Module 3(1).pptx

Ethics of Consumer Protection
And Environmental Protection
Module 3

Consumer and Consumer
Protection
• A consumer is any person who, or a firm, Hindu Undivided
family, cooperative, or association which
• Buys any goods for consideration which has been fully or partly
paid for, with a purpose that does not include resale or any
commercial purpose; and
• Hires or avails any services for a consideration which has been
partly or fully paid for, with a purpose that does not include free
service or services under a personal contract.
• Consumer protection refers to the steps necessary to be taken
or measures required to be accepted to protect consumers
from business malpractices.

Customers Information needs
The information needs of customers are:
• Detailed legal records with reference to products and services, such
as product liability, injury and unsubstantiated death claims over all
jurisdictions for five years; penalties inflicted and citations for
regulatory non-compliance, detailing each incident and
corresponding penalty, settlement effected and such related
information.
• Risks of injury from normal usage of product/service;
• Noise, odor and other nuisances/problems associated with use of
the product/service;
• Design for recycling;
• Biodegradability of products and packaging;

CustomersInformationneeds
• Unusual life cycle costs;
• Warnings, with appropriate detail;
• Content, additives and treatments of food and
medicines, sufficient to allow reasonably-
informed consumers to make rational market
decisions and to protect themselves and their
families; and
• Hidden characteristics.

Parties to Consumer Protection-
a. Consumers: Should know their rights and
exercise them.
b. Businessmen: Producers, distributors, dealers,
wholesalers as well as retailers should pay due
attention to consumer rights in their own
interest, by ensuring supply of quality goods
and services at reasonable prices.
c. Government: The government should enforce
various laws and amend existing laws to protect
consumer interests.

Rights of a consumer
•The right to safety
•The right to be informed
•The right to choose
•The right to be heard
•The right to seek redressal
•The right to consumer education

• Right to Safety
• Right to Safety is referred to as ‘right to be protected against the marketing of goods and
services which are hazardous to life and property’. It is mainly applicable in healthcare,
pharmaceuticals, and food processing sectors. The right is also applicable in sectors that
have an indirect impact on health including automobiles, housing, domestic appliances, and
travel.
• Right to Information
• The Consumer Protection Act, 1986, defines Right to Information as ‘the right to be
informed about the quality, quantity, potency, purity, standard and price of goods so as to
protect the consumer against unfair trade practices’. For instance, the consumers need to
make aware of the cost involved for availing a loan, or pharmaceuticals must disclose the
potentials side effects of drugs.
• Right to Choose
• Referred to as ‘the right to be assured, wherever possible, access to a variety of goods at
competitive prices’. Did you know a consumer can even bargain on the MRP, as it is not
fixed by the government and the actual selling price could be lower depending on the
taxes?

• Right to be Heard
• The Act defines the ‘Right to Heard’ as, ‘the right to be heard and to be assured that consumers’
interests will receive due consideration at appropriate forums’. The right ensures that consumers
come forward without any fear, file the complaint and raise their voice against any products and
services. There are websites that let consumers upload their grievances which are later verified
and forwarded to the consumer courts for redressal.
• Right to Redressal
• The Right to Redressal means, ‘the right to seek redressal against unfair trade practices or
unscrupulous exploitation of consumers’. With the help of the Consumer Protection Act,
consumer courts are incorporated for consumers to seek redressal against unfair trade practices
or exploitation. These courts are set on three levels which includes District Consumer Disputes
Redressal Forums at the district level, State Consumer Disputes Redressal Commissions at the
state level and National Consumer Disputes Redressal Commissions at the national level.
• Right to Consumer Education
• The right ensures that consumers in the country have easy access to informational programs and
materials to help them with a better decision when it comes to availing any services. The
information can be provided through formal education via educational institutions or through
awareness campaigns organized by government bodies or NGOs.

