CPI-102 Redressal of Consumer Grievances: Role of Indira Gandhi National Open University Various Stakeholders Schoolof Law
Block 4 CONSUMER ORGANISATIONS UNIT 11 Strategies (Campaign and Advocacy) 5
UNIT 12 Managing an Organisation 17
UNIT 13 International Consumer Organisations 32 Expert Committee Shri G.C. Mathur Dr. K. S.Arul M. M. Selvam Convener-Trustee Treasurer Associate Professor, School of Journalism Binty, Vasant Kunj, New Delhi and New Media Studies IGNOU, NewDelhi-110068 Shri Sanjeev Talwar (Deputed by Joint Secretary (CA), GOI) Prof. K. Elumalai Senior Counsellor Professor, School of Law National Consumer Helpline IGNOU, NewDelhi-110068 Ministry of ConsumerAffairs, GOI IIPA, New Delhi Dr. Suneet Kashyap Asstt. Professor, School of Law Prof. C. G.Naidu IGNOU, NewDelhi-110068 Professor, School of Vocational Education and Training Dr. Gurmeet Kaur IGNOU, NewDelhi-110068 Asst. Professor, School of Law IGNOU, NewDelhi-110068 Shri Ajay Mahaurkar Associate Professor Dr. Anand Gupta School of Social Sciences Asst. Professor, School of Law IGNOU, NewDelhi-110068 IGNOU, NewDelhi-110068
Prof. K. Ravi Shankar Dr. Mansi Sharma Professor, School of Management Studies Asst. Professor, School of Law IGNOU, NewDelhi-110068 IGNOU, NewDelhi-110068 Block Preparation Team Programme Coordinator: Prof. K. Elumalai Unit Writers Dr. Babita Agrawal, Associate Professor & Dean, Ministry of Economics, AKP PG Editor College, Hapur (Unit 11) Prof. Suresh Misra Dr. R.C.Agrawal, Principal, Ex Dean Faculty Professor of Consumer Affairs of Commerce & Business Administration IIPA, New Delhi CCS University, Meerut (Unit 12) Dr. MeenuAgrawal, Principal, Ginni Devi Modi Girls’ PG College, Modinagar Ghaziabad, U.P.(Unit 13) PRINTPRODUCTION Mr. S. Burman Mr. Tilak Raj Mr. Yashpal Deputy Registrar (P) Assistant Registrar (P) Section Officer (P) MPDD, IGNOU, New Delhi MPDD, IGNOU, New Delhi MPDD, IGNOU, New Delhi
June, 2018 © Indira Gandhi National Open University, 2018 ISBN: 978-93-87960-17-6 Disclaimer: Any materials adapted from web-based resources in this module are being used for educational purposes only and not for commercial purposes. All rights reserved. No part of this work may be reproduced in any form, by mimeo- graph or any other means, without permission in writing from the Copyright holder. Further information on the Indira Gandhi National Open University courses may be obtained from the University’s office at Maidan Garhi, New Delhi-110 068 or the official website of IGNOU at www.ignou.ac.in. Printed and published on behalf of Indira Gandhi National Open University, New Delhi by Director, SOL, IGNOU. Laser Typeset by : Rajshree Computers, V-166A, Bhagwati Vihar, (Near Sec. 2, Dwarka), Uttam Nagar, New Delhi-110059 Printed at… BLOCK 4 CONSUMER ORGANISATIONS
Unit 11: Strategies (Campaign and Advocacy): The key topics/issues discussed under this unit include: Meaning of Campaign and Advocacy, Types of Advocacy. The Campaign and Advocacy Programme is discussed elaborately by covering steps and basic techniques involved in effective strategy, information and publicity, etc. In addition, follow up action in successful and failed campaign cases are also discussed under this unit. Unit 12: Managing an Organisation: The key topics/ issues discussed under this unit include: The concept and structure, dynamics of an organisation, need for a structurisation, nature, difficulties faced and characteristics of non- governmental organisation (NGOs), the reasons for the rise and role of management in NGOs, managerial process with an alternative view and the blunders to avoid, etc. Unit 13: International Consumer Organisations: The key topics/issues discussed under this unit include: Functions, structure and purpose of Consumers International, Consumer Rights and its expansion, coordination activities of Consumers International with other agencies, Consumers International’s activities and the Indian consumers, aims of Consumers Interpol, Consumers International – ROAP in India, etc. Note: The common features inbuilt in each of the units generally include: (i) ‘Check Your Progress Exercises’ at the end of discussion of key and important topics. (ii) A brief summary of the unit titled ‘Let Us Sum Up’, (iii) ‘Keywords’ used in the unit, (iv) ‘Answers to Check Your Progress Exercises’, (v) ‘Useful Books and References’ and (vi) Discussion of case laws wherever considered necessary and appropriate. Consumer Organisations
4 UNIT 11 STRATEGIES (CAMPAIGN AND ADVOCACY) Structure 11.1 Objectives 11.2 Introduction 11.2.1 Campaign and Advocacy: An Explanation 11.2.2 Types of Advocacy 11.3 Essentials /Pre-Requests of a Campaign and Advocacy Programme 11.3.1 Steps Involved in a Campaign and Advocacy Programme 11.3.2 The Second Major Step Involved in a Campaign and Advocacy Programme 11.3.3 Ensuring an Effective Campaign and Advocacy Programme 11.3.4 Question to be Asked and Answer to be Found 11.4 Strategies of Effective Campaign and Advocacy Programmes 11.4.1 The Three Basic Techniques Involved in Effective Strategy 11.4.2 Information and Publicity 11.4.3 Soliciting Support 11.4.4 Other Methods 11.4.5 Influencing the Powerful 11.5 Follow Up Action 11.5.1 Follow up to Successful Campaign 11.5.2 Follow up Action in Case of Failure 11.6 Let Us Sum Up 11.7 Key Words 11.8 Some Useful Book and References 11.9 Answers to Check Your Progress Exercises
11.1 OBJECTIVES After studying this unit, the learner shall be able to: l identify the essentials of a campaign and advocacy programmes of consumer organisation; l understand the strategies to be followed and the procedures to be adopted for launching campaign and Advocacy programmes for creating awareness among the consumers and influencing them; l know the methods of influencing the media, public men and the policy makers on consumer issues to ensure their effective intervention for consumer protection; and l examine how the policy makers can bring legislative changes towards ensuring the effective implementation of existing laws, procedures and systems. 5 Consumer Organisations 11.2 INTRODUCTION The following sections define and explain the concepts of Campaign andAdvocacy programmes of consumer organisations. They also lay emphasis on the types of advocacy that exists at present. According to the Concise Oxford Dictionary Campaign means “an organised course of action for a particular purpose, especially to arouse public interest”. Advocacy means “to seek support through arguments and other means for a cause, policy etc.” We can also dwell upon what Dr. S Pandit, executive Director of National Center for Advocacy Studies (NACS), Pune has to say on the subject. Advocacy is an act of giving support to a cause. Lawyer advocates his clients’ interest in the court. By persuasion he tries to convince the judge about the clients’ point of view. This helps in resolving the conflict between his client and his opponent. This technique of solving, a conflict or a problem has come to be known as advocacy. (Nirmala S. Pandit, Advocacy: A Tool for Social change, Consumer Network, Vol. 2. No. 4, December, 1995, New Delhi). 11.2.1 Campaign and Advocacy: An Explanation Various consumer related issues require immediate attention. These issues can be conveniently identified by campaign and Advocacy programmes launched by consumer organisations which can take the shape of a Consumer Movement. A Campaign is an organised mode of action for influencing and gathering widespread support of the public and the government to protect the interest of consumers. Consumer groups for whom the issues in question are considered important effectively persuade the policy makers and the authorities concerned to bring about and implement necessary changes through such a Programme (advocacy). Thus campaign and Advocacy are a means to, involve mobilise men, resources and information and identify opponents (individuals or groups who are known to be not in favour of the proposals) and the fence sitters (neutrals who have not yet made up their mind either in support or against the proposal) and draw up a time bound plan of action best suited to obtain the desired objectives of influencing the policy makers and the authorities concerned to bring about the required change. 11.2.2 Types of Advocacy In broader sense the advocacy is of two types namely; i) Private Advocacy and ii) Public Advocacy. When the beneficiary is an individual, the efforts made through advocacy can be termed as private advocacy. In this type of advocacy, a person (may be anyone) ties to solve his problem in a non-violent way by negotiations, persuasions and perseverance to convince the opposite party. When the aim of advocacy is to benefit wider public it can be termed as Public Advocacy. In public advocacy the efforts are generally, made by organising a movement to convince the concerned persons, authorities, organisations etc. for finding a solution to the problem in the interest of the general public (or in the 6 interest of an individual). In courts all public interest litigations are filed to safeguard the interest of the general public. An advocate or a group of advocates take up Strategies (Campaign and the matter before the judge in such cases. This is known as public advocacy. Advocacy) However it may be added that in reality, it may be extremely difficult to clearly draw a dividing line between public and private advocacy. In fact, on a number of occasions, public advocacy efforts have stemmed from advocacy initiatives. Check Your Progress 1 1) Explain in your own words what you understand by campaign and advocacy? ......
11.3 ESSENTIALS/PRE-REQUESTS OF A CAMPAIGN AND ADVOCACY PROGRAMME
11.3.1 Steps Involved in a Campaign and Advocacy Programme
There are a number of steps involved in campaign and advocacy Programme. Before launching a campaign and advocacy Programme it is essential to identify and understand the topics or issues including related sub-topics or sub-issues of consumer concern. This can be ascertained or determined through the following steps:
Interaction with:
Individual consumers and or various consumer groups regarding uses of various products and services.
Results of Surveys:
The surveys conducted by individuals or various organisations or related published reports which have highlighted the problem, then such issues can be considered.
Verdict of Media:
The controversies highlighted by the media relating to various problems or issues,or regards the existing policies which lacks in some respect or implementation of existing policies, rules or procedures which are defective should also be actively considered.
