Ethical Issues for Advertising Tobacco Products Across

1 January 2017

How can SCT and ISCT address the controversial nature of advertising and promoting cigarettes across international borders? Base on the case study, The Social Contract Theory (SCT) generates a workable framework for solving ethical issues: * Sets main principles relevant to the organization in question * Recommends different principles for different communities * Determines the suitable marketing practices Allows for theory of norms and values SCT captures two different types of social contracts- hypothetical and actual contracts used in living communities. It is the foundation of rules within communities with two assumptions: * Individuals join the contract that means individuals realize and care about morals and values of these components. * It can be assumed that global members would have responsibilities with ethics, through the recognition of the community’s needs based moral foundation that will result in good and productive life.

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Donaldson hypotheses that a “global contractor would agree to the creation of a binding macro-social contract as it is the only rational solution for the need for a moral fabric in the face of bounded moral rationality. “ The macro-social contract follows the following ‘rules’: * Local economic communities may generate ethical norms for its members through macro-social contracts. * Norm- generating micro-social contracts must be bounded through informed consent- the protected informed consent. * A macro-social contract must be relevant with the norms of the community. In the situation of conflicting among norms, priority must be established through the application of rules consistent with the spirit of the overall macro-social contract. In other worlds, SCT and ISCT bind domestic and foreign contractors who have to identify norms of primary communities to adjust the suitable marketing campaigns to fix the business for every market. In addition, many firms can rely on the SCT to have a right way to do business as well as to choose the right marketing communications every primary market interns of ethics.

For instance, the Starbuck’s logo has to be modified to be more relevant in Middle – East market. The original and modified logo of Starbuck (Lys 2007) Because the most of middle – east people are muslim, and the culture of this religion does not allow sexy images of woman show at the public. This culture is strong enough to become legal rule in middle – east countries that also the reason why Starbuck has to modify the image of its logo less sexy through covering her breast by her hair.

In the same way, Winfield has to choose the suitable advertisement communication in the primary markets such as putting warning on the label which are seen as ethic practice to create the positive PR as well as to avoid strict regulations. Another illustration is he milk for baby’s growing industries in Vietnam need to mention about the mom’s milk is the best milk for baby’s growing and immune system on the label and package of products as well as TV commercial as a move of ethics in business.

Question 2: In what ways has the marketing of Winfield been influenced by SCT? From the case study, Winfield has others way to communicate its products. In Australia and US, tobacco industries do not allow expand its advertisement in public, and these industries is restricted to communicate to the public and communities. Even, Winfield has to put warning on the label to inform the risk of tobacco to the customers.

Base on that, Winfield does not use TV commercial, billboard and others to advertise its products, and only promote its products through point of sales which are accepted in US and Australia whilst Euro zone and some countries in Asia is so quite looser in tobacco restriction on advertising, promotion and distribute products. This means Winfield can access these markets through extensive advertising and communication campaigns. Besides that, community norms should be solved first. Thus, Winfield has to concern the underage smoking to commit do not sell its products for the customers who are under 18 years old.

Another example, from my own experience, when the customers purchase any beer or alcohol at the shops, club or bar, he customers have to show ID card to ensure that they are over 18 years old to buy these products. Question 3: In your opinion, does BAT pay sufficient attention to ethics when they market across national borders? From my opinion, BAT is not par sufficient attention to ethics when they market across national border, although BAT commit with the local countries to protect and follow the local community’s norms through SCT. Because BAT understood the risks and bad effects of tobacco when people smoke cigarettes hat the reason why Australia and USA are countries which have strict policies to restrict tobacco’s promotion, advertisement and communication with public. BAT took advantages of loose rules in some developing Asia countries and Euro zone in terms of advertising and promoting cigarette in public to expand BAT’s marketing campaigns at these communities. The general trend in Asia and Euro zone will be similar with Australia and USA, BAT should maintain the way of marketing and communication in Euro and Asia countries as Australia and USA.

Besides that, BAT can diversify their business in another way not only focusing on tobacco such as medicine field as producing nicotine for analgesics or products treating stress [trans] (Dung N, V 2006) Question 4: What is the impact of SCT on standardization of advertising and promotion approaches across national borders? In case study, SCT has impacted the tobacco industry which has to commit to protect the community through the legal marketing activities and strategy of agreeing.

Moreover, SCT also restrict the market segment of tobacco industry which does not include underage customers. Furthermore, positioning of tobacco products is type of bad products for health through putting the warning on label and package of its products. Yet, Smoking cigarette’s marketing and communication is limited in Australia and America. Although Euro zone and some developing countries in Asia have not been strict with smoking cigarette’s marketing and communication in public, the trend of these countries will follow Australian and American style.

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