Management & Society MGT 3800 Communications Intensive Course March 22, 2018| Class Sixteen

Today’s Agenda Attendance Mid-term Announcement Debate Quick Review Review of Chapter 14: Consumer Protection

Mid-Term Not graded yet – will be distributed on Tuesday, March 27th, because we have students who have not taken it yet.

Debate Presentation Format Keep pages consistent Every page should have a title Charts and Graphs should have reference on the same page Full list of sources at the back of the presentation (even if they have been noted before Do not read from your notes, or use podium

Chapter 14 Consumer Protection

A Prime Social Responsibility of an organization is to safeguard Consumers

Organizations Responsibilities Customers’ Need Customers’ Safety Transparency in: Product issues Advertising They must also address changing expectations

Five Core Consumer Rights The Right to be Informed The Right to Safety The Right to Choose The Right to be Heard The Right to Privacy

One of the most important things organizations need to do is to be TRANSPARENT.

Consumer Movement Consumers are now more vocal about the their rights Social media plays a major part in how organizations market their products, and consumers provide feedback and/or complaints Consumer movement is the organized activities, and collected efforts of consumers to safeguard their rights (think about the organizations that take this seriously)

Why Consumer Movement Consumers want fairness, and unfortunately some organizations are not responsible enough to extend that fairness Consumers are at risk, when organizations are not transparent (imagine cigarette makers not disclosing information)

Discussion: What Are Some Deceptive Acts By Organizations?

Examples of Low Ethics Not disclosing dangers, or health risks Not protecting privacy Using collected information for other means False claims, and misleading advertising Making consumers believe they have a problem

Consumer Laws The government plays a key role in establishing laws and policies to protect consumers Organizations can be held accountable by the government Consumer Protection Laws are implemented by the government to protect consumers and society as a whole

Consumer Laws Provide consumers with better information, in order to make informed decisions Not be deceived by false advertising Protect against certain hazards and health risks Offer competitive pricing Protect privacy

The Recall Organizational obligation, but do all consumers get it?

Protection Agencies There are hundreds of agencies that focus on consumer protection Some examples include: Federal Trade Commission (FTC) Food and Drug Administration (FDA) Department of Agriculture Department of Justice

The Key to all of this is that the protection agencies also behave ethically

Discussion: What do you think about the FDA not having a say in the production of certain products?

Strict Liability Courts hold manufacturers responsible for any injury resulting from use of their products (think of the case at the beginning of the chapter with the airbags) Organizations have paid millions to consumers affected by products Sometimes result in class action suits (more than one person suing)

How Do Organizations Manage First obligation is the test, test, and re-test Factory testing Consumer input Focus groups Be responsible if something is found Be proactive, and voluntary Act on product recalls

You As A Manager

As a Product/Service Manager Ensure your disclosures and claims are factual Ask for feedback, and provide that to decision makers Don’t keep complaints to yourself Be proactive Follow up

For Next Class: Tuesday, March 27th Return of Exam Return of Debate Reflection Notes Grading of last two debates Reading Chapter 4 Debate Teams on GMO