If the steps given above, are considered before a campaign or advocacy programme is launched to safeguard the interest the consumers then success of the concerned programme can be ensured. The pre-requisites of a campaign or advocacy programme should not be ignored in anyway. 7 Consumer Organisations 11.3.2 The Second Major Step Involved in a Campaign and Advocacy Programme The second major step in this respect is to analyse the topic/issues concerned so that it is clear as to what action is required to be taken the action required is clear. Any confusion about the action to be taken may harm the purpose of the Programme. Thus analyses of the issues is of vital importance. It should be determined as to what action is required to be taken in the matter. It could be either of the ones mentioned below;
l Continuation of the existing policy Change in existing policy or
l Change in existing legislation or continuation of the existing legislation as opposed to any proposed change in it.
l Enacting of new legislation
l Change in existing rules, regulation or producers or continuation of the existing situation, as opposed to any proposed changes.
l Merely ensuring an effective implementation of the existing laws, rules, regulations, procedures or system. 11.3.3 Ensuring an Effective Campaign and Advocacy Programme Eminent lawyer and social activist Rani Jeth Malani says that for an effective campaign and advocacy programme selection of the appropriate issues is the first important step. Moreover, regarding the core issues of the campaign, it is important that the scope of other campaign and its likely impact (spread) should be clearly ascertained at the outset. Ms. Jethmalani also cautions about the hurdles likely to be put forward by various vested groups. This entails the need for appropriate framework by consumer campaigners and advocates. The type of appropriate framework that Mr. Jethmalani talks of includes; i) Collection of all relevant information ii) Clear formulation of the issues concerned iii) Building the required public opinion and educating the people Overall, the success of the campaign and advocacy involves good homework, appropriate strategy and sincerity of purpose. (Rani Jethmalani, formula for success: Campaign ‘Consumer Network’, Vol.1, No, 2, September, 1994) 11.3.4 Question to be Asked and Answer to be Found Before planning and launching a campaign and advocacy programme on identified topic/topics and issue/issues, some essential questions are to the asked and their answers are required to be found some of the questions are;
l What changes are required to be brought about and why?
l What specifically needs to be changed?
l Are there any short term and long term solutions? If so which one is to be 8 followed or should the campaign include both? l Is there a clear picture of the time frame and the urgency for tacking the Strategies (Campaign and issue? Advocacy) l Who all can be taken along as allies? Who else is interested in the issues? Are they any specific target groups to be addressed and persuaded to join the campaign? l Who are the stake holders for and against the issues? Are they clearly identified? l Who has the power to solve the issues or to bring about the required change? l At what level does the campaign require action for being effective? Is it a local level issue, a state level issue or a national level issue? l What is the best strategy suited to the issue keeping in view to the level at which action is required to be taken? l What tactics should be adopted? What are the concrete activities that should be planned? l Are the target groups to be involved and confronted in such activities? Are the sequence and timings for the various activities planned clear and well defined and understood by all concerned? Check Your Progress 2 1) Briefly consider the steps to be taken into account before a campaign and advocacy programme can be launched......
2) What are the steps required for an effective campaign and advocacy as put forth by Rani Jethmalani? ......
11.4 STRATEGIES OF EFFECTIVE CAMPAIGN AND ADVOCACY PROGRAMMES 11.4.1 The Three Basic Techniques Involved in Effective Strategy In evolving an effective strategy, the following three techniques are involved: l Information and publicity 9 Consumer Organisations l Soliciting support
l Techniques to influence those who have the power to bring about the requisite changes, etc. and thereby making the campaign successful. The above three techniques are complementary to each other. They do not supplement one another. 11.4.2 Information and Publicity For spreading awareness about the campaign the following may be involved: Using the Mass Media: It includes press releases, letters to editors interviews on TV and using other audio/visual aids. Organising Public Meetings These meetings may be addressed by popular and eminent public personalities, properties, celebrities and other popular figures who are sympathetic to the cause or issues; Organising Mobile Groups These groups can travel to schools, colleges and universities to publicise the issues. They should be selected on the basis of their appropriates for the purpose. Preparation and distribution of posters, stickers, banners and hoardings is equally important. Associating experts Experts, professionals and relevant scientists be involved in discussions debates on selected issues or topics, Involving Officers and Authorities Concerned officers and authorities, wherever possible should be involved in seminars, workshops symposium etc. Preparing comprehensive briefing notes It is important that such notes are prepared for members of Parliament and State Legislatures, Parliamentary/ Legislative Committees, etc. for effective lobbying through Parliamentary and Legislative processes such as Parliament Questions, Standing Committee discussions etc. Proposing Suits For wider publicity Law Suites and Public Interest Litigations can be taken up. Involvement of National and International Organisations Wherever possibly international organisations such as WHO and other UN Bodies should be taken. Apart from there central and state government ministries and departments support for the campaign should be taken. Efforts should also be made to identify other public sector and private organisations for support to the campaign. 10 11.4.3 Soliciting Support Strategies (Campaign and Advocacy) Soliciting support is an important strategy for the success of a campaign. In launching a campaign, support should be obtained from every possible sources. Such support can be solicited from the following: The general public; Main groups in the society; Issue related groups etc. This can be achieved by identifying all possible factors likely to be concerned with the issues involved in the campaign, both directly and indirectly including and/or groups l Who are known to support? l Who are known to be opposed? l Who are fence sitters and have not made up their mind. l preparing briefly, papers best suited for each group in the form of easily readable pamphlets, etc. containing all information about the issues associated with the Campaign, covering factual, legal as well as technical and political aspects if any. l Proper timing in approaching the media or the judiciary or in using other tools of advocacy and campaign. l Networking with all like minded individuals and groups as also responsive journalists and community leaders and other activists and involving them effectively in the campaign by making full use of their respective strength. 11.4.4 Other Methods The following other methods can also be adopted; l Signature campaign l Telephone campaign l Letter writing campaign l Letters relating to issues involved can be sent to the newspapers, magazines, Government Officers, MPs, etc. l Organising public meetings l Organised demonstrations and processions peacefully l Use of appropriate banners, hoardings, stickers at public places l Boycotts and other measures of expression of solidarity. 11.4.5 Influencing the Powerful This involves identifying those who are in a position to change the situation and address the problems or issue under consideration by taking a take decision on various issues involved in the campaign/ advocacy programme. 11 Consumer Organisations These powerful people may be:
l Professional groups
l Business communities
l Various decision making authorities at different levels in the concerned organisation
l Members of Parliament, MLAs or other elected representatives. Some methods that can be used in influencing them are:
l Making available to them brief memoranda, policy papers, etc. dealing with the crux of the issues relating to the campaign/ advocacy programme
l Starting Law suits and/or Public Interest Litigation
l Submitting draft legislations, amendments to the existing legislations, etc. conducting workshops/seminars/symposium for brain storming the issues and finding a strategy to solve the issues. Check Your Progress 3 1) What are the three basic techniques involved in an effective campaign and advocacy programme? ...... 2) Briefly examine information and publicity as a technique for effective campaign and advocacy programmes...... 3) What methods can be adopted for the success of the campaign? ......
11.5 FOLLOW UP ACTION No campaign and advocacy Programme can be said to be successful, and completed its task successfully unless appropriate follow up action is taken. 11.5.1 Follow up to Successful Campaign If the campaign has succeeded and the authorities concerned have decided to take appropriate action to resolve the issues involved in the campaign, then it is important for all concerned including the key players in the campaign to ensure: 12 l That appropriate executive instructions are issued by the authorities concerned Strategies (Campaign and to ensure implementation of the favourable decision, or change of rules, Advocacy) regulations and procedure or passing of new/amendment in legislation, etc. l That the steps taken are adequate to cover all aspects of topics/issues involved in the campaign including sub-topics/sub-issues if any. l That the changes are implemented in the letter and spirit and have actually percolated down to the level from where the difficulties had arisen and was the starting point and purpose of the campaign. l That adequate publicity is given not only to the actual changes brought about by the campaign, but also to the services of the persons/groups involved in the campaign. 11.5.2 Follow up Action in Case of Failure If the specific campaign and advocacy programme started by any group peters out without any effective redressal of the issues involved in the campaign, then it is necessary: l to gear up resources once again by the same or another groups to take up the matter, if the issues involved are still live and important enough. l to undertake a SWOT analysis (i.e. of strengths, weaknesses, opportunities and threats) to find out the causes for the failure of the programme and start the campaign and advocacy programme with renewed vigour, all over again. Check Your Progress 4 1) Examine the follow up action to be taken in case of an effective campaign and advocacy programme...... 2) What is the follow up action to be taken in case a campaign and advocacy programme fails? ......
11.6 LET US SUM UP In this unit, you have learn about Campaign and Advocacy – two vital aspects of consumer protection in our contrary as elsewhere. You must have noticed that both are closely inter-related. You must now be having some idea about the considerations that go into making an effective campaign. Moreover after going through this unit, you will be in a position to dwell upon what goes to make an effective advocacy. You will also be able to discuss the role that both consumers and producers can play towards substantive campaign and advocacy.After reading this unit, you may well be in a position to work out your own action plan to enhance consumer awareness and protection. 13 Consumer Organisations 11.7 KEY WORDS Rectification : Setting a wrong right; corrective action. System : A set of inter-connected elements making a coherent whole. Allies : Friends, supporters. Target Groups : Specific, particular collectivities of persons vis-à-vis for whom specific policies/programmes are formulated. Stake Holders : Persons having vital interest in particular policies, programmes, projects, etc. Public Interest : Engagement in due process of law (starting from Litigation (PIL) filing of an affidavit) by any citizen on any matter of public concern and interest. Percolate : To flow/move from the top to the bottom. Peter Out : No outcome; came to nothing.