• Consumer protection refers to the steps necessary to be taken or measures required to be accepted to protect
consumers from business malpractices.
• The SIX RIGHTS of the consumer as enunciated under Section 6
• I. The Right to Safety
• II. The Right to be Informed
• III. The Right to Choose
• IV. The Right to be Heard
• V. The Right to Seek Redressal
• VI.The Right to Consumer Education
• (1) Right to Safety: A consumer has the right to safety against such goods and services as are hazardous to his
health, life and property. For example, spurious and substandard drugs; appliances made of low quality raw
material, such as, electric press, pressure cooker, etc. and low quality food products like bread, milk, jam, butter,
etc.
• 2. The right to be informed covers some of the key transparency requirements of the GDPR. It is about providing
individuals with clear and concise information about what you do with their personal data. Articles 13 and 14 of
the GDPR specify what individuals have the right to be informed about
• 3. Right to Choose as per the Consumer Protection Act 1986 is ‘the right to be assured, wherever possible, to have
access to a variety of goods and services at competitive prices’.

• 4. The Right to be Heard
• The right to be heard (also children's participation) is a child rights principle as
defined by the UN Convention on the Rights of the Child. According to Article 12
of the Convention, children have the right to express their views in all matters
affecting them and their views have to be given due weight in accordance with
the age and maturity of the child.
• 5.The Right to Seek Redressal
• Consumers have the right to seek redressal against any unfair trade practice for
exploitation.
• If a consumer has been made any false promise by the producer or he has
suffered due to a manufacturing defect, he or she has the right to seek ...
• He has the right to seek compensation for any damage caused due to the faulty
manufacture of service.
• 6.Right to consumer education Means the right to acquire the knowledge and
skill to be an informed consumer throughout life. Ignorance of consumers,
particularly of rural consumers, is mainly responsible for their exploitation. They
should know their rights and must exercise them.

Consumer duties and responsibilities
• Substantiate the complaint
• Listen to seller
• Cooperate with the seller if needed
• Avoid inconvenience to others
• Not personalize issues
• Not lend self to others
• Be well informed
• Understand the grievances redressal process
• Avoid impulsive buying
• Buy goods from authorized agents

How are Indian consumers
exploited
1) Exorbitant prices of products and services
2) Deceptive selling practices
3) False and misleading advertisements
4) Defective quality, higher prices
5) Sale of hazardous products to ignorant
consumers
6) Suppression of material information

exploited
7) False product differentiation
8) Producers’/sellers’ collusion
9) Supply of adulterated and substandard
products
10) Cheating consumers by giving lesser quantity
for the price
11) Dishonoured guarantees and warranties
12) Poor redressal of customers’ genuine
grievances

exploited
13) Creating a scare out of scarcity
14) Making consumer buy unwanted goods
15) Misleading representation on utility of
products
16) Manipulating conditions of delivery
17) Customers pay for numerous intermediaries
18) Fall in prices never passed to consumers

exploited
19) Buying unaffordable goods
20) Advertisement cost
21) Counterfeits: These constitute a substantial
quantity of goods on store shelves
22) Hoarding and blackmarketing
23) Tie-in-sales
24) Gifts for products/services

Legal protection to consumers
• A number of laws have been passed by the Government of India
over the years to protect the interest of consumers.
1. Agricultural Products (Grading and Marketing) Act, 1937
2. Industries (Development and Regulation) Act, 1951
3. Prevention of Food Adulteration Act, 1954
5. Essential Commodities Act, 1955 The Standards of Weights and
Measures Act, 1956
6. Monopolies and Restrictive Trade Practices Act, 1969
7. Prevention of Black-marketing and Maintenance of Essential
Supplies Act, 1980
8. Bureau of Indian Standards Act, 1986
9. Consumer Protection Act, 1986

Consumer protection act 1986
• The Consumer Protection Act (COPRA), 1986,
conferred a legal right to the individual consumer
to seek legal redress or recover costs and
damages for injury or loans suffered by him/her
as a result of faulty, defective goods and services,
bought or secured for valuable consideration.

Rights of a consumer under Copra
• The SIX RIGHTS of the consumer as enunciated
under Section 6 of the COPRA are:
I. The Right to Safety
II. The Right to be Informed
III. The Right to Choose
IV. The Right to be Heard
V. The Right to Seek Redressal
VI. The Right to Consumer Education

Redressal agencies under
Consumer Protection Act
• Redressal agencies for settlement of consumer
disputes:
• A Consumer Disputes Redressal Forum known as
the District Forum has been established by the
State Government in each district of the State by
notification.
• A Consumer Disputes Redressal Commission known
as the State Commission has been established in
each state by the State Government by notification.
• A National Consumer Disputes Redressal
Commission known as the National Commission
established by the Centre by notification.

