case study in business ethics

7/31/2019 Case Study in Business Ethics

1/40

right to buy and refuses to buy whaAltS i2 .b .I i'g ~ ,b ' . ' ! . - , ~M~an~:r:~re Goods and se~ces produced toproducts manufactured through child labour. market.

Greed Excessive and inordinate desire to possess Punishment Award of due monetary penalty

personal riches and comforts. or corporeal detainment in prison, or both, for

Guilt Psychological feeling of one's offence; the offences committed against the law; moral

charging one with legal offence. punishments are imposed through social strictures,stigma, and ostracising the wrong doer.

Informed consumer A customer with adequateinformation before making a choice. Redress Making amends or reparation for the

wrong or harm done.Legal business Business matters that come under

the purview of the law. Stakeholder One who has the responSibility tosafeguard another's interests.

1. Why is the consumer also known as a stake-

holder?

2. What are the alternative descriptions of a

manufacturer?

3. How can a manufacturer perform ethically

without undermining the financial returns?

1. How legitimate is the concept of stakeholders

in business management?

2. How can you ethically relate production and

consumption, and demand and supply, in a

consumerist society?

port with a sc~

such contrapti'

could conceive

settled for a sa

and what was

The idea ~

strange way, t

unguarded m

going back on

the goal to be

a Rs l-lakh cawas intervie~

newspaper] at

I talked about

I was asked Iabout Rs lla.'

had a headliI

produce aRs

was to issue .

BernIJach and the Soft-Se U Revolu tion

The truth isn't the truth until people believe you, and

they can't believe you if they don't know what you're

saying, and they can't know what you're saying if theydon't listen toyou, and they won't listen to you ifyou 're

not interesting, and you won't be interesting unlessyou

say things imaginatively, originally, freshly.

1hIth Advertising

The most powerful element in advertising is the truth.

Ad 1. For Volkswagen Beetle: There in the wide,

wide expanse of space rests a small beetle. Caption:

Think small.

This ad is completely in contradiction to the

American dream, where everything big is beauti-

ful. Bembach presented a product that emphasized

the fact that small was not only beautiful and un-

obtrusive, but also appealed to the common sense

to live within one's means. It presented both a smart

and intelligent choice. The car sales shot up by

28 per cent!

Ad 2. There is a picture of a small tray at the back

of an aircraft's seat, which shows a plateful of sump-

tuous food that is ensconced with two pairs of cut-

lery, a coffee cup, a tea cup, a glass of sherry, and

two beautiful glasses ofred and white wine, a dessert,

crusted bakes and even salt dispensers. On top it

reads: 'Loosen your seat belt'; beneath the picture

the caption reads: 'American Airlines to New

York,.a It is a perfect appeal to one's heart through

the stomach, as the adage goes. Its literary mean-

ing is the common sign on the aircraft to fasten or

unfasten the seat belt. The derived meaning of the

ad is to loosen one's belt in order to enjoy all the

goodies that the airline is offering. What would be

more tempting than to eat such sumptuous offerings

till you reach New York from any part of the world?

Ad 3. Face the Goliath of a market leader with a

diminutive David attitude: When you're only

No.2, you try harder.

People are actually sick of the barrage of ads

that claim to be the best and number one in what

they offer. Is there an honest service provider who

says that what is offered is not yet the best, but is

trying harder to be the best? It is a sincere appeal

about one's imperfection. People accept it uncon-

ditionally, since everyone agrees that no one jis

perfect. However, when people see the effort they

readily accept and lend their goodwill.

Analysis Ad 1characterizes a profound thought

defined in a simple manner. Ad 2 declares that food

is more basic than the mode of transport. This isalso food for thought. Ad 3 depicts the nature of

man as striving for perfection, and has the appeal

of more adventure than the one in which one has

already reached the summit.

Our l it t

A dOZEmore.

T he g L

goes.

N obo d

In fact,

e ve n ttN o r de

quarts

Theyc


13/40

Our l it t le car is no longer a novelty.

A dozen col lege k ids don ' t t ry to squeeze in to i t anymore.

The guy at the gas s tat ion does not ask where the gas

goes.

Nobody even s tares at i ts hour-glass shape.

In fact, some of the people who drive our l it t le car don'teven think of 32 m iles to the ga llon as 'going great g uns'.

Nor do they think of using five p ints of oil instead of f ivequarts.

They don ' t th ink of needing a n ant i -f reeze.

