Business Ethics

Finally, Betty was confused as to whether implied superiority was a form of deceptive advertising and not puffery as this was creating conflict of interest amongst the employees of the advertising agency. Therefore, no wheat flake cereal could be proven to be healthier or better than the other.

Fifthly, the law in terms of the Federal Trade Commission, views puffery of a product, which is an exaggerated claim of the product, as legitimate; whilst they view deceptive advertising, which is false impressions and misleading a consumer acting reasonably, as illegal. Betty being a copywriter and an influential member of the company’s decision-making team, faces the ethical dilemma of going ahead with the suggested tag line suggested by Charlie or try to change it, and if she cannot change it will she resign and blow the whistle. There is an ethical issue that the suggested tag line by Charlie is deceptive and may create false impressions in the minds of the consumers. There is also an ethical issue surrounding the nature of competition in the advertisement industry stemming from the great demand for brand differentiation by firms through the advertisements campaigns produced by the advertisements agencies.

These are the ethical dilemmas facing Betty as a result of superlative advertising tag line suggested by Charlie for Great Cereal Wheat Flakes. This was to suggest to the market and the consumers that they, Great State Wheat Flakes, were not claiming to be superior to, but only as good as the other wheat flakes brands, while using advertisements that suggested or implied superiority for the Great State Wheat Flakes brand that would play on the consumers minds. The issue also arises when the company ignores its social responsibility to the community in producing dishonest claims about the Cereal.

Fourthly, The advertisement that Charlie made suggested an ‘implied superiority’ claim as it was a commodity brand. No other wheat flake offers you more vitamins and minerals or less calories, as he said that Betty’s advertisement would not work. start to your active day’, the brand manager, Charlie, came up with an unethical advertisement, ‘Great State Wheat Flakes can’t be beat.

The third ethical issue facing Betty was that she knew that all wheat flake cereals are parity products meaning that they have the same taste, texture, composition and nutritional value.