11.8 SOME USEFUL BOOKS AND REFERENCES 1) Suresh Misra and Sapna Chadah, “Emerging Perspectives in Consumer Welfare: Twenty five years of the Consumer Protection Act”, CCS, IIPA, New Delhi, 2012. 2) P.V.V.Satyanarayana Murthy, “Consumer Justice: A Manual for Consumer Forum Members”, IIPA, New Delhi, 2006. 3) Suresh Misra and Sapna Chadah, Consumer Protection in India :Issues & Concerns, CCS, IIPA, New Delhi, 2012. 4) Suresh Misra, Sapna Chadah and Mamta Pathania, “Consumer Protection in India: Policies and Case Studies”, Concept Publishing Company Pvt. Ltd., New Delhi, 2012. 5) Rajyalakshmi Rao, “Consumer Is King!!”, Universal Law Publishing Co., New Delhi, 2012
11.9 ANSWERS TO CHECK YOUR PROGRESS EXERCISES Check Your Progresses 1 1) In relation to consumer movement, campaign and advocacy together imply identification of various consumer issues that require immediate attention. A campaign is an organised course of action for influencing and obtaining support of the public and the government to protect the interests of the consumers. Advocacy is a means to seek support through arguments. Advocacy is an art of giving support to a cause. 2) There are two types of Advocacy 14 Private Advocacy Strategies (Campaign and Advocacy) In this advocacy, the beneficiary is an individual who tries to solve the problems through peaceful means such as negotiation etc. Public Advocacy In this advocacy the beneficiary is wider public. In it, an appeal may be made in the court to safeguard the interests of the general public. Check Your Progresses 2 1) Before a campaign and advocacy programme is launched, the following steps should be taken: i) First to identify the topic/topics; issue/issues of consumer concern. ii) Secondly, to analyse the issue/topic concerned so the specific changes/ actions required are clear. 2) For an effective Campaign and Advocacy, the success formula put forward by Rani Jethmalani is to do good homework, adopt appropriate strategy and to keep in mind the sincerity of the purpose. Check Your Progresses 3 1) The three basic techniques involved in an effective Campaign and Advocacy are : i) Interpretation and Publicity ii) Soliciting and support iii) Influencing those who have the power to bring the requisite changes 2) Information and publicity as a technique for effective Campaign andAdvocacy programme involves spreading awareness about the Campaign and the issues involved by:
l Using mass media, organising public meetings, organising mobile groups to travel widely,involving schools, colleges and institutions, preparations and circulation of poster, handbills and putting hoardings: Involving official, experts and authorities concerned in seminars/ workshops etc. preparation of brief and material for MPs, MLAs etc. proposing law units and Public Interest Litigation with wide publicity etc. Check Your Progresses 4 1) The follow up action to be taken in case of an effective Campaign and Advocacy programme, requires;
l That appropriate executive instructions are issued by the authorities concerned to ensure implementation of the favourable decision
l That the steps taken are adequate to cover all aspects of the topics/ issues
l That the changes are taken in right earnest
15 Consumer Organisations l That adequate publicity is given to both the Campaign and the seminar persons/groups that are involved in the campaign 2) In case a Campaign and Advocacy programme fails, the following follow up action is required:
l To gear up resources once again if the issues involved are still prevalent.
l To undertake SWOT analysis i.e. of strength, weakness, opportunities, threats to find out the causes of failure of the programme and to start the programme with renewed vigor.
16 UNIT 12 MANAGING AN ORGANISATION Structure 12.1 Objectives 12.2 Introduction 12.3 The Concept and Structure of an Organisation 12.4 The Dynamics of an Organisation 12.5 Need for a Structurisation 12.6 Nature of Non-Governmental Organisation (NGOs) 12.6.1 Difficulties Faced by NGOs 12.6.2 Characteristics Typical of NGOs 12.7 Reasons for the Absence of Management in NGOs 12.8 The Rise and Role of Management in NGOs 12.9 Managerial Process 12.9.1 Managerial Process and the Required Checklist 12.10 Managerial Process: An Alternative View 12.10.1 Three Roles 12.11 The Blunders to Avoid 12.12 Let Us Sum Up 12.13 Key Words 12.14 Case Study 12.15 Activities 12.16 Project Question 12.17 Some Useful Books and References 12.18 Answers to Check Your Progress Exercises
12.1 OBJECTIVES After studying this unit, the learner shall be able to: l understand the concept and structure of an organisation; l list the features of Non-governmental Organisations (NGOs); l understand the reasons for lack of managerial sense in NGOs; l examine the process of managing an organisation and the key managerial functions; and l prepare checklists for time – served executives of NGOs to diagnose quickly as to how they are managing their organisations 17 Consumer Organisations 12.2 INTRODUCTION The human society is moving fast towards the end of the twentieth century. In this era, a number of Non-governmental Organisations (NGOs) have come up in various fields to serve the cause of consumers and safeguard their interests. It has been explained in previous units why development of NGOs has occupied an important place in our society and why a number of qualified, competent and committed people intend to serve the social cause of human beings, irrespective of boundaries. However, there is a common problem plagues in most NGOs. The issue of absence of managerial sense in NGOs is responsible for their poor show. This has not only harmed the organisations but also the society for which they are formed. The issue requires immediate attention so that the NGOs may better serve the society. Society should take up the responsibility of providing them people who are capable and have gained managerial knowledge through qualifying courses and training provided by various eminent universities and institutions in India and abroad.
12.3 THE CONCEPTAND STRUCTURE OFAN ORGANISATION Organisation theory is a specialised area of management. Various writers, who have contributed to this area, have defined the term organisation in different ways. However, the following list of eight features appears in all definitions. According to this list, an organisation:
l Is a specialised area of management;
l Is a group of people;
l Has an orientation towards a specific objective, aim or goal;
l Is a common feature of the contemporary society;
l Has a relative permanence;
l Performs such activities and responsibilities that are demanded;
l Has rational coordination with other organisations or groups;
l Responds to a hierarchy of authority; and
l Is an outcome of an interaction with the environment. In society, organisations are formed because people like to remain in groups to safeguard their interests. Examples of this may be formation or establishment of clubs, temples, churches, masjids, colleges etc. All organisations have a goal or goals. They are not crowds or collections of people and are more permanent compared to crowds. Organisations are specialised institutions with deliberately structured arrangements where a person is made in-charge. Examples of such bodies are Philips, Bata, Hindustan Lever Ltd., ITC Ltd, Alcon Laboratories, Cipla, Tata Motors Ltd. and Escorts Ltd., Exide Industries among others. These are profit-motive organisations that have established their retail stores in India and abroad. They 18 are managed locally but are run as per the directions of their corporate offices. An important feature of an organisation is its interaction with the environment, Managing an Organisation which means organisations engage in some exchange with their environment. They take from their environment and put back something back into it. Check Your Progress 1 Fill in the missing word(s) 1) Management is the ………………… and ……………………………. of resources in order to move effectively toward desired objectives. 2) All organisations have some …………………… that includes their reasons for existence. 3) To be effective, organisations must establish… ………... 4) ……………………… …………………. refers to how well an organisation reaches its objectives over a continued period of time. 5) …………… …………………………. is a short-term measure of how well an organisation uses its resources.
12.4 THE DYNAMICS OF AN ORGANISATION Organisations are not static but dynamic in nature and content. They evolve or develop over a period of time, in accordance with the development in society. One reason for their dynamism is that they are more or less open to the environment in which they exist. Another reason is that they exist, like all of us, as an organic system. Their behaviour, shape, structure or nature changes with course of time. However, in a society, organisations develop as per the mindset or the decision of the manager who runs them but seeks the directions of his management in all important matters. The capacity to remain mobile is sometimes referred to as the ‘Morphogenetic Property of Organisations’. Organisation may be divided into two types: centralised and decentralised. Small organisations, which are managed by one or two people who have the power to decide various issues, centralised organisations. On the other hand, when the scale of activities of an organisation increases, a larger workforce is required with specialised skills. Personnel are needed for the effective and efficient management of the organisation and powers are delegated to those who have the required skill. These are called decentralised organisations. Irrespective of the form of an organisation, the workforce must include both staff and line personnel. Line managers decide the issues whereas the staff assists the managers. In conclusion, an organisation is a relatively enduring grouping of people, who are devoted and committed in a structured and evolving system and who make coordinated efforts to achieve the objectives or goals in a dynamic environment surrounding the orgnisation.
12.5 NEED FOR A STRUCTURISATION Just as a skeleton in a human body aids in its normal functioning, the structures in organisations provide a framework. Every organisation is different but they need a framework. Structurisation smoothens functioning and provides the following benefits: 19 Consumer Organisations l It ensures all important activities for the survival of the organisation and assigns them to the right persons. It defines and clarifies the lines and routes of authority and responsibilities for all in the organisation.
l It facilitates communication within the group and with outsiders. As activities increase, each and every person need not communicate everything to every person. Structurisation in the organisation removes any uncertainty about who will tell whom, when and how much.
l It balances the activities so that nothing important is left to chance. Very few things can happen on their own in an organisation. Most things require someone to guide and coordinate. Smooth functioning is possible only in an organisational framework.
l It allocates work, activities, responsibilities and authority; and optimises usage of the executive time and managerial effectiveness.
l Finally, it identifies opportunities for growth and advancement of the organisation. Check Your Progress 2 Circle the letter of the word or phrase which best completes the statement. 1) An organisation, which reaches objectives over continued period of time, is said to be: a) tenacious b) a good organisation c) socially responsible d) effective e) efficient 2) If an organisation utilises its resources well in its efforts towards short- term targets, it is said to be: a) short sighted b) myopic c) efficient d) effective e) an unstable organisation 3) Employees of an organisation, who are usually only responsible for their own behaviour, are called: a) line managers b) staff mangers c) non-managers d) deadwood 20 e) fat cats 4) Fill in the blanks: Managing an Organisation i) Small organisations are manageable by …………………. and therefore, they are called ………………………… ii) Big organisations for effective and efficient management need ...... ………………. iii) Structurisation identifies opportunities for ……………………… iv) Structurisation facilitates…………………………….. and removes any…………………………………………
12.6 NATURE OF NON-GOVERNMENTAL ORGANISATIONS (NGOs) Non-Governmental Organisations (NGOs) differ from other organisations, most of their characteristics are the same as of any other organisation. However some different characteristics of NGOs complicate their management practice and raise specific issues. Thus, they face several difficulties in their working. 12.6.1 Difficulties Faced by NGOs As NGOs are also service marketers, they face most of difficulties that are faced by other service marketers. The NGOs are set up to offer services to the public. Unlike physical goods, these causes are intangible, difficult to evaluate, and often involve customers in their production process. These ‘goods’ cannot be inventoried and thus, the demand may be critically out of balance at several points of time. It could adversely impact their waiting time and capacity. Maintaining consistent high service standards is a major challenge in the context. That managing an NGO is a complex task will be evident from their characteristics. 12.6.2 Characteristics Typical of NGOs The following are the typical characteristics: l They do not have the goal of profit maximisation; l In their working, non-financial objectives dominate; l They have multiplicity of goals, which gives rise to complexity; l NGOs mostly have no undistributed profits to cover the risk in adverse circumstances. Thus, they can take a very limited risk and have no ability to adapt to changing circumstances. l While business organisations focus on only one segment of society as their customers, who pay for their product, the NGOs often market simultaneously to two distinct groups: onethat provides funds and another that uses their products. l As compared to most business organisations, NGOs face a more complicated competitive situation. They must cooperate with competitors (similar NGOS) for consumer protection. l It is true that NGOs cannot function the same way as business organisations. 21 Consumer Organisations 12.7 REASONS FOR THE ABSENCE OF MANAGEMENT IN NGOs A question arises as to why management and NGOs are not together. A study of NGOs in India in the year 1995 tried to answer this question. It collected field data about the presence of ‘management infrastructure’ (a reference to availability of personnel, structure, skills, and strategy, etc.) The woeful lack of management in NGOs is described below:
l About ten years ago, NGOs were either unheard of or were viewed suspiciously. They were highly individualistic in aims and operations. Their activities were too limited to make any impact on the general public and therefore, the public was indifferent about the NGOs. This naturally dissuaded management talent from NGOs.
