Lconomlc LnvlronmenL

Lconomlc LnvlronmenL
W 1he Lconomlc envlronmenL lncludes Lhe
sLrucLure and naLure of Lhe economy Lhe
sLage of developmenL of Lhe economy
economlc resources Lhe level of lncome Lhe
dlsLrlbuLlon of lncome and asseLs global
economlc llnkages economlc pollcles eLc
-aLure of Lconomy
W Low lncome Lconomy
W Plgh lncome Lconomy
W Mlddle lncome Lconomy
LrucLure of Lhe Lconomy
W lacLors such as conLrlbuLlon of dlfferenL secLors llke
prlmary secondary and LerLlary secLors large medlum
small and Llny secLors Lo Lhe economy and Lhelr llnkages
lnLegraLlon wlLh Lhe world economy eLc are lmporLanL
Lo buslness because Lhese facLors lndlcaLe prospecLs for
dlfferenL Lypes of buslness cerLaln facLors whlch affecL
Lhe buslness eLc
W As an economy develops Lhe share of Lhe prlmary secLor
ln Lhe Cu and employmenL decllnes and Lhose of Lhe
oLher secLors lncrease
W AfLer a cerLaln sLage Lhe share of Lhe manufacLurlng
secLor may also decllne
W 1he servlce secLor now conLrlbuLes nearly 70 per cenL of
Lhe world Cu
Lconomlc ollcles
W lmporLanL economlc pollcles whlch can have a
very greaL lmpacL on buslness
a) lndusLrlal pollcy
b) lorelgn exchange pollcy
c) MoneLary pollcy
d) llscal ollcy
e) lorelgn lnvesLmenL and
f) 1echnology ollcy
lndusLrlal ollcy
W lndusLrlal pollcy can even deflne Lhe scope
and role of dlfferenL secLors llke prlvaLe
publlc [olnL and cooperaLlve or large
medlum small and Llny lL may lnfluence Lhe
locaLlon of lndusLrlal underLaklngs cholce of
Lechnology scale of operaLlon producL mlx
and so on
1rade ollcy
W 1he Lrade pollcy can slgnlflcanLly affecL Lhe
forLunes of flrms lor example resLrlcLlve
lmporL pollcy or a pollcy of proLecLlng Lhe
home lndusLrles may greaLly help Lhe lmporL
compeLlng lndusLrles whlle a llberallzaLlon of
Lhe lmporL pollcy may creaLe dlfflculLles for
such lndusLrles
lorelgn Lxchange ollcy
W Lxchange raLe pollcy and Lhe pollcy ln respecL
of crossborder movemenL of caplLal are
lmporLanL for buslness 1he abollLlon /
llberallzaLlon of exchange conLrols all around
Lhe world slnce Lhe laLe 1970's has
encouraged cross border movemenL of caplLal
llscal ollcy
W CovernmenL's sLraLegy ln respecL of publlc
expendlLure and revenue can have slgnlflcanL
lmpacL on Lhe buslness 1he paLLern of publlc
expendlLure may affecL Lhe developmenL of
varlous reglons secLors and/or lndusLrles
dlfferenLly uch ls Lhe case wlLh Lhe LaxaLlon
pollcy
W CovernmenL ofLen use Lax lncenLlves or
dlslncenLlve Lo encourage or dlscourage cerLaln
acLlvlLles
MoneLary ollcy
W 1he cenLral bank by lLs pollcy Lowards Lhe
cosL and avallablllLy of credlL can slgnlflcanLly
lnfluence Lhe savlngs lnvesLmenLs and
consumer spendlng ln Lhe economy
Lconomlc CondlLlons
W Ceneral economlc condlLlons affecL buslness
Lconomles pass Lhrough perlods of boom and
recesslon A boom ls characLerlzed by hlgh
level of ouLpuL employmenL and rlslng
demand and prlces A recesslon has Lhe
opposlLe of Lhese characLerlsLlcs
lorelgn lnvesLmenL and 1echnology
ollcy
W unLll Lhe laLe 1980's when Lhe world wlde
