LIVE Course for free

Rated by 1 million+ students
Get app now
0 votes
20 views
in Business Studies by (46.6k points)
closed by

State the importance of consumer protection from the viewpoint of of business.

1 Answer

+1 vote
by (45.6k points)
selected by
 
Best answer

Importance of consumer protection from the view point of business:

1. Use of public resources and wealth: Every business unit is continuously and haphazardly utilizing public or say national resources and wealth. Hence, it is the responsibility of these units to produce such goods and services which are useful to the society. This way they can promote social welfare and justify the used resources.

2. Social responsibility:

  • It is a well-known fact that business units have social responsibility towards its stakeholders.
  • Consumers also form a major group of stakeholders for every business. The business earns profit by selling the products to the consumers.
  • The way a business takes care of its stakeholders such as directors, creditors, etc. it should also see to it that it remains honest and fulfills its duties towards consumers who form the most important group of stakeholders.

3. Part of the society:

  • Every business is a part of the society we live in. Every business owner or a seller is customer for another business unit. So, if consumer exploitation is inevitable then every person will have to experience exploitation because every individual is also a consumer.
  • Hence, every seller should adopt such a policy which will increase the faith of the buyer and prevent his exploitation.

4. Impression on the society:

  • The product that the business sells as well as the policies that it practices affects the habits of the people of society, their lifestyle, thoughts, living standards, food habits, fashions, clothing, etc.
  • Advertisements and promotions play a major role in these aspects.
  • These aspects demand that the business units follow ethical means as a moral responsibility to the society and create a lasting impression on the current and future generations.

5. Consumer protection is good for business:

  • Business units have realized that wellbeing of consumers is the wellbeing of the business.
  • It is quite fundamental that in the competitive market, the business must produce goods as per the preference of the consumers. Those manufacturers / who fail to understand this, will lose market to their competitors.
  • These practices satisfy the consumers. A delighted and satisfied consumer not only purchases the product again, but also recommends it to others. This will attract new consumers.

6. Principles of Trusteeship and Consumer Protection:
Gandhiji gave fine thoughts about Trusteeship and Consumer Protection. They are:

(A) Principle of Trusteeship: Whatever wealth the society has given to us should be used for the welfare of the people of the society.

(B) On consumer: “Consumer is the most important person visiting the place of business. He is not dependent on the seller but we (sellers) are dependent on him. He does not interfere in our work but he is the objective of our business.
He is not an outsider for our business but he is a part of our business. We do not favour him by providing a product of his choice but he does a favour by giving an opportunity to serve him”.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...