Question

Explain Social Responsibility towards Consumers?

Answer 1

Introduction: -Ultimate goals of business must be satisfied with consumer's wants. The consumer is the king of the market but in reality, the experience is different. The exploitation of consumers is very common due to the lack of information and many other reasons. However, the existence of business is dependent on consumers only. To protect its interest, a business should perform the following responsibilities.

Definitions: - "The personal obligations of the people as they act in their own interest to assure that the rights and legitimate interests of others are not ignored." Defined by.......... (Koontz and O'Donnell)

Responsibilities towards Consumers:

1. Good Quality Products: -A business enterprise should provide a higher quality of goods and services. Every organization should have its quality control department so that inferior and substandard products can be rejected. International Standard Organization, ISO is the latest trend towards quality control.

2. Consumer Safety: -While manufacturing the products, the health and safety of consumers should be the prime factor. Unsafe products should not be marketed. Consumers should be warned of any unsafe goods. Some rival (competitor) organizations may introduce imitation articles of interior quality, in such circumstances the producer of a genuine product must alter consumer.

3. Changing Fair Prices: -The products and services should be available to consumers at fair prices. They should not be cheated by charging unreasonable prices. Such practice will spoil the image of the organization in the long run. Maximum Retail Price (M.R.P) Inclusive All Taxes should be printed on every packed product. A retailer should not charge any extra amount.

4. Services Regarding Products: -Organizations should consider the following services to customers about goods or products.

• The regular supply of goods at the right price and the right place.
• Provide sufficient quantity and quality of goods as per demands.
• A large variety of products should be provided to consumers.
• The goods must meet the needs of consumers of different classes, taste, purchasing power, etc.

5. Research and Development: -The organization should adopt new methods and techniques of production and distribution. They should conduct research and development to improve the quality of goods and to reduce the cost of production. It will minimize the final prices charged to customers.

6. Accurate Information: -Accurate information on the product should be provided to consumers through advertising, packing, and labeling. Such information includes contents of a product, their uses, ways of maintaining products, side effects, date of manufacturing and expiry, MRP, etc. printed leaflet may be provided to take proper precautions.

7. Customer Service Cell: -An organization must attend all complaints of customers without any delay. A quick and effective service regarding grievance should be provided. Suggestions for customers should be welcomed and required modifications should be considered.

8. Advertising Ethics: -Advertisement of products should convey facts of products, it uses merits, demerits, etc. False, misleading and vulgar advertisements should be avoided. Only honest advertising can be appreciated by consumers in the long run.

9. Avoid Consumer Exploitation: -Business should avoid unfair trade practices which lead to exploitation of consumers. They should not take undue advantage of certain situations and create artificial scarcity of goods.

10. Miscellaneous: -

• Supplying goods in pure form.
• Supply of spare parts.
• Fulfilling guarantees and warranties.
• Provide consumer-oriented production.

• To honor the rights of consumers under the consumer protection Act 1986. Etc.