13.1 Intersection of law and ethics in PR

Public relations professionals must navigate a complex landscape of legal requirements and ethical principles. While laws set minimum standards, ethical guidelines often demand higher levels of integrity and transparency. Understanding both is crucial for maintaining public trust and credibility.

Key laws impacting PR ethics include the First Amendment, FTC regulations on advertising, SEC rules for financial disclosures, and privacy laws. Case studies highlight the consequences of ethical violations, from legal penalties to reputational damage and professional sanctions.

Legal and Ethical Considerations in Public Relations

Legal requirements vs ethical principles

Top images from around the web for Legal requirements vs ethical principles

• 

  Glossary of ethical principles, terms and values (L. Hammo… | Flickr View original

  Is this image relevant?

• 

  Code Of Ethics - Legal image View original

  Is this image relevant?

• 

  Ethics And Compliance - Free of Charge Creative Commons Law book image View original

  Is this image relevant?

• 

  Glossary of ethical principles, terms and values (L. Hammo… | Flickr View original

  Is this image relevant?

• 

  Code Of Ethics - Legal image View original

  Is this image relevant?

1 of 3

Top images from around the web for Legal requirements vs ethical principles

• 

  Glossary of ethical principles, terms and values (L. Hammo… | Flickr View original

  Is this image relevant?

• 

  Code Of Ethics - Legal image View original

  Is this image relevant?

• 

  Ethics And Compliance - Free of Charge Creative Commons Law book image View original

  Is this image relevant?

• 

  Glossary of ethical principles, terms and values (L. Hammo… | Flickr View original

  Is this image relevant?

• 

  Code Of Ethics - Legal image View original

  Is this image relevant?

1 of 3

• Legal requirements establish the minimum standards of acceptable behavior enforceable by law (criminal penalties for violations)
• Ethical principles go beyond legal requirements set higher standards for PR professionals maintain public trust and credibility
• Legal compliance and ethical behavior are both essential for PR professionals
  • Legal requirements and ethical principles often overlap and reinforce each other (truthfulness in advertising)
  • In some cases, ethical principles may require actions that exceed legal minimums (disclosing potential conflicts of interest)

Laws impacting PR ethics

• First Amendment of the U.S. Constitution protects freedom of speech and press allows for open communication and debate in the public sphere
• Federal Trade Commission (FTC) regulations prohibit deceptive or misleading advertising practices require disclosure of sponsored content and material connections (influencer marketing)
• Securities and Exchange Commission (SEC) regulations govern disclosure of financial information for publicly traded companies prohibit insider trading and market manipulation
• Privacy laws regulate the collection, use, and protection of personal data require transparency and consent in data practices (General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA))

Navigating Legal and Ethical Challenges in PR

Case studies of PR ethics

• Case study: Undisclosed sponsored content
  • Legal issue: Violation of FTC regulations requiring disclosure of material connections (paid product placements)
  • Ethical issue: Lack of transparency and potential deception of the public erodes trust in the brand
• Case study: Selective disclosure of financial information
  • Legal issue: Violation of SEC regulations on fair disclosure (Regulation FD) gives unfair advantage to certain investors
  • Ethical issue: Unfair advantage for certain investors and erosion of market integrity damages company's reputation
• Case study: Misuse of personal data in targeted advertising
  • Legal issue: Violation of privacy laws and regulations (unauthorized sharing of customer data with third parties)
  • Ethical issue: Invasion of privacy and potential harm to individuals damages trust in the company

Consequences of ethical violations

• Legal consequences
  • Civil penalties and fines (FTC fines for deceptive advertising)
  • Criminal charges and imprisonment in severe cases (insider trading)
  • Regulatory sanctions and restrictions on business activities (SEC trading suspensions)
• Ethical consequences
  • Damage to personal and organizational reputation (loss of consumer trust)
  • Loss of public trust and credibility (boycotts and negative publicity)
  • Erosion of relationships with stakeholders (clients, media, public)
• Professional consequences
  • Disciplinary action by professional organizations (Public Relations Society of America (PRSA) revocation of membership)
  • Loss of professional certifications and memberships (Accreditation in Public Relations (APR))
  • Difficulty in securing future employment in the PR industry (reputational damage)