l NGOs ran on the strength of fervour of one person or a group of like- minded persons. These people hardly appreciated the role of professionals as managers.
l Funds of NGOs were either self-generated or were disbursed by the government. In any case, they always complained about inadequacy or shortage. Lack of funds hampered their activities. Naturally, few people found the sector to be attractive for a full-time occupation.
l NGOs attracted retired persons, socially conscious entrepreneurs or ex- bureaucrats. Since they neither had any training in management skills nor were active managerially, there was no introduction of management in their organisations.
l As a natural corollary of government funding, bureaucratic and political patronage were accorded higher priority in NGOs. Many NGOs became more or less an ‘elite instrument of social service’. Management competence and skills were neither considered necessary nor were they sought by most NGOs. Check Your Progress 3 1) List the typical characteristics of NGOs...... 2) What are the chief reasons for the lack of management ethos in NGOs? ...... 22 12.8 THE RISEAND ROLE OFMANAGEMENT Managing an Organisation IN NGOs NGOs now are recognised the importance of management in their working. More and more NGOs, enthusiastically, are embracing management philosophy because it provides them with tangible benefits. For instance: l Well managed NGOs like Narmada Bachao Andolan or SEWA have not only changed public opinion but they have also been able to survive difficult times and fund shortages. l A greater number of management graduates are attracted towards NGOS. They are now recruited in NGOs with a comparatively better salary and other benefits. NGOs have understood the value of such graduates also as their role in managing them is of importance. l The government has not been able to provide welfare and other benefits to the public in a cost-effective manner. Therefore, the government and other responsible agencies have encouraged better-managed NGOs. Now, people donate to NGOs and look at their methods of passing the benefits to the public. Thus, proper management in NGOs is the need of the hour. l The failure of the government to deliver welfare and benefits to the public in a cost-effective manner has encouraged them to better manage NGOs. Donors no longer get impressed by the cause, intensity and fervour of the NGOs. They now also look for the method of delivering the benefits. l Recognising the changing needs of people, in general, in the era of ‘less government’, only well managed NGOs can offer more flexible programmes to or array of people. A managerial perspective helps in locating opportunities more creatively. l Finally, an innovative, customer-driven approach has rejuvenated a number of NGOs in India. The examples are that of the Rajiv Gandhi Foundation (RGF), Consumer Guidance Society CUTS of Calcutta and the CERC of Ahmedabad. While failures of a number of art organisations, hospitals, schools and universities, and other large and small non-profits indicate that high performance is not universal, the trend is more towards success. This has been possible only due to top managerial ability in these NGOs.
12.9 MANAGERIAL PROCESS Management in organisation is achieved through the combination of activities such as planning, organising, communicating, and coordinating, which, when competently carried out, contribute to organisational effectiveness. Given below is the description of each of these processes and a checklist of where they are appropriate: 12.9.1 Managerial Process and the Required Checklist Planning: Planning includes thinking about the fundamental nature of the organisation. It helps decide how it should be projected to the public, how it should develop and deploy its strengths, and how it should cope with threats and opportunities in the environment. 23 Consumer Organisations Organising: The term organising refers to dividing the organisation into units, typically called divisions or departments, sub-units, sections etc. Each unit has responsibilities, a hierarchy or reporting relationships and a structure. It also refers to coordinating these units and sub-units to fulfill overall organisational objectives. Leading: Leading refers to the broad range of activities by which managers establish the character and tone of their organisation. These activities include articulating and exemplifying the distinctive value and styles of the organisation. Controlling: Controlling is the process of monitoring progress against objectives and standards derived from planning. Controlling closes the management processes by relating actual progress to that envisioned during planning. The reporting, comparing and assessing of progress provide a basis for intervening, adjusting, re-planning and taking other corrective actions. Check Your Progress 4 1) Briefly list the reasons motivating NGOs to increasingly embrace management philosophy...... 2) What are the elements of managerial process? ......
12.10 MANAGERIAL PROCESSES: AN ALTERNATIVE VIEW NGOs can also think of an alternative view of management, which defines as a set of processes. This view of management is sometimes called the ‘Managerial Work Activity Approach’. It focuses on what managers do, who they talk with for how long and what they talk about, how much time they spend alone, and so on. 12.10.1 Three Roles Three roles define the alternative view of management. These roles are: The Interpersonal Role: Under this head, managers function as figureheads, leaders and liaison persons in the course of carrying out their prescribed duties. The Informational Role: Under this, managers function as a nerve centre in which they obtain information about the environment and their own organisation by monitoring them. Once possessed of information, managers pass it on to others. The three informational roles are that of the monitor, of disseminator, and spokesperson. Decisional Role: Under this role, there are four decisional roles of an 24 entrepreneur. They are: l disturbance handler Managing an Organisation l resource allocator l negotiator and l coordinator While Table 12.1 focuses on communication, Table 12.2 addresses the issues of coordinator: Table 12.1: Checklist for Communication in an Organisation 1) Communication is more than just expressing what one feels. To be effective, a communication must convey the correct message and evoke the right response. 2) Communication may be spoken or written. It may also be non-verbal such as smile, a nod or a shrug of the shoulder. Each medium of communication should be selected according to the objective. 3) There should be a follow-up of communication to know whether or not the receiver has understood the message correctly and acted accordingly. The greatest enemy of communication is the illusion of it. 4) The organisational climate should be characterised by openness and trust. 5) Informal communication called ‘grapevine’, being a powerful channel, should be better used for dissemination of important information rather than fought against.
Table 12.2: Coordination in Managing an Organisation: A Checklist 1) There are four types of social behaviour common among groups working in organisations: altruism, cooperation, competition and conflict. 2) Altruism means helping others. People are generally in a dilemma as to how they should respond to a request for help. 3) Cooperation between individuals is very important in an organisational. It improves the quality of decisions and produces a synergic effect. Important factors that encourage cooperation are: a climate of mutual trust, free and open communication, presence of a model of cooperative behaviour and probability of higher payoff. 4) Competition plays a very important role in the development of an individual. It makes him aware of his strength and weaknesses. It builds in him a sense of taking responsibility for success or failure and generates in him achievement motivation. 5) There also ought to be enough conflict in the organisation to prevent stagnation but not so much as to disrupt activities. This means that a manager should stimulate conflict when it is very low and reduce it when it is very high. Management in an organisation leads to a sense of organisational effectiveness. It refers to an organisation’s ability to work effectively to achieve its goals by adapting itself to the changes in its internal and external environment. During 25 Consumer Organisations different stages of an organisation’s life, different criteria should be used. This means an organisation is an art as well as systematised thinking.
Table 12.3 mentions the step by step process of managing an organisation.
Table 12.3: Step by Step Approach to Managing an Organisation
1) Define the mission and core values of the organisation.
2) Identify a focus in their operations and activities.
3) Determine targets of performance in quantitative and non-quantitative terms.
4) Define the activities necessary to achieve the objectives.
5) Define the extent and resources required in each activity.
6) Combine as many activities as possible in an assignment.
7) Create a position to handle these activities most effectively.
8) Identify the right man for managing these positions.
9) Give a clear mandate and power for these incumbents.
10) Create a relationship network among various positions for reporting and communication.
11) Identify points and persons where coordination and control takes place periodically.
12) Keep things flexible and exciting for further growth and satisfaction.
12.11 THE BLUNDERS TO AVOID
Inspite of the best intentions and sincere activities of managers, organisations fail. Often organisations fail on account of some drawbacks on the part of the managers. This mostly found true in case of NGOs because of their peculiar characteristics. This requires certain cautions.
Table 12.4 lists certain cautions that are required to be observed by a manager in case of NGOs.
Table 12.4: The Management “Miss” List for the NGOs
1) Don’t forget the mission, particularly in the face of allurement of soft options presenting themselves.
2) Don’t live in the past, even though you have been fairly successful. Success also demands a change in strategy.
3) Don’t become too committed to the principal of satisfying your customers and other benefactors. Sometimes, they need to be educated as well for the greater good. 26 4) Don’t promise too much or too easily to others. The failure to manage Managing an Organisation expectations of others could be costly in managing the future.
5) Don’t forget to tangibilise what you have achieved and plan to achieve in multiple forms. Others see it better this way.
6) Don’t shy away from cooperation, collaboration and coordination with similar organisations or helpful persons and institutions. Individual pride is never a good thing to come between conserving resources.
12.12 LET US SUM UP
The unit begins with defining the need, concept and structure of an organisation. An organisation has been viewed as a collection of people with a defined objective that opens itself to the environment. It contrasts with the unique characteristics of NGOs as organising and managing an NGO is vastly different from managing an organisation. However, the aspects of planning, communication, control and coordination are similar. It develops a series of checklists in respect of each of these aspects of managing NGOs.
