Ethical Advertising: Applicable in Private and Public Transactions

Advertising has been a medium for profit-oriented companies to promote their products and services. It is defined as the dissemination of information or messages for a business purpose usually intended to promote commercial transactions or to enhance a business’ general standing in the marketplace or the community under the Philippine Advertising Code of Ethics Manual. In this context, the Advertising Board of the Philippines adopted the Advertising Code of ethics with the following purposes:

1. To promote truthful and informative advertising for the benefit of consumers and the

public in general.

2. To upgrade the practice of advertising in order to develop public confidence in advertised products and services and in the credibility of advertising as an economic activity.

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In the case of the Commission on Audit (COA), a government institution mandated to audit government agencies and funds, advertising through media has become part of promoting transparency and accountability in the government. One particular government transaction whereby advertising is a critical component and has the attention of COA is within the context of competitive bidding process.   

Competitive bidding refers to a method of procurement which is open to participation by any interested party and which consist of the following processes: advertisement, pre-bid conference, eligibility screening of bids, evaluations of bids, post - qualification, and award of contract, the specific requirements and mechanics of which shall be defined in the implementing rules and regulations to be promulgated under Republic Act 9184- The Government Law on Procurement.

COA observes the competitive bidding procedures undertaken by the government to ensure that government procurement of goods, services and infrastructures are in accordance with the Government Procurement Policy Board (GPPB) and RA 9184. These laws dictate that advertising is an initial step for a competitive bidding.

Section 21. Advertising and Contents of the Invitation to Bid provides that:

In line with the principle of transparency and competitiveness, all Invitations to Bid contracts under competitive bidding shall be advertised by the Procuring Entity in such manner and for such length of time as may be necessary under the circumstances, in order to ensure the widest possible dissemination thereof, such as, but not limited to, posting in the Procuring Entity's premises, in newspapers of general circulation, the G-EPS and the website of the Procuring Entity, if available. The Invitation to Bid shall contain, among others:

(a) A brief description of the subject matter of the Procurement;

(b) A general statement on the criteria to be used by the Procuring entity for the eligibility check, the short listing of prospective bidders, in the case of the Procurement of Consulting Services the examination and evaluation of Bids, and post-qualification;

(c) The date, time and place of the deadlines for the submission and receipt of the eligibility requirements, the pre-bid conference if any, the submission and receipt of bids, and the opening of bids;

(d) The Approved Budget for the Contract to be bid;

(e) The source of funds;

(f) The period of availability of the Bidding Documents, and the place where these may be secured and;

(g) The contract duration; and

(h) Such other necessary information deemed relevant by the Procuring Entity.

The purpose of advertisement in the competitive bidding process is to inform the public regarding the procurement activities of the government and to allow prospective bidders to participate in competitive bidding. Posting of this advertisement in newspapers of general circulation and on the website of the procuring entities promotes transparency and accountability in government transactions. Omission and ambiguity of advertisement in the bidding process has corresponding sanctions and penalties on the part of the procuring entity. On the other hand, section 3 & 4 of the Philippine Advertising Code of Ethics state that the purpose of advertisement is to provide the general public with relevant and truthful information on products and services and to encourage healthy competition that promotes free enterprise. Both agree that advertisement is for the promotion of transparency and fair competition. In this way we can conclude that both private and government transactions advocate the practice of ethical advertisement.