Nei ther do they hes i tate rack ing up 40,000 mi les on aset of tyres.

That i s because once they ge t used to some o f the

economics , they don 't even th ink abou t such th ingsanymore.

The y a re happy t ha t t hey c an s qu ee z e i nto a s ma l lpark ing spot .

Or renew their sm al l insurance.

Or pay a smal l repair b i l l .

Or t rade their o ld VW for a new one.

Think it over. a


14/40

The ads are ethically ennobling and are closeto the nature of human thought and everyday life.

They reflect life in a positive way. One can see

Bernbach the philosopher and humorist behind

the ads. The ads succeed in giving a perspective.

The customer is pleasantly led to think about where

to participate and be a part of what is proposed.

Even if one were not to buy the products adver-

tised, one would love to describe what is commu-

nicated in the advertisement as though one were

relating a story. The ad has suddenly become the

talk of the people. This, in other words, has become

advertisement by word of mouth, the most power-

ful method of advertisement in the world.

Bernback believed that 'a great ad campaign

will make a bad product fail faster. It will get more

people to know it's bad.' Hence, truthfulness about

the product is the essence of advertising. The rest,

that is, the communication can be taken care of

through art and creativity.

Communication Is Advertising

Adverti sing doesn't crea te a product advanta ge. It can

onZvconvey it.

Bernbach saw his role of a copywriter strictly

as a product communicator. He was careful, despite

his fame, not to make advertisement as a product

in itself. In other words, he explained that people

would buy a product or service not because of the

advertisement but because of the desirability of

the product itself. The advertisement's role is to

communicate effectively the desirability of the

product. The American Airlines ad was a treat to

the eyes. It communicated to the customer that as

far as air travel was concerned, he could trust the

company and enjoy a wonderful and wholesome

meal; the customer could relax and forget all wor-

ries, whatever they might be.

As the 1950s dawned, the advertising industrysaw a turning point. Till now the advertisers had

adopted a cognitive approach. Bernbach realized

that communication is possible at a deeper level

through emotions. He was not alone. Leo Burnett

and David Ogilvy, who are known as equally big

visionaries of the art of advertisement, were his

contemporaries.

Just as good literature, drama, and music com-

municate with the people, so too can advertisement

create such masterpieces that people win rememberthem always. He said, 'Advertising isn't a science.

It's persuasion. And persuasion is an art.'

Substance in Advertising

Forget words like 'hard sell' and 'soft sell'. That will

only confUseyou.]ust be sure your advertiring is saying

something with substance, something that will inform

and serve the consumer, and be sureyou're saying it like

it's never been said beftre.

Perhaps this is easier said than done. The sub-

stance is the truth about the product, and art is the

way you put it across to the public. The crux of the

matter is to give the customer that which will infonn

and serve. The Volkswagen ad had both informa-

tion as well as the substance of information to serve

the customer: provoked the customer to think

small. The metaphor of small, the car, had indeed

very big thoughts on savings, from fuel and oil to

mileage and small workshop bills. The big cars,

on the contrary, were a big resource drain and

pointed towards small thinking.just a gentle com-

mand at the end, 'Think it over', made people re-

ally stop for a while and re-think. There was so

much food for thought in Bernbach's ads that it

is not surprising they became classic examples in

advertising.

When the substance lacks and the copy is with-

out the truth, gimmick follows. Bernback advo-

cated, 'No matter how skilful you are, you can't

invent a product advantage that doesn't exist. And

if you do, and it's just a gimmick. It's going to fall

arart anyway.'

Advertising Philosophy

Bembach was a student of philosophy and he

leaned completely on the intuitive nature of man.

Observation of human nature and the study of

human motivation interested him. He deeplydelved in the subject of human emotions, wants,

needs, and desires. He cared to understand love,

hate, greed, jealousy, etc. and centred his work less

on rational analysis and more on the emotional

aspect of man.

