In Business organizations, the social responsibilities of entrepreneurs towards customers and consumers are very important. These days, the prevalent notions are ‘Customer market’ and ‘Customer, the king of the market’, in place of the old notion of ‘Sellers Market’.
The general acceptance is, customer or consumer is always right. In such conditions, it is essential that the entrepreneurs fulfill social responsibilities towards the customers or consumers, or they will get dissatisfied.
Hence, the entrepreneurs should provide commodities and services, according to the desires and needs of the consumers, at reasonable prices.
Social Responsibility of Entrepreneurs towards Customers
In short, the social responsibilities of entrepreneurs towards the customers are as follows:
1. Determination of Fair Prices
The entrepreneurs should determine fair prices for commodities and services.
The producers should regulate the production cost of commodities and the distribution should earn marginal profit only.
2. To Render Good and Economic Services
The business Institutions for organizations, providing business services and other services, like banking, insurance, water, electricity, transportation, communications, and publications, etc. have the responsibility of providing good and cheaper services to the customer.
Besides, operational and management costs of these services should be also be controlled.
3. Standardization of Goods
The entrepreneurs should get more and more goods.
The goods purchased by the customers should be perfect, or else some mishaps may occur with the customers.
It is not worth that on all standardized commodities, the sign of country standard bureau should be marked.
4. Best and Economic Packing of Products
To save the goods from being damaged or spoiled, due to the weather or transportation, these should be packed well.
The packing should be economical.
Special attention is given on the packaging of machines and food materials.
The responsibility of the entrepreneur is to arrange attractive and strong packing. But, it should not heavily increase the cost of the product.
5. Right and True Advertising
Advertisements should not be untrue and false. Customers or consumers attract to the goods mainly through advertisements.
If that proves wrong and false the customers will not believe in the future.
Rather, he will not be able to make decisions regarding the purchase of goods.
Besides, the advertising media selected for the advertisement of good should be authentic and they should not advertise exorbitantly.
The contents of the advertisement should be in accordance with the cultural values.
6. To Avoid Adulteration, Low Weight and Measurement of Products
The entrepreneurs should avoid adulteration, low weight, and Measurement.
Adulteration in life-saving goods medicines, food items, and drinks are damaging for life.
In this regard, the Weights and Measures Act should be compiled in a specific country.
7. Redressal of Customers Complaints
On several occasions, customers make complaints regarding the quality of the products, their packing, weight measurement, technical defects, charging of higher prices and commodities not being in accordance with the samples, etc.
All these complaints should be resolved quickly and if need be the goods may be replaced also.
8. To Maintain Contacts with Customers Associations
In present times, customers organize “Consumer Associations” and ‘customer or consumer forums’ to safeguard their interests.
Under such conditions, the entrepreneur or businessman has the responsibility to maintain contacts with the organization of the customers and their office bearers, to avoid movements by them, by redressal of their complaints.
As a result of such contacts, consumers will save from launching movements and the entrepreneurs will also be able to save their reputation in the markets.
9. To Follow Code of Conduct
Some entrepreneurs establish organizations to protect the interests of the consumers, whose membership is voluntary.
The entrepreneurs should become members of such organizations and should follow the rules and bye-laws of such organization.
10. After Sales Service
For several commodities, After-sales services are required.
Only thereafter, these may be used properly.
11. Avoidance of Hoarding Practices
The entrepreneur should avoid the hoarding of commodities and the creation of artificial scarcities.
Hoarding of commodities for maximization of profits is business, legal, social and moral offense.
It makes an adverse effect on the reputation of entrepreneurs and businessmen.
12. To Promote Customer Research
Entrepreneurs have the responsibility to encourage market and customer research.
For that, research regarding new uses of new commodities and services is essential, so that changes occurring in desires, tastes, lookings sand designs may be known.
13. Efficient Distribution System
The commodities become costlier if the number of intermediaries for their distribution is large.
Hence, an efficient distribution system should be adopted, so that commodities do not become costly.
Related: Top 5 Functions of an Economic System.
14. Good Behaviour
There are various types of customers for the products of a business, like the male, female, children, youth, old, educated, and educated farmers, and urban, etc.
For the success of the business, affectionate civilized and respectful behavior with all categories of customers is quite essential.
Irritation towards the customer may be damaging to the business.
Thus, it is also known as the social responsibility of business towards the general public or customers.