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6-28 Ethics & Social Responsibility [CH 6

Pressures from consumers and special-interest groups have prompted businesses to
adopt “socially acceptable” and thus “socially responsible” policies. This is a new
consumerism—the demand that business give “special interest approved”
consideration to demands and thus affecting its decisions. Major League Baseball
moved the All-Stare game from Atlanta, GA., to Denver, Co., because that state’s
legislature instituted election integrity similar to the integrity already in Delaware and
Colorado. This change came about because of an outcry of misinformation as to what
Georgia was requiring. The demand is that Georgia should not assure or enforce
election integrity with the result that Major League Baseball associates economically
pushed Georgia to submit to a faux position. Coca Cola took a similar stance and sales
of its products immediately declined.
Restaurants have no smoking sections in their stores and some restaurants have
instituted a no smoking policy in their restaurants. Clothing stores and other retail
outlets have adopted the same policy and action; remember that the sale of tobacco
products and smoking are not illegal activities. U.S. airlines banned smoking on
domestic flights after passengers began complaining, but on international flights
smoking is allowed because only in North America is non-smoking an issue. Consumer
groups are formed and perform many activities, including testing and reporting on the
performance and safety of products and service firms, informing the public and
government officials regarding consumer issues. Some concentrate on an isolated
situation, such as rate hikes by a local public utility, while others are more broadly
based. The net effect has been the advocating of legislation which brings about
consumer-protection laws covering everything from unethical sales practices to the
licensing of persons in the repair business. There is little doubt that more consumer-

Reducing the acreage protection laws will be enacted in the years ahead, and business is well advised to heed
of corn for food the warnings of the consumerism movement.
production increases the Product quality and safety. A Wendy’s restaurant in San Jose, California,
consumer cost of corn allegedly served a severed, inch-and-a-half long, human finger in a customer’s chili
for food; an issue of order. Anna Ayala, of Las Vegas, stated that she scooped up a fingertip in a mouthful
supply and demand. of chili. Even though this is not a corporate policy, sales at Wendy’s dropped
precipitously. From reports, Ayala has a history of suing former employers,
consumerism restaurants, and manufacturers relating to product quality and employment safety. How
The public demand for can firms protect themselves from wrongful claims, that when made public, harm their
business to consider business and reputation? Obviously, consumer-protection laws are a silver mine for the
consumer wants and
needs in making its law profession.

decisions. Consumer Rights: Presidential Influence

Interest in consumerism blossomed when consumer advocate Ralph Nader called
the American Hot Dog one of "America's Deadliest Missiles". In the first chapter of his
book “Unsafe at Any Speed”, Nader fired a barrage of criticisms at the American
automobile industry by stating that the Corvair was a “one-car accident”. While Nader
viewed most automobiles to be dangerous, he targeted the Chevrolet Corvair due to its
unconventional design. The Corvair was designed as a competitor to the German
Volkswagen, with an air-cooled engine. In 1962 President John F. Kennedy issued a
directive to the Consumer Advisory Council setting forth the federal government’s role
in consumerism in aiding consumers to exercise rights to safety, to be informed, to
choose, and to be heard.
Right to safety. Products that are produced for sale need to be safe for the
consumer. Manufacturers test products to meet their quality and production standards,
and will provide buyers with explicit direction on product use. Many companies take
great strides to assure product safety. Products that are defective or dangerous hurt
corporate reputations. The food industry recalls food stuffs that may not meet their
statistically stringent quality control standards. The auto industry issues notices of
recall for any minor infraction or potential infraction.
Right to be informed. Consumers should receive reliable and accurate information
about a product before they purchase it, this information allows the consumer to
compare comparable products and then make an informed decision. Nutrition labels

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