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Olive & Basil is a company involved in the manufacture of pasta and pizza sauces. The CEO of Olive & Basil invites suggestions from various team heads to help reduce the cost or increase the revenue of the company. The production manager comes up with a proposal to change the supplier of vegetables to a nearby vendor. This decision would drastically reduce the cost. However, it was found that the quality of vegetables supplied by the vendor is below standard. The CEO is tempted to take the offer but the lawyer explains to the CEO the importance of protecting the interest of the consumers. After listening to the lawyer, the CEO decides to reject the proposal of the production manager and continue with the current supplier. 

What do you think the lawyer would have told the CEO, which made him change the decision?

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Businesses must lay emphasis on protecting the consumers and adequately satisfying them. 

This is important because of the following reasons:

Satisfied customers lead to repeating sales and provide good feedback to prospective customers and thus, help in increasing the customer base of business. 

Business organisations use resources which belong to society. They, thus, have a responsibility to supply such products and render such services which are in the public interest. 

Consumers form an important group among the many stakeholders of the business and like other stakeholders, their interest has to be well taken care of. 

It is the moral duty of any business to take care of consumers’ interests and avoid any form of their exploitation. 

A business engaging in any form of exploitative trade practices would invite government intervention or action.

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