SOCIETAL ENVIRONMENT

It encompasses all social factors that influence business such as Demographic factors Cultural factors Social institutions Social stratification Religious aspects Language Customs Traditions Social beliefs and attitudes Taste and preferences Buying and consumption habits Business ethics Technological, natural and economic in connection with social factors Laws and regulations

Social factors affect business like Type of products to be manufactured and marketed Marketing strategies Way business should be organized and governed Values and norms it should adhere to Society is also affected by the business The organization of the business Way of business functions Innovations Transmission and diffusion of information and new ideas Business activities influence social attitudes, values, outlooks, customes etc. Ignorance or neglect of certain dimensions of the societal environment may create tremendous problems.

CONSUMER PREFERANCES, HABITS AND BELIEFS Many companies modify their products and promotion strategies to suit the tastes and preferences or other characteristics of the population of different countries. e.g.. Coffee Strategy should be one that is appropriate in the socio cultural environment. Marketing mix will have to be so designed to suit the environmental characteristics of the market. e.g.. Bicycles Product attributes may differ as per the relative importance in different countries Eating habits, consumer preferences and resultant demand patterns vary greatly from one market to another. e.g.. Mushrooms, Lassi, Sweet dishes

Attitude towards packaging also differs Nature and occasion of use of products also varies between markets e.g.. Cold drinks, Orange juice, coffee Values and beliefs associated with color vary significantly between different cultures. Blue, Green, White, Red There are similar differences regarding value associations with numbers 13, 9 , astronomy, astrology etc.

ETIQUETTES The way of meeting and greeting people Expression of appreciation or disapproval, Methods of showing respect Ways of conducting meetings and functions Table manners Physical distance to be kept between people Laughter Handshake Properly responding to guests invitation/ treat Gift giving, types of gifts and way of presentation

SOME SOCIAL TRENDS Age and gender composition of population, family size and habitat Number and proportion of women in workforce Lifestyle change due to both the partners working Rise in number of double income households increase demands for number of products like household appliances, electronic gadgets etc. Single parent families due to high rate of divorces

INTERDEPENCE OF BUSINESS AND SOCIETY Changing concept of business Values: Business develops certain belief systems and values for which they stand and are source of institutional drive. Viability: The drive to live and grow, to accomplish the potential not reached and to achieve all that a living system is capable of becoming. Public Visibility: It refers to the extent an organizations activities are known to persons outside the organization. Public image is what people thinks about an organization acts, while public visibility refers to the extent to which its acts are known. It involves public examination, discussion and judgement.

BUSINESS AND CULTURE Meaning of culture: It is the complex whole which includes knowledge, belief, art, morals, laws, customs and other capabilities and habitat acquired by man as a member of society It is the software of mind- the social programming that runs the way mindwe think, act and perceive ourselves and others. Francis Merill formulates the concept of culture as follows:  Is the characteristically human product of social interaction  Provides socially acceptable patterns for meeting biological and social needs  Is cumulative for it is handed down from generation to generation in a given society  Is meaningful to human beings because of symbolic quality  Is learned by each person in the course of development in society  A basic determinant of personality  Depends for its existence upon the continued functioning of society but is independent of any individual or group.

Culture consists of both material and non-material culture. nonMaterial culture involves man-made things and man-made alteration in manmanthe environment. Non material culture includes factors such as language, ideals, beliefs, values, music etc. ELEMENTS OF CULTURE Knowledge and Beliefs: Prevailing notions of reality Ideals: Societal norms of what is expected, customary, right or proper in a given situation. Preferences: Society s definition of those things in life which are attractive or unattractive as objects of desire.

ORGANISATION OF CULTURE Refers to the social structure and integration of traits, complexes and patterns that make up the cultural system. The web of organized relationships among individuals and groups that defines their mutual rights and liabilities - together with traits, complexes and patterns, reflects the organization of culture. Stratification Social Institution Cultural Traits, Complexes and Patterns

CULTURAL ADAPTATION The manner in which social system or an individual fits into the physical or social environment. Adaptation is essential for survival The message of business is that firm and its people will have to adapt to the new environment of the different markets. Through a process of constant selection and constant adaptation the moving equilibrium of life is maintained. It is important to know the process and nature of the cultural environment for a successful formulation of business strategies.

CULTURAL SHOCK Environmental changes sometimes produce culture shock- a feeling of shockconfusion, insecurity and anxiety caused by the strangeness of a new environment. Proper homework to understand the culture can help avoid the shock. It also highlights the importance of selection of people for foreign markets.

