occ.docx commerce

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NEED/IMPORTANCE/OBJECTIVE/ROLE/FUNCTION/OF CONSUMER MOVEMENT.

Meaning: - Consumer Movement is a Social Movement, Consumer movement aims at promoting an interestof the consumers the following are the objectives of consumer movement.Definition: - Philip Kotler & G. Armstrong define Consumerism is an organised movement of then

citizen and government to impose the rights and powers of buyers in relation to seller.

Following are the Importance of Consumer Movement1. Protection against Malpractices: - the main objective of consumer movement is to protect the interest ofthe consumer from the malpractices adopted by the business community such as charging high prices,supplying inferior goods, creating artificial shortage.

2. Educating the consumers: - consumer movement aims at educating and informing the consumer about

their rights, such education makes the consumer aware of their rights.

3. Representing Consumers: - the consumer protection organisation such as consumer guidance society ofIndia represents on behalf of the consumers to the government authorities so as to frame proper consumer

protection laws and other measures for consumer protection.

4. Publishing unfair practices: - Consumer protection organisation publishes in various media regarding theunethical practices of the businessman.

5. Forming of Association: - consumer movement encourages consumer to form consumer protectionassociations at the local level.

6. Support to business community: - consumer movement aims at co-operation and support to the businesscommunity in dealing with their problems and difficulties

7. Assistance in legal matters: - the Consumer protection organisation assist individual consumers in legalmatters i.e. the procedure to be followed in filling a complaint in the court.

8. Exerting or creating pressure on businessman: - consumer movement aims at exerting a pressure onbusinessman and makes them more socially responsible

WRITE SHORT NOTES ON CONSUMER RIGHTS

Introduction: -In 1962 the American president John F. Kennedy, in his Consumer message to U.S. congresshad specifically mentioned four consumer Rights and opened the door for consumerism in .U.S. and all overthe world. Kennedy declared that consumers have the right to safety, to be informed, to choose and to beheard. Consumer Movement is a Social Movement of Consumers that has come into existence to educate andunite consumers to fight for protection of their rights. Def: - Philip Kotler & G. Armstrong defineConsumerism is an organised movement of then citizen and government to impose the rights and powers of

buyers in relation to seller.

1. Right to Choose: - A Consumer should be given open access and freedom to choose from a variety of

products and services. Right of choice aims at promoting competition and discarding monopoly. Sometimesleading competitors for the sake of business purpose joint hands and allocate market among them. In order torestrict their monopoly it is necessary to get freedom of choice.

2. Right to Safety; -A Consumer has a right to be protected against the marketing of goods, which aredangerous to human health and life. Consumer has a right to receive an assurance from the producer about thequality, reliability and performance of good for products like electrical appliances, automobiles etc.considerable safety and security is required similarly food articles like sweets, fast food, colddrings etc.should be free from substances that are harmful for human consumption.


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3. Right to be informed: -A Consumer has a right to be protected against fraudulent, miss leading

information, advertising, labelling or other practices and to be given facts needed to make proper choice.

4. Right to be heard: - This right permits the consumer to register his dissatisfaction or complaint with thecompany and government. The right to heard also includes legal hearing to get redress of their complaints.

This right can be exercised effectively only when the consumers are properly organised.

5. Right to redress: - Many times, it so happens that the actual performance or quality of product does notmatch with what is advertised or stated on package. This right enables the consumers to get his claims settled,if he becomes a victim of exaggerated claims.

6. Right to Consumer education: -This is another important right aims at supplying information andeducating consumers regularly. It is a continues process and works to update consumers knowledge about the

developments in business and industry, and changes made in laws affecting consumers rights.

WRITE SHORT NOTES ON CONSUMER PROBLEM (March 2009)h Meaning: -The customer is the start and the success point of any business. The Survival and success of

business depends on the customers support. Customer is a king in the Market.Definition: -Peter Drucker ones stated. There is only one definition of business purpose; to create

customer. In India, Consumers face a number of problems. The main problems are as follows:

1. False Weights and measures: -Consumers in India are cheated by traders and others with false weightsand measures in unorganised as well as organised markets..

