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

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

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

4. 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

5. Chapter 14 Consumer Protection

6. A Prime Social Responsibility of an organization is to safeguard Consumers

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

8. 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

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

10. 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)

11. 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)

12. Discussion: What Are Some Deceptive Acts By Organizations?

13. 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

14. 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

15. 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

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

17. 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

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

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

20. 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)

21. 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

22. You As A Manager

23. 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

24. 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