12.13 KEY WORDS Organisation : A basic framework of formal relationships among tasks, activities and people for a specific purpose. Management : The identification, deployment, integration and coordination of resources to achieve the desired goals. NGO : A type of organisation which espouses defined social/ community causes without profit motive and compliments the work of governmental agencies in a society. Control : The process of checking and verifying that the plans are being implemented in the manner decided. Coordination : The process of linking several activities in order to achieve a way that understanding is created. Communication : The exchange of information between two or more people in such a way that understanding is created. Span of Control : The number of employees who report to an individual at the next higher level in an organisation. Decentralisation : The delegation of power for making decisions at as many operative levels as possible.
12.14 CASE STUDY In a major industrial town of India, six founding members of XLNC (Excellent Nature Club) have been meeting for once a week two years in a park to discuss the various aspects of environment, greenery and pollution. Through informal means, the members decide the issues to discuss in the meeting, including where and when to meet. Of late, a couple of members felt that they ‘ought to get 27 Consumer Organisations organised’. They argued that the new organisation will help handle the desire of several others who wished to join the XLNC; that it will give them some real power and that in general, they will be more effective and efficient. A couple of other members objected to the suggestion and observed that they will quit if that occurs. Since the rest were non-committal, a notice recently arrived to all members that there would be an ‘organisational meeting’ of XLNC on 3rd of February, 2017 and in that, a constitution would be drafted. It would also affect office-bearers of the XLNC. Critically analyse if: 1) There was an organisation before this development. 2) The change is affected, how it will affect the management of this organisation: and 3) There is a justification in the protest of the other members. 12.15 ACTIVITIES 1) Reflect on the above description and write the two key words that in your opinion distinguish a family from a municipal corporation. Answer: a) While the family is …………………………………………... the municipal corporation is……………………………. 2) List two key words that immediately enter your mind if the organisational structures disappear from our life. Answer: The world will become: a) …………………………………………………………….. b) …………………………………………. 3) List the two most important structural differences between a society that is running schools and a firm that is publishing books for schools. Answer: The society running the schools is different as it: a)………………………………………………………………….. b)………………………………………………………………….. 4) List two more reasons why management practices have largely escaped NGOs: Answer: Reason A …………………………………………………………. Reason B …………………………………………………………. 5) Visit an NGO in your territory and rate your impressions of the management infrastructure given below: a) No. of managers adequate …………………………………. Inadequate ………………………. b) Basic exposure to management Good ………………………. 28 Average………………. Poor ……………………………….. c) Quality of the management tasks Good…………………Average Managing an Organisation …………………………… Poor …………………………. 6) Add two more steps in the list that has been given in table 3: a) ……………………………………………………………… b) …………………………………………………… 7) Review the above list of “Management Miss” and add at least two more management misses in the NGOs: a) ……………………………………………………………… b) ……………………………………………………………… 12.16 PROJECT QUESTION Visit a Non-Governmental Organisation in your locality (if you are unable to find one on your own, meet the district administration officials for help) and study the management organisation. Write your impressions on: 1) The nature and activities of the NGO 2) The profit of the chief executive of the NGO 3) Organisation structure of the NGO 4) Control and communication mechanisms 5) Methods of coordination among the activities Also write three recommendations for improving management process in the NGO. 12.17 SOME USEFUL BOOKS AND REFERENCES 1) Byrne, J.A, ‘Profiting from the Non-profits: Much can be Learnt from some of the Best-run Organisations Around’, Business Week, March, 1990. 2) Drucker, Peter, ‘Management Tasks, Responsibilities and Practices’, Harper and Row. 3) Drucker Peter, ‘What, Business can Learn from Non-profits’, Harvard Business Review, July-August, 1989. 4) Gaedeke, R.M, ‘Marketing in Private and Public Organisations’, Goodyear. 5) Gallagher, K and C.B. Weinberg, ‘Coping with Success: New Challenges for Non-profit Marketing’, Sloan Management Review, Fall 1991. 6) Heyel, Carl, ‘Management for Modern Supervisors’, American Management Association. 7) Hicks, H.G., ‘The Management of Organisations’, McGraw Hills, New York 8) Lovelock C.H. and C.B Weinberg, ‘Public and Non-profit Marketing’, John Wiley and Sons. 9) Kotler, Philip, ‘Marketingand Non-profitOrganisations’ Prentice Hall. 10) Kotler, Philip and E.L.Roberto, ‘Social Marketing’, Free Press.
11) Tripathi, P.C., ‘Successful Organisation Management’, Professional 29 Managers Library, Global Business Press Consumer Organisations 12.18 ANSWERS TO CHECK YOUR PROGRESS EXERCISES Check Your Progress 1 Fill in the missing words 1) Core of an organisation and makes utilisation 2) Common features 3) Hierarchy of authority 4) Tenacious 5) Shortsightedness Check Your Progress 2 1) (a) 2) (d) 3) (e) 4) i) one or two persons centralisied organisation ii) specialised skill personnel iii) growth and development of the organisation iv) communication uncertainty as to who would tell whom, when and how much. Check Your Progress 3 1) i) NGOs do not have the goal of profit maximisation. ii) Non-financial objectives dominate the working iii) The multiplicity of goals in the NGOs adds complexity, thus make difficult to measure progress. iv) In NGOs risk cushion is rarely available. They can take very limited risks. v) The NGOs often market simultaneously to two distinct groups ‘Users and Funders’. vi) NGOs face a more complicated and competitive situation than most businesses as alliances between 2) Chief reasons for the lack of management ethos in NGOs are as follows: i) About 15 years ago, the public was indifferent to the NGOs. This dissuaded the management talent from the NGOs. ii) NGOs depended on the strength of a man or group of like-minded people. These people generally did not appreciate the role of professionals as managers. iii) NGOs always suffered from inadequacy of funds. iv) NGOs attracted retired persons or ex bureaucrats. They had neither 30 any training nor were acting managerially. v) In NGOs, management competence and skills were not considered Managing an Organisation necessary. Check Your Progress 4 1) The reasons motivating the NGOs to increasingly embrace the management philosophy as are follows:
l Managerial ability is a road to success for NGOs.
l Well-managed NGOs have changed public opinions as they have survived in difficult times and fund shortages.
l A greater number of managed industries have been attracted towards the NGOs. NGOs have seen the functioning of such industries.
l The government has failed to provide welfare and benefit to the public in a cost-effective manner. This has promoted the better-managed NGOs by the government and other organisations.
l It has been recognised that only the well-managed NGOs can offer more flexible programme to wider array of people.
l An innovation driven approach has rejuvenated a number of NGOs in India such as CERC, Ahmedabad, Rajiv Gandhi Foundation (RGF) etc. 2) Please refer Section 12.9
31 Consumer Organisations UNIT 13 INTERNATIONAL CONSUMER ORGANISATIONS Structure 13.1 Objectives 13.2 Introduction 13.3 Consumers International 13.3.1 Consumer Rights and its Expansion 13.3.1.1 Right to Safety 13.3.1.2 Right to Information 13.3.1.3 Right to Choice 13.3.1.4 Right to be Heard 13.3.1.5 Right to Basic Needs 13.3.1.6 Right to Seek Redressal 13.3.1.7 Right to Consumer Education 13.3.1.8 Right to Healthy Environment 13.4 Consumers International 13.4.1 Structure and Purpose of Consumers International (CI) 13.4.2 Indian Members at the Consumers International 13.4.3 Membership of Indian Consumer Organisations 13.5 Consumers International’s Activities 13.5.1 Functions of the Consumers International 13.5.2 Programmes, Campaigns, Projects and Key Issues 13.6 Coordination Activities of Consumers International with Other Agencies 13.7 Consumers Interpol 13.7.1 Aims of Consumers Interpol 13.8 Consumers International’s Activities and the Indian Consumers 13.8.1 Consumers International – Regional Office for Asia and the Pacific 13.8.2 India: Consumer Protection Programme of Consumers International 13.9 Consumers International – ROAP in India 13.10 Let Us Sum Up 13.11 Answers to Check Your Progress Exercises
13.1 OBJECTIVES After studying this unit, the learner shall be able to:
l trace out the formation of the organisation at the international level;
l understand the functions and programmes of the organisation;
l become familiar with the Indian members of the organisation;
32 l appreciate its role of coordination with other International Organisations; l understand Consumer Interpol and its significance; and International Consumer Organisations l be aware of the organisation’s branches working in this part of Indian sub- continent and its contribution to the spread of consumer movement in India.
13.2 INTRODUCTION Consumers in every country have their own unique problems and an exchange and sharing of information between the countries about the ways and means of tackling such problems would benefit the consumers of the world as a whole. Moreover, multi-national companies from developed countries try to enter the markets of other countries by forming joint ventures, collaborations and also by direct marketing of their products and services. It has, therefore, become necessary for consumer groups and organisations of the world to come together to defend and protect their own interests. An International Consumer Organisation would not only help coordinate the efforts and activities of the various consumer organisations of the world, but also help them in tackling their problems by sharing their experiences and information. An attempt has been made in this unit to discuss the presence of the international body of consumers in the form of Consumers International. An attempt has also been made to explain its structure, functions and programmes. Information on the Consumer Interpol and the constituent Indian members on these organisations is also given in this unit.
13.3 CONSUMERS INTERNATIONAL The organisation was first established in 1960 as the International Organisation of Consumers Unions (IOCU) by national consumer organisations who wanted to create cross-border campaigns and share knowledge. It has a 240 member organisation spread across 120 countries. Its head office is based in London, England, with regional officers in Latin America, Asia Pacific, Middle East and Africa. The founding groups were only from five countries i.e. USA, Britain, Australia, Netherlands (then Holland) and Belgium. Consumer International (CI) is a not-for-profit company. IOCU was founded by Elizabeth Schadee, who later chaired the board of the Netherlands’ Consumentenbond, and Caspar Brook, who was the first director of the United Kingdom’s Consumers’Association. The two proposed holding of an international conference so that consumer product testing organisations worldwide worked more closely. The United States organisation Consumers Union provided US$10,000 at the request of Colston Warne to help fund the event. In January 1960, these three organisations sponsored the First International Conference on Consumer Testing in, The Hague. Thirty-four people representing seventeen consumer organisations in fourteen countries participated to discuss product testing and founded the International Organisation of Consumers Unions as an international organisation. Belgium’s Association des Consommateurs and the Australian Consumers’Association joined the three conference sponsors as the five founding organisations which became the international organisation’s initial council. After founding the organisation, they formulated four guidelines for conducting the activities of their member organisations. These guidelines are given below: 33 Consumer Organisations l The members should act in consumer interests.
l The members should be free from commercial or party or political pressure.
l The organisation should be non-profit making.
l The members should not let their advice and information be used commercially. It links the activities of some 170 large and small consumer groups in over 60 countries. The overriding concern of IOCU and its members is to protect the rights of consumers and promote social justice and fairness in the marketplace. Established with just five members in the year 1960, the International Federation of Consumers Unions, was registered as an independent non-profit making and non-political foundation. The Central Office of the organisation was located at The Hague, Holland. Later, a regional office was established at Penang, Malaysia.
