Prabhu Murthy Industries: To Trust or Not to Trust

On July 15, 2022, the senior marketing manager of Prabhu Murthy Industries Limited participated in a high-priority meeting attended by all of the company’s executives to discuss a pressing issue. The company’s unstable financial position and disappointing results had 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 the senior marketing manager was entrusted with developing an advertisement that would fulfill this purpose. As he contemplated the challenging week ahead, the senior marketing manager 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 stakeholders? His contemplation would also underscore the importance of ethical communication in the financial services industry.

This case is suitable for graduate- and postgraduate-level courses on development communication, business communication, and entrepreneurial communication. The case illustrates how to create trust through communication by overcoming social and psychological barriers. The case aims to deepen the understanding of learners about the ethical dilemmas inherent in building trust, as well as the ramifications of advertising in the financial services industry. Students will learn to foster trust and ethical conduct, as well as safeguarding the interest of investors. After working through the case and assignment questions, students will be able to<ul><li>understand the ethical challenges involved in building trust in the context of financial service advertising;</li><li>analyze the implications of advertising strategies on stakeholder perceptions of trustworthiness;</li><li>develop skills to promote ethical behaviour and protect investors’ interests in financial communication;</li><li>evaluate the effectiveness of advertising campaigns in inspiring trust and influencing stakeholder decisions;</li><li>apply ethical principles to real-world scenarios in the financial services industry;</li><li>gain insights into the importance of transparency and honesty in financial communication; and</li><li>consider the long-term implications of advertising on organizational reputation and stakeholder relationships.</li></ul>

• trust
• communication strategies
• financial literacy
• advertisement
• ethical challenges