Business Ethics In Dealing with Consumers

It is not a secret that consumers are considered to be one of the most important stakeholders for any business organization. Hence, it is crucial to be ethical when dealing with consumers in any area of  business activity. In this case, business ethics  can serve the role of a guidance in resolving various ethical issues. Actually, business organization should recognize the needs of consumers and develop the proper strategies to address these needs in an ethical way. The views of Advertising of Theodore Levitt and John Kenneth Galbraith are different. The business academic Theodore Levitt is the advocate of the marketing thesis, while the economic John Kenneth Galbraith is the defender of the selling thesis. According to researchers, “selling refers to the attempt to convince people that they need the product being advertised to the point of actually creating a want for it” (Grant 76).  However, marketing is focused on determination of people’s needs in order to advertise goods with the goal of reminding people of their needs. Galbraith highlights the dependence effect which is created by adversing to manipulate consumers’ decisions. Levitt places emphasis on the needs of the  needs of the consumer while developing marketing strategies.

Furthermore, business organizations should be provide an opportunity to their consumers to develop recognition of their responsibility for their product choices.  The doctrine of Caveat Emptor which means “let the buyer beware” is the key principle that guides consumer decisions. It is required that the seller warns the consumer of substantial latent defects in the product, but does not inform him/her of any other features that can discourage consumer decisions. This fact means that the consumer “should not expect compensation for defects in a purchase that is unfit for its ordinary purpose” (Mele 279).

Besides, the principle of due care plays an important role in dealing with consumers. Manufacturers should be aware of their moral duty to provide legal protection against any risks. This fact means that consumers should be protected from the risks that can cause damage. For example, The principle of due care should be followed by manufactures in different stages of product development, including design phase,  production phase and product information phase. If a manufacture complies with the principle of due care, he/she should avoid offering unsafe products to consumers. Nevertheless, it is impossible to exclude development risk which is the result of the compliance with the due care principle. According to researchers, “in developing new products there is always a risk of harmful effects that only become manifest in the long term” (Jeurissen 144).

Moreover, product safety should become part of  the legal and moral responsibilities of manufacturers. Recognition of the pros and cons of government regulations designed to protect consumers, including the issues of legal paternalism, allows making correct ethical decisions. Furthermore, the responsibilities of business to consumers concerning product quality, prices, and labelling and packaging reflect the application of business principles. The quality of products should be consistent with the price, while labelling and packaging should be based on the standards that require providing clear, accurate, and adequate information about the product (Jeurissen 149).

In fact, there are other issues that should be considered while dealing with consumers. Deceptive and morally questionable techniques used in advertising violate business ethics. The role of the Federal Trade Commission (FTC) in regulating advertising, especially advertising to children, is crucial because this agency helps to deal with the cases of deceptive advertising practices. Finally, the social desirability of advertising means that advertising be ethical. It is a positive feature of our economic system because it contributes to economic growth. It does not manipulate the consumers, but  it merely provides response to consumer needs because advertising helps consumers to make purchasing decisions (Jeurissen 150).

Works Cited

Grant, Colin. Myths We Live By. University of Ottawa Press, 1998. Print.

Jeurissen, Ronald. Ethics & Business. Uitgeverij Van Gorcum, 2007. Print.

Mele, Domenec. Business Ethics in Action: Seeking Human Excellence in Organizations. Palgrave Macmillan, 2009. Print.

The terms offer and acceptance. (2016, May 17). Retrieved from

[Accessed: March 28, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016.

[Accessed: March 28, 2024]

freeessays.club (2016) The terms offer and acceptance [Online].
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[Accessed: March 28, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 28, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 28, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 28, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 28, 2024]
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