CULTURAL TRANSMISSION Every generation inherits a stock of cultural elements, many of which have been accumulated over a long period of time. Certain old elements are dropped as new ideas and traits are acquired. Cultural accumulation, facilitated by cultural transmission enables man to build upon the achievements of past. Reference groups play an important role in handling down new traits and ideas. Cultural transmission is not only downward but upward also. It takes place horizontally as well as vertically. It takes by means of symbolic communication It also facilitates cultural diffusion- the spread of cultural elements from diffusionone place to another. The cultural diffusion are easy in culture with high educational levels and well organized communication system. The nature and process of cultural transmission and diffusion in a society is important to business decision making.

CULTURAL CONFORMITY Individuals either tend to conform to the cultural norms or to deviate from them. The social order depends on regular and adequate fulfillment of the role obligations incurred by the incumbents of the major status positions in a social system. It ensures that people do indeed meet their role obligation. CULTURAL LAG Put forward by William Orgburn Various part of modern culture do not change at the same rate, and that since there is a correlation and interdependence of parts, a rapid change in one part of our culture requires readjustments through other changes in various correlated parts of that culture. To successfully market a new idea it is necessary to identify the factors causing the lag and to overcome them by taking appropriate measures.

CULTURAL TRAITS LOW CONTEXT AND HIGH CONTEXT CULTURES A high context culture is one that places great value on the intangible aspects of a negotiation or business deal. Individuals from such cultures look beyond the facts and figures and take into account factors as personal relationships, atmosphere and attitudes towards respect, religion and trust. A low context culture assumes high degree of shared knowledge on the behalf of a transaction partner and thus deals only in such tangible aspects of the deal as facts, figures and performance. The atmosphere and personal relationships with the business partners

MASCULINE AND FEMININE CULTURES A so called masculine value appreciate aggressiveness and assertiveness while respecting the goal of material acquisition. A masculine culture contrasts with feminine culture which appreciates interpersonal relationships, put quality of life before material acquisition and applaud concern for individuals and less fortunate. Feminine culture are often more reserved and less time driven than those from masculine cultures where achievements are more important than building a long term relationship. In masculine culture success is the function of the individual and society is made up of leaders and followers.

MONOCHRONIC AND POLYCHRONIC SOCITIES Monochronic describes how a culture views time. Time is used for ordering one s life, for setting priorities and for doing tasks in a sequential order, one things at a time Polychronic society which uses time to accomplish diverse goals simultaneously and to interact with as many individuals as possiblepossibleeven at the same time. It is the characteristics of emerging society

Five cultural dimensions Identified by Fons Trompenaars UNIVERSALISM VSPERTICULARISM Universalism is the belief that ideas or practice can be applied as it is universally in contrast to particularism which holds that the environment dictates how ideas should be applied. The focus here is more on rules than on relationships, business contracts are adhered to very closely and people believe that deal is a deal. In particularism, the focus is on relationships and trust than on formal rules. In this culture legal contracts often are modified and as people get to know each other better, they often change the ways in which deals are executed. It is recommended that when individuals from particularistic culture do business in a universalist culture, they should be prepared for rational, professional arguments and lets get down to business attitude.

INDIVIDUALISM AND COMMUNITARIANISM In individualism people regard themselves as individuals, while in communitarianism they regard themselves as part of a group. Trompenaars recommend that when people from cultures with high individualism deal with those from communitariansim cultures, they should have patience for the time taken to consent and to consult and they should aim to build lasting relationships. When people from cultures with high communitarianism deal with those from individualist culture, they should be prepared to make quick decisions and commit their organization to these decisions. Communitarianistics dealing with individualists should realise that the reason they are dealing with only one negotiator is that this person is respected by his or her organization and has its authority and esteem.

NEUTRAL VS. EMOTIONAL A neutral culture is one which emotions are held in check whereas an emotional culture is one in which emotions are openly and naturally expressed. Eg. Japan, United Kingdom People in emotional culture often smile a great deal, talk loudly when they are excited and greet each other with a great deal of enthusiasm Eg. Mexico, Netherlands and Switzerland Trompenaars recommends that when individuals from emotional cultures do business in neutral culture, they should put as much as they can on paper and submit it to the other side. They should realize that lack of emotion does not mean disinterest or boredom, but rather that people from neutral cultures do not like to show their hand. When those from neutral culture do business in emotional culture, they should not be put off stride when the other side creates scenes or grows animated and boisterous and they should try to respond warmly to the emotional affections of the other group.