This genuine interest was expressed in his ads,

which were simple, intelligent, appealing, and

fresh. People at once realized the inner power that

expressed itself in the details. He used plain


15/40

nat tvill

g is sayil'T . ng

oll lnfirm

ing it like

The sUb-

art is the

ux of the

llinfonnnfonna_

to serve

o think

indeedd oil to

g cars'

m and

e Com-

ple re-

was so

lliat it

les in

willi-

advo-

can't

Ando fall

d heman.

yof

ply

nts,

ve,

ess

nal

ds,

nd

at

in

es, taking care of every bit of its detailing,

.cularIy the shades and the shadows. The

uct, not tlle advertising, was tlle centre of his

k. The Avis Car Rental ad quite simply

resses the truth about the standing of the

:pany in words as well as in tlle image of a hand

wing two fingers, stating tllat the company is

ber two in tlle business of car rentals but is

. g to be tlle best. The ad was a phenomenal

cess because it stood tlle probe of tlle American

yche that always supported tlle underdog, a

ghter who is not first but is fighting wholeheartedly

'be number one.

fessional Ethics

.Bembach was a professional to tlle core. True to

:'Jewish traditions, duty was his first virtue. His duty

. to his profession was total, and so was his commit-

ment to his family. He would be at work during

the stipulated working hours. The rest of tlle time

was meant for his family. He did his work at his

officeand did not take work home. He insisted tllat

he is a family man and loved his family. At work,

he loved his job. He did perfect justice to his work

and his legacy stands testimony to it. He retired

as per the regulations, at tlle age of sixty-five.

The company was handed over to professional

managers.

He had a clear idea of tlle world he lived in.

He said, 'In tllis very real world, good doesn't drive

out evil. Evil doesn't drive out good. But the ener-

getic displaces tlle passive.' Good and evil are tlle

forces in ilie world; iliey exist because we do. Doing

our duty witll energy and devotion is more impor-

tant. He advocated tllat our actions must exude

goodness. All his work succeeded in doing just tI1is.

The fundamental eiliical principle tllat he set for

himself was, 'Let us prove to tlle world tllat good

taste, good art, and good writing can be good seIl-

ing.' All of Bernbach's ads are witness to this

thought.

Bembach was highly sensitive to social issues.

He used to be a speech writer for various politicalleaders, and later became an advisor to many busi-

nesses and political leaders. He understood the

need for social responsibility. He said it very suc-

cinctly, 'All of us who professionally use ilie mass

media are tlle shapers of society. We can vulgarize

tllat society. We can brutalize it. Or we can help

lift it onto a higher level.'

Bembach's etllical philosophy consisted of tlle

following tenets:

(a) Perform your duty with heart and soul. .

(b) Let good taste, good art, and good writing be

your motto.

(c) Be intuitive.

(d) Be responsible to society.

(e) Look after tlle family.

Exemplary Life

William Bernbach was born on 13 August 1911 inNew York, to aJewish family. He graduated from

the New York University and worked as a clerk in

a company called Schenley. In his free time, he

created some advertising concepts. The chairman

of tlle company noticed his talent and he was hired

by tlle same company as tlleir adman. He joined

Grey Advertising Company in 1945, after he had

done his duty in World War II. He moved with his

colleagues Ned Doyle and Mac Dane and formed

tlle ad agency Doyle Dane Bembach (DDB) in

1949 and ran it successfully. The company had a

meteoric rise witll classic ads, such as Levy's Bread

wiili Indian children, tlle 'tom ocean', a non-stopflight for tlle Israeli airliner EI AI, tlle Volkswagen

ad, tlle Avis ad, etc. The company of the three col-

leagues remained successful until it went public

in 1960. In tlle 1970s, the competition was eating

into tlle clients of DDB and as tlle 1980s dawned

DDB lost all its good and faithful clients. Bembach

resigned as president and the corporation was

taken over by professional management. b Bembach

had earned for himself tlle name of 'Poster Boy of

Advertisement'. There were innumerable awards

showered on him and he figured in ilie Copywriters'

Hall of Fame. His advice was much sought after

by businesses, as well as political establishments.He served on tlle boards of several public and

private organizations.


16/40

Bernbach did not live to see further turmoil in

his company, as he died in 1982. David Ogilvy,one of the most successful contemporaries of

Bernbach gave testimony to his life, 'He was a phi-

losopher. He lived without ostentation, and orga-

nized his time with a self-discipline that is rare

among heads of agencies. He once told me that he

never stayed in the office ~r five, never took work

horne, and never worked at weekends. "You see,

David, I love my family."'

Discussion Questions

1. What are the qualifications required for an

advertising professional?

2. What are the attitudes that a career advertisermust possess?

3. Bernbach was born during the economic de-

pression and started his career in advertising

after World War II. He became a successful

copywriter and visionary of images for prod-

ucts and services. What role does one's personal

life and ideals play in one's professional career?

