BUSINESS SELF REGULATION

A voluntary commitment by business to manage its activities responsibly

MEANING
Self regulation by the business community simply implies fair and transparent deal with customers. In other words, business self regulation means fulfillment of corporate social responsibility towards customers. CORPORATE SOCIAL RESPONSIBILITY IS A FORM OF CORPORATE SELF REGULATION.

NEED FOR SELF REGULATION..?

If a business is not self regulated, it means it is exploiting the customers in one or other way. Exploitation of consumers can invite problems for the business such as:

Legal hurdles or outside regulations Routine activities of the business will be interrupted. Production will not be effective and efficient. Higher prices of the products resulting in low sales. Profits of the business will go down. Low goodwill.

Thus, to overcome such problems a business need to be self regulated..

WAYS FOR SELF REGULATION

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

The business community should welcome the suggestions and complaints made by consumers. Complaints of consumers should be entertained immediately. Provide information and education about the products. Ensure safe products. Produce environment friendly products. Avoid misleading advertising about the products. Charge reasonable price for the product. Avoid black marketing and food adulteration.

BENEFITS OF SELF REGULATION

Self regulation brings benefits FOR THE:
o o o

INDUSTRY ORGANISATION CONSUMERS

CONT

FOR THE INDUSTRY Self-regulation is a way of increasing consumer confidence in the products chosen and in the industry. Resolution of the complaints in the self-regulatory system means saving time and financial resources needed in case of legal actions.

Self-regulation is a way for the advertising industry to ensure that a message launched is honest, decent, fair and legal.
Self-regulation provides a regulatory framework better adapted to market requirements.

CONT

FOR THE ORGANISATION Exploitation of the consumers will be minimised. No legal hurdles. Business activities would be carried out smoothly. Effective and efficient production. Reasonable prices of THE product. Earn desired profits. High goodwill.

CONT

FOR THE CONSUMERS Self-regulation is a much easier and more accessible way of complaining about a a commercial communication, rather than an action in court. Self-regulation is a faster alternative in eliminating a wrong commercial communication.

Appealing to self-regulation to solve the complaint, the consumer is not subject to any costs.
Through self-regulation, the consumer is assured of all the industrys consideration for the development of honest, decent, fair and legal advertising;

CONSUMER PROTECTION
A business can be run successfully without legal hurdles. Since, exploitation of consumers can invite problems for the business, therefore, it should adapt self regulation policy for the conduct of business. Consumer protection is ensured at the organisation level through self regulation.

CONT
When efforts of self regulation fail, that makes the way for government intervention as the last resort. It means that well organized business community has failed to regulated itself, the government as the custodian of the nation, takes the side of the weaker side of the battle namely the consumers.

Presented by :

PRACHI TANEJA BBE