SPECIFIC VS. DIFFUSE A specific culture is one in which individuals have a large public space they readily let others enter and share and a small private space they guard clsely and share with only close friends and associates. Eg. Austria, U.K., United States and Switzerland A diffuse culture is one in which both public and private space are similar in size and individuals guard their public space carefully, because entry into public space affords entry into private space as well. Eg. Venezuela, China and Spain In specific culture, people often are invited into a person s open, public space, individuals in these cultures often are open and extroverted and there is a strong separation of work and private life. In diffuse cultures, people are not quickly invited into a persons open, public space, because once they are in, there is easy entry into the privates space as well.

Trompenaars recommends that when those from specific cultures do business in diffuse cultures they should respect a person s title, age and background connections and they should not get impatient when people are being indirect or circuitous. When individuals from diffuse culture do business in specific culture they should try to get to the point and be efficient, learn to structure meetings with the judicious use of agendas and not use their titles or acknowledge achievements or skills that are irrevalent to the issues being discussed.

ACHIEVEMENT VS. ASCRIPTION An achievement culture is one in which people are accorded status based on how well they perform their functions. Achievement culture give high status to high achievers. An ascription culture is one in which status is attributed based on who or what person is. ascription cultures accord status based on age, gender or social connections. Trompenaars recommends that when individuals from achievement culture do business in ascription cultures, they should make sure that their group has older, senior and formal position holders who can impress the other side and they should respect the status and influence of their counter parts in the other group. Ascription individuals should make sure that their group has sufficient data, technical advisors and knowledgeable people to convince the other that they are proficient, and they should respect the knowledge and information of their counterparts on the other team.

CULTURE AND ORGANIZATIONAL BEHAVIOUR Highlighted by Hodgetts and Luthans

1. 2. 3. 4. 5. 6. 7. 8.

Centralised vs. Decentralised Decision making Safety vs. Risk Individual vs. Group Rewards Informal vs. Formal Procedure High vs. Low Organizational loyalty CoCo-operation vs. Competition Short term vs. Long term Horizon Stability vs. Innovation

TECHNOLOGICAL DEVELOPMENT AND SOCIAL CHANGE Social change refers to whatever may happen in the course of time to the roles, institutions or the orders comprising the social structure, their emergence growth and decline. Social change is brought about by number of factors like technological, cultural, demographic, biological, economic, environmental, psychological, political etc. Technology is one of the important determinants of social change The industrial age has changed the social life and status of women There is a huge impact of transport and communications Media is also responsible for social change Modern industrialization

SOCIAL RESPONSIBILITY OF BUSINESS Social responsibility of business refers to what the business does, over and above the statutory requirement for the benefit of the society. H.S. Singhania classifies the nature of social responsibility of business into 2 categories: a) the manner in which a business carries out its own business activities b) the welfare activity that it takes upon itself as an additional function

CLASSICAL AND CONTEMPORARY VIEWS Milton Friedman argues there is one and only one social responsibility of business- to use its resources and engage businessin activities designed to increase its profits so long as it stays within the rules of the game, that is engages in open and free competition without deception and fraud. Davis and Blomstorm hold that business is a social institution, performing a social mission and having broad influence on the way people live and work together.

According to Steiner and Steiner, a reasonable approach to social responsibility is as follows:

1) Business should take into account the situation in which it 2) 3) 4) 5) 6) 7)

finds itself in meeting stakeholder expectations. Business is an economic entity and cannot jeopardize its profitability meeting social needs. Business should recognize that in the long run, the general social good benefits everyone. The social responsibility expected of a business is directly related to its social power to influence outcomes. Social responsibility is related to the size of the company and to the industry it is in. A business should tackle only those social problems in which it has competence Business must assume its share of the social burden and be willing to absorb reasonable social costs

SOCIAL RESPONSIBILITY MODELS Archie Carroll proposed a three dimensional conceptual model of corporate performance. The firm has the following four categories of obligations of corporate performance. 1) Economic 2) Legal 3) Ethical 4) Discretionary William E. Halal s return-on-resources model of corporate performance return-onrecognizes the fact that no corporate social posture will be value-free valueand this makes corporate social responsiveness a tremendously difficult tasks. A firm can only a firm can only attempt to unite the diverse interest of various social groups to form a workable coalition engaged in creating value for distribution among members of the coalition.

