Corporate Governance Caselet 1 Real Juice Company The company is in the business of produc
Kindly solve these questions. They are related to HR & Finance Management.
Corporate GovernanceCaselet 1Real Juice CompanyThe company is in the business of producing and marke±ng fruit juices. Ritu joshi and Rohit Jainwere looking at the ad copy and turning it over and over again in their mind. The copy read,“The best Ftness plan for you real fruit, honest juice and no sugar. This was the main copy line.The more Ritu joshi repeated this line in her mind the uneasier she became. Something is wrongin the copy, she said to Rohit jain, the marke±ng head. We cannot say best for health when weknow for sure that the juice contain preserva±ves and food color. Rohit jain said, I don‟t see ifanything is wrong in this. With food colors and preserva±ves added we couldn‟t say it is best.This is what is wrong m replied Ritu. Rohit said, but this is hyperbole and permi²ed by law.There is nothing wrong in saying this. Have you not almost no±ced all detergent brands say forbest wash or whitest wash? This is simply a way of pu³ng your claim of brand‟s superiority. Weare not talking about detergent washes and fabrics it is a health and Ftness fruit juice. We couldnot say something like‟, a great way to plan your Ftness programme‟ or something like that. Weare saying real fruit, honest juice, and no sugar‟ … not a word about food color andpreserva±ves‟. Any consumer can contest our claim.” Rohit Jain though for a moment then said,“let us get the legal opinion from our lawyer, Amit soni, to be on the safe guard.Amit listened to what Ritu had to say then said, “Companies use adver±sing to provideinforma±on to consumers and o´er alterna±ves in a compe±±ve market situa±on. Adver±sing isfalse when it says A=B and that is not true. But the ad is misleading; it falls under the categoryof unfair trade prac±ce.” Loudly reading the ad copy, Amit said‟” hyperbole such as best, newestmost e´ec±ve way, are permissible and consumers are unlikely to take such claims with antseriousness. When a brand says its air-condi±oner is best or most eµcient, consumers knowthat this is just a manner of speech and do not truly believe and put their money on suchclaims. “Yes, Real juice passes the legal test Fne, but ethically it won‟t be correct,” said Ritujoshi. “Please understand. Here you are not making a claim,” said Amit soni. Amit soni said,”compara±ve adver±sing is healthy but the adver±ser must be clear about the claims to bemade. In this case, you are saying that Teal juice is good because it comes in cans and bo²leddrinks are not as good. This is a direct a²ack on bo²led drinks. Adver±ser does not disclose allthe parameters they have considered in their conclusion of „best‟. They may select some majorones or may cheese to highlight the trivial ones and ignore the major ones. These things happenevery day and are not strictly provided under the law. There must be prima facie evidence ofdamage or misrepresenta±on to establish a case of unfair trade prac±ce.” “so, we are legallysafe,” said Rohit jain. “We will reword this campaign, but our other campaigns have passed tomuster.” Ritu joshi felt di´erently, she said, “legally we may safe, but we have to also take anethical view.” We must not forget that our primary pla¶orm is health and Ftness. Thisconvenience angle is also cra±ng and impression of „good for health‟. I believe that asresponsible adver±sers, we have to be more concerned about the ethical aspects than merelythe legal angle. This is where we come to the line between what is legal and what is ethical. Wemay be legally right but our act could be unethical if the word or pictures in the ad could leadthe consumer to believe something that is not true. The aura of the Ftness instructor used asendorser creates an impression that the informa±on is coming to consumers from anenvironment where there are people whose opinion consumer‟s view as being correct.Otherwise why use the instructor as endorser.”