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Comparison between two retail companies picked are Walmart and Costco

The two retail companies picked are Walmart and Costco whose 2017 Financial statement links are provided below: WALMART https://www.nasdaq.com/symbol/ wmt/financials?query=income- statement COSTCO https://www.nasdaq.com/symbol/ cost/financials?query=income- statement Both organizations are well known brands and position themselves well with their customer base. Walmart’s value proposition is “We save people money so they can live better”. On the other hand, Costco’s value proposition is “All-in-one convenience and everyday affordability”. Both retailers focus on cost saving for their customers. Looking at their financial statements and by analyzing them a few key areas are evident when comparing the two organization. Looking at the current ratio and quick ratio we can determine the short-term solvency of each organization. The current ratio can be determined by dividing the assets by the liabilities. Walmart’s current ratio sits at 0.86 while Costco’s sits at 0.99. The quick ratio is c
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the ethical and social responsibilities of the advertisers


Advertising is about enticing consumers which come in many forms, the most important once are informational and branding advertising. The informational advertising employs facts to persuade consumers while the branding advertising attempts to attach a personality and reputation to a product (Business Ethics, 2012).

The advertiser presents a product favorably to persuade consumers to make a purchase, and it is unethical to go so far as to manipulate consumers into buying by depriving them of information they need to make a good decision. The ethical and social responsibilities of the advertiser are to present the companies in a favorable way while following the tenet rule “treating others as you would like to be treated”. The advertiser should not present misleading statistics or false information to deceive consumers (Mach, 2018).

1. Often, celebrities contract to endorse a product, but should they use the product regularly, or even like the product before they are allowed to claim that they “endorse” the product?

Deceptive, untruthful, and false advertising is an offense under United States Law, and the consumers could sue the corporations for the false advertising to recover the compensation for the all the incurred losses (Jacoby&Meyers, 2018). In my view the celebrities can advertise the products that they do not use; however, they have some information about the product that the product is good but the celebrity personally does not use. However, it is completely unethical if the celebrities, endorse a product which they have information about the bad quality of the product and they do not like and personally do not use them.

2. If you were assigned to sell a product called “Sweet Treats” with the slogan, “so sweet, it will make you tweet,” but you thought the product tasted sour, and not at all sweet, what would you do?

I would not accept the advertising contract and will never endorse something which is not true and misleads people because my false endorsement will cause vandalism to my reputation and people lose. The Federal Trade Commission (FTA) declares that unfair and deceptive practices are illegal, and the agency is charged with the responsibility to investigate and prevent them. The FTA egregious the cases of misleading advertising which seriously affect individual welfare (Business Ethics, 2012).

3. Explore where the line is between harmlessly implying that someone is promoting a product, and someone dishonestly claiming that they genuinely believe the product is the best.

In my point of view, the best way is that the advertisers decide ethically, and also the product quality should meet the standards and the corporations provide quality confirmation by providing aftersales services. it is not unethical if someone promotes a product about which he/she has information that product quality, price, and benefits is good, and not harmful to the consumer. However, it is completely unethical if someone promotes and endorses a product about which he/she does not have information, or has the information that the product is not good but dishonestly claim that the product is best in order to promote the product, this is a misleading statement, unethical and unlawful.

 

 

References

Business Ethics. (2012). The selling Office: Advertising and Consumer Protection. Retrieved from:  https://my.uopeople.edu/pluginfile.php/270990/mod_book/chapter/151900/Text%20the-selling-office-advertising.pdf

Jacoby&Meyers. False and Misleading Advertising. Retrieved from: http://www.jacobymeyers.com/false-and-misleading-advertisi.html

Mach. S. Advertiser’s Ethics and Social Responsibilities. Retrieved from: http://smallbusiness.chron.com/advertisers-ethics-social-responsibility-67776.html


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