According to Ackerman s model there are three phases in the development of the social responsiveness of a company. The first phase is one when top management recognizes the existence of a social problem which deserves the company s attention and acknowledges the company s policy towards it by making an oral or written statement. The second phase is characterized by the company appointing staff specialists or external consultants to study the problem and suggest ways of dealing with it. The third phase involves the implementation of the social responsibility programmes.

Extent of Social Orientation and Involvement

1. 2. 3. 4. 5.

AntiAnti-social Indifferent Peripheral Socially Oriented Committed and very active

FACTORS AFFECTING SOCIAL ORIENTATION Promoters and Top management Board of Directors Stakeholders and Internal Power Relationship Societal Factors Industry and Trade Associations Government and Laws Political Influences Competitors Resources Ethical Influences

FIVE ETHICAL STANDARDS THAT ARE IN VAGUE ARE SUMMARIZED BY GENE LACZNIAK

1) 2) 3) 4)
5)

The Golden Rule The Utilitarian Principle Kant s Categorical Imperative The Professional Ethic The TV Test

RESPONSIBILITY TO DIFFERENT SECTIONS RESPONSIBILITY TO SHAREHOLDERS RESPONSIBILITY TO EMPLOYEES RESPONSIBILITY TO CONSUMERS RESPONSIBILITY TO COMMUNITY

RESPONSIBILITY TO SHAREHOLDERS Develop and improve its business and build up financial independence Earn sufficient profit By innovation and growth company should consolidate and improve its position and help strengthen the share prices Ensure that its public image is such that share holders can feel proud of their company

RESPONSIBILITY TO EMPLOYEES Fair wages Best possible working conditions Fair work standards and norms Labour welfare facilities Proper training and education of workers Proper system for accomplishment and promotion Recognition, appreciation and encouragement of special skills and capabilities of workers Efficient grievance handling system Participating in managerial decisions to the extent desirable.

RESPONSIBILITY TO CONSUMERS To improve efficiency of the functioning Improve quality and introduce better and new products Remove imperfections in the distribution system Supply goods at reasonable prices After sales services Product supplied has no adverse effect Sufficient information about product Avoid misleading the consumers by improper advertisement Opportunity for being heard and to redress genuine grievance Understand consumer needs and take necessary measures to satisfy these needs.

RESPONSIBILITY TO COMMUNITY Prevent appropriate environmental pollution Rehabilitating the population displaced by the operation of business Overall development of locality Conserve scarce resources and developing alternatives Efficiency of the business operation Research and development Development of backward areas Promotion of small scale industries Promotion of education and population control National effort to build up better society

ARGUMENTS FOR SOCIAL INVOLVEMENT BUSINESS

1. 2. 3. 4. 5. 6.

Business which survives using the resources of the society has a responsibility to the society Business which is an integral part of the social system has to care for the varied needs of the society Business which is resourceful has a special responsibility to the society Social involvement of business would fostera harmonious and healthy relationship between the society and business to the mutual benefit of both. Social responsibilities like recycling of wastes may have favorable financial effects. Social involvement may create a better public image for the company which may help it in attracting customers, efficient personnel and investors.

ARGUMENTS AGAINST SOCIAL INVOLVEMENT OF BUSINESS

1) 2) 3) 4) 5) 6)

Business should confine to its own business. There are government and social organization to carry out social activities. Involvement in social activities could adversely affect the economic health of a business enterprise. If the cost of the social involvement of the business is ultimately passed on to the consumers, there is no point in exalting the social involvement of business. Many companies involve themselves in social activities because of the tax exemptions on the income spent on special social purposes. If the social involvement of a business enterprise causes an increase in the price of its products, it could affect its competitiveness both in the domestic and international markets. Social involvement of business could lead to an increase in the dominance or influence of business over the society

SOCIAL AUDIT a COMMITMENT TO SYSTEMATIC ASSESMENT OF AND ACTIVITIES ON SOME MEANINGFUL, DEFINABLE DOMAIN OF THE COMPANY S ACTIVITIES THAT HAVE SOCIAL IMPACT SOCIAL AUDIT involves: 1) Identification of the firm s activities having potential social impact 2) Assessment and evaluation of the social costs and social benefits of such activities Measurement of the social costs and benefits Reporting that is presenting in a proper format and manner, the social performance of the firm.