• It shall consist of a person who is or has been or is qualified to
be a District Judge as its President,2 other members, one of
whom shall be a woman
• Every member of the District Forum shall hold office for a
term of 5 years or up to the age of 65 years which ever is
earlier
• It shall have jurisdiction to entertain complaints where the
value of the goods or services and the compensation, if any,
claimed does not exceed Rs.20 Lacs.

• State Forum
value of the goods or services and compensation, if any,
claimed exceeds Rs. 20 Lacs but does not exceed Rs.1 Crore
and appeals against the orders of any District Forum within
the State.

• It shall consist of a person who is or has been a Judge of the
Supreme Court, as its President. Not less than 4 and not more
than such number of members as may be prescribed and one
of whom shall be a woman
• Every member of the National commission shall hold office for
a term of 5 years or up to the age of 70 years which ever is
earlier.
value of the goods or services and compensation, if any, the
claim exceeds Rs. 1 Crore.

History of environmentalism in
USA
• Early 20th century: Establishment of National
Parks by Teddy Roosevelt’s administration.
• 1960s: Increasing concern on human health
risks posed by pollution.
• Environmental laws exacted by the US
Congress
• Creation of the Environmental Protection
Agency’s (EPA) community-led recycling
programmes.
• Protests against polluting businesses in “Not in
My Backyard” (NIMBY) campaigns.

Environmental preservation: role
of stakeholders
• Public opinion- it is crucial to the resolution of environmental
issues in democratic society. The public has the power to
support interest groups, elect and lobby officials, pay taxes,
work for companies, buy products and support or reject
policies.
• Media- it plays a major role to influence public perception of
environmental groups, corporations and government. News
publications and journals, television and radio are the source
of information to the public on environmental issues.

of stakeholders
• Environmental groups- many groups are cooperating with
business and government to resolve environmental issues.
These organisations are often a reliable source of information
and support and represent public sentiment.
• Corporations- As a result of pressure from environmentalist
and regulatory legislations, many companies are working
towards environmental protection and improving quality. The
key shift occurring in the environmental regulation of industry
is from an emphasis on pollution control to an emphasis on
pollution prevention.

of stakeholders
• Government- the implementation of effective environmental
policy has been obstructed by many factors: inadequate
scientific knowledge, budgetary deficiency, and conflict of
disparate interests. Many stakeholders who advocate or
oppose environmental protection seek to influence the
government.

Future outlook on environment
• Environmentalism in the 21st century can be
characterized by three principles that serve as
bases for continued activism and policy
formulation.
• 1. Public – Private partnerships
• 2. International cooperation
• 3. Sustainable development

• Public – Private partnerships- partnerships are
voluntary collaborations between two or more
organisations with jointly defined agenda focused on
discrete, attainable and potentially attainable goals.
The life cycle of partnerships involves an integrated
relationship among stakeholders throughout the
decision and implementation process. Importance of
partnerships is the growing practice of corporations
to seek the assistance of NGOs to preserve
endangered species in their areas of operation,
pooling the assets of stakeholders and cooperatively
reaching for a solution.

• International issues- many environmental issues
are international in nature. These include cross-
boundary pollution, common area resources, and
economic development. The economic
interdependence of nations foster cooperation in
resolving international issues. The absence of
international government, competition between
nations, and the complexity of international
relations all remain as obstacles to global
environmental policy.

• Sustainable development- there are limitations
to the earth’s carrying capacity in the light of
present levels of technology, social organisation
and population. The current economic practices
are unsustainable, it is an undeniable fact that
developed countries have the knowledge to
operate sustainably. The key will be for
government and corporations to change
practices in shifting to a more efficient model of
resource use.

