1. 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
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Business and Society: Ethics and Stakeholder Management, 6e • Carroll & Buchholtz Copyright ©2006 by South-Western, a division of Thomson Learning.  All rights reserved

2. 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.
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3. 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
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4. The Consumer’s Magna Carta
Right to Safety
Right to Be Informed
Right to Be Heard
Right to Choose
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5. The Divisions of the FTC
Advertising practices
Credit practices
Enforcement
Marketing practices
Service industry practices
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6. 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
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7. 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
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