3) 4)

OBJECTIVES AND BENEFITS OF SOCIAL AUDIT

1) 2) 3)
4)

The basic objective of social audit is to evaluate the social dimension of the performance of the company. Take measures to improve the social performance of the company on the basis of the feedback provided by the social audit. Social audit increases the public visibility of the organization If the social audit reveals a socially commendable performance of the company, it will help boost the public image of the company.

METHODS OF SOCIAL AUDIT Social Process Audit Financial Statement Format audit MacroMacro-Micro Social Indicator audit Constituency Group Audit Partial Social Audit Comprehensive audit Corporate rating approach

OBSTACLES TO SOCIAL AUDIT

1)

It is yet to gain wide appreciation and acceptance

2) A clear and generally well accepted methodology for conducting the social audits is not available 3) There is no agreement as to the items to be included for social audit 4) It is difficult to quantify the social costs and benefits of different activities or items 5) There may be resistance within the company to social audit because of time, effort and difficulty involved in the task 6) There may be resistance because of the fear of a dismissal or unsatisfactory picture that may be presented by the social audit.

SOCIAL AUDIT IN INDIA TRUSTEESHIP BUSINESS ETHICS MANAGEMENT EDUCATION IN INDIA POPULATION AND CENSUS

POPULATION AND CENSUS Population Explosion in Developing countries Falling birth rate and changing age structure Surging Indian market

CONSUMER RIGHTS, CONSUMERISM AND BUSINESS Consumer Rights: 1) Right against exploitation by unfair trade practices

2) 3)

Right to protection of health and safety from the goods and services the consumer buy or are offered free Right to be informed of the quality and performance standards, ingredients of the product, operational requirements, freshness of the product, possible adverse side effects and other relevant facts concerning the product or service Right to be heard if there is any grievance or suggestions Right to get the genuine grievances redressed Right to choose the best from a variety of offers. Right to a physical environment that will protect and enhance the quality of life.

4) 5) 6) 7)

EXPLOITATION OF CONSUMERS CONSUMERISM CONSUMER PROTECTION NONNON- GOVERNMENTAL ORGANISATIONS

UTILITY OF CONSUMERISM

1) 2) 3) 4)

Producers and sellers will not take the consumer for granted Consumerism will provide feedback for the business Producers will be able to enlist the support of consumers to minimise the imperfections on the distribution front Consumerism will make the government more responsive to consumer interests, prompt it to take necessary statutory measures and make the required institutional arrangements to safe guard consumer rights

UN GUIDELINES FOR CONSUMER PROTECTION The themes for the guidelines: 1) Physical safety

2) 3) 4) 5) 6)
7)

Economic Interest Standards Essential Goods and services Redress Education and Information Health

OBJECTIVES

1) 2) 3) 4) 5) 6) 7)

To assist countries in achieving or maintaining adequate protection for their population as consumers To facilitate production and distribution patterns responsive to the needs and desires of consumers To encourage high levels of ethical conduct for those engaged in the production and distribution of goods and services to consumers To assist countries in curbing abusive business practices by all enterprises at the national and international levels which adversely affect consumers To facilitate the development of independent consumer groups To further international cooperation in the field of consumer protection To encourage the development of market conditions which provide consumers with greater choice at lower prices.

GENERAL PRINCIPLES The legitimate needs which the guidelines are intended to meet are: 1) The protection of consumers from hazards to their health and safety 2) The promotion and protection of the economic interest of consumers 3) Access of consumers to adequate information to enable them to make informed choices according to individual wishes and needs 4) Consumer education 5) Availability of effective consumer redress. 6) Freedom to form consumer and other relevant groups or organizations and the opportunity os such organizations to present their views in decision making processes affecting them.

GUIDELINES

1) 2) 3) 4) 5)
6)

Physical safety Promotion and Protection of Consumers Economic Interest Standards for the safety and quality of consumer goods and services Distribution facilities for essential consumer goods and services Measures enabling consumers to obtain redress Education and Information Programmes

CONSUMER PROTECTION AND CONSUMERISM IN INDIA Plight of Indian consumers miserable 1) Short supply of many goods and services 2) Indian consumer is lack of effective or workable competition 3) Many products with which consumers in advanced countries are quite familiar are still new to a very large segment of the Indian consumers 4) Due to low literacy levels and unsatisfactory information flows they are not conscious of all their rights. 5) Legal process is comparatively time consuming and cumbersome 6) Consumerism in India is not well organized and developed 7) Poor performance of the public sector monopolies has made the plight of the consumers more miserable 8) Though there are number of laws to safeguard the interest of consumers they are not effectively implemented and enforced to achieve the objectives.

