Business Studies

Answer the following question:
State the social responsibilities of a business towards consumers.


SOLUTION
Responsibilities towards Consumers:

1.  Good Quality Products: -A business enterprise should provide 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, health and safety of consumers should be the prime factor. Unsafe products should not be marketed. Consumers should be warned of any unsafe good. Some rival (competitor) organizations may introduce imitation articles of interior quality, in such circumstances the producer of 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 changing unreasonable prices. Such practice will spoil the image of organization in long run. Maximum Retail Price (M.R.P) Inclusive All Taxes should be printed on every packed product. Retailer should not charge any extra amount.

4. Services Regarding Products: -Organization should consider following services to customers about the goods or products.
·         Regular supply of goods at the right price and 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 cost of production. It will minimize final prices charged to customers.

6. Accurate Information: -Accurate information of product should be provided to consumers through advertising, packing and labeling. Such information include contents of 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. Quick and effective service regarding grievance should be provided. Suggestions of customers should be welcomed and required modifications should be considered.

8.   Advertising Ethics: -Advertisement of products should convey facts of products, its uses merits, demerits etc. False, misleading and vulgar advertisement 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 warrantees.
·         Provide consumer oriented production.
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