In the past, businesses put in great efforts to guard their reputation. They address customer complaints actively and maintain their reputation for fair treatment of customers.
In recent years, the standard of customer service has declined. This comes during an era of relentless search for higher profits and a drop in business ethics. Businesses do not care as much for their reputation, as it is now quite common for their competitors to have similar low standards.
The regulators have also dropped their standard of enforcements. They consider that these matters could be left to the market. If the consumers are not happy, they can go to another supplier. Even the mainstream media is driven by advertising dollars and are not vigorous in reporting bad practices of businesses.
Many businesses now take the view that if a group of customers are dissatisfied, they can market their products to other groups of customers.
The decline in business ethics will be bad for society. We need a refocus on good business ethics and practices. This requires the action of the regulators, mainstream media, and the examples of good corporate leaders.
Consumers should also come forward to be more active in expressing their dissatisfaction and views. They can use the new media to voice their views.
Tan Kin Lian
The issue in Singapore is defamation law which is felt to favour businesses to such an extent that its not worth the risk.
ReplyDeleteThat may not be true but its a general perception I think.
I note Mr Tan that you have removed an article on a Land Banking company which was basically true and factual and in the public interest.
If someone with the profile, reputation and integrity, and support you have has to do that how do the rest of us fare ?
"when the truth is spoken and it don't make no difference, something in your heart runs cold"
Bruce Springsteen
"They consider that these matters could be left to the market. If the consumers are not happy, they can go to another supplier."
ReplyDeleteThis is still true today. We have freedom to choose who to reward with our money. The only reasons why supposedly "evil" companies are still thriving is 1. They are the best in the industry, 2. Consumers need education.
I think the focus should be on the latter as there is no way you can change capitalism for there is no feasible alternative yet discovered.
As the late Milton Friedman aptly puts it, "The social responsibility of business is to increase its profits." Only natural people can have social responsibilities. As an artificial person, a corporation can only represent the interests of the shareholders and not society.
Individuals want self-serving corporations and high profit, nobody wants to see the business they have a stake in fail. This is kept in check by individuals again who have the freedom to choose where to put their money. It is when freedom of choice is hindered should there be an outcry, such as an increase in taxes or dishing out bailout money, or increasing subsidies.
I agree with Sim again on this one.
ReplyDeleteIf one's looking for returns and think that insurance companies are very profitable, they should buy shares in the company, not buy insurance from the company. If one's looking for insurance, then buy insurance.