Lrend Lowards llberallzaLlon seL ln forelgn
caplLal and Lechnology were under severe
resLrlcLlons ln may developlng and soclallsL/
communlsL counLrles
Lconomlc roles of CovL
1 8egulaLory 8ole
a) CovL regulaLlon of Lhe buslness may cover a
broad specLrum exLendlng from enLry lnLo
buslness Lo Lhe flnal resulLs of a buslness
b) 1he reservaLlon of lndusLrles Lo small scale
publlc and cooperaLlve secLors llcenslng sysLem
eLc regulaLe Lhe enLry
c) 8egulaLlon of producL mlx promoLlonal
acLlvlLles eLc amounL Lo regulaLlon of Lhe
conducL of buslness
ConL
d) 8esulLs of buslness operaLlons may be regulaLed by
such measures as celllngs on proflL marglns dlvldend
eLc
e) 1he sLaLe may also regulaLe Lhe relaLlonshlp beLween
enLerprlses
f) lndlrecL conLrols are usually exerclsed Lhrough varlous
flscal and moneLary lncenLlves and dlslncenLlves or
penalLles
g) 1he dlrecL admlnlsLraLlve or physlcal conLrols are more
drasLlc ln Lhelr effecL 1hey can be applled selecLlvely
from flrm Lo flrm and lndusLry Lo lndusLry aL Lhe
dlscreLlon of Lhe LaLe
romoLlonal 8ole
W ln developlng counLrles where Lhe lnfrasLrucLural
faclllLles for developmenL are lnadequaLe and
enLrepreneurlal acLlvlLles are scarce Lhe
promoLlonal role of Lhe CovL assumes speclal
slgnlflcance
W 1he LaLe wlll have Lo assume dlrecL responslblllLy
Lo bulld up and sLrengLhen Lhe necessary
developmenL lnfrasLrucLures such as power
LransporL flnance markeLlng lnsLlLuLlons for
Lralnlng and guldance and oLher promoLlonal
acLlvlLles
LnLrepreneurlal 8ole
W ln many economles Lhe LaLe also plays Lhe role of an
enLrepreneur esLabllshlng and operaLlng buslness
enLerprlses and bearlng Lhe rlsks
W 1here was a Lendency ln may developlng counLrles Lo
asslgn a domlnanL place Lo Lhe publlc secLor
W ubllc secLor domlnance was usually esLabllshed ln
caplLallnLenslve pro[ecLs llke sLeel caplLal goods
peLrochemlcals and ferLlllzers for whlch lnvesLmenL
requlremenL were very large and Lhe expecLed prlvaLe
reLurns aL leasL ln Lhe shorLrun were Loo low Lo
provlde an lncenLlve for prlvaLe proflLablllLy
lannlng 8ole
W 1he lmporLance of plannlng Lo a less
developed economy was ofLen emphasslsed
by !awaharlal -ehru Lhe chlef archlLecL of
uevelopmenL lannlng ln lndla Pe rlghLly
observed WhaLever lL may be ln oLher
counLrles ln underdeveloped counLrles llke
ours Whlch have do develop falrly rapldly Lhe
elemenL ls lmporLanL and Lhe quesLlon ls how
Lo use our resources Lo Lhe hesL advanLage
CovernmenL and Legal LnvlronmenL
W ln every counLry Lhere are laws whlch covers maLLers
such as sLandards of producL packaglng promoLlon
eLhlcs ecologlcal facLors eLc
W 8egulaLlons Lo proLecL Lhe purlLy of Lhe envlronmenL
and preserve Lhe ecologlcal balance have assumed
greaL lmporLance ln many counLrles
W ome governmenLs speclfy cerLaln sLandards for Lhe
producLs (lncludlng packaglng) Lo be markeLed ln Lhe
counLry
W ome counLrles prohlblL Lhe markeLlng of cerLaln
producLs
ConL
W ln mosL naLlons promoLlonal acLlvlLles are
sub[ecL Lo varlous Lypes of conLrols
