Ethics, Sustainability and Culture - Caveat Emptor - Essay Example

Business Name: Course: Instructor: Date: Ethics, Sustainability and Culture Caveat emptor Caveat emptor is known to be the property law doctrine that takes control of the sale of real property after its expiring date. The consumer could not recover from the seller for defects on the goods that rendered the good unfit for ordinary purposes under the doctrine of caveat emptor. It only became acceptable if the seller actively concealed latent defects or otherwise misinterpreted the material thus creating fraud. The consumer used not to have any warrant on the quality of goods according to statutory law. Fortunately, today, many jurisdictions demand that goods be of good quality. However, the established warranty may sometimes be hard to enforce and therefore not applied to all goods. Thus, consumers are still cautioned to be careful when purchasing products from the market. In many places worldwide, the law protecting buyers has gone away from caveat emptor notion, with laws developed to promote consumer rights and permit better way to bring back goods that do not meet legal standards of acceptance. This consumer rights are mainly reinforced by the sale of goods Act. In most companies, consumers are only allowed to return faulty products within a certain specified period for full refund or for an exchange even when there is no fault with the goods. Despite the fact that this principle of caveat emptor is particularly developed to be applied during transactions between businesses, it can still be identified that the seller had enough information advantage over the consumer that could not have been given away through carrying out reasonable due diligence. In the current world, a business has an obligation to manufacture or sell products that are safe as possible for consumers and society in general, that is they must be of ‘merchantable quality.’ This is because manufacturing strategies are now under the criticism of the public and are put to higher standards. The idea of caveat emptor is no longer in use as a means of justifying the practices of the sellers at the market place. The business therefore, has an obligation to manufacture safe and quality goods because the consumers interests are currently most favored over the producers. In most cases, manufacturers are held responsible for any injuries that may occur from the products sold even when they had no means of preventing those injuries. Ethical reflections have made managers more knowledgeable and conscientious in moral matters because sellers are aware of what they are producing (Duska, 2007, p. 6). Manufacturers are faced with great challenges especially concerning laws on products sold to the consumers with defects that they were not in a position to prevent. Therefore, all businesses are required to make the safety of their products their first priority and should compensate those consumers who suffer any injuries after using the product. This thus demands that a business manufactures safe and quality products to consumers and society in general. Small business are also demanded to be aware of their responsibilities in production of quality and products which are safe despite the limited resources. Manufacturers are held with the duty of ensuring that, in addition to producing safe products, they are also supposed to prominently display warnings of any potential hazards on goods and packaging. Small business managers can achieve this by consulting with legal departments that are experienced in the field of production. They are also motivated to have the insurance of product liability to promote the production of possible safe products to consumers and society in general. The widespread concern in today’s marketing practices is about ethics in both public and private life that extends many areas that include business, education, health and politics. Acceptable standards of marketing practices have shifted along the continuum, from a paramount producer interest’s position to a position where the consumer is more favored. The expectations of the society have changed and so has the caveat emptor approach that establishes and promotes the interests of the buyer (Smith, 1995). Motivation theories have been emphasized in this approach and thus, business operators have been given the chance to interact more with their competitors and target market including their potential customers. Motivation in a firm gives the employees the will to work more since they are being rewarded for their work and thus, will work in promoting the activities of the firm. It is the obligation of any business serving the needs and demands of individuals and members of the community to manufacture and sell products that are safe for consumption. According to the utilitarianism ethics theory it has been able to support this idea of safe manufacturing of products for the consumer and entire society. This is because, utilitarianism focuses its decision on what will produce the largest balance of the best over the worst results for all individual affected by an action. It focuses more on the benefits of other people other than oneself and thus, manufactures should consider this first during their production process. They should consider the life and safety of their consumers and society first in order to avoid manufacturing products that are harmful to the health of the user. The decision makers in this theory are given the opportunity and chance to calculate what is going to be good for or in most cases, that which will promote the interests of more than just him. In the UK, the law covering consumers has moved away from this caveat emptor notion, having passed laws that enhance the rights of consumers and thus, allowing them a greater leeway to return goods that have not met the legal acceptance standards. Many of the companies operating in the UK allow customers to return the goods not fit for consumption within a specified period of time. They are then given a full refund of the amount spent on the goods, even if there is no problem with the product or good being returned. Sellers are therefore forced to take full responsibility for their products, and are discouraged from selling those products that have unreasonable quality in terms of consumption by any individual. Ethical egoism is also another approach taken by business professionals in serving their interests by doing that which is morally right. In this perspective, an act is perceived to be morally right if it is able to promote an individual’s long-term interests and thus, one can postpone an immediate gratification in order to achieve a long-term gain. For example, a seller can be tempted to produce goods of low quality and supply them to the consumers with the aim of doubling their production and profit returns. However, bearing in mind ethical egoism approach, the seller will decide on the right thing to do and doing that which is in one’s best interests, that is, he most important goals and objectives of the firm. Sellers that adopt ethical egoism in their decision making process postpone short-term achievements and goals in order to realize long-term goals. They identify that action is more likely to produce more than any other action and thus, consider a larger measure of good outcomes as compared to a bad one. Being moral in any business profession is determining the right course of action to undertake bearing in mind the firm’s long-term interests. It is the obligation of the business to sell and manufacture products and services that are of ‘merchantable quality’ in order to promote co-operation