• by Ian Cross , Op-Ed Contributor, January 6, 2017

Transparency and the media industry aren’t typically synonymous, at least not according to the Association of National Advertisers (ANA). Earlier this year, the ANA released a 58-page report detailing an eight month-long investigation led by K2 Intelligence. The report suggests that unethical practices appear to take place between advertising agencies and their media partners. Following the report, Ebiquitypublished a set of media transparency guidelines for ANA members and the industry. All of this is helpful for those already in the field, but what do these findings and guidelines mean for business schools preparing the next generation of marketers? 

The troubling ANA report highlights the opportunity for business schools to alter industry behavior, starting with the next generation of practitioners. Business schools can do this by elevating the importance of ethics and the value of trust. Additionally, they need to call attention to the innate human tendency to be driven by money rather than sound business practices in order to best prepare students for the world beyond the four walls of the classroom. 

Here are three key areas highlighted in the report b-schools can capitalize on: 

Ethics

One key takeaway from this report is what is categorized as a glaring lack of ethics in the media industry. ANA reported the pervasive practice in the US market of agencies receiving media incentives, free inventory and cash rebates, failing to share them with clients and thus, shattering the ethical standards they’re held to. To an educator, this is unnerving. The unethical practices we see should have been addressed and warned against in business school. We have seen the effects of ethical lapses in the energy industry, financial industry, etc. and now, it’s becoming apparent in the media industry. 

Students are impressionable; their views of the world are molded by what they are exposed to. When it comes to the advertising industry in particular, the media industry (think Mad Men) has painted a glamorous picture. In an age of global media conglomerates and media technology platforms like Facebook, it’s not always clear if the agency is acting in its client’s best interest. As educators, it’s our responsibility to paint a clear picture of the landscape - regardless of industry - and equip students with the necessary skills to execute ethical business practices, and help them to recognize when there is a lapse in ethics. We are shaping the next wave of marketers and communicators. It is imperative that we properly prepare our future business leaders to know right from wrong before they join the workforce and to learn the marketing, business and technology skills to actively manage complex agency relationships and marketing decisions. 

Trust

There is something to be said about the value of establishing and maintaining trust with those you work with, no matter what side of the partnership you’re on or what industry you work in. In the ANA report, it was clear that clients trusted their agency partners to act in their best interest (with impartial advice) to target the right audience with the most compelling message in the most suitable media. 

Before leaving business school, students need to understand the power of honest disclosure in business engagements; legal contracts that are founded on trust and in the belief that no member of the agreement will be taken advantage of or scammed as a consequence. If we send students out into the business world without an understanding of the importance of trust in a partnership, we do them a disservice that will set them up for failure. Trust follows ethical business practices. 

Greed

Trust and ethics came second in the ANA findings to one very clear motivator: money. Media partners were said to be collecting rebates to bring in more cash than they were disclosing. The drive to boost cash flow trumped all other facets of ethical and honest business agreements. 

For those of us in education, we’ve all seen it: the bright student who turns down the opportunity to work for a great small company in favor of making more money on the 100th floor of a bright and shiny tower. That’s not how we want students to think, that doesn't prepare them for success.

It is imperative we teach students to think beyond the salary, and ask themselves questions like, does this company have good business practices? Are they reputable? Does the company share my values? Will I be a valuable asset to the team? These are the questions we must impress upon students as the most important before accepting any job offer. They are questions that, in the case of this report, many advertising agencies failed to ask themselves. 

The best learning opportunities come from real-life scenarios. Bringing the lessons relevant to business students from this report - the value of ethics and trust and the dangers of greed - into the classroom is something we can’t pass up; for our students, and for the future business leaders.