2. Poor after-sale-service: -In India, after-sale-service is very poor. Even in the big companies also do notprovide effective after sale service to its customers.

3. Problem of duplicate Goods: -In India, the customer face a major problem of duplicate goods. Unethicalproducers duplicate popular brand names and thereby customers get cheated.

4. Problem of artificial shortage: - Unethical dealers, some traders or shopkeeper indulge in artificialshortages. The purpose is to inflate the prices. Therefore, customers have to pay high due to artificial shortageof goods.

5. Problem of Health and Safety hazards: -Another problem faced by customers in India is the problem ofhealth hazards. There are several such examples are:

Certain manufacturers duplicate health related products such as medicines.

Shopkeepers or Traders may also sell products even after the expiry date.

6. Unethical Advertising: -Customers are cheated with false advertising. There are several examples ofunethical advertisements:

Tall Claims or Exaggerations.Testimonials by professionals or personalities who do not even use the product. etc.

7. Problem of Delivery of Goods: - Customers also face the problems of Delivery of goods on a specificdelivery date


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NATURE/FEATURE/CHARACTERISTICS OF CONSUMER MOVEMENTMeaning: - Consumer movement is a social movement of consumers that has come into existence to educate

and unite consumers to fight for protection of their rights.Definition: - Philip Kotler and G. Armstrong Consumerism is an organised movement of citizens and

government to impose the rights and powers of buyers in relation to seller.

Following are the some important features of Consumer Movement:

1. Voluntary movement2. Production of rights

3. Strength of unity

4. Comprehensive term

5. Prevention of unethical practices

6. Enforcing consumer rights

1. Voluntary Movement: - It is a voluntary and collective movement of consumers; it is a movement of theconsumers, by the consumers and for the consumers. A group of active consumers come forward, forms aunion and fight for the well-being of the community.

2. Protection of Rights: - The objective of the consumer movement is to make the business community andgovernment to guarantee and enforce the legitimate rights of consumers.

3. Strength of Unity: -Consumerism is a social force whose aim is to protect rights of consumers by

exercising legal and social pressure on business community.

4. Comprehensive Term: - Every one of us is a consumer of goods and services provided by private andgovernment undertakings. Today, the concept of consumerism is not restricted to commercial activities alone.Also extended to public utilities, and services like banking, transport, telephones, medical.etc.

5. Prevention of unethical Practice: - consumerism is a voluntary association of consumers, whose one ofthe objective is to prevent the business from following unethical practices like black-marketing, exploitationof consumers etc.

6. Enforcing Consumer Rights: - The consumer movement aims at enforcing four basic rights ofconsumers-Right to safety, Right to be informed, Right to choose and right to redress.

DEFINE DISTRICT FORUM? EXPLAIN ITS FEATURES

Meaning: -A Consumer Disputes Redressal Forum, to be known as the District Forum, established

by the State Government in each district of the State as per the Consumer Protection Act 1986.

FEATURES OF DISTRICT FORUM

1. Composition of District Forum: -A District Forum has to consist of:

a. A person who is or has been or is qualified to be a District Judge, to be nominated by the State

Government, to be its President.b. Two other persons of eminence, in the field of education, trade, or commerce one of whom shallbe woman.

2. Term of Office: -Members of the District Forum hold office for a term of5 years or up to the age

of65 years whichever is earlier and are not eligible for re-appointment. In other words, themaximum period of membership of the forum is 5 years.


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3. Salary: -The State Government drafts rules regarding salary or honorarium and other allowances

payable to members and also the terms and conditions of their service.

4. Jurisdiction of District Forum: -As per the latest amendments, the District Forum has the

jurisdiction to entertain complaints, where the value of goods or services and the compensation, if

any, claimed does not exceed (more than) Rupees Twenty Lakh.

5. Number: -There are a number of District Forums in Maharashtra eg, In Mumbai, Pune,

Ahmednagar, Aurangabad, Nagpur, Nasik, Ratnagiri, Satara, Sholapur, Sangli etc.

In Mumbai, the

District Forum has

3 offices, at Dadar,

Worli and C.S.T.