At the time when the IOCU was established, it had focused its activities on the welfare of its founder members. To formulate guidelines for its activities, three main goals were set for achievement. They were:
l To support its members
l To expand consumer movement
l To represent consumer interests at the international level. IOCU also emphasised the need to recognise the rights of the consumers all over the world. Therefore, the over-riding concern of the IOCU and its members was to promote and protect the rights of consumers all over the world and also to promote social justice and fairness in the market place. It had not only enumerated the consumer rights, but also defined them clearly, so that it 34 became easier for the consumers of the world to understand and follow them. 13.3.1 Consumer Rights and its Expansion International Consumer Organisations India has been observing 15 March as the World Consumer Rights Day since 1989. This day has a historic importance, as it was on this day in 1962, when the Bill for Consumer Rights, was moved in the US Congress. During his speech, President John F. Kennedy had remarked: “If a consumer is offered inferior products, if prices are exorbitant, if drugs are unsafe or worthless, if the consumer is unable to choose on an informed basis, then his dollar is wasted, his health and safety may be threatened, and national interest suffers.” Although businessman is aware of his social responsibilities even then we come across many cases of consumer exploitation. John F. Kennedy had equated the rights of the ordinary American consumer with national interest. He gave the American consumer four basic rights: 13.3.1.1 Right to Safety The right to safety has expanded in its purview now. In the past, right to safety was viewed in conjunction with physical safety regarding electric goods and other such goods. With technological advancement, safety from a large number of existing and potential dangers is needed. For e.g. consumers need to be protected from unchecked introduction of genetically modified food in the mainstream market. Various committees like the Codex Alimentariuas Commission have been formed to look at the safety and viability aspect. According to this, the consumers have the right to be protected against the marketing of goods and services which are hazardous to life and property, this right is important for safe and secure life. This right includes concern for consumer’s long term interest as well as for their present requirement. Sometimes the manufacturing defects in pressure cookers, gas cylinders and other electrical appliances may cause loss to life, health and property of customers. This right to safety protects the consumer from sale of such hazardous goods or services.
13.3.1.2 Right to Information This right has become a vital right for consumers today on account of developments in the market and production processes taking place every day. 35 Consumer Organisations In the developed world, laws to this effect are already in place requiring labelling, to show ingredients, processing, conformance to standards of identity and additives. According to this, the consumer has the right to get information about the quality, quantity, purity, standard and price of goods or service so as to protect himself against the abusive and unfair practices. The producer must supply all the relevant information at a suitable place. 13.3.1.3 Right to Choice Right to choice gives every consumer the right to choose the goods or services of his or her likings. The right to choose means an assurance of availability, ability and access to a variety of products and services at competitive price and competitive price means just or fair price. The producer or supplier or retailer should not force the customer to buy a particular brand only. Consumer should be free to choose the most suitable product from his point of view. 13.3.1.4 Right to be Heard According to this, the consumer has the right to represent him or to be heard or right to advocate his interest. In case a consumer has been exploited or has any complaint against the product or service then he has the right to be heard and be assured that his/her interest would receive due consideration. Kennedy recognised that consumers are the largest economic group in the country’s economy, affecting and affected by almost every public and private economic decision but they are also the only important group who are not effectively organised, whose views are not heard. Therefore, the Federal Government, by nature, the highest spokesman for all people, had a special obligation to the consumers’ needs. Thirteen years later, President Gerald Ford felt that the four rights constituted in Kennedy’s Bill of Rights were inadequate for a situation where most consumers are not educated enough to make the right choices. So he added the Right to Consumer Education, as an informed consumer cannot be exploited easily. The Consumers International (CI), the umbrella body, of 240 organisations in over 100 countries, expanded the charter of consumers rights contained in the US Bill to eight, which in a logical order reads: 1) Right to Safety 2) Right to Information 3) Right to Choice 4) Right to be Heard These four have already been explained. Let us understand the next four consumer rights. The next four Rights are as follows. 13.3.1.5 Right to Basic Needs
l The right to basic goods and services which guarantee survival.
l The responsibility to use these goods and services appropriately. To take 36 action to ensure that basic needs are available. 13.3.1.6 Right to Seek Redressal International Consumer Organisations According to this right, the consumer has the right to get compensation or seek redressal against unfair trade practices or any other exploitation. This right assures justice to consumer against exploitation. The right to redressal includes compensation in the form of money or replacement of goods or repair of defect in the goods as per the satisfaction of consumer. Various redressal forums are set up by the government at National Level and State Level. 13.3.1.7 Right to Consumer Education According to this right, it is the right of the consumer to acquire knowledge and skills to stay informed. It is easier for literate consumers to know their rights and take actions but this right assures that illiterate consumer can seek information about the existing Acts and agencies are set up for their protection. The government of India has included consumer education in the school curriculum and in various university courses. Government is also making use of media to make the consumers aware of their rights and make rational use of their money. Consumer education has many sources and caters to different age groups and sections of the society through various systems of education. One of the pressing needs of consumer empowerment today is to initiate the younger generation into mainstream consumer education. 13.3.1.8 Right to Healthy Environment The right to a healthy environment is, in fact, implicit to all rights that human beings have in every aspect of life. It is the right to lead a healthy life style without dangers of water, air, soil and noise pollution. Healthy environment includes both global warming and increase in toxic wastes is as polluted groundwater supply or air laden with toxic gases at local levels. Recently, the purview of healthy environment for consumers has progressed to the natural disaster occurrences which have increased manifold due to unsustainable development and unchecked growth. Consumers are now demanding the right to a safe and natural environment. Physical environment will enhance the quality of life. This right involves protection against environmental problems and promote sustainable consumption to protect the present and future generation. The United Nations, in April 1985, adopted its Guidelines for Consumer Protection. This charter had a universal significance as they symbolised the aspirations of the poor and disadvantaged. l Birth of Consumers’ Day Considering the importance of Kennedy’s speech to the US Congress on this day, and the resultant law, the CI took a decision in 1982 to observe 15 March as the World Consumer Rights Day from 1983. Peculiar though it may sound, 15 March is not observed as a special day in the world’s largest and most pulsating consumer society the US. But at home, in India, the Government, adopted 15 March as the World Consumers Rights Day. 37 Consumer Organisations India is a country, which never fell behind in introducing progressive legislationwe were among the first in the world to introduce universal adult franchise for women. Gandhi had rightly said: “A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our workhe is the purpose of it. We are not doing him a favour by serving him. He is doing us a favour by giving us the opportunity to serve him.”
l Birth of Consumer Protection Act, 1986 The right to redress lead to the passing of the Consumer Protection Act (COPRA) in 1986 in India which has been defined as the Magna Carta of consumers but, it recognises only six of these eight rights: 1) Right to Safety; 2) Right to Information; 3) Right to Choice; 4) Right to be Heard; 5) Right to Redress and 6) Right to Consumer Education Besides this statutory recognition, CP Act has succeeded in bringing about revolutionary judicial reforms by providing juristic quasi-judicial bodies solely for redressal of consumer grievances through adjudication within a limited time frame of 90 to 150 days. The rights of basic needs and healthy environment could not be provided in CPAct as these symbolised the aspiration of the poor and the disadvantaged, and were not the subject matter of priced commodities and services available in the market place. However, these rights are a part of the Indian Constitution.
l National Consumer Day The Consumer Protection Act received Presidents accent on Dec. 24, 1986. This day is celebrated as the National Consumer Day in India. Various activities are organised by the Consumer organisations on this day.
