SRGG-MIDTERM

• Advertising


  A means of communication with the users of a product or service
• Advertisements are messages paid for by those who send them and are intended to inform or influence people who receive them
• Advertising


  • It allows firms to create awareness and desire among consumers to buy new products
• In order to attract the public's attention, advertisers may resort to appeals and tactics of questionable taste
• Advertising methods are often criticized for being intrusive, offensive, silly and even dishonest
• Legal and ethical constraints on advertising

  • Prohibitions against advertisements that display nudity or offend traditional notions (Muslim nations)
  • Prohibitions against comparative advertisements (France and Germany)
  • Prohibitions against advertising that encourages the consumer to use the product in a dangerous fashion
  • Prohibitions against false, deceptive, or misleading claims
• There are certain product categories in which exaggerated claims are commonly made (e.g. skin creams, cosmetics, perfumes, deodorants, toothpaste, mouthwash)
• Advertisers typically claim (or suggest indirectly) that their products make the consumer more physically attractive especially to the opposite sex
• Principles of marketing ethics

  • Every country has a basic framework of advertising law
  • Every country has at least one advertising industry trade association with a self-regulatory panel or committee that reviews consumer complaints
  • The ICC Codes are based on the core principles of legality, decency, honesty, and truthfulness in all marketing communication
  • All marketing communications should be prepared with a due sense of social and professional responsibility and should conform to the principles of fair competition, as generally accepted in business
  • No communication should be such as to impair public confidence in marketing
• Organic


  Food grown or produced without the use of synthetic pesticides or fertilizers, without GMO ingredients, without chemical food additives or artificial food-ripening substances, and without irradiation
• Organic products are not only limited to food but also extend to other consumer goods like clothing, cosmetics, and cleaning supplies
• Organic standards


  • Meats labeled as organic must come from animals raised without hormones or antibiotics
  • Processed foods may be allowed to contain a small percentage of non-organic ingredients
  • Organic fruits and vegetables may be grown with a certain usage of natural (non-synthetic) pesticides and natural fertilizers
• Environmental impact of organic farming (pros)

  • Toxic residues do not poison the land, water, and air
  • Crop rotation promotes fertile, healthy soil
  • Protects and promotes biodiversity
• Environmental impact of organic farming (cons)

  • Organic plants may produce naturally occurring pesticides
  • Pesticides allow larger harvests and are an economic asset
  • Organic farming is more costly in terms of land and resource use
  • Organic food distribution may have a larger carbon footprint
• Health impact of organic food (pros)

  • Much lower levels of pesticide residues
  • Lower rates of neurodevelopmental problems, birth defects, autism, ADHD, asthma, and lower IQ
  • Higher levels of vitamins, antioxidants, and phenolic acids
  • Optimal balance of omega-6 and omega-3 fatty acids
  • Reduced use of antibiotics in meat and dairy production
• Health impact of organic food (cons)

  • No clear health benefits found in studies
  • No significant differences in nutritional value
  • Manure can transfer E. coli
  • Organic label does not guarantee best practices or safe/nutritious food
• Medical patients are showing a steadily increasing market preference for organic food, and many hospitals are responding by offering more organic food options
• Fair trade


  An arrangement designed to help producers in growing countries achieve sustainable and equitable trade relationships
• Products covered by fair trade

  • Coffee
  • Bananas
  • Tea
  • Honey
  • Sugar
  • Rice
  • Cacao
  • Organic cotton, textiles, and handicrafts
• Fair trade practices focus on empowering marginalized communities, protecting the environment, and preserving local cultures
• Edna Ruth Byler has the idea of importing needlecrafts from impoverished Puerto Rican communities and paying their creators a fair wage


  1946
• The first fair trade organization in Europe was in the United Kingdom, an offshoot of Oxfam UK that sold crafts made by Chinese refugees
• The primary goal of free trade is to increase the economic growth of both developed and developing nations, while fair trade is intended to serve the interests of workers in developing nations
• Key players in fair trade

  • The WFTO (World Fair Trade Organization) serves as a global network clearinghouse
  • Fairtrade International (FLO) is an international organization that promotes the most widely used certifications system for fair trade products
• Fairtrade International


  An organization that works together to promote fair and sustainable trading practices, established in 1997 to set common standards, provide certification, and support fair trade producers and businesses worldwide
• Fairtrade International member organizations


  • Fairtrade America
  • Fairtrade Australia & New Zealand
  • Fairtrade Germany
• Fairtrade International


  • Ensures fair trade standards are followed and creates a level playing field for small-scale farmers and workers in developing countries
• Primary goal of Fairtrade International


  To address issues such as poverty, inequality, and environmental degradation by connecting consumers in developed countries with producers in developing countries through fair trade practices
• FLO-CERT


  A private, non-profit company that carries out certification audits for national organizations that wish to authorize local brands and vendors to use the Fairtrade label
• FLO-CERT


  • Ensures producers, processors, and traders involved in the fair-trade system adhere to the Fairtrade standards, which include fair prices, decent working conditions, and environmental sustainability
• Fair Trade USA


  America's largest fair-trade organization, it resigned from FLO in 2011 and developed its own certification system that does not use the Fairtrade label, but rather designates products and producers with its own trademark: "Fair Trade Certified"
• Fair Trade USA


  • Connects consumers with products that are produced in a socially, economically, and environmentally responsible manner
• Organizational recognition


  1. Obtain the right to use one of the authorized trademarks or labels

  2. Buy from farms that pay their workers a fair wage and follow sustainable practices
• Producer certification


  Producers, such as cooperatives of independent farms or individual farms and farm workers, are certified to ensure they are following fair trade practices
• Entities involved in fair trade

  • Vendors
  • Brands
  • Importers
  • Exporting cooperatives
  • Farmers
• Exporting cooperatives


  Organizations that bring together small-scale producers, farmers, or workers to collectively market and sell their products in international markets
• Exporting cooperatives


  • Responsible for visiting individual farms to ensure compliance with standards
  • Guaranteed the minimum price maintained by the fair-trade system
  • Required to use profits for social projects
• Farmers


  Must agree to limit their use of child labor, GMOs, herbicides, and pesticides
• Fair trade social projects

  Initiatives and programs aimed at improving the social, economic, and environmental well-being of marginalized producers, workers, and communities involved in the production and trade of fair-trade products
• Principal elements of the fair-trade concept

  • A portion of each cooperative's earning must be invested locally in projects to benefit the farmers
  • Farmers are taught how to lobby large international organizations and demand fair prices for their labor
  • Fair Trade USA requires that all its farmers have access to doctors and affordable medical treatment