COVER STORY
COVER STORY
Summer 2017 / Issue 54
Ethics and Self-regulation : a Perfect Match
Companies find themselves at a crossroads : be more ethical internally and externally or risk alienating a critical population segment : millennials . Some research says that by 2025 , 75 % of the workforce will be millennials . This ‘ Instagram generation ’ cares about various social causes and wants to make a change . They are driven by issues such as environment , poverty and gender equality . Soon enough , they will be companies ’ primary target as purchasing power rests in their hands . They will decide which brand to pick from a shelf or to order online . And when they do , they will likely prefer one they perceive to be most ethical .
What is an ethical brand ? It is a combination of a progressive internal organizational structure ( i . e ., that awards merit , hires people of different backgrounds and allows women to thrive ) with admirable external behavior visible to the world ( e . g ., advertising , demonstrations of social responsibility ).
Ethics in advertising is two-dimensional : ad content and respect for the user experience . The content issue is related to the message itself . For example , a brand should not be disrespectful towards women and should not steer further gender stereotyping by presenting them in a demeaning way . Likewise , alcohol advertising should not appeal to children . Additionally , certain products should not be advertised as “ green ” or “ eco ” if their features are not scientifically proven .
Stevan Randjelovic , European Association of Communications Agencies ( EACA )
The good news is that the ad industry has been trying to support ethical trade through self-regulation for decades now . In a majority of European agencies , brands and media came together and agreed on codes of conduct . Some countries have general codes of conduct , some have very specific ones ( e . g ., addressing advertising to children , alcohol ), but what they all support decent , truthful and honest advertising . This is as it should be . These codes of conduct , enforced by self-regulatory organisations , are also recognised in various EU laws . EU and national law makers understood that the best way to regulate a sector as dynamic as advertising was to establish principles in regulation and allow the industry to build on it . Self-regulatory Organisations are grouped under the umbrella of the European Advertising Standards Alliance where they come to exchange best practices and cooperate on cross-border cases .
User experience is the second dimension of key concern , especially in the digital sphere . The exponential rise of “ ad blocking ” is a sign that consumers are drowning in banners and other overwhelming ads . On top of that , consumers are increasingly concerned about cookies being placed on their phones or tablets . Some steps are being taken by the industry to address the user experience and to offer better advertising and a choice to consumers on how their data is being used . The Better Ads Coalition
14 AmCham Macedonia Magazine