Introduction and Situation Analysis
The application of industry-supplied teaching materials in schools becomes a common practice which, however, is associated with a few controversial implications − on the one hand, it allows enterprises to achieve both corporate and social benefits while, on the other hand, it uses the learning process for exposing children to advertising stimuli.
According to Aitken and Watkins (2017), due to budget deficits, many educational institutions across the globe increasingly rely on commercial funding. The given funding activity is often based on reciprocal relationships between schools and corporations and take a form of corporate social responsibility (CSR) strategies (Aitken & Watkins, 2017). As stated by Shaw (2014), the exploitation of children’s buying power and their ability to influence parents’ decisions significantly helps companies to gain superior revenues. However, in the given situation, the status of potential young consumers as stakeholders, as well as corporations’ responsibilities towards them, is often ignored.
Stakeholder Analysis
- The major stakeholders involved in the case are children and corporations that provide instructional materials to educational institutions.
Children are regarded as a vulnerable consumer group. Watkins, Aitken, Robertson, and Thyne (2016) note that their vulnerability to marketing messages is defined by the underdeveloped cognitive ability to understand and recognize the actual intents of advertising. Thus, the issues of fairness of marketing targeted at children arise. At the same time, by supplying teaching materials to schools, corporations aim to improve own image and increase profitability, which is core to organizational sustainability as a whole and employee well-being, in particular.
- Communities and societies are represented in the role of relevant stakeholders on a broader scale.
The concept of CSR and the social and ethical motivations associated with it imply that there are some drawbacks and adverse factors in the social environment, which interfere with the development of social welfare. In the given case, they include increased student loans and shrinking student budgets that create barriers to better academic performance. The CSR initiatives, i.e., commercial funding and provision of teaching aids, aim to remove those barriers.
Analysis Based on Ethical Theories
- From the deontological perspective, actions are justified by circumstances and factors rather than the consequences and, therefore, advertising in schools can be considered unethical.
According to Kantian categorical imperatives, an ethical behavior implies that others are not treated as a means to an end (“Immanuel Kant,” 2012). Thus, from consumers’ perspective on advertising in schools, corporations’ actions are not right because they exploit a vulnerable population group to increase profits. However, in case the company supplies teaching materials only to fulfill students’ need for a high-quality education, its behavior is ethical.
- From the perspective of meta-ethical moral relativism, advertising in schools can be regarded as morally acceptable because the theory suggests that there is no absolute truth or falsity in moral judgments.
Regarding the truth-value, such judgment as “The use of industry-supplied materials in schools is morally wrong” can be true relative to one community, and false relative to another (“Moral relativism,” 2015). For instance, when corporate and parental perspectives are compared, the given statement may be false relative to enterprises’ management because they consider that advertising in schools is associated with both social and corporate benefits. However, parents will likely regard this judgment as true because they usually perceive children’s exposure to advertising as negative (Watkins et al., 2016).
- Since, from the utilitarian point of view, the moral value of an action is defined by the overall value of its outcomes and effects, advertising in schools can be considered ethical in some cases.
Utilitarians judge actions based on the quality of results that they produce (Lazari-Radek & Singer, 2017). The supply of instructional aids to classrooms can be considered moral as it allows children to continue learning. Moreover, Shaw (2014) states that children who watched Channel One − “a television newscast for middle and high school students” − showed a slightly better academic performance (p. 141). Therefore, if corporation provides media, which can stimulate children’s engagement in learning, and if the good results compensate possible negative effects. In this way, the exposure of children to advertising becomes morally acceptable.
Conclusion and Recommendations
- Often enterprises supply teaching aids to schools as part of CSR initiatives, yet such activities may result in reputational harm if consumers believe that the firm’s behavior is driven more by self-interest rather than by desire to do good for the community.
Marketing activities are meant to balance corporate needs and social interests. At the same time, CSR aims to honor moral and legal obligations of enterprises before immediate stakeholders. However, if, in an attempt to practice benevolence, the company does not consider consumer vulnerability, it poses serious threats to stakeholders’ well-being.
- In order to avoid harm to reputation, the company must assess all potential negative and positive effects of its marketing activities.
Potential customers will likely perceive the supply of learning and teaching resources by enterprises as positive when their aids are not provided as branded products. Corporate support for educational institutions is unarguably associated with potential benefits for all involved stakeholders. However, it can be recommended for enterprises to reduce the intensity of advertising in schools without decreasing material supply. The firm can inform consumers about its current CSR initiatives, and contributions to social welfare development through other marketing practices, such as packaging and social media communication. In this way, it may achieve greater customer attraction and loyalty.
References
Aitken, R., & Watkins, L. (2017). ‘Harm or good?’: Consumer perceptions of corporate strategic giving in schools. The Journal of Consumer Affairs, 51(2), 406-432.
Immanuel Kant: The duties of the categorical imperative. (2012). Web.
Lazari-Radek, K. D., & Singer, P. (2017). Utilitarianism: A very short introduction. Oxford, England: Oxford University Press.
Moral relativism. (2015). Web.
Shaw, W.H. (2014) Business ethics (8th ed.). Boston, MA: Wadsworth Cengage Learning.
Watkins, L., Aitken, R., Robertson, K., & Thyne, M. (2016). Public and parental perceptions of and concerns with advertising to preschool children. International Journal of Consumer Studies, 40(5), 592-600.