA took their commitment to truth in advertising to amusing levels by introducing a truth emblem (refer to Figure 1) and adopting the official slogan "truth in advertising." That year, a truth trophy was even presented to the member club that had made the most significant contributions towards truthfulness in advertising in the past year (Kenner 1936, 39). Despite these creative endeavors, they proved to be largely ineffective due to the association's limited authority in enforcing honesty in advertising. Furthermore, numerous small businesses and individuals were not interested in curbing their tendency to deceive. As the United States government already had regulations in place regarding antitrust issues, this paved the way for a future increased reliance on government regulation (Miracle and Nevett 1988).

John Romer, the editor of PI, realized in 1911 that self-regulation was ineffective. After attending the AACA convention, he noticed that the association lacked a concrete plan of action despite generating public sentiment. Romer expressed the need for action in addressing objectionable advertising. Subsequently, he

hired Harry Nims, a New York lawyer, to investigate existing laws on dishonest advertising. Although two state laws existed, they were never enforced. Nims was also tasked with drafting a model state law that targeted sponsors rather than publishers. The PI model statute stated: "Any person, firm, corporation or association who...".

According to the "Truth and Consequences" declaration of 1938, anyone who publishes or circulates an advertisement containing untrue, deceptive, or misleading information regarding merchandise, securities, services, or any public offering will be guilty of a misdemeanor. The declaration further explains what constitutes as false or misleading by listing several practices:

  1. False statements or exaggerated claims
  2. Indirect misrepresentations of a product or service by distorting details in text or images
  3. Pseudo-scientific advertisements that lack proper support from credible sources or manipulate the meaning of statements made by professionals or scientific authorities

The central theme is the discrepancy between the actual characteristics of a product and the claims made in the advertisement. The words "exaggeration" and "distortion" effectively illustrate this. The model statute was published in PI on November 11, 1911.

Romer proposed that the AACA offer the statute to its member clubs to enforce it whenever it became law. They were instructed to monitor for violations, gather evidence, and ensure that the cases were pursued. The AACA established a national vigilance committee, and in 1913, when the statute was enacted in Ohio, the committee began its work. Eventually, forty-three states passed the PI model statute into law, but many included the term "knowingly" to require evidence of deceptive intent. This weakened the effectiveness of the legislation. The AACA's vigilance committees later transformed into Better Business

Bureaus, with fifty-six bureaus established by 1938 to protect the public from fraudulent advertising. The Canadian equivalent to PI, a trade journal named Economic Advertising (EA), expressed its support for the PI model statute in March 1913, although it had long advocated for legislation to regulate dishonest advertising ("Straight Talks" 1913).

Its endorsement of the PI model statute was supported based on the belief that implementing such a law would safeguard the public and instill trust in advertising. Following this, the Canadian government enacted the Fraudulent Advertising Act one year later. This act stated that any individual who willfully publishes or is responsible for publishing an advertisement... that includes a deceitful statement or misrepresentation aimed at increasing the price or value... can be subject to a maximum fine of two hundred dollars, imprisonment for up to six months, or both fine and imprisonment upon summary conviction.

("Retailers Would Put Teeth" 1921, 190) The Canadian government had adopted a diluted version of legislation, similar to some U.S. states, which mandated proof of intent to deceive when passing the Fraudulent Advertising Act. As a result, obtaining convictions became extremely challenging. However, after fifteen years, the act remained unused and faced severe criticism from a Canadian lawyer who wrote in the publication now known as Marketing, formerly known as EA. The lawyer argued that the Fraudulent Advertising Act only seemed to serve as a mere formality.

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