THE ETHICS OF CONSUMERS PRODUCTION AND MARKETING

The Ethics of Consumers Production and Marketing

Abstract

Navigating the boundaries between right and wrong can prove tricky for companies that operate in several nations and across cultures. Ethics is essential to economic development. The field of ethics, also called moral philosophy, involves systematizing, defending, and recommending concepts of right and wrong behavior. Business ethics is the study and evaluation of decision making by businesses according to moral concepts and judgments. Ethical questions range from practical, narrowly defined issues, such as a company's obligation to be honest with its customers, to broader social and philosophical questions, such as a company's responsibility to preserve the environment and protect employee rights. Many ethical conflicts develop from conflicts between the differing interests of company owners and their workers, customers, and surrounding community.

Table of Contents

Abstract2

Introduction4

Business Ethics4

The Relationship between Ethics and Business: A “Two-Leg Approach”5

Markets and Consumer Protection9

The Contract View of Business' Duties to Consumers13

The Due Care Theory16

The Social Costs View of the Manufacturer's Duties18

Advertising Ethics20

Consumer Privacy24

References27

Introduction

As the examples of Bridgestone/Firestone and Metabolife International clearly demonstrate, consumers are exposed daily to high levels of risk simply by using consumer products. The risk translates into injury, death, and astonishingly high costs as a result. As if product injuries were not enough, consumers must also bear the costs of deceptive sales practices, shoddy merchandise, and un-honored warranties. This paper examines the ethical issues raised by product quality and advertising.

Business Ethics

Business is concerned with the production of goods & services for the benefit of the community, which is identified mainly by its customers. Customer satisfaction through utility & quality is a primary concern. It is also concerned with paying back the persons who have given it financial support. These persons may be shareholders, lenders or depositors. The repayment may be in the form of dividends, interest or appreciation of worth. Generation of additional funds through profits is therefore a compelling economic concern (Bartlett, & Preston, 2000). It has also got the responsibility of proper utilization its resources, which includes the physical, mental, intellectual & professional health of the employees. The ethical issues may arise in-- a) interpersonal interactions, in which some unscrupulous individuals may be trying to take undue advantage for personal benefits, b) considerations of cost while dealing with waste disposals, or ensuring quality, c) not wanting to lose out to competition & therefore wanting to be first in the market, d) messages in the advertisements in order to obtain & retain customers or e) wanting to protect oneself from attacks or sanctions or criticisms & therefore wanting to hide some data. In general, it will be seen that the issues arise almost always, in seeking own advantage & seeing it as not available except at the cost of someone else's. Copying is a very common process in the commercial world, particularly of something that has been an outstanding success.

The Relationship between Ethics and Business: A “Two-Leg Approach”

Business ethics as “applied ethics” has to reflect on the type of ...