Bruno Fagali has posted some interesting information about the practices in advertising. He says that there are five telling signs of unethical advertising. When a company hits all of these five points they can be considered to be conducting unethical practices. The signs are easy to spot. Most scandals that involve ethical corruption have an advertising agency involved. Because of the prominence of corruption and the involvement of various agencies, Brazil has implemented the anticorruption compliance program.
Bruno Fagali is a champion of anticorruption compliance program and a main supporter. As a prestigious attorney who specializes in human rights he has made his name by facing large corporations and bringing an end to their ethical corruption. Fagali is the founder of Fagali Advocacy.
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The five red flags of ethical corruption that Bruno Fagali has found to be common across advertising agencies are the benchmark for determining whether or not a company has breached the anticorruption compliance program. The first red flag is intermediation of vehicle payments by the advertiser according to terra.com.br. This means the advertiser uses an intermediary party to funnel payments through in financing their campaigns. This is a red flag because the advertiser is circumventing the traditional and lawful methods of payment in an effort to avoid scrutiny or taxation. The second red flag is media assignment criteria. This is also known as media planning. An advertising agency will supply their own media outlets for the advertising campaign and the client will rely on these outlets for their advertising. This can become unethical when the media outlets are in cooperation with the advertising agency. Commissions or other compensation can be arranged between the advertising agency and their selected media outlet that may put the client at a disadvantage. The third red flag is incentive plans. These incentive plans can be used by the larger advertising agencies to place the smaller firms at a major disadvantage. The plans are used to provide their clients with a lower price and undercut the smaller firms with lower resources. The fourth red flag is a relationship with the advertiser office and employees. These relationships can become conflicts of interest based upon the level of interaction between agents. Advertising agencies can use the relationship to give their clients gifts and take them on expensive trips. These are unethical because they foster a strong sense of obligation to the advertising agency and the relationship may not be in the best interest of the client. The fifth red flag is fees on external services and supplies.
Learn more about Bruno Fagali: http://www.agenciaoglobo.com.br/dinonews/Default.aspx?idnot=36030&tit=Rio+de+Janeiro+s%C3%B3+contratar%C3%A1+empresas+que+tenham+ou+estejam+dispostas+a+ter+Programa+de+compliance%2C+reporta+Bruno+Fagali