13.4 CONSUMERS INTERNATIONAL With an expansion in its membership and activities, the organisation’s name of IOCU was changed to Consumers International (CI). It became effective from 1995 with the official opening of the head office in London. The number of regional offices had grown from one to three with the opinion CI linked the activities of 208 large and small consumer groups representing 87 countries throughout the world. The activities of the regional office are now being coordinator by the Director General’s office in London. This marked an important stage in the re-defining 38 of its role and objectives and also in establishing a structure to provide an effective base for its future programmes and messages. The emblem of CI will International Consumer Organisations give you an idea of how it tries to unite the consumers worldwide. Emblem
Founded 1960 Type Charity No. 1122155 Focus Consumer protection watchdog Location London, United Kingdom Origins Formerly the International Organisation of Consumers Unions Area served Global Method Campaigning Members 240 Slogan The Global Voice for Consumers Website www.consumersinternational.org
Membership Consumers International (CI) has 240 member organisations in 120 countries. These members include independent consumer organisations and government organisations. About two-thirds of member organisations are in developing countries, the other third in industrialised countries. Consumers International (CI) also works with and hosts the Transatlantic Consumer Dialogue (TACD) – a forum of US and EU consumer organisations that develops and agrees on consumer policy recommendations to the US government and European Union to promote the consumer interest in EU and US policy making – at its office in London. 13.4.1 Structure and Purpose of Consumers International (CI) With its renewed and elevated setting as mentioned earlier, CI works on a worldwide programme, and a commitment to represent the consumer effectively, on a global level. 39 Consumer Organisations The membership of the Consumers International has two categories one, the full members and the other known as “The Affiliates”. Full membership is given to those organisations which give a proportion of their gross annual income to help the Consumers International to make its budget. The other members- Affiliates- pay a membership fee. Besides these sources, CI also receives grants from outside sources for some of its activities, which includes government grants as well. For example, Consumers International used the grants received from the Norwegian Government for work in promoting the 1981 WHO code on breast feeding. CI also received funds from the European Economic community for sponsoring the activities of a consumer information and training centre. Full members send their representatives to the organisation’s parliament and its general assembly which is held every three years. The assembly elects the president and the members of the council and also decides on the international priorities. 15 members of the council are entrusted the work of charting the Consumers International’s course of action. Six council members from executive which drafts the budget and policies for the council’s approval. Working Groups and Standing Committees engage themselves in carrying out the programmes and policies of the Consumers International. The President of the Consumers International is also the Chairman of the Assembly, the Council and the Executive and so he is in touch with each part of the organisation. With such regulated membership and clear cut responsibilities, Consumers International is an organisation with a clear purpose. It keeps members informed and stimulated through its communications, information and research activities. In addition to this, it trains its member groups to sharpen their skills and to become self-reliant. It, thus, prepares its members to define and assert their power to turn ideas into action. CI has three categories of member organisation: i) Association members, who must operate exclusively in the consumer interest, be non-profit making and non-commercial. They must be independent of political parties and of cash subsidies that might influence their consumer voice. They contribute a percentage of their annual income towards IOCU’s budget; ii) Corresponding members, who pay a membership fee but do not have voting rights; iii) Supporting members, who contribute a percentage of their income towards CI’s budget but do not have voting rights. To date, CI has 54 associates, 109 correspondents and one supporting member. The nature, scope of work and size of members varies considerably. Testing and research organisations, such as the Consumers’ Union, USA and Consumers’ Association, UK (two of the five founding members) have large followings for their product test reports. Others, like the Citizen’s Alliance for Consumer Protection of Korea, actively lobby for better health and safety standards for consumers while the Consumers Association of Penang, Malaysia reach out on a national level with a ‘basic needs’ approach, stressing the need for adequate food, water, shelter and health care for everyone. CI operates at three Regional Offices the Regional Office for Europe and 40 North America in The Hague, Netherlands, the Regional Office for Asia and the Pacific in Penang, Malaysia, and the Regional Office for Latin America and International Consumer Organisations the Caribbean in Montevideo, Uruguay. These offices are co-ordinated by the Director General, who is based in The Hague. Every three years, CI members gather for a world congress to renew the organisation’s mandate, assess and endorse its programmes and elect the president and the 20 member CI Council. Six of the council members from the CI Executive, which charts the course of the organisation and prepares its budget. To steer CI’s work in special interest areas, standing committees and working groups may be appointed at each Congress. Currently, CI has standing committees on education, testingand development, and working groups on health, transnational corporations, library and documentation, air transport and information technology. l Charter for Consumer Action The spirit of consumer education is enshrined in the Charter for Consumer Action. The list of Attributes is demanding, wide ranging and with none of the narrowness of ‘consumer equal shopper”. It becomes an easy-to-remember mnemonic CASES: C Critical awareness with consumer learning how to distinguish needs from wants, how to ask informed questions about price, availability and quality of goods and services. A Action and involvement, with consumers being able to act on their own behalf backed up by the confidence of knowledge and learning on how to get a fair deal. S Social responsibility, with consumers acting with concern and sensibility, aware of the impact of their actions on other citizens, particularly on disadvantaged groups. E Ecological responsibility, with consumers thinking about the effects of their decisions on the physical environment, aware of the possible conflict between their desire to own things and the spoiling of this environment. S Solidarity, with consumers realising that their most effective action is through the formation of citizen groups. Together, such groups can acquire the strength and influence to make sure that adequate attention is given to consumer interests. This International Organisation was initially established as an information centre. The organisation has now evolved itself to its present form in response to the rapidly increasing awareness among consumers all over the world. It has diversified and increased its activities by giving support to consumer organisations, both independent and government supported organisations. It believes in the fact that only strong and effective consumer organisations can transform the world into a more just and equitable one and make it more responsive to people’s needs. 13.4.2 Indian Members at the Consumers International India has a fast growing consumer movement. The enactment of the Consumer Protection Act in 1986 and the Indian Government’s policy to liberalise the 41 Consumer Organisations economy have accelerated progress in this area also. The arrival of multi-national corporations has created a change in the market scenario which is now more challenging than ever before. In this situation, developed countries have ample scope for dumping banned goods produced in their own countries into the developing countries. In the face of this challenge, the Indian consumer organisations have felt the need to expand their activities and to improve their international network. Consumers International provides a platform where the Indian organisations can get the right guideline. It is, therefore, not surprising that the Indian representation in CI has grown from a mere three in the eighties to as many as 17 by the middle of the 90s. Some of the members are full members while other are Affiliates. There are many consumer organisations in India who are members of the consumers International. These member organisations play a active role in the formulation of consumer policies. Some of the important Indian consumer organisations associated with Consumer International are: 1) Consumer Action Group, Chennai 2) Consumer Education and Research Centre, Ahmedabad 3) Consumer Guidance Society of India, Mumbai 4) Consumer Unity Trust Society, Jaipur 5) Mumbai Grahak Panchayat, Mumbai 6) Voluntary Organisation in the Interest of Consumer Education, Delhi 13.4.3 Membership of Indian Consumer Organisations The clearly indicates the strength of their representation in Consumer International, which has a distinct aim of serving the special concerns of consumer in a fast developing country like India. These consumer organisations avail the resources of CI in the areas of research, information and educational activities. Check Your Progress 1 1) Tick mark the following statements as True (T) or False (F) : a) It is not necessary for consumer organisations working for the Indian consumer to become a member of the International Organisation. (T) (F) b) Consumer Interpol is a part of Consumer International (T) (F) c) Consumer International is the new name of IOCU. (T) (F) d) IOCU was established in 1980 (T) (F) e) Consumers International has membership from over 200 organisations from more than 80 countries. (T) (F) f) Consumer International has stated seven rights of 42 the Consumer. (T) (F) g) Consumers International’s Head office is in India. (T) (F) International Consumer Organisations h) Consumers International has only one kind of membership. (T) (F) i) The number of Indian member at Consumers International is 20. (T) (F) j) The general Assembly of Consumers International meets every three years. (T) (F) 2) Explain the Importance of World Consumer Day? ...... 3) Give a brief account of some of the important activities of: Consumers International...... 4) State the Eight rights as envisaged by Consumers International......
13.5 CONSUMERS INTERNATIONAL’S ACTIVITIES The main concern of Consumers International and its members is to protect the rights of consumers of the world and to promote social justice and fairness in market place. To meet this objective, Consumers International functions through its regional offices and also through its ‘Global Policy and Campaign Unit’ (GPCU) and Development Support Unit at the head office. The first ever instance of CI’s power was felt in the year 1972 when seven members of the Greek Council were imprisoned by the military regime. The then President of CI intervened with an international protest and action. This forced the military regime to release the members of the Consumers Council without any conditions. This instance has proved that a consumer organisation at the international level can be effective in correcting wrong done to consumers in any part of the world. In the case of India, CI’s contribution can be traced to a seminar on consumer education conducted at Bangalore in the year 1982. The other important support given by CI to Indian consumers was to test Kerosene Stove’s performance. The main activities of Consumers International can be categorised under two heads - 43 Consumer Organisations i) Functions of the Consumers International ii) Consumers International’s Programmes and Campaigns 13.5.1 Functions of the Consumers International One of the major functions of CI is to share new ideas. This information is given through its Newsletter, ‘CI’s House Journal’ and ‘Consumer Currents’. It also has publications of special matters of consumer interests. CI maintains a library where copies of all its publications are kept for reference. You were earlier informed that Consumers International conducts research in the areas of consumer interest. Besides conducting research on its own, it also supports and funds research carried out by its member groups like testing of consumer products or similar work. One such activity is that of the Consumer Guidance Society of India’s work on easy-to-use kit for testing food adulteration. Another important project work that received funds from Consumers International is that of banning advertisements on infant foods and to emphasise the importance of breast-feeding as part of Consumers International’s awareness programme. Consumers International’s another important contribution relates to the advice it gives to various governments while formulating legislations on issues like pesticides, food additives, satellite advertising, invasion into individual’s privacy through computer data storage, etc. Typical example of this kind is the legislation for preventing the sale of sweetened condensed milk as baby food or sale of steroids as body-building matter, etc. 13.5.2 Programmes, Campaigns, Projects and Key Issues CI campaigns seek to achieve real changes in government policy and corporate behaviour, whilst raising awareness of consumer rights and responsibilities. At the end of 2012, CI launched your rights, our mission and its strategic plan for 2013 to 2015. The plan includes four key programme areas combining CI’s work on international advocacy and organisational empowerment around a small number of issues. The four programme areas are: Financial Services
l Consumers access to safe, fair and competitive financial services
l Structure and functions of national bodies
l Fair contracts, charges and practices
l Information design and disclosure
l Redress and dispute resolution
l Stability and safety
l Competition
l G20 work on financial consumer protection 44 l Mobile payments International Consumer Organisations l Support development of financial advice centres and advocacy capacity in developing countries Food Safety, Security and Nutrition l Consumers access to safe and nutritious food l Choosing a healthy diet l Food labelling on packaging and in restaurants l A ban on trans fatty acids l A ban on junk food marketing to kids l Reformulation of processed food to reduce fat, sugar and salt. l Food safety l Facilitate member engagement in international standard setting l Projects in developing countries to improve food safety systems l Food security l Monitor international processes l Consumers in the digital age Consumers’ access to Reliable, Affordable and safe Communication Networks l Holding online service providers to account l Clear and accurate information from broadband service providers l Address consumer concerns about tracking online activity and using this data in marketing l Consumer representation in global governance relating to the information society. l Ensuring the consumer voice is heard in international institutions that relate to the information society. l Access to knowledge l Consumers’ rights for the fair use of copyright materials to be expanded and better recognised through ranking IP laws and practices and negotiation with IP bodies. Consumer Justice and Protection l A concerted international effort to support the realisation of consumer rights l Revision of UN guidelines l Updating the UN guidelines on consumer protection. l An increased international focus on the legal empowerment of the consumer 45 Consumer Organisations l Work with international organisations to develop new initiatives and make resources available for consumer protection
l Work with CI members to support their work at the national level
l Systematic assessment of members capacity
l Map ‘sustainable business models’ for consumer organisations. CI has also campaigned on issues like junk food marketing and unethical drug promotion, corporate social responsibility and unethical or unsustainable behaviour by corporations and governments. In the developing countries, Consumers International makes efforts to protect consumers by checking unregulated markets rife with fraudulent trade practices, deceptive advertising and inferior and unsafe goods which are banned in developed countries. They also act as a ‘watch dog’ in monitoring and challenging the ‘polluting’ and ‘dirty’ industries, hazardous technologies and harmful products that threaten human and environment well-being. The CI member organisations in India are at present, planning a coordinated campaign on ‘Asses to Food- A Basic Need’. An important part of CI’s work is to channel information to its member organisations. As a part of its global activities, CI holds a World Congress every three years at which it debates the consumer issues of the day. So far, 14 World Congress have been held and the last one (the 14th Congress) was held in France in 1994. The theme of this Congress was “The New Importance of Global Standards”. Offices of Consumers International CI has five offices:
l CI Global Office, London
l CI Office for Latin America and the Caribbean
l CI Office for Africa
l CI Office for Asia Pacific and the Middle East
l CI Middle East Hub Office
13.6 COORDINATION ACTIVITIES OF CONSUMERS INTERNATIONAL WITH OTHER AGENCIES CI’s activities are not confined to its own or to its member organisations. CI has taken necessary steps to represent the consumer in many of the international organisations. As the global federation of consumer organisations, CI represents the consumer interests in the following form:
l United Nations (UN)
l Food an Agricultural Organisation (FAO)
l World Health Organisation (WHO) 46 l United Nations international Children’s Emergency Fund (UNICEF) International Consumer Organisations l ISO (International Standards Organisation) l UNESCO l UN, Economic, and Social Committee l Codex Alimentarius Commission l Organisation for Economic Cooperation and development l UN Industrial Development Organisation l US Commission on Sustainable development Consumers International’s representation in these organisations is of great significance in the present day context of global trends which bring new challenges for consumer organisations. Many consumer problems are being solved because of CI’s role in these organisations. The Consumers International’s efforts had promoted the UN to adopt guidelines for consumer protection in 1985.