AGENCY

head Term Location Compensation

1. District forum2. State

commission

3. National

Commission

1. District Judge2. High Court

Judge

3. Supreme Court

Judge

5 years 5years 3

years

All District

Mumbai(Maharashtra)

Delhi

Upto 20,00,000

Upto 1,00,00,000Above 1,00,00,0


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EXPLAIN THE SOCIAL RESPONSIBILITY OF COMMERCIAL ORGANISATION TOWARDS

EMPLOYEE AND SHARE HOLDERS?Meaning: -The survival & success of a business depends upon the service of its efficient work force. Humanresource or employees is one of the greatest resources of all the resources.Definition: -H.R.BOWEN defines Social responsibility of business refers to the obligation of business to

pursue those policies, to make those decisions, or to follow those lines of actions, which are desirable in termsof objectives and values of our society.

Following are some of the Social responsibility of the commercial organisation towards Employee:

1. Job security: -The Company should provide job security to its employees. The workers should not be kepttemporarily for a long time. They must be given permanent jobs. Otherwise they may be frustrated.

2. Monetary factors: - Workers should be paid adequate wages and other incentives like bonus, medicalallowance, travelling allowance; etc Prompt payment often results in higher motivation to the workforce.

3. Working conditions: - The workers should be provided with good working conditions. There should be

adequate lighting and ventilation. Noise, dirt and dust pollution should be avoided.

4. Health and Safety measures: - The Company should take adequate measures to protect health of theemployees. They should be provided with canteen facilities, and medical facilities. Proper maintenance ofmachines and buildings must be done to prevent accidents.

5. Proper personal policies: - There must be proper personal policies in respect of transfers, promotions,recruitment, training, etc. There should be no partiality in Promotions and transfers of employees.

6. Workers Participation in Management: -The Workers must been courage to take part in management.

There are different ways of workers participation in management, such as quality circles, work committee,suggestions scheme, and co-partnership, etc.,

7. Grievance Procedure: -There should be a proper Grievance Procedure to handle employees complaints.

Any

SOCIAL RESPONSIBILITIES OF COMMERCIAL ORGANISATION TOWARDS

SHAREHOLDERS

The shareholders are the owners of the company. They have invested their funds for higher returns. Theyexpect certain responsibilities on the Part of the management.1. Fair return on investment: -The shareholders expect a fair return on their investment. After all they haveinvested their valuable resources. So the management must be faithful to their shareholders by providing them

proper dividend every year.

2. Expansion and Diversification: -The shareholders expect that the management should undertake

expansion and diversifications programmes. This will result in more returns to the shareholders.

3. Proper use of Shareholders Funds: -The shareholders expect optimum utilization of their funds. Theywill not tolerate the management, if it spends their funds in unproductive manner.

4. Proper conduct of share holders meetings: -The shareholders want fair conduct of meeting. There shouldbe fair conduct of meetings. There should be fair elections at company meetings.


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5. Proper Disclosure: -The management should make a proper disclosure regarding the affairs of thebusiness. The accounts must be properly maintained and audited from time to time. The share holders should

allowed getting the copies of the audited report sheets of the company.

6. Good public image: -The shareholders expect that the management should develop and maintain a goodpublic image. A company that enjoys name and goodwill commands a lot of respect and trust in the share

market, labour market, consumer market, and so on.

7. Periodic Information: -The Shareholders expect the company to inform them about important happeningsin the company, either at company meetings or through correspondence. The shareholders have a right to beinformed of the development in the company.

7. EXPLAIN THE SOCIAL RESPONSIBILITY OF COMMERCIAL ORGANISATION TOWARDS

EMPLOYEES AND GOVERNMENT?Definition: -H.R.BOWEN defines Social responsibility of business refers to the obligation of business to

pursue those policies, to make those decisions, or to follow those lines of actions, which are desirable in termsof objectives and values of our society

RESPONSIBILITIES TOWARDS GOVERNMENT The Government also expects social assistancefrom the corporate sector in the following areas:-1. Assistance in implementing Socio-economic policies: -The government expects cooperation and

assistance from the business sector to assist it in implementing socio-economic programmes. They businesssector must co-operate with the government while framing social economic policies.

