Discuss the Following Advertising Issues and Determine Whether the Ads

question 42

Essay

Discuss the following advertising issues and determine whether the ads are ethical.
a. Mrs. Butterworth's syrup has a label that states there is "Grade A Butter" in the syrup. The fine print on the label describes "0.4 percent butter" in the "syrup product."
Carnation Coffeemate Lite is advertised as having "50% LESS FAT." The claim is true but there is
b. less than 0.5 grams of fat eliminated from Lite as compared to regular Coffeemate. It is important to
understand that the average American consumes 100 grams of fat per day.
The students should address the issues of whether the ad is legal (it is) and then move on to whether it is balanced and how it would make them feel to have a product using these descriptions. The example is similar to the manner in which

Compare company data with industry averages to assess a company's market standing.

Understand the impact of the profit margin ratio and the asset turnover ratio on a company's return on assets.

Recognize the reporting requirements for income from continuing operations and income (loss) from discontinued operations.

Identify the correct treatment of gains or losses on disposal of a discontinued operation in financial statements.

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Definitions:

Voluntary Actions

Behaviors or actions undertaken by choice or will without external coercion.

Civil Society

The realm of organized social life that is voluntary, not-for-profit, and outside of the government, which can include NGOs, clubs, and other nonprofit entities.

Democratic System

A form of government in which power is vested in the hands of the people, who exercise power directly or through elected representatives.

Corporate Capitalism

An economic and social system where corporate organizations, rather than individuals or governments, control the production and distribution of goods and services.