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
COVER STORY
Summer 2017 / Issue 54
Ethics and Self-regulation:
a Perfect Match
C
ompanies find them-
selves at a cross-
roads: be more
ethical
internally
and externally or
risk alienating a critical popula-
tion 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 environ-
ment, poverty and gender equality.
Soon enough, they will be compa-
nies’ 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 pre-
fer one they perceive to be most
ethical.
What is an ethical brand? It is a
combination of a progressive inter-
nal 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, demon-
strations of social responsibility).
Ethics in advertising is two-di-
mensional: ad content and
respect for the user experience.
The content issue is related to the
message itself. For example, a
brand should not be disrespect-
ful towards women and should
not steer further gender stereo-
typing by presenting them in a
demeaning way. Likewise, alco-
hol advertising should not appeal
to children. Additionally, certain
products should not be advertised
as “green” or “eco” if their features
are not scientifically proven.
14
AmCham Macedonia Magazine
Stevan Randjelovic,
European Association
of Communications
Agencies (EACA)
The good news is that the ad industry has been trying to sup-
port 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 Alli-
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