between them and the consumers. By so doing, the business will be expanding their market segment and customers’ loyalty will be increased and established (Crane & Matten, 2007, p. 129). Additionally, this will enable them to interact more with other potential customers in the business environment with the aim of luring them to engage in profitable and standardized business activities. With the advent of new technological developments, competition in the business arena has been stiffened to the extent that, most suppliers and manufactures have reduced their quality and standards in producing their goods. However, this reduction brings about some consequences that affect the operations of the business and at times, closure of the business. Therefore, it is advisable for sellers and manufactures to meet their obligations of producing goods and services that are of quality for consumption by individuals and the society (Crane & Matten, 2007, p. 130). It is also the obligation of the business to sell or manufacture goods that are safe as possible for consumers and society to use. For example, health products should be fit for human consumption in order to avoid complications from arising and thus, promoting the good health of sick patients and individuals. However, those health industries not meeting the rules and regulations of laid down code of ethics and conduct are liable to having their licenses being revoked. This will mean that both the employees and employers stand a chance of loosing their source of livelihood and hence, lowering their living standards. This may also bring abut complications in terms of those consuming the substance which deteriorates their health and at times, can lead to the death of an individual. Business operations should avoid such instances by following the right procedures in meeting the codes of manufacturing and selling of products to both consumers and society in general (Good Governance Program). Businesses should be determined to have a strong relationship with their consumers and society in order to be able to increase their levels of productivity and profitability. This can only be achieved if they engage in selling and manufacturing goods that meet the consumer rights standards. Profitability of firms brings about increased engagement in societal development and the health of individuals hence, is an added advantage to the image of the firm. Competing firms will try and emulate their moves, and thus, the firm will be a god example to other businesses. Employees will also be proud to be associated with a firm like this since it bears in mind the well-being of other members in the society (Aldridge, 2003, p, 20). Most businesses are in operation with the aim of making profit and not considering the effects brought about by their manufactured products. It is evident that, most consumers in today’s world are more than vigilant in identifying those companies that exist with the best interest of their end consumers. Therefore, they relate more with them and offer their views and opinions when it comes to manufacturing and selling of some of the products. This builds a strong relationship and fosters the growth and expansion of business activities within and outside the firm. It is evident that globalization has had a positive effect on this notion because it has made the consumers more alert and aware of those business operating under false pretence of meeting the needs of the consumers, but in the end are meeting their own goals (Aldridge, 2003, p, 22). Managing businesses in an ethical manner is a strategy that should be applied by all business practices because through it, the firm has been made a desirable place for workers to work in. This in turn promotes retention and recruiting of employees hence, reducing the costs of training and hiring new people to work for the organization (Hooker). Business ethics, sustainability and culture has been able to establish a prism for the company through which, it views normal business dealings as well as, handles extraordinary events or crises in the business environment. The seller and manufacture are able to base their decisions on doing the right thing and not just making a profit while letting the consumer suffer. Business ethics sends to both the consumer and customer the right message and encourages them to engage in business with the company under consideration. By promoting good health through distribution of good with ‘merchantable quality,’ the seller is promoting the activities of his/her firm and thus, increasing the target market of his business (Mason et al., 2002, p. 25). For the employees, conducting business operations in an ethical way is setting a good example for them. Employees will reduce the temptation of behaving illegally and cutting corners, behaving unethically or immorally with the firms’ certainty of its enforcement and ethical codes of conducts. Mutual integrity and respect is promoted within the company and those dealing directly with the company. Accountability of employees within their ranks of duty and at the top level management is also enhanced through business ethics. A beneficial and sustainable marketplace reputation is yielded by businesses that behave ethically to their customers or stakeholders (Paliwal, 2007, p. 50). Lastly, business ethics is important for any business operation because it helps protect the interests of everyone they are dealing with or come into contact with. Highly ethical firms will be able to co-ordinate well with their suppliers, regulatory agencies and clients in meeting, accommodating and delivering services and goods to their consumers and target market. In conclusion, business activities performed by various firms should be driven by the caveat emptor notion. At all times, business activities performed by firms should be able to meet and satisfy the needs of their customers in order to be able to survive in this competing business world. Utilitarianism ethics theory and ethical egoism are the two theories presented to support this approach. They are both ethical theories that have been able to bear in mind the welfare of consumers and society by doing that which is morally right. Also, the importance of business ethics has been mentioned and thus, showing how firms can be able to conduct their business operations to meet their objectives and goals. Caveat emptor is a notion that should be given prevalence by business operators so as to avoid facing problems with the target market and society at large. References: Aldridge, Alan E. (2003). Consumption. New York: Wiley-Blackwell. Crane, A. & Matten, D. (2007). Business ethics: managing corporate citizenship and sustainability in the age of globalization. Oxford: Oxford University Press. Duska, Ronald F. (2007). Contemporary reflections on business ethics. New York: Springer. Good Governance Program. (2004). Business Ethics. Retrieved 12th May, 2011 from < http://trade.gov/goodgovernance/adobe/bem_manual.pdf> Hooker, John. (2003). Why Business Ethics? Retrieved 12th May, 2011 from Mason, J K., McCall Smith, R. A., & Laurie, G. (2002). Law and Medical Ethics. London: Butterworths. Paliwal, Manisha. (2007). Business Ethics. New York: New Age International. Smith, Craig. (Summer 1995). Marketing Strategies for the Ethics Era. Massachusetts Institute of Technology, Vol. 36, No. 4 Retrieved 12th May, 2011 from < http://sloanreview.mit.edu/files/saleable-pdfs/3647.pdf > Shaw, W. H., Barry, V., & Sansbury, G. (2009). Moral issues in business. South Melbourne: Cengage. http://lealte.com/articles/THE%20PRINCIPLE%20CAVEAT%20EMPTOR%20&%20CAVEAT%20VENDITOR.pdf Read More