Page 345 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes
Example: CSR Initiatives by Indian Companies
Aircel: Mobilises public opinion in partnership with WWF India for the ‘Save Our Tigers Initiative’
Coca-Cola India: Partners with government agencies and NGOs to combat water scarcity and
depleting groundwater levels

Dabur India: Its initiative, SUNDESH, in UP and Uttrakhand aims for the overall socio-economic
development of the poor
Maruti Suzuki India: Runs employee volunteering programme, ‘e-Parivartan’, with NGO
Literacy India, for teaching underprivileged people
Nasscom Foundation: Promotes development through use of information and communication
technology, provides tech donations to NGOs

15.2.1 Social Responsibility Issues

Consumer Movement (Consumerism)

It refers to several efforts by independent individuals, groups and organisations to protect the
rights of consumers.

Did u know? There was rapid industrial growth in United States during the late 19th century
leading to many undesirable conditions such as low pay, long working hours, false
advertising, and sale of risky food and drugs. This led to consumers forming the ‘Consumers
League’ in New York City. After this initiative, the consumer movement grew rapidly
throughout the United States during 1920 – 1930. Subsequently, President John F. Kennedy
declared that consumers have some basic rights and drafted a “Bill of Rights.” It said,
consumers have the right to safety, the right to be informed, the right to choose, and the
right to be heard.

1. The Right to Safety says that products must be safe for its intended use and marketers
have an obligation not to market a product knowingly that could harm or cause injury to
consumers. Marketers should have tested the product to ensure quality and reliability,
and customers must have thorough and clear directions for its use.
2. The Right to Be Informed means that consumers should have freedom to access and review
all information about a product or service before buying it. Companies are required to
print detailed information about ingredients and instructions for use (such as product
labels, warnings, etc., on product packages).
3. The Right to Choose refers to consumers’ right to have the opportunity to choose and
purchase a product or service at competitive prices, and should also be assured of
satisfactory quality and service at a fair price. Competition should be free to flourish
without permitting any one company to become so powerful that consumers have no
opportunity to seek new and improved products or services.
4. The Right to Be Heard ensures that while framing laws and policies, the government gives
full and sympathetic consideration. It also promises that in case a consumer has any
complaints against a product or the marketer, she/he will get a fair treatment.
This major step by one country has created a lot more awareness among developed and almost
all the developing economies. There is increasing awareness among consumers in most

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