“In order to force companies to improve policies and practices considered unethical or harmful, society should rely primarily on consumer action – such as refusal to buy product – rather than legislative action.”
The above statement suggests that it is best to let the consumers of the product ensure that companies are following ethical and safe policies. An unethical or harmful practice can be anything from an easily identifiable issues like use of harmful preservatives in food products to covert issues like misleading financial records, releasing harmful chemicals into the environment.
Consumers cannot be expected to ensure that companies follow fair and ethical practices. The main reason is that there are too many companies and issues are too vast and complex to be successfully monitored by consumers alone. For example, consumers cannot be expected to force all companies to follow fair disclosure policies. A government however, can efficiently ensure this by precisely defining what fair disclosure policy is, and by subjecting all companies to follow it.
Sometimes, the harmful practices of a company may hurt the society more than the consumers, and in such cases, welfare of the society depends upon effective actions by the government. The ban on display of alcohol in advertisements and the statutory warning on the cigarette packs are examples of such cases.
Moreover, the role played by consumers in influencing the policies and practices of a company depends on consumer strength and the support consumers receive from law. In a country like USA, where consumer rights are well established, it is easier for a consumer to force a company to take action. A healthier menu introduced by McDonalds is a display of such strength. But, in countries like India, the consumers do not hold such strength and therefore, even legitimate cases of exploitation are not acted upon. In such cases, unless the government intervenes and enforces a law, certain companies will continue to exploit consumers.
Considering the complexity involved in improving the policies of companies, I would like to conclude that it is improper to expect consumers alone to make a difference. Legislative help will definitely bring about the needed seriousness and action.
The above statement suggests that it is best to let the consumers of the product ensure that companies are following ethical and safe policies. An unethical or harmful practice can be anything from an easily identifiable issues like use of harmful preservatives in food products to covert issues like misleading financial records, releasing harmful chemicals into the environment.
Consumers cannot be expected to ensure that companies follow fair and ethical practices. The main reason is that there are too many companies and issues are too vast and complex to be successfully monitored by consumers alone. For example, consumers cannot be expected to force all companies to follow fair disclosure policies. A government however, can efficiently ensure this by precisely defining what fair disclosure policy is, and by subjecting all companies to follow it.
Sometimes, the harmful practices of a company may hurt the society more than the consumers, and in such cases, welfare of the society depends upon effective actions by the government. The ban on display of alcohol in advertisements and the statutory warning on the cigarette packs are examples of such cases.
Moreover, the role played by consumers in influencing the policies and practices of a company depends on consumer strength and the support consumers receive from law. In a country like USA, where consumer rights are well established, it is easier for a consumer to force a company to take action. A healthier menu introduced by McDonalds is a display of such strength. But, in countries like India, the consumers do not hold such strength and therefore, even legitimate cases of exploitation are not acted upon. In such cases, unless the government intervenes and enforces a law, certain companies will continue to exploit consumers.
Considering the complexity involved in improving the policies of companies, I would like to conclude that it is improper to expect consumers alone to make a difference. Legislative help will definitely bring about the needed seriousness and action.
