Business Studies by Dorothy Mathias
2 questions of 6 marks come as choice
Giving any 6 points, explain the IMPORTANCE for consumer protection?
Business is a means of human welfare:
- Business serves the customer and therefore it is a means and not an end in itself.
- It is in the interest of both the consumer and the businessman to ensure that the business is run well because ignoring the interest of the consumer may be a sure death of the business.
Growth with social justice:
- We are a secular country and growth with social justice is the cornerstone of our economic philosophy.
- Exploitation of consumers is against the directive principles of State Policy laid down in our Indian Constitution.
Stakeholder approach:
- The success and survival of business depends on the efforts made by all stakeholders such as consumers, shareholders, employees, government, and the public.
- Therefore for its survival and growth business must work for the interest of the stakeholders in general and consumers in particular.
Power Centre:
Business has considerable influence over society and government. Therefore it has to set standards regarding food, dress habits, living styles, etc which will not damage the cause of society and serve the interest of a few persons only.
Self interest:
- Due to liberalization and globalization, firms have to compete with multinationals. Unless they become customer oriented and provide right quality, quantity and price they cannot satisfy a customer and without customer satisfaction no business can survive for long and will be out beaten by competition from multinationals.
- Moreover, Government has enacted laws to protect the interest of the consumers. Hence if a firm violates the laws they are likely to lose their goodwill and clients permanently.
Ethical obligations:
Business without ethical values is nothing but a criminal activity and no civil society will tolerate a business without ethical values for long.
(½ mark for naming each point and ½ mark for each explanation)