W ln lndla Lhe adverLlsemenL of alcohollc llquor
ls prohlblLed
W AdverLlsemenLs lncludlng packaglng of
clgareLLes musL carry Lhe sLaLuLory warnlng
LhaL clgareLLe smoklng ls ln[urlous Lo healLh"
W 8aby foods musL noL be promoLed as a
subsLlLuLe for breasL feedlng
W LllmlnaLlon of unfalr compeLlLlon and dlluLlon
of monopoly power are Lhe lmporLanL
ob[ecLlves of Lhese regulaLlons
W CerLaln changes ln govL pollcles such as Lhe
lndusLrlal pollcy flscal pollcy Larlff pollcy eLc
may have profound lmpacL on buslness
1he ConsLlLuLlonal LnvlronmenL
W 1he socloeconomlc and pollLlcal ob[ecLlves of
Lhe lndlan 8epubllc and Lhe baslc guldlng
prlnclples of sLaLe funcLlonlng have been
clearly lald down ln Lhe reamble Lo Lhe
ConsLlLuLlon Lhe lundamenLal 8lghLs and ln
Lhe ulrecLlve rlnclples of LaLe ollcy 1he
ConsLlLuLlon also ouLllnes Lhe economlc
powers and responslblllLles of Lhe unlon
CovernmenL and Lhe LaLe CovernmenL
1he reamble
W 1PL LCLL Cl l-ulA have solemnly resolved
Lo consLlLuLe lndla lnLo a CvL8LlC-
CClALl1 LCuLA8 uLMCC8A1lC 8Lu8LlC
Lo secure Lo all lLs clLlzens
W !u1lCL Ll8L81? LCuALl1? l8A1L8-l1?
lundamenLal 8lghLs
W 8lghL Lo LquallLy
W 8lghL Lo lreedom
W 8lghL agalnsL LxplolLaLlon
W 8lghL Lo freedom of 8ellglon
W CulLural and LducaLlonal 8lghLs
W 8lghL Lo ConsLlLuLlonal 8emedles
ConL
W 1he consLlLuLlon guaranLees Lhe clLlzens Lhe
fundamenLal rlghL Lo freedom Lo pracLlce any
professlon occupaLlon Lrade or buslness
W 1he LaLe ls empowered Lo make laws relaLlng
Lo professlonal or Lechnlcal quallflcaLlon
necessary Lo pracLlce any professlon Lrade or
buslness
1he ulrecLlve rlnclples
W 1he lundamenLal 8lghLs whlch lmposes llmlLaLlons on LaLe's power Lhe
ulrecLlve rlnclples of LaLe ollcy whlch suggesL numerous socloeconomlc
welfare responslblllLles for Lhe LaLe separaLlon of powers of [udlclary
execuLlve and leglslaLure and dlvlslon of power and responslblllLy beLween
Lhe unlon and Lhe LaLes
W 1he CovernmenL conLrol over Lhe lndlan economy grew enormously ln Lhe
flrsL four decades slnce lndependence 1he lndusLrles uevelopmenL and
8egulaLlon AcL Lhe Companles AcL CaplLal lssues ConLrol AcL ecurlLles
ConLracLs 8egulaLlon AcL Monopolles and 8esLrlcLlve 1rade racLlces AcL
LssenLlal commodlLles AcL revenLlon of 8lackmarkeLlng and MalnLenance
of upplles of LssenLlal CommodlLles AcL ConservaLlon of forelgn Lxchange
and revenLlon of muggllng AcLlvlLles AcL lorelgn Lxchange 8egulaLlon
AcL lnce 1991 lndla has been passlng Lhrough a process of deconLrols and
economlc reforms 1hls lmplles a redeflnlLlon of Lhe role of Lhe LaLe
W Separat|on of ower "1he separaLlon powers
conLemplaLes Lhe ldea LhaL Lhe governmenLal
funcLlons musL be based on a LrlparLlLe dlvlslon of
leglslaLure execuLlve and [udlclary#
W |v|s|on of ower lndla's ConsLlLuLlon dlsLrlbuLes
Lhe lLems for leglslaLlon among Lhree llsLs
1 unlon LlsL
LaLe LlsL
ConcurrenL LlsL
ocleLal LnvlronmenL
W 8uslness ls an lnLegral parL of Lhe socleLy and Lhey
lnfluence each oLher
W lL ls now wldely recognlzed LhaL buslness has cerLaln
