Raghav runs a dairy in a small village where no food inspector ever comes. He could add water to the milk and no one would find out. Still, he never does it, because he believes it is his duty to take care of his buyers’ interest and not to exploit them in any way.
Which point of importance of consumer protection does Raghav’s conduct show?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Moral justification
Option (1) Government intervention — Incorrect. Government intervention is about avoiding government action that can tarnish a company’s image. No food inspector comes to Raghav’s village, so fear of action is not his reason.
Option (2) Moral justification — Correct. Moral justification says it is the moral duty of any business to take care of consumers’ interest and avoid any form of their exploitation. Raghav stays honest even when no one would catch him. He acts from this duty, so he avoids adulteration such as adding water to milk.
Option (3) Social responsibility — Incorrect. Social responsibility treats consumers as one of the many stakeholder groups, cared for like the others. Raghav does not speak of groups; he speaks of his own duty not to exploit his buyers.
Option (4) Long-term interest of business — Incorrect. Long-term interest rests on repeat sales and good feedback from satisfied customers. Raghav does not give future sales as his reason.
NCERT (2026-27 Edition): “(i) Long-term Interest of Business: Enlightened businesses realise that it is in their long-term interest to satisfy their customers. Satisfied customers not only lead to repeat sales but also provide good feedback to prospective customers and thus, help in increasing the customer-base of business. Thus, business firms should aim at long-term profit maximisation through customer satisfaction.” “(iii) Social Responsibility: A business has social responsibilities towards various interest groups. Business organisations make money by selling goods and providing services to consumers. Thus, consumers form an important group among the many stakeholders of business and like other stakeholders, their interest has to be well taken care of.” “(iv) Moral Justification: It is the moral duty of any business to take care of consumer’s interest and avoid any form of their exploitation. Thus, a business must avoid unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black marketing, etc.” “(v) Government Intervention: A business engaging in any form of exploitative trade practices would invite government intervention or action. This can impair and tarnish the image of the company. Thus, it is advisable that business organisations voluntarily resort to such practices where the customers’ needs and interests will well be taken care of.” |