Innovative business response to
environmental regulations
There are several reasons why those managing business are
becoming increasingly conscious of environmental issues:
• For management morale- to have good environment record
and the desire to earn good reputation as protectors of the
environment.
• To cut waste wherever possible.
• The environmental protection act (EPA) has acknowledged the
potential gains from pollution prevention.
• Advantages of taking a proactive stance towards
environmental regulation instead of fighting against
regulations. Some firms are looking beyond more compliance
and improving their environmental performance.

• By incorporating principles of waste reduction into
industry led voluntary programmes they hope to
foster positive public opinion.
• Recent trend in regulation suggest that forward
looking firms will protect themselves through ‘green
design’ of their products and enhance their public
image by examining the entire life cycle of their
products.
• To keep the consumers happy, who are
environmentally conscious, companies have to
ensure that their products, packages and even
processes are environment friendly.

• Eco-labeling is another example of companies trying
to pacify consumers with proof of environment
friendliness of their products.
• Potential savings through pollution prevention
measures have been increasing. Companies have
found that reduction in their use of raw materials
and energy, and in the amount of toxic wastes they
produce could yield savings.
• The fear of incurring the cost of environmental
damage has risen as regulations have been
tightened by governments and courts of law.

Waste management & pollution
control
Environmental damage through industrial activity can
be of two types:
• 1. Depletion of natural resources – excessive use
leads to reduction in natural resources that are
extracted or used up in the production of other
goods, such as minerals, fossil fuels etc. These
resources are non-renewable.
• 2. Degradation of the natural resources- it refers to
deterioration of the quality of the environment. All
production creates waste and pollution right
through the process of manufacturing to the
disposal of the final product. Waste-aerial, solid or
aqueous degrade the air, soil, water quality and
pose health hazards/

Key strategies for industrial
pollution prevention
• Systematic waste reduction audit – will enable
manufacturers to take inventory and trace input
chemicals and to identify how much waste is generated
through specific processes.
• Material balance- identifying processes, inputs, outputs,
recycle and reuse rates, deriving a preliminary material
balance and evaluating and re-fixing material balance.
• Economic balance- identifying costs and reviews to
achieve economic balance. According to cost-benefit
ratio, experience in the industrialized countries has
proved that anti pollution technology has been cost
effective in terms of health, property and avoiding
environmental damage and that it has made many
industries profitable by making them more efficient in
the usage of resources.

• Identifying waste reduction – identifying opportunities and
implementing them through simple process modifications such
as pollution prevention measures such as good house-keeping,
waste reduction and recycling, designing a waste reduction
strategy, implementing internal recycling for own use or for
others use, to reduce emission from the process and also to
reduce the need for continued supply of raw material inputs.
• Use of newer, cleaner technologies – development of preventive
technologies to benefit current and future scenarios, without
transferring the problem from one media to another such as
water, air and land.

• Life-cycle assessment- it starts by identifying and
quantifying energy, the material used and the waste
released into the environment, assessing the impact
of the energy and material uses and releases to the
environment and identifying and evaluating
opportunities of effecting environmental
improvement. It is a complex process beginning with
the goal definition, going on to inventory of resources
and requirements, and assessing the possible threat
to planet survival.

• Answer -31
• Industrial waste is the waste produced by industrial activity which includes any material that is rendered useless
during a manufacturing process such as that of factories, industries, mills, and mining operations. Types of
industrial waste include dirt and gravel, masonry and concrete, scrap metal, oil, solvents, chemicals, scrap lumber,
even vegetable matter from restaurants. Industrial waste may be solid, liquid or gaseous. It may be hazardous or
non-hazardous waste. Hazardous waste may be toxic, ignitable, corrosive, reactive, or radioactive. Industrial waste
may pollute the air, the soil, or nearby water sources, eventually ending up in the sea.Industrial waste is often
mixed into municipal waste, making accurate assessments difficult. An estimate for the US goes as high as 7.6
billion tons of industrial waste produced every year. Most countries have enacted legislation to deal with the
problem of industrial waste, but strictness and compliance regimes vary. Enforcement is always an issue.
• Industrial waste management can be managed by following methods-
• Segregation and Recycling
• Much of the waste that is generated by your company’s production, shipping, and packaging needs is not reusable
or compostable, but it is recyclable. The first step in your industrial waste management program is to identify
which items can be recycled, and set up recycling bins or dumpsters into which they can be sorted. Most recycling
centers can handle glass, paper, and plastic recycling. Many can also handle scrap metal recycling, cardboard
recycling, food waste recycling, and electronics recycling. You must segregate and separate your recycling from
your hazardous waste, compostable waste, and non-hazardous solid waste.

