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Legal and ethical responsibilities companies have to customers

There are many examples of how the actions of a company have negatively affected consumers. Product recalls, bans, and warning labels have helped to protect consumers and companies are focusing more today on social responsibility. Examine why there been such a relatively high number of these incidences and what companies can do to protect consumers.

What legal and ethical responsibilities do companies have to their customers?
Cite and discuss in detail two cases in which a company endangered customers because of the manufacture or design of their products. How did the company address the issue?
What consequences did the companies in the cited cases face and were these consequences warranted? Why or why not?

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Ways to Protect Customers
Nowadays, there are various examples available, which show that how the actions of a company have negatively affected consumers. For this, various reasons are available in the competitive marketplace, which increase numbers of these incidences. In this, personal benefit of the firm stands as an important reason that forces the firms to take actions, which might be beneficial for the firm but harmful for the customers (Schwartz, 2011, p. 18). Increases in customer base, profitability and enhancing sales in limited time also provoke firms to take such actions, which affect customers negatively. Low customer awareness towards such action also works positively to enhance such incidences (Mohr, Webb & Harris, 2001, p. 48).
To protect the customers, the firm can conduct programs and activities to be aware of such actions and humiliations. Additionally, through following ethical and governmental standards, firms can protect the customers (Schwartz, 2011, p. 18). With the help of using a social welfare program and fulfilling social responsibilities towards protecting rights and health of the customers, firms can protect the customers. It is because such programs will increase awareness among the customers towards right and wrong actions of the firm, which will help them to take a sufficient decision related to the purchasing (Mohr, ...

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The solution discusses the legal and ethical responsibilities companies have to customers.