Judging from a morally compassed view, I don't believe it's ever right to racially stereotype for advertising purposes. Even if the ad agencies believe that their profits will become higher if they decide to use a certain race specifically instead of another one, I don't think it's ever right to use ethnicities for that purpose.
That being said, I do believe that most advertising today has not felt the need to racially stereotype in their commercials anymore, or at least more vividly aware of the controversial affects that come with it. Instead, they have been attempting more to focus on diversity. Advertisers have been incorporating it, such as the Cheerios commercial with the African American father and the Caucasian mother, but viewers don't often take a huge liking to it.
That being said, I don't believe racism in advertising is a thing in the past. As long as America still has ignorance coursing through their veins, there will always be advertisers who feel the same. And if they're not directly racist themselves, they will be worried about the affects of being diverse in their advertising because they might be scared about how America will respond. But I do believe racially stereotyping in advertising has gone down a lot, and advertisers have made more of an effort to put it to a stop.
I do think they have an ethical responsibility, as human beings to include diversity in their ads. They must recognize that the entire nation views their products, so they must include diversity to reach and relate to a large amount of people. Although, it is entirely up to them (being a decent human being), whether they choose to do that or not.
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