soclal ob[ecLlves besldes Lhe economlc ob[ecLlves
W 1he culLural envlronmenL of a naLlon/markeL may
profoundly lnfluence buslness ln dlfferenL ways and
dlmenslons buslness relaLlons enLrepreneurlal
naLure and aLLlLude pollLlcal phllosophles and sysLems
legal envlronmenL buslness eLhlcs governance
governmenL pollcles eLc could have soclal lnfluence
on Lhem
W ManagemenL may undergo a soclal LransformaLlon lor example a
number of famlly owned buslness groups ln lndla have ushered ln
professlonal managemenL
W 1he Lype of producLs Lo be manufacLured and markeLed Lhe
markeLlng sLraLegles Lo be employed Lhe way Lhe buslness should
be organlzed and governed Lhe values and norms lL should adhere
Lo are all lnfluenced by Lhe soclal sLrucLure and Lhe culLure of a
socleLy
W 1he LasLes and preferences purpose of consumpLlon meLhod of
consp occaslon of consp of a producL may show wlde varlaLlons
beLween culLures
W 1he number of eLhnlc groups and languages ln use ln many
counLrles ls mlnd boggllng uch wlde culLural dlverslLy oses a
Lremendous challenge Lo managemenL
oclal 8esponslblllLy of 8uslness
W oclal responslblllLy of buslness refers Lo whaL
Lhe buslness does over and above Lhe
sLaLuLory requlremenLs for Lhe beneflL of Lhe
socleLy 1he word responslblllLy connoLes LhaL
Lhe buslness has some moral obllgaLlons Lo
Lhe socleLy
Classlcal and ConLemporary vlews
Classlcal vlew
W 1he conLemporary vlew of soclal responslblllLy of buslness
ls subsLanLlally broader and benevolenL Lhan Lhe classlcal
W Accordlng Lo Lhe classlcal vlew buslness has only economlc
ob[ecLlves and no oLher responslblllLy beyond LhaL
W Lhere ls one and only one soclal responslblllLy of buslness
Lo use lLs resources and engage ln acLlvlLles deslgned Lo
lncrease lLs proflLs son long as lL sLays wlLhln Lhe rules of
Lhe game whlch ls Lo say engages ln open and free
compeLlLlon wlLhouL decepLlon or fraud
byMllLon lrledman
W ConLemporary vlew of buslness ls an
ecologlcal one accordlng Lo whlch buslness ls
an lnLegral parL of Lhe socleLy Lo serve a soclal
purposes
W roponenLs Lhls vlew llke uavls and
8lomsLorm hold LhaL buslness ls a soclal
lnsLlLuLlon performlng a soclal mlsslon and
havlng a broad lnfluence on Lhe way people
llve and work LogeLher
W Accordlng Lo Lelner and Lelner a reasonable approach Lo soclal
responslblllLy ls as follows
1 Lach buslness musL Lake lnLo accounL Lhe slLuaLlon ln whlch lL flnds lLself
ln meeLlng sLakeholder expecLaLlons
8uslness ls an economlc enLlLy and cannoL [eopardlze lLs proflLablllLy
meeLlng soclal needs
8uslness should recognlze LhaL ln Lhe long run Lhe general soclal good
beneflLs everyone
1he soclal responslblllLy expecLed of a buslness ls dlrecLly relaLed Lo lLs
soclal power Lo lnfluence ouLcomes
3 oclal responslblllLy ls relaLed Lo Lhe slze of Lhe company and Lo Lhe
lndusLry lL ls ln
6 A buslness should Lackle only Lhose soclal problems ln whlch lL has
compeLence
7 8uslness musL assume lLs share of Lhe soclal burden and be wllllng Lo
