Advertising and corporate social responsibility

25 October 2004

The Director-General of the Advertising Standards Authority, Christopher Graham, today warned the advertising industry that the effective self-regulation of non-broadcast advertising is inseparable from Corporate Social Responsibility (CSR). Speaking at the Westminster Media Forum today Mr Graham told advertisers: "Ethical communications should be part of any CSR checklist. It's no good if you treat staff and suppliers decently, but mislead or offend customers or publish socially irresponsible messages. CSR raises the stakes. If a company does not walk its own CSR talk it runs the risk of being accused of both social irresponsibility and hypocrisy - a serious reputational double whammy."

Whilst effective CSR might diminish the need for regulation, the ASA is needed as a referee to ensure fair play between competitors: "Those enterprises that believe it is in everybody's interests to uphold standards and to behave ethically need to be assured they will not lose out to those who decide not to play the CSR game. Otherwise bad advertising drives out good."

If systems are not effective, he explained, they will not win the confidence of consumers, competitors or policy makers. For this reason, there is still a role for the regulator as a policeman. But, Mr Graham explained: "It is a different kind of policeman from the old-style regulator - more community policing, working with the grain of the advertising business."

He concluded: "People at every level of business have to commit to supporting self-regulation and to behave responsibly. Mere rhetoric about self-regulation must never be used as a cover for what is in reality simply a plea by an industry to be left alone. Self-regulation is not something that can be done for the advertising business by the ASA."