Question

Why consumer protection is important for a businessman?

Give any one reason.

Answer 1

Importance of Consumer Protection from Businessmen’s point of View:

Businessmen cannot survive for a long time by ignoring the interest of consumer. They have to give due importance to consumer if they want to prosper in competitive market. Consumer protection provides following benefits to businessmen: ( any one )

1. Long Term Interest of Business:

After the liberalisation and globalisation the level of competition has increased so much that not only internal but business has to face international competition. In the race of competition the businessmen can win and capture a big share in the market only when they are able to satisfy its customers by designing the products keeping in mind the requirements of customers.

2. Businessman Uses Society’s Resources:

Businessmen use the resources of society. They earn profit by supplying goods and services to the members of society so it must do something for society. Businessmen are merely trustee of resources; they must use these resources for the benefits of consumers.

3. Social Responsibilities:

A businessman has social obligations towards various groups and customer is one of the important groups. It is responsibility of businessmen to provide quality goods at reasonable price. Consumer protection guides businessmen to provide social responsibilities.

4. Moral/Ethical Justification:

Traditionally ethics was part of profession only, but today ethics is playing very important role in business also. The ethics or a moral value practiced by the businessmen adds glory to businessmen. In today’s environment business without ethical value is not more than a criminal activity and no civil society can tolerate and allow the existence of unethical business.

5. Government Intervention:

If businessmen want to avoid intervention of government then they should not involve in unfair trade practices. Government intervention may spoil the image of business. Businessmen should voluntarily involve in the activities which protect the interest of consumer.

6. Consumer is the Purpose of Business:

The basic purpose of business is to create more and more customers and retain them and businessmen can create more customers only by satisfying the customers and protecting the interest of consumer. The customer is the foundation of business.