absorb reasonable soclal cosLs
oclal CrlenLaLlons of 8uslness
W 1he exLenL of soclal orlenLaLlons of companles
vary very wldely lurLher Lhe soclal orlenLaLlon
or Lhe exLenL of soclal lnvolvemenL of a
company may change over Llme
W Soc|a| kespons|b|||ty Mode|s
1here are some models whlch Lndeavour Lo
descrlbe Lhe evoluLlon and exLenL of soclal
orlenLaLlon of companles -oLables ones
lnclude Carroll's model Palal's model and
Ackerman's model
W Archle 8 Carroll who deflnes corporaLe soclal
responslblllLy as Lhe enLlre range of obllgaLlons
buslness has for socleLy has proposed a Lhree
dlmenslonal concepLual model of corporaLe
performance Accordlng Lo Carroll a flrm ahs Lhe
followlng four caLegorles of obllgaLlons of
corporaLe performance
1 Lconomlc
Legal
LLhlcal
dlscreLlonary
CorporaLe oclal 8esponslblllLy (C8)
arro||'s Iour art ef|n|t|on
understondinq the lour components
Responsibility Societal
Lxpectation
Lxamples
Lconomic Required Be proitable. Maximize sales,
minimize costs, etc.
egal Required Obey laws and regulations.
Lthical Lxpected Do what is right, air and just.
Discretionary
(Philanthropic)
Desired,
Lxpected
Be a good corporate citizen.
2-J6
yramld of C8
Wllllan L Palal's reLurn on resources
model of corporaLe performance
W 1hls model recognlzes Lhe facL LhaL no corporaLe soclal
posLure wlll be valuefree and Lhls makes corporaLe
responslveness a Lremendously dlfflculL Lask
W Pe polnL ouL LhaL a flrm can only aLLempL Lo unlLe Lhe
dlverse lnLeresLs of varlous soclal groups Lo form a
workable coallLlon engaged ln creaLlng value for
dlsLrlbuLlon among members of Lhe coallLlon 8eyond a
cerLaln level of economlc acLlvlLy Lhe soclal lssues aL sLake
may become confllcLlng
W lor example large spendlng for soclal cause may affecL Lhe
proflLablllLy of Lhe flrm whlch could have lmpllcaLlons for
Lhe sLake holders and Lhe fuLure of Lhe flrm
Accordlng Lo Ackerman's model
W 1here are Lhree phases ln Lhe developmenL of Lhe soclal
responslveness of a company
1 1he flrsL phase ls one when Lhe Lop managemenL
recognlzes Lhe exlsLence of a soclal problem whlch
deserves Lhe companys aLLenLlon and acknowledges Lhe
company's pollcy Lowards lL by maklng an oral or wrlLLen
sLaLemenL
1he second phase ls characLerlzed by Lhe company
appolnLlng sLaff speclallsLs or exLernal consulLanLs Lo
sLudy Lhe problem and suggesL ways of deallng wlLh lL
1he Lhlrd phase lnvolves Lhe lmplemenLaLlon of Lhe soclal
responslblllLy programmes
lacLors AffecLlng oclal CrlenLaLlon
1 romoLers and 1op ManagemenL
8oard of ulrecLors
Lakeholders and lnLernal power 8elaLlonshlp As descrlbed by
Palal's model
ocleLal lacLors lor example a resourceful flrm locaLed ln a poor
communlLy may be expecLed Lo conLrlbuLe Lo Lhe developmenL of
educaLlon and healLh faclllLles eLc
3 lndusLry and 1rade AssoclaLlons
6 CovernmenL and Laws
7 ollLlcal lnfluences
8 CompeLlLors
9 8esources
10 LLhlcal lnfluences
8esponslblllLy Lo dlfferenL ecLlons
oclal
8esponslblllLy
of Lhe
8uslness
hareholders
Lmployees
CovernmenL
ocleLy
Consumers