2. Payment of Taxes: -The government expects the corporate sector to pay taxes and duties regularly. If thecorporate sector does not pay taxes and duties on time, then it would be difficult for the government to

undertake its plans.

3. Observance of Government Rules and Regulations: -The government expects strict observances of its

rules and regulations on the part of the corporate sector. If the corporate sector has any valid suggestions to

modify the rules and regulations, then it should do so in the interest of the society as a whole.

4. Political Stability: -The corporate sector should work towards the political stability of the country. Astable government often brings more returns and peace in a democratic society. Therefore, corporate sector

should not support those elements who are indulging in political instability.

5. No seeking of Unfair Favours: -The companies should not seek unfair favours from government officialsby bribing or influencing them.

6. Earnings of Foreign Exchange: -Companies, especially the large ones should enter in export trade to earnvaluable foreign exchange for the country. This foreign exchange is necessary to pay for vital imports.

7. Advising the Government: -Corporate sector should provide timely advise to the government in respect offraming various policies, such as export-import policy, licensing policy, industrial policy. Etc,


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CUSTOMER AND SOCIETY OR COMMUNITy

meaning: -The survival and growth of a business depends upon customers satisfactions, service, and

support. The company should win over the confidence of the customers .Definition: -H.R.BOWEN defines Social responsibility of business refers to the obligation of business to

pursue those policies, to make those decisions, or to follow those lines of actions, which are desirable in termsof objectives and values of our society.1. Quality: -The Company should produce quality goods. The company should always strive to improve itsquality. At no time quality can be 100%, and as such there is always a room for improvement.

2. Fair Price: -The consumers will not take if they are being cheated. After all, the company will not be able

to fool the consumers all the time.

3. Honest Advertising: -The consumers expect true facts of the product, its uses, merits, and sideeffectsand so on. They will not like exaggerated and tall claims. The company should also refrain from vulgar and

unethical advertisement.

4. Availability of Goods: -The consumers should be made available the goods regularly as and when they

need it. The company should not create artificial shortage and hoard the goods in cooperation with unethicaldealers.

5. After Sales Service: -The consumers expect efficient and effective after-sale-service, especially in the caseof consumers durables.

6. Redressal of Complaints: -The complaints of the consumers must be immediately dealt with. Validsuggestions of the consumers must be taken into consideration.

7. Research and Development: -The Consumers expect the company to conduct research and developmentfor the purpose of improving the quality and reducing the cost of the product.

RESPONSIBILITY OF COMMERCIAL ORGANISATION TOWARDS SOCIETY/ COMMUNITY1. Protection of Environment: -A business should act as a good and useful citizen of society. A businessshould ensure that its production process does not create environmental pollution. The Company should takeall possible measures to prevent air, and water pollution.

2. No Discrimination: -A business should not discriminate the society of individual on the basis of race,religion, caste, sex, etc., in providing employment to people.

3. Optimum use of Resources: -The business firms make use of scarce natural resources such as rawmaterials of iron, steel, fuel, and so on. And also a business should take adequate

4. Upliftment of Backward Regions: -The society expects that the companies should start industries in

backward areas. This will generate employment facilities and increase in purchasing power of the ruralmasses.

5. Help to weaker sections of the Society: -The business organisation should also uplift the weaker sectionsof the society. Certain jobs may be reserved for economically weaker section of the society.


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6. Financial Assistance: -The society also expects donations and financial assistance to various social causes,

such as eradications of poverty, illiteracy, etc. they expect the company to take part in anti-drug campaigns,anti-noise campaigns, and so on.

7. Prevent Congestion in Cities: -The companies should also work to avoid congestion in cities by spreading

their industries in different places and locations.

8. Expansion: -The society expects expansion and diversification of industries so as to generate employmentopportunities and at the same time to enhance standard of living of the society.


SUPPLIERS FINANCIAL INSTITUTION AND COMPETITORS?

