Under the point ‘moral justification’, it is the moral duty of any business to take care of consumer’s interest. Which of the following is stated as what a business must do because of this duty?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A business must avoid unscrupulous, exploitative and unfair trade practices.
Option (1) A business must avoid unscrupulous, exploitative and unfair trade practices. — Correct. Moral justification says it is the moral duty of any business to take care of consumers’ interest and avoid exploiting them. So a business must avoid unscrupulous, exploitative and unfair trade practices, such as adulteration, hoarding and false advertising.
Option (2) A business must set up its own consumer service and grievance cells. — Incorrect. Consumer service and grievance cells are set up by enlightened business firms because of the right to be heard. They let consumers file a complaint and be heard.
Option (3) A business must lay down a code of conduct for its dealings with customers. — Incorrect. A code of conduct for dealing with customers is laid down by business associations such as FICCI and CII, for their members.
Option (4) A business must voluntarily resort to practices that take care of customers’ needs. — Incorrect. Taking care of customers’ needs voluntarily is advised under government intervention. A business does so to avoid government action that would tarnish its image.
NCERT (2026-27 Edition): “(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.” “4. Right to be heard: The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or a service. It is because of this reason that many enlightened business firms have set up their own consumer service and grievance cells. Many consumer organisations are also working towards this direction and helping consumers in redressal of their grievances.” |