Page 61 - MARKETING & PUBLIC RELATIONS EBOOK IC88

CHAPTER - 9

CONSUMERISM AND SOCIAL RESPONSIBILITY

CHAPTER INTRODUCTION

Over the years, there has been an increasing awareness of dangers to the environment as a result of
reckless exploitation of the natural resources. Business organisations with very large funds at their
disposal, are, more than any other section of society, in a position to contribute to the protection of
the environment. This chapter deals with issues related to this problem and that includes ethical
behaviour.

LEARNING OBJECTIVES

A. Consumerism
B. Business Ethics
C. Social Responsibility
D. The Spiritual Basis
E. Role of Organisations

A. CONSUMERISM

(a) Beginnings

1. Consumerism, as a movement started in the USA in the 1950s. It began with Ralph Nader
protesting against death and injuries in car accidents, caused mainly because manufacturers
neglected safety features. The movement, as it developed, exposed many manufacturers, who,
for the sake of continued business, either through neglect and oversight or sometimes by
deliberate action, caused harm to the consumers.

2. U.S. President, John F Kennedy, in 1962, stated that the consumer had the rights to a number of
things as listed below. By implication producers of goods and services have to respect those
rights. The rights are

 safety (security), health warnings, tamper proof packaging, etc
 information
 choice (amid diversity)
 redress (to be heard and compensated)
 be not deceived (like reduced contents without reducing price)

3. In India, the landmark in the consumer movement, is the enactment of the Consumers
Protection Act in 1986. This Act applies to all goods and services, provided by private, public or
cooperative sectors. The Act (a) protects the consumer from the marketing of goods that are
hazardous to life and property, (b) insists that the consumer be given information about the

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