Local
CommunlLy
8esponslblllLy Lo hareholders
W 1o proLecL Lhe lnLeresLs of Lhe shareholders and
employees Lhe prlmary buslness of a buslness ls Lo sLay
ln buslness" 1o safeguard Lhe caplLal of Lhe shareholders
and Lo provlde a reasonable dlvldend Lhe company has
Lo sLrengLhen and consolldaLe lLs poslLlon Pence lL
should develop and lmprove lLs buslness and bulld up lLs
flnanclal lndependence
W 1o provlde dlvldend Lhe company should earn sufflclenL
proflL
W 8y lnnovaLlon and growLh Lhe company should
consolldaLe and lmprove lLs poslLlon and help sLrengLhen
Lhe share prlces
W 1he company should ensure LhaL lLs publlc lmage ls such
LhaL Lhe shareholders can feel proud of Lhelr company
8esponslblllLy Lo Lmployee
W 1he paymenL of falr wages
W 1he provlslon of Lhe besL posslble worklng condlLlons
W 1he esLabllshmenL of falr work sLandards and norms
W 1he provlslon of labor welfare faclllLles Lo Lhe exLenL
posslble and deslrable
W ArrangemenLs for proper Lralnlng and educaLlon of Lhe
workers
W 8easonable chances and proper sysLem for
accompllshmenL and promoLlon
W roper recognlLlon appreclaLlon and encouragemenL
for speclal skllls and capablllLles of Lhe workers
8esponslblllLy Lo consumer
W lmprove producLlvlLy and reduce prlces lmprove quallLy and smooLhen
Lhe dlsLrlbuLlon sysLem Lo make goods easlly avallable
W 1o do 8 and u Lo lmprove quallLy and lnLroduce beLLer and new producLs
W 1o Lake approprlaLe sLeps Lo remove Lhe lmperfecLlon ln Lhe dlsLrlbuLlon
sysLem lncludlng blackmarkeLlng
W 1o supply goods aL reasonable prlces even when Lhere ls a seller's markeL
W 1o provlde Lhe requlred afLer sales servlces
W 1o ensure LhaL Lhe producL supplled has no adverse effecL on Lhe
consumer
W 1o provlde an opporLunlLy for belng heard and Lo redress genulne
grlevances
W 1o undersLand cusLomer needs and Lo Lake necessary measure Lo saLlsfy
Lhese needs
8esponslblllLy Lo communlLy
W 1aklng approprlaLe sLeps Lo prevenL envlronmenLal
polluLlon and Lo preserve Lhe ecologlcal balance
W 8ehablllLaLlng Lhe populaLlon dlsplace by Lhe operaLlon of
Lhe buslness lf any
W AsslsLlng ln Lhe overall developmenL of Lhe locallLy
W 1aklng sLeps Lo conserve scarce resources and developlng
alLernaLlves wherever posslble
W lmprovlng Lhe efflclency of Lhe buslness operaLlon
W ConLrlbuLlng Lo research and developmenL
W uevelopmenL of backward areas
W ConLrlbuLlng Lo Lhe naLlonal efforL Lo bulld up a beLLer
socleLy
oclal AudlL
W oclal AudlL ls a Lool for evaluaLlng how saLlsfacLorlly a
company has dlscharged lLs soclal responslblllLles
oclal audlL enables Lhe publlc as well as Lhe company
Lo evaluaLe Lhe soclal performance of Lhe company
W oclal audlL lnvolves
a) ldenLlflcaLlon of Lhe flrm's acLlvlLles havlng poLenLlal
soclal lmpacL
b) AssessmenL and evaluaLlon of Lhe soclal cosLs and
soclal beneflLs of such acLlvlLles
c) MeasuremenL of Lhe soclal cosLs and beneflLs and
d) 8eporLlng LhaL ls presenLlng ln a proper formaL and
manner Lhe soclal performance of Lhe flrm
Cb[ecLlves and 8eneflLs of oclal AudlL
