Read the following passage and answer the question.

In a colony, several people purchased mosquito killing rackets from a company. The majority of rackets turned useless within a period of three months. Rishant, who was one of the residents of the colony, decided to take the matter to the consumer court but the residents were not united and he felt himself alone on the issue. The price of the racket was ₹500. Meanwhile one of the friends of Rishant who was a journalist, reported about the incident in a daily newspaper. When the company learnt about the situation, it decided to take a milestone step. The company decided to take back and repair all the faulty rackets from the residents of the society. The whole story took a twist when a technician from the company told the management that in the instruction book provided with the racket, it was written to clean the racket with special care after every one month. When enquired, it was found that the residents with faulty rackets including Rishant didn't clean their rackets after one month.

What could be the important aspect from the point of view of business that compelled the company to take such milestone step?

All of these

The correct answer is option 4- All of these.

Long-term interest of business: The company acted to maintain customer trust and avoid negative publicity impacting future sales.

Social responsibility: By repairing products, the company showed concern for community well-being.

Moral justification: Even though users didn’t follow care instructions which company came to know later, the company still chose to repair the products, reflecting ethical consideration.

Thus, all three aspects could contribute to the company’s decision. 

• Long-term interest of Business: Enlighted 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.
• 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.
• 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.