Transcript Chapter 12

Chapter 12
Prepared by Deborah Baker
Texas Christian University
Chapter 12-1
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CONSUMER STAKEHOLDERS:
INFORMATION ISSUES
and RESPONSES
BUSINESS & SOCIETY
Ethics and Stakeholder Management
Carroll & Buchholtz 6e
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 Outcomes
1.
Recite the consumer’s Magna Carta and explain
its meaning.
2.
3.
Chronicle the evolution of the consumer movement.
4.
Enumerate and discuss other product information
issues that present problems for consumer
stakeholders.
5.
6.
Describe the role and functions of the FTC.
Identify the major abuses of advertising and discuss
specific controversial advertising issues.
Discuss the strengths and weaknesses of regulation
and self-regulation of advertising.
Chapter 12-2
Chapter 12 Outline
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Chapter 12-3
The Consumer Movement
Product Information Issues
The Federal Trade Commission
Self-Regulation in Advertising
Summary
The Consumer’s Magna Carta
Right to Safety
Right to Be Informed
Right to Choose
Right to Be Heard
Chapter 12-4
The Divisions of the FTC
Advertising practices
Credit practices
Enforcement
Marketing practices
Service industry practices
Chapter 12-5
Selected Key Terms
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accurate information
ad creep
adequate information
ambiguous advertising
clear information
comparative advertising
concealed facts
consumerism
Chapter 12-6
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consumer’s Magna Carta
co-opted self-regulation
customer relationship
management
exaggerated claims
express warranty
full warranty
implied warranty
limited warranty
Selected Key Terms (continued)
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mandated self-regulation
negotiated self-regulation
plot placement
product information
product placement
psychological appeals
puffery
pure self-regulation
right to be heard
Chapter 12-7
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right to be informed
right to choose
right to safety
self-discipline
self-regulation
spokesperson placement
warranties
weasel words