.R.BOWEN defines Social responsibility of business refers to the obligation of business to pursue thosepolicies, to make those decisions, or to follow those lines of actions, which are desirable in terms of

objectives and values of our society. Suppliers: Suppliers are businessmen who supply raw materials

and other items required by manufacturers and traders. Certain suppliers, called distributors, supply

finished products to the consumers. To suppliers, a business enterprise is expected,1. To ensure timely payment of the dues.

2. To avail reasonable credit period.

3. To maintain fair standards of trading.

4. To honour terms and conditions of purchase or sale.

5. To respect settlement dates. (i.e. Payment of accounts)

6. To give regular orders for purchase of goods.

7. To deal on fair terms and conditions.

Financial institution:1. The Payment of loan and interest instalments must be made on time.

2. They should not bribe bank officials in sanctioning loans.

3. Provide regular reports to the financial institutions.

4. There should be proper use of funds provided by financial institutions.

5. They should not convert bank loans into bad debts.

Competitors: Competitors are the other businessmen or organisation involved in a similar type of business.Existence of competition helps the business in becoming more dynamic and innovative so as to make itself

better than its competitors. It also sometimes encourages the business to indulge in negative activities likeresorting to unfair trade practices. The responsibilities of business towards its competitors are: -1.Not to offer exceptionally high sales commission to distribution, agents etc.

2.Not to offer to customers heavy discounts and/or free products in every sale.

3.Not to defame (insult) competitors through false or ambiguous advertisements.

4.Not to resort to unfair trade practices.


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. IMPORTANCE/ADVANTAGES/ FUNCTIONS/ROLE OF BUSINESS ETHICS (March 2008) Bismillah

Meaning: - The term ethics is derived from the Greek word ethos, which means character. Ethics is abranch of social sciences, which deals with concepts such as right and wrong, good and bad, fair and

unfair, just and unjust, legal and illegal, moral and immoral, proper and improper in respect of humanactions. Definition: -Business Ethics is primarily concerned with the relationship of business goals and

techniques to specific human needs. Defined by................ (Thomas M. Garett) The following pointsexplain the need for and importance of Business Ethics:

1. Protection of Consumer Rights: -Consumer is the centre of all the business activities. In fact,

business is essentially meant for satisfaction of consumer wants. Unfortunately, consumers are the most

neglected and exploited group. The application of business ethics will help to confer and implementconsumer rights.

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2. Social Responsibility: -Business Ethics is a means of making business socially responsible for its

actions. Exploitation of consumers, employees, discriminate use of natural resources, etc., is quitecommon in all type of business. Compliance to ethical standards will ensure (a) Protection of consumerrights (b) Public accountability (c) Protection of workers interests, and (d) Proper utilisation of natural

resources.

3. Concept of Socialism: -The Concept of Socialism in business states that gains of a business must beshared by all and not just by the owner of business. Profit is a sign of business skill and talent. Profit isalso a result of group efforts. Employees, shareholders, consumers, suppliers, and others contribute to the

success of the business. Therefore, success should be shared by all concerned.

4. Interest of industry: - Business Ethics are necessary to safeguard the interests of the small scalebusiness firms. The tendency of big business firms is always to dominate the market and drive away the

small industries out of the market. Small scale units can establish their position and fight for their right ifthe industry follows a code of ethics.

5. Consumer movement: -The growth in consumer movement is also another important factor that hasnecessitated the need for business ethics. The spread of education and awareness among consumers abouttheir rights has made the business community to conduct business on ethical principles.

6. Better Relations With the Society: -Business Ethics is needed to develop good relations betweenbusiness and society. The relationship of business with society has various dimensions such as itsrelations with shareholders, employees, consumers, distributors, competitors and government.

7. Buyers market: - There has been a structural change in the concept of business. The concept of

profit has been gradually taken over by consumer satisfaction. The large scale production and increasedcompetitions in the market changed the business scene from a sellers market to a buyers market.

8. Beneficial to Business and Society: - Ethics suggests what is good and bad, right and wrong, ethicaland unethical, etc., to businessman. It also brings an element of honesty, sincerity, fairness, and human

touch to business activities.


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