Dear bren,
I have divided the possible reasons into three categories and
summarised some of the points. However the links, particularly the BSR
whitepaper provide substantially more detail and the government sites
provide hundreds of examples:
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I Compliance with compulsory laws, standards, regulations and codes:
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Due to its compulsory nature, compliance with laws to reduce risks and
liability is the most obvious obligation. Drugs regulation by the FDA
and Safety recalls are high profile examples eg firestone tires.
National Consumer League, Example Information Bottled Water
Regulation: http://www.natlconsumersleague.org/food/bottledwater/Regulations.htm
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US Consumer Product Safety Commission (CPSC)
Current product recalls
http://www.cpsc.gov
List of many, many product regulations with references to the
appropriate act, testing laboratory etc.
http://www.cpsc.gov/businfo/reg.html
A listing of other federal agencies responsible for product regulation
(acronym city!)
http://www.cpsc.gov/federal.html
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II Compliance with voluntary codes of practice serves to reduce
regulatory oversight.
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Examples include:
The International Chamber of Commerce (ICC) policy statements:
http://www.iccwbo.org/home/statements_rules/menu_statements.asp
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American Marketing Association Code of Ethics:
http://www.marketingpower.com/live/content.php?Item_ID=435&Session_ID=5713e1261d5b8ea315a426dcbfdc07a7
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International Chamber of Commerce, Codes, Rules and Model Contracts
http://www.iccwbo.org/home/statements_rules/menu_rules.asp
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Better Business Bureau Consumer Guidance:
http://www.bbb.org/subpages/consumpg.asp
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III Indirect fulfilment of obligations via marketplace mechanisms.
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While Corporations ensure safety, reliability and efficacy of their
products for direct compliance reasons, they also strive to fulfil
their various obligations to stakeholders by indirectly influencing
other marketplace factors via product safety, reliability and
efficacy. These may also be purely justified on moral and ethical
grounds, however a more cynical view may be that the primary aim of
business is to make profit and sometimes it may do this by also being
ethical and moral :-)
“Marketplace issues, as they relate to corporate social
responsibility, extend across a wide range of business activities that
define a company’s relationship with its customers. … In general,
there has been a shift away from “buyer beware” toward an ethos in
which companies are expected to bear a greater responsibility for the
integrity, use and consequences of their products and services.“ (BSR)
The BSR article lists such marketplace factors as:
"- Protecting and Strengthening Brand Image and Reputation:
- Company or Brand Differentiation:
- Protecting Against Negative Consumer Actions
- Attracting and Retaining Customers
- Attracting Investors
Ensuring Safety and Efficacy: Companies should ensure that their
products are safe for their intended use, that they perform as
advertised, and that they do not cause harm to people, communities,
property or the natural environment. Safety and environmental
responsibility should extend beyond the use of the product or service
by customer to include a product’s manufacture and distribution, as
well as its disposition after it has outlived its useful life."
“Odwalla, Inc., a California-based maker of juice products with a
strong commitment to environmental and consumer health, demonstrated
its integrity in response to a crisis with some of its products. In
1996, Odwalla became front-page news after E. coli contamination in
its unpasteurized apple juice killed a child and sickened 66 other
people. The incident led to intense media scrutiny, a massive product
recall, a huge devaluation of its stock, and threatened the company's
survival. The company acted immediately, issuing a product recall,
apologizing to affected families as well as all customers and vendors,
and promising restitution to those adversely affected. Odwalla then
became the driving force in establishing the American Fresh Juice
Council, a national coalition that promotes safety and
information-sharing on ways to improve manufacturing processes, and
has lobbied for tougher safety standards than those supported by most
of the industry. Then-chairman George Steltenpohl stated after the
company had recovered from the incident: “The only reason that we’re
around as a company today is due to two things. The strength of a
values-based internal company culture, and the company’s goodwill that
was created through community-based social and environmental practices
we had done for so many years.” (Small/Midsize, Food, United States) “
Business for Social Responsibility (BSR)
http://www.bsr.org/BSRResources/WhitePaperDetail.cfm?DocumentID=269
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An efficacy example:
Federal Drug Administration and Federal Trade Commission warning on
miracle health cures:
http://www.ftc.gov/bcp/conline/pubs/health/frdheal.htm
Numerous Federal Trade Commission examples of lack of efficacy and
lack of reliability or downright fraud…
http://www.ftc.gov/bcp/menu-media.htm
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I hope the above is helpful, if you would like clarification on any of
the above, please press the button!
Regards, |
,
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