4. How should an advertiser evaluate the ethical

values of the society he lives in?

5. What is the decision-making process involved

while creating an ad?

6. What is your opinion on socially, sexually,religiously, and racially provocative ads?

7. Should ads that are explicitly homosexually

oriented be permitted?

8. How is the nudity shown in the ads, viewed in

different cultures?

9. In this Internet and globally interactive a"ec'

do cultural differences in advertising matter?

10. If you are the minister for mass media, how

would you regulate advertising in India?

Going Further

A. Choose one of Bembach's ads:

Have a panel discussion with a group of not

more than six persons.

Let each person in the panel represent a

. different culture and country.

B. Choose an ad of your liking:Follow the two steps as mentioned above.

C. Create an ad:

Discuss inputs.

Decide what goes in the ad.

Give reasons.

Anticipate cultural and legal problems.

Discuss ethical principles.

D. Make the ad:

Send it for evaluation to an ad agency and

get its reaction, e.g., Advertising Agencies

Association of India (AAAI).

1. Axis(Qui

Per~

Adr

nati,'ii,"; .>"t"y"",,,,,,,,

International Labour 01_ an , "'1!fjftatir; at UTark: 'Rlckling the Challenges, Report of the Director_General, Geneva (2007); http://www.ilo.org/wcmsp5/ groups/public/-dgreports/ -dcomm/-webdev /

documents/publication/wcms_ 082607.pdf.

Vishaka

Benchmarking Behaviour

While a murderer tk.stroys the physical frame of the victim, a rapist degrades and defiles the soul of a helpless female.

-Justice Pasayclt

Transgression

Child marriages and multiple marriages are

rampant in the state of Rajasthan. The Government

of Rajasthan has a social programme for the welfare

of children. Under the programme, the govern-

ment has focused its objective to prevent child

marriages. Child marriages and multiple marriages

are against the law, and the government is deter-

mined to enforce this programme. It has appointed

social workers to run it. The social worker, who is

invariably a woman, is known as salkin. Bhanwari

Devi was one such sathin.

Ramkaran Gujjar's daughter was not even one

year old when they got her married. Bhanwari

Devia tried to stop it, but the marriage was carried

out despite her best efforts. The Gujjar commu-

nity was very unhappy with her. They started ha-

rassing her and ostracized her. In September 1992,

Ramkaran Gujjar, along with four other men, gang

raped her in front of her husband.

Insult to Injury

Bhanwari needed medical examination as evidence

to prove the crime. She went to the Primary Health

Centre, where the only doctor on duty, who hap-

pened to be a male, refused to examine her. Then

she went to Jaipur, where the doctor did nothing

else but merely confirmed her age. There was no

mention of any rape in the medical report. At

the police station, she was taunted by the police

constables. Finally, the case was heard. The tricJ

court acquitted the five accused.

Strength o/the Spirit

This was the beginning and not the end of

Bhanwari Devi's suffering. Unlike other women

who have been snubbed in the dust never to be

heard of again, Bhanwari Devi is made up of a dif

ferent mettle. She waged her battle by taking the

help of the law of the land.

Her colleagues, the other sathins, were amazed

by the strength of her spirit. She told them that she

would fight for justice. She told them that she haddone nothing to be ashamed of. It is those men

who raped her, who had done wrong and who

should be ashamed. This resolution in Bhanwari

Devi ignited a spark not only in the women of the

state but across the country. Like-minded non-gov-

ernmental agencies and social workers came to-

gether to form Vishaka.

Vishaka

Vishaka launched a systematic campaign and the

case reached the high court. In December 1993,

the court gave its verdict, 'It was a gang rap~

committed out of revenge.' Emboldened by the

judgment, Vishaka broadened its scope. It

approached the Supreme Court of India to give

directions regarding sexual harassment that women

face at the workplace.

The Supreme Court accepted that sexu~

harassment in the workplace violated women s

equality r

to provic

sexual ha

the law of

Article 14

legislaturl

On1

Indiagav

Part II

Benchma

The folIo

given by

Title ,Rajasthar

SC 3011,

(1997) 2 (

Bench .

Justices 1\

Jurisdict

Date of,

Utigatio

gang rap

in a villal

employrr

were var

tal organ

such an a

to find Sl

true COll(

for worn,

rassment

ing the jl

Indian C

establish

relating t

in parti

case study in business ethics

Documents