• Use of Landfills
• Landfills are one of the most common ways to dispose of waste in America. The
only waste that should be sent to landfills is that which is non-hazardous, non-
recyclable, and non-compostable. When waste is sent to a landfill, it is confined
to a small area, compacted when necessary, and then buried in the earth. As the
waste decomposes, it releases gases that can be converted to natural gases used
for power and fuel. Landfills are cost-efficient and are designed to minimize the
harm done to the environment.
• Composting
• The composting process turns organic waste into fertilizer that can be used to
nourish plants. Most food waste can be composted, and even unsafe organic
items can be turned into safe composting. You can compost food waste, leaves,
newspaper, very small pieces of cardboard, straw, and sawdust. Compost is then
added to soil to provide nutrients and encourage growth. Composting is one of
the most effective ways to reuse and recycle waste.

Managing environmental issues
Reinhardt suggests five different approaches to
managing environmental issues
1. Investing in environment friendly processes or
products.
2. Managing environmental regulations.
3. Investing in environmental performance
improvement, without increasing costs.
4. Combining all the three methods mentioned
above to change the basis for competition.
5. Looking at environmental issues from a risk
management perspective.

• Corporate citizenship involves the social responsibility of businesses and
the extent to which they meet legal, ethical, and economic responsibilities,
as established by shareholders.
• Corporate citizenship is growing increasingly important as both individual
and institutional investors begin to seek out companies that have socially
responsible orientations such as their environmental, social, and
governance (ESG) practices.
• Corporate citizenship refers to a company’s responsibilities toward
society. The goal is to produce higher standards of living and quality of life
for the communities that surround them and still maintain profitability for
stakeholders.
•
• The Development of Corporate Citizenship
• The five stages of corporate citizenship are defined as:
1. Elementary
2. Engaged
3. Innovative
4. Integrated
5. Transforming

• In the elementary stage, a company’s citizenship activities are basic and
undefined because there are scant corporate awareness and little to no
senior management involvement. Small businesses, in particular, tend to
linger in this stage. They are able to comply with the standard health,
safety, and environmental laws, but they do not have the time nor the
resources to fully develop greater community involvement.
• Starbucks as an Example
• Long before its initial public offering (IPO) in 1992, Starbucks was known
for its keen sense of corporate social responsibility, and commitment to
sustainability and community welfare. Starbucks has achieved corporate
citizenship milestones including:
• Reaching 99% ethically sourced coffee
• Creating a global network of farmers
• Pioneering green building throughout its stores
• Contributing millions of hours of community service
• Creating a groundbreaking college program for its partner/employees
• Starbucks’ goals include hiring 10,000 refugees across 75 countries,
reducing the environmental impact of its cups, and engaging its
employees in environmental leadership.

Charter for voluntary pollution
control
• The Ministry of Environment and Forests and
the country’s industrial sector have entered into
a partnership on voluntary pollution control by
releasing a Charter on Corporate Responsibility
for Environmental Protection in New Delhi on
13 March 2003.
• The Charter marks a shift from regulatory
enforcement of pollution control norms to
voluntary compliance by the industry to
significantly enhance the quality of
environment. 9005754382

India’s environmental policy
The Environment (Protection) Act, 1986 takes into account the
following:
1. Water (Prevention and Control of Pollution) Act, 1974
2. Air (Prevention and Control of Pollution) Act, 1981
3. The Factories’ Amendment Act, 1987
4. The National Environmental Policy 2004
Environmental pollution created by individuals or corporations
amounts to public nuisance, therefore this can be controlled
through criminal law. Offensive smells, noise and air pollution are
included under ‘nuisance’. Action against such nuisance can be
taken if it is repeated and committed continuously. The nuisance
may be public or private in nature. The public nuisance interferes
with the quality of life of the society. Therefore, pollution
originating from water, air and noise can be prevented by civil or
criminal laws.

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