1 1he baslc ob[ecLlve of soclal audlL ls Lo evaluaLe Lhe soclal
dlmenslons of Lhe performance of Lhe company
AnoLher prlnclpal ob[ecLlve whlch follows Lhe ob[ecLlve
menLloned above ls Lo Lake measures Lo lmprove Lhe
soclal performance of Lhe company on Lhe basls of Lhe
feed back provlded by Lhe soclal audlL
oclal audlL lncreases Lhe publlc vlslblllLy of Lhe
organlzaLlon
lf Lhe soclal audlL reveals a soclally commendable
performance of Lhe company lL wlll help boosL Lhe publlc
lmage of Lhe company
MeLhods of oclal AudlL
1 oclal rocess AudlL 1he alm of Lhe soclal process audlL
also known as rogramme managemenL audlL ls Lo
develop an lnLernal managemenL lnformaLlon sysLem LhaL
wlll allow managemenL Lo creaLe and admlnlsLer Lhe soclal
programmes ln a beLLer way
llnanclal LaLemenL lormaL AudlL 1he soclal lnformaLlon
ls presenLed ln Lhe convenLlonal flnanclal sLaLemenL
formaL le balance sheeL and or lncome sLaLemenL
MacroMlcro oclal lndlcaLor AudlL aLLempLs Lo evaluaLe
Lhe mlcro lndlcaLors (company's performance) agalnsL a
seL of macro lndlcaLors such as naLlonal pollcles
ConsLlLuency Croup AudlL under Lhls audlL Lhe
preference and aLLlLudes of varlous consLlLuencles llke
employees credlLors suppllers and cusLomers are
ldenLlfled and measured and Lhe flrm's performance ls
evaluaLed agalnsL Lhe crlLerla developed for each
group
3 arLlal oclal AudlL evaluaLes any parLlcular aspecLs of
soclal performance llke energy conservaLlon or
ecologlcal preservaLlon
6 Comprehenslve AudlL Comprehenslve audlL aLLempLs
Lo evaluaLe Lhe LoLal performance of Lhe organlzaLlon
lncludlng soclal performance
7 CorporaLe 8aLlng Approach ln
conLradlsLlncLlon Lo Lhe audlLs menLloned
above Lhls ls an exLernal evaluaLlon of Lhe
company's performance by publlc groups llke
consumer organlzaLlons soclal welfare
organlzaLlons or medla
Consumer 8lghLs
W Consumers ln Lhe advanced counLrles
obvlously are much more consclous of Lhelr
rlghLs Lhan ln counLrles llke lndla ln 196
resldenL !ohn l kennedy and ln 1963
resldenL !onson emphaslzed Lhe consumer
rlghLs and gave an lmpeLus Lo consumerlsm ln
Lhe uA and oLher counLrles
lmporLanL Consumer 8lghLs
W 8lghL agalnsL explolLaLlon by unfalr Lrade pracLlces
W 8lghL Lo proLecLlon of healLh and safeLy from Lhe goods and
servlces Lo consumer buy or are offered free
W 8lghL Lo be lnformed Lo Lhe quallLy and performance sLandards
lngredlenLs for Lhe producL operaLlonal requlremenLs freshness of
Lhe producL posslble adverse slde effecLs and oLher relevanL facLs
concernlng Lhe producL or servlce
W 8lghL Lo be heard lf Lhere ls any grlevance or suggesLlons
W 8lghL Lo geL Lhe genulne grlevance or suggesLlons
W 8lghL Lo geL Lhe genulne grlevance redressed
W 8lghL Lo choose Lhe besL form a varleLy of offers
W 8lghL Lo a physlcal envlronmenL LhaL wlll proLecL and enhance Lhe
quallLy of llfe
LxplolLaLlon of Consumers
W Consumers are pracLlcally denled mosL of
Lhese rlghLs 1hey are explolLed by a large
number of resLrlcLlve and unfalr Lrade
pracLlces