Consumers as the chief stakeholders of NAD

: For this assignment your group must complete the following Case Study from PART 5 Book (Business Ethics – 10th Edition by Ferrell/Fraedrich).

J      Case 17 – Better Business Bureau:protecting Consumers and Dealing with Ethical Challenges (Page 572)

1at: Standard Report Format. Please address all questions in the case within your report

🙂     Executive Summary: ideally one page but no more than two.

J       Sections 1: Introduction

J       Section 2: Main body of the report consisting the questions at the end of case study

J       Sections 3: Conclusions,

🙂     Reference List (15-20 references).

l’IPORTANT: Additional Questions: In addition to the 3 quest ions in the Case Study – group must also answer the following 2 standard questions at the end of their report:

🙂     (4) Discuss the concept of Institutionalisation and howit helps shape ethical conduct within an organisation like Better Business Bureau.

🙂     (5) Discuss theimportance of Ethical eadership and Corporate Governa nce.What impact do they have on ensuring ethicalconduct within organisations?

IPORTANT: Student Contribution:Each group will be required to complete a student Evaluation of Performance assessment sheet (which will be posted to Blackboard) to re that all members of the group contribute fairly to the group assessment. This form

:be completed, signed by all members of your group and submitted with your nment

 Consumers are the chief stakeholders of NAD as the objective of the organization revolves around enforcement of laws that govern consumers’ rights. National Advertising Division plays a critical role in protecting consumers from exploitation regarding misleading information disseminated through advertisement.  Therefore, according to Ferrell et al., (2014), the case study indicates that consumers are the most relevant stakeholders for National Advertisement Division.  The primary role of BBB as an affiliate body of NAD is to ensure that the information disseminated through advertisement is accurate, and the business operations follow ethical standards.  It is in the interest of the consumers that NAD undertakes its obligation and ensures effectiveness by providing collaborations with other organizations with the primary aim of certifying that businesses’ comply with already established ethical standards. After National Advertisement Division was established at the onset of the 19th century, its obligation has taken the interest of consumers at heart in various ways.

One of the ways in which the organization considers consumers as their principal stakeholders is the relationship it maintains with businesses with an aim of deriving customer satisfaction from the operations (BBB, 2015). As indicated in the case study, the organization has been cited to assist business in solving ethical cases in courts of law, but it does not mean that companies occupy the central point as the integral stakeholders. The other point that explains the role of NAD in protecting consumers as their primary stakeholders are their role in the regulation of trade activities.  There have been several reported instances where a business individual has gained more returns from advertisement as a result of disseminating misleading information to the consumers.  There are many cases whereby advertisers use misleading information to consumers with the objective of gaining maximum returns from advertising (Peeler, 2007). Consumers as the primary stakeholders of NAD has been assisted during such instances of fraud. National Advertisement Division through the BBB entity has enacted measures geared towards protecting the consumers by making the business legally responsible for dissemination of misleading information. The measures aim at enforcing the business individuals to provide accurate and truthful data about the products in their advertisements.  The other aspect that shows consumers as the primary stakeholders is the fact that all the regulation and laws that have been enacted to serve the changing business environment revolve around protecting consumer rights against infringement by the product manufacturers. NAD has the strict law that as the business endeavor to satisfy customers’ needs, the competing businesses should not infringe on the rights of each other. Consumers stand to benefit from the enforcement of such regulation as the advertisement will follow NAD ethical standards (Edward, 2006). It is for the benefits of the consumers when NAD advocate for enhanced collaboration between relevant authorities who participate in providing services and products to the consumers…

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