ANSWER THE QUESTIONS BELOW. LIST YOUR SOURCE(S) FOR ALL ANSWERS: ( IN-TEXT AND IN A REFERENCE LIST USING THE PROPER METHODOLOGY)
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11-RespforProducts.pdf
PLAN FOR TODAY
• 1. INTRODUCTION • 2. FOLLOW-UP ON HOMEWORK • 3. RESPONSIBILITY FOR PRODUCTS • 4. ETHICAL MARKETING • 5. HOMEWORK
HOMEWORK
Consult all the resources on C4
A) Define whistleblowing. Provide one example to support your answer.
B) When is it permissible to whistle blow on a person or situation? Provide one example to support your answer.
C) Define conflict of interest. Provide one example to support your answer.
Copy the definition of these words in your notebook:
A) Third party
B) Professional
C) Agent
D) Whistleblowing
E) Honesty
Read Chapter 7 of your textbook
RECAP
EMPLOYEE RESPONSIBILITIES
1. Employee as Agents
• Agent = a person who acts on behalf of another person.
• An agent is hired to perform certain tasks and owes the employer duties of loyalty, trust, obedience and confidentiality.
2. Employees as Professionals
‘’Legal and moral duty of a professional to apply his or her knowledge in ways that
benefit his or her client, and the wider society, without causing any injury to
either.’’
Source: Business Dictionary
i.e. Hippocratic Oath, Engineer Code of Practice, etc.
EMPLOYEE RESPONSIBILITIES
Avoid Conflicts of Interest
Trust and Loyalty
Responsibilities to Third-Parties
EMPLOYEE RESPONSIBILITIES
1. Avoid Conflicts of Interest
• ’’ A situation in which a person is in a position to derive personal benefit from actions or decisions made in their official capacity.’’
Source: Oxford Dictionary
EMPLOYEE RESPONSIBILITIES
2. Trust and Loyalty
• Trust = ‘’Firm belief in the reliability, truth, or ability of someone or something.’’
• Loyalty= ‘’ A strong feeling of support or allegiance.’’
• i.e. Employees are expected to ensure that their decisions are informed and that they remain faithful to their commitment.
Source: Oxford Dictionary
EMPLOYEE RESPONSIBILITIES
3. Responsibilities to Third- Parties
• Third-Party = ‘’Someone who may be indirectly involved but is not a principal party to an arrangement, contract, deal, lawsuit, or transaction.’’
Source: Business Dictionary
EMPLOYEE RESPONSIBILITIES
3. Responsibilities to Third-Parties
• 3.1. Honesty • 3.2. Whistle-Blowing • 3.3 Insider Trading
RESPONSIBILITY FOR PRODUCTS
Responsibility:
‘’ The state or fact of having a duty to deal with something or of having control over someone.
The state or fact of being accountable or to blame for something.’’ Source: Merriam Webster dictionary
Responsibility is usually
determined in 3 ways
1. Cause 2. Liability 3. Accountability
Responsibility is usually
determined in 3 ways
1. Cause
What is the cause? What is the cause of the accident? Why did it happen?
It is possible that no one is at fault.
Responsibility is usually
determined in 3 ways
2. Liability
Who is responsible?
This approach tries to assign blame or fault.
Responsibility is usually
determined in 3 ways
2. Liability
Was there negligence (or failure to take proper care over something.)?
If so, then blame can be assigned easily.
Responsibility is usually
determined in 3 ways
3. Accountability
Who is taking care of (XXX)?
It does not involves cause nor liability, it simply means that someone is accountable for something, or needs to take care of something.
Responsibility is usually
determined in 3 ways
Accountability vs Responsibility EXPLAINED
Context
Limited responsibility for businesses
Before 1960s
Context
Limited responsibility for businesses
Before 1960s 1960s
Increased responsibility for businesses
Context
Limited responsibility for businesses
Before 1960s 1960s
Increased responsibility for businesses
1990s
Strict Product Liability
Strict Product Liability
What is it?
It focuses on the performance of the product.
In the absence of fault, who should be responsible for paying the damages?
It assigns the responsibility to the producers.
Strict Product Liability
1- Producers are not responsible for all and every injury caused by their products. Manufacturers are not liable when consumers negligence causes the injury.
2- Manufacturers are also exempt from liability when the product cannot be proven defective. Defective = dangerous in normal use.
Context
Limited responsibility for businesses
Before 1960s 1960s
Increased responsibility for businesses
1990s
Strict Product Liability
1990s and ongoing
Extended Producer Responsibility
Extended Producer Responsibility (EPR)
What is it?
It is an approach in which the producer is responsible for its product until the very end of the life of the product.
Extended Producer
Responsibility (EPR)
Extended Producer Responsibility (EPR)
What is it?
Producers should be responsible for the product they create until the disposal phase.
They should take back their products once customers are done using them and they should recycle them, reuse them or dispose them in a responsible way.
