Not all companies are treated fairly due to their perceived reputations with regulators and consumer groups. The historical issues that have led to these strained relationships include breaching of contracts, financial strain, and quality discrepancies. Organizations are unfairly targeted in industries such as cosmetics manufacturers. However, consumers have been manipulated and overcharged for decades. Some of the claims raised by customers are justified: they have also been exposed to harmful additives in products made cosmetic companies. It has taken creativity and time-consuming brainstorming to come up with winning business models that do not lead firms through ethical uncertainty.
Consumers have paid for less than the regulated. One major outstanding (and justified) reason for over-regulation and scrutiny is managing conflict in clinical trials. According to Morin et al. (2002), eroding the trust earned from a society can take an organization many years to repair. Acts that lead to this form of erosion are costly and influence employment as well as other factors. The financial incentives that come as a result of clinical trials are enticing and often lead to ethical challenges.
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Price collusion and fixing are additional issues that cosmetic industry that has been used to increase demand for products. These are techniques that are claimed to endorse utilitarianism, through which the majority of the population benefit from certain actions taken. Companies attempt to satisfy their customers and attain their financial goals with each product they sell. If a firm knowingly or unknowingly changes the constitution of given products, then it must justify the degree of contentment or happiness that a larger group will attain group (McCloskey, 1971). Business ethics complicate this because leadership influences the decisions made by operations departments.
The technological age has contributed to stiffer competition levels in the free trade era. Interconnectivity through personal devices, social platforms, and computers has introduced challenges in information sharing. Cosmetics companies that collect client information and sell that data to secondary business associates are treated more harshly by society and regulators due to infringing on privacy norms and policies.
At the same time, consumers have the right to purchase products and share personal details with retailers. Sometimes, this gives buyers the opportunity access to internal business processes, charitable contributions, and other company operations that take place behind closed doors. Corporate social responsibility endeavors are recorded and shared with customers via contact details. Artificial intelligence will complicate this further over the coming decade.
Addressing moral, economic, and legal concerns is more manageable when employees are included in ethical policy making. They can also monitor helpful and unhelpful feedback directly from call-in customers (Trevinor & Weaner 2001). Suggested ways of making cosmetic companies work hard to earn fair treatment are: manufacturing organic products, fair trade, safe working conditions and participating in ethical trading initiatives;
There are many ways consumers can play their part in ensuring companies all receive fair treatment and equality in the world, regardless of the class or nature of products. They must engage in affirmative campaigning and support companies that hope to exist for years on for future growth. They can also contribute to communication by sharing details on products among each other because when corporations benefit, consumers eventually consumers benefits. Arguably, this will take time, dedication and a better perspective on the importance of ethics in business (Irving et al. ,2002).
References
Irving, S., Harrison, R., & Rayner, M. (2002). Ethical consumerism–democracy through the wallet. Journal of Research for Consumers , 3 (3), 63-83.
Morin, K., Rakatansky, H., Riddick Jr, F. A., Morse, L. J., O'Bannon III, J. M., Goldrich, M. S., ... & Spillman, M. A. (2002). Managing conflicts of interest in the conduct of clinical trials. Jama , 287 (1), 78-84.
McCloskey, H. J. (1971). Ethical Theory: Utilitarianism. In John Stuart Mill: A Critical Study (pp. 56-95). Palgrave Macmillan UK.
Treviño, L. K., & Weaver, G. R. (2001). Organizational justice and ethics program “follow-through”: Influences on employees’ harmful and helpful behavior. Business Ethics Quarterly , 11 (4), 651-671.
