7.7 Ethics, sustainability, CSR and environmental issues in marketing literature Flashcards
Why is it difficult for a firm to get an advertisement right?
It is not possible to predict everyone’s reactions
What did the House of Commons Business, Innovation and Skills Select Committee call for a ban on and why?
Payday loan advertisement on children’s television because it could cause children to think that the loans are ‘fun, easy and an appropriate way to access finance’
What did Wonga point out in relation to the banning of payday loan advertisement on children’s television?
Such advertising is against the code of practice of the Consumer Finance Association
What is the Consumer Finance Association?
A payday loan trade body
Why does the Advertising Association believe that responsible advertising can be helpful to potential borrowers?
It helps them to compare products and so promotes competition
What body represents advertising agencies?
The Advertising Association
The FCA requires that financial advertising should clearly explain:
- What the product/service is
- How it works
- How you could benefit from it
- Costs
- Risks to your money
What information should marketing material for savings accounts state?
- Interest rate and whether it is guaranteed
- When interest is paid
- Set-up fees or penalties for moving account
- Limitations
- Risks
What can the FCA do in relation to elimination misleading advertisements?
- Ask provider to change or remove improper advertisement
- Ask provider to write to customers who may have been misled
- Ask provider to compensate customers who lost money as a result of the advertisement
- Fine the firm
What is the Advertising Standards Authority?
The UK’s independent regulator of advertising across all media
What does the ASA do?
Monitors compliance with, and investigates and makes judgments on alleged breaches of the Advertisement Codes
What is the Barclay’s ‘Building Young Futures’?
A partnership between Barclays and the United Nations Children’s Fund (Unicef) that equipped more than 90,000 disadvantaged young people in six countries with skills and knowledge to set up their own business or to find a job
What does HSBC’s ‘Climate Partnership’ do?
Fund a water project in China to improve the lives of fishermen
What is multi-car insurance?
A form of discounted motor insurance aimed at those who own and run two or more cars from one address
What are the arguments for and against multi-car insurance?
It may encourage people to buy more cars and may seem environmentally unsustainable however it is also a response to a social trend that sees more young adults still living with their parents because they cannot afford a property
