Brand Trends - Ethics
By Chuck Pettis
Summaries of brand trends as reported by
leading publications covering the branding field.
Ethics - September 2003 to March 2005
"The Bad" 'Vice' Sponsorships Raise Brand Issues
BrandWeek magazine, February 14, 2005 Casino, liquor and cigarette
companies want more addicted, long-term customers. Sports stars, teams
and franchises want “new revenue streams.” Branding is the
most powerful way to impact attitudes and change behaviors. This is especially
true for children and teenagers. The research on sports sponsorships has
found that sponsorships connected to vice and addictive behavior work.
More children smoke, drink, and gamble as a result of this manipulative
behavioral conditioning. Bottomline, the combination of Reptilian emotional
hot buttons with addictive activities is deadly.
Do we really want a world with more kids turning into smoking, drinking
and gambling adults? Is this the kind of world we are willing to accept?
That is why I consider it unethical for brands to link liquor, beer, gambling,
and tobacco with sports, racing, famous celebrities and characters. Vice
sponsorships should be banned. Brands on both sides should use their powers
for good, not to perpetuate and expand unwholesome, addictive behaviors
that cause personal, family, and social problems.
Is Marketing to Kids Ethical?
BRANDWEEK Magazine, April 05, 2004 Even as kids become more involved
and influential in family purchasing decisions, obesity rates in children
are at epidemic proportions. Walk down any grocery store aisle or watch
children’s programs and you will see one food product after another
that is heavy in sugar, fats and carbohydrates: fat-making ingredients.
95% of food commercials targeting children pitched high-fat, high-sugar
foods. Businesses are putting their bottom line ahead of the health of
our children. While 35% of marketing professionals in the business think
youth marketing standards for ethics are lower today than in the past,
67% think their employer’s ethical standards are higher compared
to other organizations.
Accounting Scandal Aftermath Hits Agencies
BRANDWEEK Magazine, January 12, 2004 Most ad agencies have time
and billing systems wherein employees daily fill out time sheets detailing
how long they worked on projects. These time sheets are the basis for
the agency’s accounting and billing to clients. In this accounting
scandal, two Ogilvy executives were charged with revising time sheets
to inflate the reported time. Charges of conspiracy and making false claims
were made that could bring the ad executives five years in prison and
a $250,000 fine.
This case raises big questions of trust between clients and agencies.
In the old days of the 15% commission, time spent on an account was not
an issue. Now that the commission is being replaced by labor-based fees,
the slack of the 15% commission is gone and auditing becomes necessary.
The Chastened Enforcers
BRANDWEEK Magazine, November 17, 2003
Corporate fraud is making accounting firms rethink their positioning and
emphasize the messages of trust, integrity, honesty - "these are the words
that will sell audit services." Accounting firms used to price audit services
to win the client's account and then make money consulting. Now, they
can't even use the word "consulting." The Sarbanes-Oxley act makes the
audit committee members personally responsible for financial statements.
Their risk is 1,000 times the fee they get to be on the audit committee.
Plus, the audit committee, not the CEO or management team (who want ideas
to improve the business) is mandated by law to make the hiring decision.
Now is the time for accounting firms to go through the BrandSolutions
branding process!
The Deepest Divide: God, Guns, and Gays
Business Week Magazine, May 17, 2004 The Republicans skillfully
used the "moral values" of "God, guns, and gays" to beat liberal Democrats,
including John Kerry.
"The Good" The
Top Givers
BusinessWeek, November 29, 2004 Philanthropy is going “supersize.”
No. 1 Most Generous Givers, Bill and Melinda Gates, gave their 2004 $3
billion Microsoft dividend to their foundation. Intel founder, Gordon
Moore and his wife gave $275 million for ocean research and world-class
nurse training. Many of these philanthropists share a belief that it is
better to help solve social problems today themselves than pass on the
money to future generations. More power to them!
The Corporate Givers
BusinessWeek, November 29, 2004 Corporations have many reasons
to fund charitable causes: gives them a friendly face in new international
markets; builds employee loyalty; attracts employees who want to work
for a company that supports social causes; builds corporate reputation;
acts as "social insurance" in case something goes wrong; and improving
health care and education in developing countries ensures future consumers
with money to buy their products.
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