Legal and Ethical Considerations in Marketing, Product Safety, and Intellectual Property Lawanda Hall
LEG 500: Law, Ethics, and Corporate Governanace
Prof. Annette Redmon
Legal and Ethical Considerations in Marketing, Product Safety, and Intellectual Property In this paper I am going to research 3-5 ethical issues relating to marketing and advertising, intellectual property, and regulation of product safety. I will argue for or against Direct-to-Consumer (DTC) marketing by drug companies. I will determine who regulates compounding pharmacies under the current regulatory scheme, what the Food and Drug Administration (FDA) could/should have done in this scenario, and whether the FDA should be granted more power over compounding pharmacies. I will decide whether PharmaCARE’s use of Colberian intellectual property would be in ethical accordance with (a) utilitarianism (b) deontology (c) virtue ethics (d) ethics of care (e) your own moral/ethical compass. I will analyze the way PharmaCARE uses U.S. law to protect its own intellectual property while co-opting intellectual property of Coleberia. I will suggest at least 3 ways the company could compensate the people and nation of Colberia for the use of its intellectual property and the damage to its environment. I will compare PharmaCARE’s actions with those of at least 1 real-world company whose creativity in skirting legal technicalities led to ethical lapses and financial loss. I will determine the success PharmaCARE and WellCo shareholders would have in suits against the companies. I will determine whether or not PharmaCARE lives up to its brand. I will recommend at least 3 changes PharmaCARE can make to be more ethical going forward. There are many ethical issues relating to marketing and advertising, intellectual property, and regulation of product safety. Let’s look closely at a few and see how they have a common component that needs to be included for an organization to have strong ethical and legal relationships.
Ethical Issues Relating to Marketing and Advertising
Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others (Armstrong & Kotler, 2003). Advertising consists of paid notices from identified sponsors normally offered through communication media (Lane, King, & Russell, 2005). The ethical issues in which I researched for marketing and advertising are stereotyping, truth in advertising, and advertising tactics. The advertising industry operates within strict federal regulations and is monitored by the Federal Trade Commission. When it comes to marketing and advertising, marketing campaigns often cast particular groups in stereotypical roles, such as washing powder advertisements that show women as housewives preoccupied with their laundry. The stereotypical impression created by commercial marketing is that having an abundance of possessions will lead to fulfillment and happiness, however the opposing message is that the consumer will not be part of the happy group if he/she does not purchase the product. The Federal Trade Commission Act set forth requirements for truth in advertising and created the FTC to enforce the provisions of the act (www.ftc.gov). The Bureau of Consumer Protection's Business Bureau states that advertisements in the U.S. must by truthful, not deceptive and not unfair (www.ftc.gov). Deceitful statements can mislead consumers who act reasonably under normal circumstances and are likely to affect a consumers' purchase decisions. The FTC defines unfair advertisements as those that are likely to cause substantial, unavoidable injury when using a product, unless the injury is outweighed by the provable benefits. Advertising tactics present additional ethical challenges. Advertisers have a range of less than ethical tools at their disposal. These tools include subliminal advertising, emotional appeals,...
References: Armstrong, G. & Kotler, P. (2003). Marketing an Introduction. (6th ed.). Pearson Prentice Hall. Upper Saddle River NJ.
Halbert, T. & Ingulli, E. (2012). Law and ethics in the business environment. (7th ed.). Mason, OH: South-Western Cengage Learning.
Lane, W.R., King, K., & Russell, J.T. (2005). Kleppner’s advertising procedures. (16th ed.). Pearson Prentice Hall. Upper Saddle River NJ.
Please join StudyMode to read the full document