BUSINESS & SOCIETY Ethics and Stakeholder Management Chapter 12 BUSINESS & SOCIETY Ethics and Stakeholder Management Carroll & Buchholtz 6e CONSUMER STAKEHOLDERS: INFORMATION ISSUES and RESPONSES Prepared by Deborah Baker Texas Christian University Chapter 12- Business and Society: Ethics and Stakeholder Management, 6e • Carroll & Buchholtz Copyright ©2006 by South-Western, a division of Thomson Learning.  All rights reserved

Chapter 12 Chapter 12 Outcomes Recite the consumer’s Magna Carta and explain its meaning. Chronicle the evolution of the consumer movement. Identify the major abuses of advertising and discuss specific controversial advertising issues. Enumerate and discuss other product information issues that present problems for consumer stakeholders. Describe the role and functions of the FTC. Discuss the strengths and weaknesses of regulation and self-regulation of advertising. Chapter 12- 2

Chapter 12 Outline The Consumer Movement Product Information Issues The Federal Trade Commission Self-Regulation in Advertising Summary The Paradox of the Consumer Orientation The Consumer Movement Ralph Nader’s Consumerism Consumerism in the 1990s Product Information Issues Advertising Issues Warranties Packaging and Labeling Other Product Information Issues The Federal Trade Commission Early Activism of the FTC Less Active Years of the FTC The FTC Reasserts Itself Self-Regulation in Advertising Types of Self-Regulation The National Advertising Division’s Program Summary Chapter 12-

The Consumer’s Magna Carta Right to Safety Right to Be Informed Right to Be Heard Right to Choose Chapter 12-

The Divisions of the FTC Advertising practices Credit practices Enforcement Marketing practices Service industry practices Chapter 12-

Selected Key Terms accurate information consumer’s Magna Carta ad creep adequate information ambiguous advertising clear information comparative advertising concealed facts consumerism consumer’s Magna Carta co-opted self-regulation customer relationship management exaggerated claims express warranty full warranty implied warranty limited warranty Chapter 12-

Selected Key Terms (continued) mandated self-regulation negotiated self-regulation plot placement product information product placement psychological appeals puffery pure self-regulation right to be heard right to be informed right to choose right to safety self-discipline self-regulation spokesperson placement warranties weasel words Chapter 12-