This paper examines several issues regarding deception in advertising. Some generally accepted definitions are considered and found to be inadequate. An alternative definition is proposed for legal/regulatory purposes and is related to a suggested definition of the term deception as it is used in everyday language. Based upon these definitions, suggestions are offered for detecting and regulating deception in advertising. This paper additionally considers the grounds for the generally held but largely unquestioned assumption that deceptive advertising is unethical. It is (...) argued that deceptive advertising can be shown to be morally objectionable, on the weak assumption that it is prima facie wrong to harm others. Finally, the implications of this analysis with respect to current regulation of deceptive advertising by the FTC are considered. (shrink)

In this paper we look at business ethics from a deontological perspective. We address the theory of ethical decision-making and deontological ethics for business executives and explore the concept of “moral duty” as transcending mere gain and profit maximization. Two real-world cases that focus on accounting fraud as the ethical conception. Through these cases, we show that while accounting fraud – from a consequentialist perspective – may appear to provide a quick solution to a pressing problem, longer term effects of (...) fraud and misconduct make ethical implications more apparent. Widely used compensation schemes also may have the tendency to fuel unethical behavior. We argue that an ethical reinvigoration of the business world can only be accomplished by encouraging the business realm to impose upon itself some measure of self-regulating along the lines of deontological ethics. Principles of deontology should guide executive decision-making particularly when executives are tempted to operate outside of codified legislation or are bound to act under judicial-free conditions. (shrink)

Previous behavioral research on advertising deception has focused on the extent to which consumers would be misled by claims and implications of advertisements. The present research examines the effect of an important, but largely neglected, dimension: the severity of anticipated harm as a result of being deceived. Two experiments disentangle the effect of anticipated harm on consumer brand attitudes and purchase intentions from that of perceived deception. Interestingly, greater harmfulness increases diagnosticity of perceived deception, which partially accounts for consumers’ negative (...) reactions to deceptive advertising. Theoretical, methodological, and ethical implications are discussed. (shrink)

Drawing on conceptual works by Murphy (1999) and Solomon (1999), we develop a virtue ethics scale. Other ethics scales, which are grounded in deontological and teleological principles, may be used to classify people according to their beliefs about (1) the criteria they use to make ethical decisions, or (2) the ethicality of those decisions. We suggest augmenting these scales with our virtue ethics scale, which may be used to classify people according to their beliefs about the virtuous qualities of businesspeople.

This study examines the potential effects of unethically perceived advertising executionson consumer responses to the ad. The study found that the unethical perceptions of the advertisement shown significantly and negatively affected all advertising response variables examined in the study.

Current discussions of business ethics usually only consider deontological and utilitarian approaches. What is missing is a discussion of traditional teleology, often referred to as virtue ethics. While deontology and teleology are useful, they both suffer insufficiencies. Traditional teleology, while deontological in many respects, does not object to utilitarian style calculations as long as they are contained within a moral framework that is not utilitarian in its origin. It contains the best of both approaches and can be used to focus (...) on the individual''s role within an organization. More work is needed in exposing students and faculty to traditional teleology and its place in business ethic''s discussions. (shrink)

Ethical concerns of Internet users continue to rise. Accordingly, several scholars have called for systematic empirical research to address these issues. This study examines the conceptualization and measurement of consumers' perceptions regarding the ethics of online retailers. Also, this research represents a first step into the analysis of the relationship between CPEOR, consumers' general Internet expertise and reported positive word of mouth. Results, from a convenience sample of 357 online shoppers, suggest that CPEOR can be operationalized as a second-order construct (...) composed of four dimensions: security, privacy, fulfillment, and non-deception. Our findings also indicate that consumers' general Internet expertise significantly improves CPEOR and CPEOR are strongly predictive of consumers' WOM. Managerial and research implications are offered. (shrink)

This paper explores how consumers perceive retailer ethics. Based on a review of the marketing and consumer research literature, we conceptualize consumer perceptions of the ethics of retailers as a multidimensional construct and propose that its effects on consumer purchase behavior and word-of-mouth communication are more salient when consumers have strong rather than weak ethical beliefs. The model was validated using a random sample of 399 respondents in a collectivist society. The results of structural equation modeling confirmed that CPER is (...) a second-order construct comprising product fairness, price fairness, non-deception, fair trade, and green products. CPER positively predicted consumer purchase behavior and word-of-mouth communication. Moreover, ethical beliefs moderated the positive relationship between CPER and the word-of-mouth communication of consumers with strong ethical beliefs but did not moderate the relationship between CPER and purchase behavior. The implications of the findings are discussed. (shrink)

The main purpose of this paper is to defend traditional ethical theory (utilitarianism and deontology) for its application in business against a more recent model consisting of utility, rights, and justice. This is done in three parts: First, we provide a conceptual argument for the superiority of the traditional model; second, we demonstrate these points through an examination of three short cases; and third, we argue for the capability of the traditional model to account for universals and particulars in ethics.