Extended Producer Responsibility (EPR)
Objective:
It tries to deal with the increasing challenge of waste disposal in encouraging producers to create products that are more easily recycled or reused, are less toxic and last longer.
Extended Producer Responsibility (EPR)
Solid waste generation rates are rising fast, on pace to exceed 11 million tons per day by 2100,
The rising amount of waste means rising costs for governments and environmental pressures.
Source: The World Bank
Extended Producer Responsibility (EPR)
EPR Programs can be mandatory or voluntary.
• Examples of Mandatory Programs; paint, batteries, used oils and used tires.
• Examples of Voluntary Programs: LG’s Take back Program
Extended Producer Responsibility (EPR)
EPR has been used to ensure the proper end-of-life management of a growing range of products such as batteries, electronic equipment, ozone-depleting substances, paints, pesticide containers, pharmaceuticals, used oil, and used tires.
Since its inception in Europe in the early 1990s, EPR and product stewardship initiatives have gained popularity rapidly, with programs in place throughout Europe, Japan, Korea, Taiwan, Australia, the United States and Canada.
Extended Producer Responsibility (EPR) EXPLAINED
Extended Producer Responsibility (EPR) IN EUROPE
Product Safety
What is it?
‘’Standards relating to the design and manufacturing of consumer products to ensure they do not represent harm or hazards to consumers.’’
Source: The Business Dictionary online
Product Safety
Many products that we use in our everyday activities contain chemicals that can have serious effect on human health.
i.e. Fuel additives in gas, flame retardants that are added to our couch and our clothes, solvents used for carpets, toys, construction materials, food and beverages containers, cleaners and air fresheners.
Product Safety EXPLAINED
ETHICAL MARKETING
Marketing
What is it?
Marketing is the process of discovering the needs and wants of potential customers and then providing goods and services that meet or exceed their expectations.
Marketing
Marketing is frequently referred to as the Four P’s
Product Pricing Promotion Placement
Ethical Marketing
The Ethical Framework for Marketing is;
1- Is the exchange voluntary? 2- Is consent informed? 3- Are customers really benefiting from the exchange? 4- Do competing values override?
Ethical Marketing
1- Is the exchange voluntary?
• Consumers have alternative choices • Stressful situations • Price-fixing, monopolies, etc. • Targeted and vulnerable consumers
Ethical Marketing
2- Is consent informed?
• Lack of information • Deception • Complicated information
Ethical Marketing
3- Are customers really benefiting from the exchange?
• Impulse buying, consumerism • Injuries, unsafe products
Ethical Marketing
4- Do competing values override?
• Externalities that harm others
Ethics and Pricing
On the surface, a fair price is a price that both parties agree upon.
But many situations such as ; price fixing, stressful situations and externalities suggest that the economic model has some limits and that ethical grounds also need to be considered.
Ethics and Advertisement
There are, ethically good and bad ways for influencing customers to buy products.
• Persuading, asking information and advising are means for influencing others that respect them and their autonomy.
• Unfortunately, sometimes marketing uses deceptive and manipulative techniques to sell and advertise.
Ethics and Advertisement
Manipulation can be used to boost sales;
Advertising often create wants and desires for customers, which lead them to believe that they want the advertised products.
These desires and wants did not originate from the customers’ mind – they were influenced to believe and act in a particular way.
Ethics and Advertisement
Deception can be used to boost sales;
‘’The act of causing someone to accept as true or valid what is false or invalid : the act of deceiving.’’
Source: Merriam Webster Dictionary
Ethics and Advertisement
Targeting the vulnerable can be used to boost sales;
Vulnerable consumers lacks the intellectual capacities, psychological ability or maturity to make informed and considered consumers judgements.
CONCLUSION
• Business have responsibilities to supply safe products.
• In the absence of fault, they can even be responsible for paying the damages caused by their products.
• Many products that we use in our everyday activities contain chemicals that can have serious effect on human health.
• ERP is on the rise and it suggest that producers should be responsible for the product they create until the disposal phase.
CONCLUSION
• Business have responsibilities in marketing their products and services ethically. (i.e. voluntary exchange, informed consent, etc.)
• Many marketing strategies are considered unethical ; manipulation, deception, targeting the vulnerable.
• Regulations exist to protect consumers and competitors from deceptive marketing techniques, however it is quite challenging to regulate them.
HOMEWORK
CONSULT THE RESOURCES ON C4
READ CHAPTERS 8-9 OF YOUR TEXTBOOK
ANSWER THE FOLLOWING QUESTIONS: A) 1- DEFINE EXTENDED PRODUCER
RESPONSIBILITY? 2-WHERE DID IT START AND WHY?
B) EXPLAIN THE DIFFERENCE BETWEEN MANIPULATION AND DECEPTION? PROVIDE
ONE EXAMPLE IN THE MEDIA FOR EACH C) NAME THE 6 PHASES OF A PRODUCT LIFE
CYCLE
