Environment Protection and Consumerism

PRINCIPLES OF MANAGEMENT

Chapter 14 – Environment Protection and Consumerism

Environmental Protection

The issue of environmental protection is not new.  But, it is only in the last two decades that people have begun to understand the real importance of maintaining a proper ecological balance and environmental quality. It is so vulnerable that a change in one area affects another.

The Manager must consider the following environmental problems:

1. Overpopulation

2. Use of Pesticides

3. Depletion of Raw Materials

4. Pollution

5. Greenhouse Effect

6. Thinning of the Ozone Layer

7. Deforestation

Response to Environmental Issues

The responses to environmental issues can be described as favorable. Already, important strides have been made in neutralizing most of the problems. The business community has shown that it has the desire and the financial clout to solve the problem.

Consumerism

Consumerism is a consumer movement to protect the consumer against abuses and excesses of big business. This is an effective social force. Consumer Issues:

1. Consumer Demand for Accurate Information.

2. Consumer Insistence on Safer Products and Services.

3. Consumer Complaint on Price-Fixing.

A consumer who feels discriminated against can seek redress from the company. If the company fails to restitutes, an individual action or class suit may be a viable alternative.

Response to Consumer Issues

As responses, most business organizations have taken the following steps:

1. Provide more accurate information about the goods and services it sells.

2. Increased attention to quality control to assure safer products.

3. Provide clear info regarding price and warranty and service guarantees.

4. Instituted the formation of associations for regulating themselves.

The Manager’s Role

Before mapping out a strategy for social responsibility, it is important that the manager asks the following:

1. Does his organization wish to commit itself to social responsibility projects?

2. Up to what extent will it go?

Such questions must be answered by investors and shareholders. This initial step is important because an involvement in this venture will impinge on the profit potential of the company.