GOVERNMENT MEASURES

1)

2)

Statutory Regulation Competition Act, Industries Act, Essential Commodities Act, Prevention of Food Adulteration Act, Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act, Trade Marks and Merchandise Marks Act, Sale of Goods Act, Indian Patents and Designs Act, Agricultural Products Grading and Marketing Act, Indian Standard Institute s Certification Act, Standards Weight and Measures Act, Imports and Exports Control Act, Packaged Commodities Order, Price and Stock Display Order, Consumer Protection Act etc. Growth of Public Sector Enhancement of consumer welfare by increasing production, improving efficiency in production and supply, making available goods and services at fair services, curbing private monopolies and reducing market imperfections, improving the distribution system.

CONSUMERISM It has the following important roles to play:

1)
2) 3)

Consumer Education Product Rating Liaison with Government and with Producers

OPPORTUNITY FOR INDUSTRY 1) Mktg must be considered as company s relationship with the consumer

2) 3) 4) 5) 6)

Industry should cooperate with consumer movements in terms of information on and education in the products Industry will have to invest increasingly in testing the safety of product in use. Satisfactorily dealing with consumer complaints Claims made on behalf of the products through advertising Industry must invest in R and D because consumer expectations and needs are constantly rising and the constraints on meeting them are changing.

CONSUMER PROTECTION ACT, 1986 It provides a system for the protection of consumer rights and the redressal of consumer disputes. Objective of this act is to provide for the better protection of the interest of consumers and for that purpose to make provision for the establishment of consumer councils and authorities for the settlement of consumers disputes and for the matters connected therewith. CONSUMER PROTECTION COUNCILS The Act provides for the establishment of a Central Consumer Protection Council by the Central Government and State Consumer Protection Council in each state by the respective state governments The central council shall consist of the Minister in charge of consumer affairs in the central government who shall be its chairman and such number of other official or non official members representing such interest as may be prescribed. Meeting is conducted at least once every year.

OBJECTS OF COUNCILS A) The right to be protected against marketing of goods and services which are hazardous to life and property

B)

The right to be informed about the quality, quantity, potency, purity, standard and price of goods and services so as to protect the consumer against unfair trade practices The right to be assured, wherever possible, access to a variety of goods at competitive prices The right to be heard and assured that consumer s interest will receive due consideration at appropriate forums The right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers The right to consumer education

C) A) B)

F)

CONSUMER DISPUTES REDRESSAL AGENCIES A three tier consumer disputes redressal system encompassing the district, state and national levels. 1) A district forum in each district of every state. It consist of a) person who is or has been or is qualified to be a district judge nominated by state government who shall be its President b) a person of eminence in the field of education, trade or commerce c) a lady social worker 2) A state commission in each state It shall consist of a person who is or has been judge of a High court appointed by the state government and two other members who shall be persons of ability, integrity and standing and have adequate knowledge or experience of or have shown capacity in dealing with problems relating to economics, law commerce, accountancy, industry, public affairs or administration one of whom shall be a woman.

3) National Commission shall consists of person who is or who has been judge of the Supreme court appointed by the central government and two other members who shall be persons of ability, integrity and standing and have adequate knowledge or experience of or have shown capacity in dealing with problems relating to economics, law, commerce, accountancy, industry, public affairs or administration, one of whom shall be a woman. A complaint where the value of the goods or services and the compensation if any, if less than 5 lakhs is to be dealt with the District Forum, where such value exceeds 5 lakhs rupees but does not exceed 20 lakhs rupees it is to be dealt with the state commission and cases involving more than rupees 20 lakhs fall within the jurisdiction of the National Commission.

The state commission will also entertain appeals against the orders of any District Forum within the state. Appeals against the order of the State commission can be made to the national commission Appeal against the orders of the National Commission can be made to the Supreme court. The State Commission is empowered to call for the records and pass appropriate orders in any consumer dispute which is pending before or has been decided by any District Forum within the State, where is appears to the State Commission that such District Forum has excerciesed a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction so vested or has acted in exercise of its jurisdiction illegally or with material irregularity. The national commission has similar jurisdiction over the state commission,