A business may take care of consumers’ interest for different reasons. Which reason is given under the point ‘moral justification’?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → It is the duty of any business to take care of consumer’s interest and avoid any form of their exploitation.
Option (1) It is in the long-term interest of business to satisfy its customers. — Incorrect. This is the point long-term interest of business. Satisfied customers bring repeat sales and good feedback.
Option (2) Business organisations use resources of the society, so they have a responsibility to supply products in public interest. — Incorrect. This is the point business uses society’s resources. Its products should be in the public interest and keep public confidence.
Option (3) Consumers form an important group among the many stakeholders of business, so their interest has to be taken care of. — Incorrect. This is the point social responsibility. Consumers are one of the many stakeholder groups of a business.
Option (4) It is the duty of any business to take care of consumer’s interest and avoid any form of their exploitation. — Correct. Under moral justification, it is the moral duty of any business to take care of consumers’ interest and avoid any form of their exploitation. So a business must keep away from practices such as adulteration and hoarding.
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.” “(ii) Business uses Society’s Resources: Business organisations use resources which belong to the society. They, thus, have a responsibility to supply such products and render such services which are in public interest and would not impair public confidence in them.” “(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.” |