PRABHU MURTHY INDUSTRIES: TO TRUST OR NOT TO TRUST
CASE STUDY SOLUTION
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SYNOPSIS
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On July 15, 2022, Sandeep Sevak, the senior marketing manager of Prabhu Murthy Industries Limited
(Prabhu Murthy), participated in a high-priority meeting attended by all of the company’s executives to
discuss a pressing issue. Prabhu Murthy’s unstable financial position and disappointing results had
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tarnished its reputation among investors. The company had to quickly raise funds by promoting itself as a
favourable investment option for the public and investors and Sevak was entrusted with developing an
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advertisement that would fulfill this purpose. As he contemplated the challenging week ahead, Sevak
grappled with determining the most effective course of action to achieve the company’s objective. How
would he convey the right advertising concept to effectively inspire confidence in investors and
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stakeholders? His contemplation would also underscore the importance of ethical communication in the
financial services industry.
So
OBJECTIVES
• Understand the ethical challenges involved in building trust in the context of financial service advertising.
• Analyze the implications of advertising strategies on stakeholder perceptions of trustworthiness.
• Develop skills to promote ethical behaviour and protect investors’ interests in financial communication.
• Evaluate the effectiveness of advertising campaigns in inspiring trust and influencing stakeholder decisions.
• Apply ethical principles to real-world scenarios in the financial services industry.
• Gain insights into the importance of transparency and honesty in financial communication.
• Consider the long-term implications of advertising on organizational reputation and stakeholder
relationships.
The Case Solution Starts From page 5
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ASSIGNMENT QUESTIONS
1. How does ethical communication theory, such as the ethics of care or dialogical ethics, inform the
development of advertising strategies in the financial services industry to ensure transparency and
promote trust?
2. What role does ethical communication theory play in guiding financial service providers to disclose
relevant information to stakeholders, ensuring their decisions are well informed?
3. How can Sevak apply ethical communication theories, such as the ethics of virtue or discourse ethics,
to assess the ethical implications of the financial advertisement he developed for Prabhu Murthy and
simultaneously establish trust in his organization?
4. How might Sevak’s practical ethical communication strategies, such as transparency and honesty in
financial communication, influence stakeholder perceptions of trustworthiness in the advertisement?
5. In what ways can Sevak use ethical communication strategies, such as dialogue and mutual respect, to
ensure the advertisement effectively inspires trust and influences stakeholder decisions, while also
addressing potential ethical challenges to build trust among retail and institutional investors?
The Case Solution Starts From page 5
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ANALYSIS
1. How does ethical communication theory, such as the ethics of care or dialogical ethics, inform
the development of advertising strategies in the financial services industry to ensure
transparency and promote trust?
Ethical communication theories, such as the ethics of care and dialogical ethics, play a crucial role in
shaping advertising strategies within the financial services industry to ensure transparency and foster trust.
These theories emphasize the importance of ethical considerations, relationships, and dialogue in
communication practices. In the financial services sector, where intangible products are prevalent,
establishing trust through a positive reputation is essential for customers to feel confident in their decision-
making processes.
The Case Solution Starts From page
, EXHIBIT -1: PRABHU MURTHY INDUSTRIES LIMITED APPROVED ADVERTISEMENT
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The Case Solution Starts From page
CASE STUDY SOLUTION
e
pl
SYNOPSIS
m
Sa
On July 15, 2022, Sandeep Sevak, the senior marketing manager of Prabhu Murthy Industries Limited
(Prabhu Murthy), participated in a high-priority meeting attended by all of the company’s executives to
discuss a pressing issue. Prabhu Murthy’s unstable financial position and disappointing results had
n
tarnished its reputation among investors. The company had to quickly raise funds by promoting itself as a
favourable investment option for the public and investors and Sevak was entrusted with developing an
tio
advertisement that would fulfill this purpose. As he contemplated the challenging week ahead, Sevak
grappled with determining the most effective course of action to achieve the company’s objective. How
would he convey the right advertising concept to effectively inspire confidence in investors and
lu
stakeholders? His contemplation would also underscore the importance of ethical communication in the
financial services industry.
So
OBJECTIVES
• Understand the ethical challenges involved in building trust in the context of financial service advertising.
• Analyze the implications of advertising strategies on stakeholder perceptions of trustworthiness.
• Develop skills to promote ethical behaviour and protect investors’ interests in financial communication.
• Evaluate the effectiveness of advertising campaigns in inspiring trust and influencing stakeholder decisions.
• Apply ethical principles to real-world scenarios in the financial services industry.
• Gain insights into the importance of transparency and honesty in financial communication.
• Consider the long-term implications of advertising on organizational reputation and stakeholder
relationships.
The Case Solution Starts From page 5
, e
pl
m
Sa
n
tio
lu
So
ASSIGNMENT QUESTIONS
1. How does ethical communication theory, such as the ethics of care or dialogical ethics, inform the
development of advertising strategies in the financial services industry to ensure transparency and
promote trust?
2. What role does ethical communication theory play in guiding financial service providers to disclose
relevant information to stakeholders, ensuring their decisions are well informed?
3. How can Sevak apply ethical communication theories, such as the ethics of virtue or discourse ethics,
to assess the ethical implications of the financial advertisement he developed for Prabhu Murthy and
simultaneously establish trust in his organization?
4. How might Sevak’s practical ethical communication strategies, such as transparency and honesty in
financial communication, influence stakeholder perceptions of trustworthiness in the advertisement?
5. In what ways can Sevak use ethical communication strategies, such as dialogue and mutual respect, to
ensure the advertisement effectively inspires trust and influences stakeholder decisions, while also
addressing potential ethical challenges to build trust among retail and institutional investors?
The Case Solution Starts From page 5
, 1
e
pl
m
Sa
n
tio
lu
So
ANALYSIS
1. How does ethical communication theory, such as the ethics of care or dialogical ethics, inform
the development of advertising strategies in the financial services industry to ensure
transparency and promote trust?
Ethical communication theories, such as the ethics of care and dialogical ethics, play a crucial role in
shaping advertising strategies within the financial services industry to ensure transparency and foster trust.
These theories emphasize the importance of ethical considerations, relationships, and dialogue in
communication practices. In the financial services sector, where intangible products are prevalent,
establishing trust through a positive reputation is essential for customers to feel confident in their decision-
making processes.
The Case Solution Starts From page
, EXHIBIT -1: PRABHU MURTHY INDUSTRIES LIMITED APPROVED ADVERTISEMENT
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Sa
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The Case Solution Starts From page
