Ethics

Corporations can have a vast impact on childrens lives starting from a young age. These corporations have the responsibility to act in a way that is not harmful to childrens health, education or upbringing. Corporations target children as a market. Marketing investment on promotions and advertising strategies intended for children is significant (Kazmi and Crane 567). Children are recognised not only as a large pool of consumers but also as long-term consumers of brands they have grown to trust and used in childhood (567). The return on investment from marketing activities for children yields short and long-term impact on firms. However, corporations should also ensure that they act responsibly in marketing to children. Children comprise a vulnerable group (568) that requires care and guidance in the growing-up years. As part of the community, corporations have responsibility in ensuring childrens welfare.

Corporations affect children through advertising. The message embedded in advertisements together with other subtle messages influence children. An explanation for this influence is the social learning theory, which provides that children learn not only through their own experiences but also through the knowledge and experiences shared to them and observed from the people around them (Neukom and Ashford 5). Advertisements become a venue for social learning when these are perceived as acceptable or believable based on the permission given by parents in viewing media such as the television as well as depending on how well advertisements can relate to children. Parents allowing their children to watch television or view the Internet are deemed to have expressed tacit approval of advertising content. Unless parents provide limits to media viewed or explain media content, children are likely to believe advertising content and reflect these messages in their behaviour.

Concurrently, advertisements socialise children as consumers (Kazmi and Crane 569). Advertisements provide information on products intended for children and use techniques to influence childrens consumption of these products. Using children as actors or voice talents, using themes or scenarios recognisable by children, or airing advertisements in shows for children are likely to influence the consumption behaviour of children based on cues over what they should be and have. Fashion is a common area of advertising for children. Advertisements on clothing influence how children want to look like. Childrens fashion influences identity formation and socialisation with peers. Food is another common area of advertising for children because the food purchased and prepared for children constitute a significant aspect of household consumption. Although parents buy groceries, the food preferred by their children, based in part on advertising influences, determines food consumption.

Advertisements can affect children directly or indirectly. Direct influence is explained by the social learning theory and the socialisation of children as consumers. Advertisements affect children by exposing them to ideas and emotions that influence how children see themselves and the material representations of who they are as well as how children behave not only as consumers but also as members of social groups such as the family, the school system, and the community. Indirect influence is via mediating factors (Kazmi and Crane 580) such as consumption decision of parents, areas of concern of teachers and the community, and policy development of the government on matters affecting children.

By exerting a significant influence on children, companies have a responsibility to ensure that the influence exerted considers the interests of children. There are three general types of responsibilities towards children that companies need to address. The first is to provide products and services that serve the interest of children (Kazmi and Crane 580). This responsibility is complied with directly by manufacturing and producing toys that are safe and food options appealing to children that are not inimical to their health. Providing educational games and reducing sugar and sodium in food intended for children serve the responsibility to provide products that contribute to childrens interest.

The second responsibility is to contribute in enabling the fulfilment of childrens interests (Kazmi and Crane 580). Support for charity events and organisations that advocate childrens interests is one way of meeting this responsibility. Scholarships, sports clinics, and community health campaigns support childrens welfare. Implementing family-friendly work policies also enable the interests of children to have quality time with their parents. Workplace flexibility is an example of an organisational practice that helps parents balance their work and family life. Being able to balance both work and family obligations mean having time to care for children.

The third interest is to participate in initiatives, which cater to childrens interests done by other parties (Kazmi and Crane 581). Compliance with regulations imposed by the government that serve the interests of children such as rules on manufacturing, packaging and advertising comprise adherence to this responsibility. Involvement or participation in industry-wide regulation operating through the collective agreement of member companies that cover responsible advertising is another example. Support of advocacies for children to influence policy development or corporate perspectives also fulfils this responsibility.

Companies that ignore these responsibilities are likely to cause harm to children. The harm could be direct or indirect and short or long term. Failure to fulfil the responsibility to provide products and services that serve the interest of children cause detriment. The recall of Fisher-Price toys in 2007 because of high lead content of the paint used as well as the withdrawal of Cadbury products for alleged salmonella contamination in 2006 and the withdrawal of peanut butter brands and pistachios for the same reason in 2008 are examples of failure to address the responsibility to provide goods with consideration of childrens interest. In the case of lead contamination, the impact on health could be gradual and with adverse effects experienced years after oral or skin exposure to lead. The effect of salmonella is observable days after exposure and complications can even cause death to children. While the companies initiated the recall of their products, the emergence of problems with their products reflects on poor consideration of childrens health and the impact. The product withdrawals are also precipitated by complaints or tests, without which the companies could have continued with their production practices. Advertisements for children do not usually address the risks by highlighting only the good things about these products. Parents purchase these products for their childrens consumption without knowledge of the risks. Even with risks, companies seek to minimise publicity by exercising discretion in handling issues about products and advertisements for children. Non-disclosure of complete information and misinformation in advertisements as well as cover-ups are unethical business practice that cause children harm.

With the recognised importance of children as a market segment and the serious impact of ethical issues on corporate responsibility in advertising for children or selling to children, companies are now enhancing the focus on childrens welfare as an area of social responsibility. Companies such as Fisher-Price and Cadbury experienced declines in sales after the withdrawal of their products for quality issues and had to implement programs to rebuild brand value. Often, these issues are irreversible and can cost the company its pool of loyal consumers and sales. Companies wanting to prevent experiencing these problems are exercising care in their campaigns tied to organisational processes. This involves the shift from the bottom line as the sole focus to the greater acknowledgement of the extent that corporate presence affects the market. Integrating the interests of children as a corporate social responsibility leads to advertisements that fall under ethical practice by addressing childrens interests.

Recognising childrens interests as an area of corporate social responsibility leads to commercial marketing practices with a positive impact on children (Neukom and Ashford 3). By actually benefitting children, companies can minimise issues over their corporate responsibility towards children. Advertisements can be used to actively socialise children towards positive thinking and behaviour. In the health program of PSI, a non-profit organisation, in the three African countries, Cameroon, Madagascar and Rwanda, advertising campaigns together with personal interventions were employed to educate young people over responsible sexual behaviour to address the problems of unwanted pregnancies and spread of sexually transmitted diseases (7, 9).  To appeal to the target segment, PSI used commonly accessible and attractive media such as colourful magazine, television, and radio advertising (9). The message used the lingo of young people (9). A common logo was used by PSI, the healthcare providers and partners, and condom manufacturer sponsoring the program (9). The program was found to have a positive impact on the sexual behaviour of young people (14) and even on the participation of parents, community sectors, and the government (13). Similarly, advertising campaigns can be used by companies to positively benefit children and fulfil their responsibilities.
 
Corporate advertisements can have a positive or negative impact on children. Corporations have the responsibility to act in a way that is not harmful to childrens health, education or upbringing by integrating childrens interests in their corporate responsibility and using advertisements to actually benefit children. The recognition of children as a significant market and the adverse impact on firms of ethical issues over childrens welfare support advertising that considers childrens interests and provides actual benefits to children.