Question 22
Critically assess the view that businesses have a moral duty to put their
consumers first.
Consumers are of utmost importance to an organization. Without consumers,
there is zero revenue for the company. The main aim of an organization is to sell their
products or services in order to generate revenue that will translate to profit for the
firm. Consumer behavior is the decision making process to purchase a product or
services. The notion of putting consumers first and ‘customer is always right’ has
been promoted in the public through various mediums that depicts the power of
consumers in the market.
The bargaining power of consumers has been explained in the Porter’s 5
Theory in a firm. Consumers have the power to affect the supply and price of a
product or services. This shows the level of importance customers play in a business.
Businesses have a moral duty to put their consumers first for the mutual benefit of
both parties.
Businesses need to be respectful and treat all consumers as essential
stakeholders of the organization. Consumers should be given ample of information
regarding the products or services that the businesses offer. The goal of a firm should
not only be to maximize profit, but also running their business in an ethical manner
with high regards to all the stakeholders.
Communication is key for a business to effectively transmit information to
consumers. It is the moral duty of businesses to divulge all essential information
pertaining to the product or services to the consumers. For example, the nutritional
information for a juice box should be displayed in an obvious manner to ensure
consumers are able to make an informed decision regarding the purchase.
Businesses must have integrity in every aspect of the company. Consumers
should be well informed about the product or services without any fraud or deception.
There are instances when a product is not as described by the company or certain
specifications are missing from the product. This is morally wrong, as the consumers
place their trust in the product and the brand, which is the firm. Any intentional
misrepresentation by the company to the consumers would be ethically wrong.
Theory of equity states the apportionment of resources should be fair for
related parties. Consumers would need to feel that their level of cost should be fairly
compensated by the level of benefit they can obtain from a product or services.
Consumers form psychological bond to brand names or companies, especially the
ones they frequently use.
For example, when Apple introduces a new iPhone, there are millions of
Apple fans that would flock to the Apple stores to purchase the phone. In this
scenario, Apple needs to ensure the consumers are able to achieve their equity by
providing a product with high quality and standards that matches the expectation of
the consumers. Consumers need to feel satisfied with the product as they are paying a
premium for an Apple product compared to other brands in the same category. It
would be morally wrong to undersell to consumers in order to make profit for the
company.
Here is an example from my previous organization that I have worked in that
discusses the issue of morally putting the customers first.