These guidelines have played a major role in the development, implementation and monitoring of consumer protection systems around the world. UN has also adopted: March 15th as the World Consumer Rights Day March 15th every year, therefore, is observed as the World Consumer Rights Day all over the world.
13.7 CONSUMERS INTERPOL The idea of a policing system on the export of dangerous products has been around for some time. An initiative to stop dumping between European countries was made in the 1970s. And the International Labour Office has for some years circulated warnings on hazardous processes which may be found in factories. For the Third World consumers, however, it was at the 1970 Congress of the International Organisation of Consumers’ Unions that the Jamaican delegates 47 Consumer Organisations made public their anger at the sale of substandard and badly labelled goods from the developed countries but the gestation time was long and it was not until 1981 that Consumer Interpol was launched as an international consumer policing network. This is the first early warning system for ordinary consumers in the poor world; so far there are about 52 groups in 33 countries who are actively participating in the network. Consumer Interpol also links in with other coalitions working to protect the interests of buyers in the underdeveloped world International Baby Food Action Network, Health Action International and Pesticides Action Network. When Consumer Interpol members learn of a suspected hazard in their country they check it out in detail and, if convinced that the product or manufacturing process is treacherous, they notify the Consumer Interpol coordinator in Penang, sending corroborative evidence such as labels, press clippings, laboratory reports and so on. Once the warning is received, the coordinator goes through the evidence scrupulously to ensure there are no errors. A panel of specialists on food, drugs, pesticides and consumer law is available to refer to, if necessary. If the suspicion is confirmed then the coordinator sends out Consumer Alert notices to all groups in the network. The message beamed is quite clear: ‘Watch out for this product‘. Here is the evidence. If you find it in your country, contact the manufacturer or distributor and the government to seek controlling action. And make sure to let the press know what’s going on. So far Consumer Interpol has sent out about 30 alerts. These range from warnings about chocolate bars with a risk of causing botulism to painkilling drugs with serious side-effects. In November 1982, the coordinator sent out a rather unusual Alert about clioquinol-containing drugs. The Alert was unusual because the manufacturer had already announced that it would withdraw such drugs from the market after clioquinol had been linked with the nerve disease SMON. This announcement came some 12 years after the SMON had affected thousands in Japan and elsewhere. The manufacturer, Ciba-Geigy, had in fact already quietly withdrawn the drug from sophisticated Western markets but continued to allow it to be on sale in unregulated marketplaces in areas of the Third World where diarrhoea was endemic (see New Internationalist No. 95 for the full story). The Alert was sent out not to mark a victory but the beginning of another phase of the long drawn-out struggle. Although Ciba-Geigy admitted that the drug ‘no longer reflects new trends in modern diarrhoeal disease control’, the complete withdrawal is to be phased over three to five years. The reason given is that apparently several countries want to go on using the drug. One of the most significant results of the SMON catastrophe is that it has drawn together many people and consumer groups who are appalled at the double standards that exist whereby companies can continue to sell products in the underdeveloped world which have been withdrawn from Western markets. One thing’s for sure: if the SMON tragedy were to occur today, the action groups on this page would not allow a delay of over 12 years between the outbreak of the drug disaster and the announcement of its withdrawal. The UN’s December 1982 Resolution on hazardous exports adds credibility and weight to Consumer Interpol’s cause. As IOCU President, Anwar Fazal, 48 said in summing up the aims of this watchdog network ‘We hope that Consumer Interpol and the other citizens’ networks will work to reduce, if not eliminate, International Consumer Organisations the violence, the waste and the manipulation that characterises so much of our society’. The next few years will be a hard struggle against companies’ bad behaviour, but at least many groups are now lining up to join that fight. 13.7.1 Aims of Consumers Interpol Consumers Interpol’s aim is to be ‘fast’, comprehensive and truly international’. Correspondents from a number of countries have joined this network to inform the Consumer Interpol of a suspected hazard or a product’s withdrawal in their home market. The warnings are given along with evidence from press reports and laboratory tests. When worries about the product and the likelihood of its dumping are confirmed, alerts will be sent out to groups in the Consumer Interpol network. Both the importer and the governments are held accountable through representation as well as through newspaper reports. The controlling legislation is then demanded. Consumer Safety is the motive behind all the Consumer Interpol’s Activities Dumping hazardous products, technologies and wastes on unwary consumers is a big business in the modern world market. Consumer Interpol has taken it as its responsibility to monitor and fight such fraudulent business practices. While doing so, Consumer Interpol works on the following lines: l Publishing specific and generic safety issues l Lobbying for relevant government controls and corporate accountability l Sending out ‘consumer alerts’ on newly discovered or newly regulated hazards l Publishing features and reports l Supporting initiatives to check the global trends in hazardous substances. In this context, Consumers Interpol’s campaign had moved the UN Assembly to pass a resolution in 1982 to prepare and make public, a list of products whose consumption and /or sale has been banned, withdrawn or severely restricted. By early 1984, the list was completed and published with the help of UN member states. This document had more than 500 pages mentioning over a 1000 products and chemical substances and includes names of the manufacturers, generic and brand titles. Check Your Progress 2 1) Highlight the functions of NCH...... 49 Consumer Organisations 1) Tick mark the following statements as True (T) or False (F) : a) The main concern of Consumers International is only to protect consumers’ rights. (T) (F) b) Consumers International has many publications.. (T) (F) c) Consumers International’s activities include research activities.. (T) (F) d) Consumers International does not provide funds to its member organisation. (T) (F) e) Consumers International acts as a ‘Watchdog’ to polluting industries. (T) (F) g) Consumers International’s activities are confined to its own and its member organisations. (T) (F) h) March 15th is observed every year as the World Consumer Rights Day. (T) (F) i) Consumer Interpol acts as a policing network. (T) (F) j) In 1984, a list of hazardous products was published by the U.N. (T) (F) 2) Name four organisations in which the CI has its representation: 1) ...... 2) ...... 3 ...... 4) ...... 3) Discuss some of the important activities of i) Consumers International ...... ii) Consumer Interpol ...... 4) State the U.N. Guidelines on Consumer Protection...... 50 International Consumer 13.8 CONSUMERS INTERNATIONAL’S Organisations ACTIVITIES AND THE INDIAN CONSUMERS The consumer movement in India has been growing fast since the early 1960s. The Indian consumers are becoming more and more aware and are making efforts to shed their apathy. The consumer power is further strengthened by the formation of many consumer organisations even in rural areas and their active participation in the national and international bodies is indicated by their representation in the Consumers International. CI has recognised the significant role that India canplay in spreading consumer movement at the international level. Therefore, while expanding its activities and while opening new regional offices, a regional office was set up in 1974 at Panang, Malaysia. It was named the Consumers International Regional Office for Asia and the Pacific (CI-ROAP), to give more attention to the sub-regions’ work in the Regional office of India. The India sub-regional Programme is looked after by the sub-regional office located in Pune (Maharashtra). The Regional office at Panang and the sub-regional at Pune coordinate the activities of Consumers International with those of the Indian consumer organisations. Through these organisations, Indian consumers are getting a lot of international attention. 13.8.1 Consumers International Regional Office for Asia and the Pacific For many years the Regional Office for Asia and the Pacific (ROAP), the first regional office to be set up acted as the contact point and the link between the Consumers International and its members. CI is an independent, non-profit organisation. It is not aligned with or supported by any political party or industry. It is funded by fees from member organisations and by grants from foundations, governments and multilateral agencies. CI is widely recognised as the voice of the international consumer movement and has consultative status with the specialised agencies of the United Nations. Consumers International Regional Office for Asia and the Pacific (CI-ROAP) CI-ROAP was established in 1974 as the first of Consumers International’s regional offices. Purpose- Consumers International was serving the special concerns of consumers in developing countries. It was situated for a brief time in Singapore, then in Penang and since July 2000 in Kuala Lumpur, Malaysia. The office provides support and services to some 77 non-profit consumer organisations and government affiliates, in 22 countries and territories of the Asia Pacific region. The CI-ROAP office is located at: CI-ROAP 250 A Jalan Air Itam 10460 Penang Malaysia Tel: (604) 229-1396 Fax: (604) 228-6506 E. mail: [email protected] 51 Consumer Organisations The Goals of CI-ROAP are:
l To spread the consumer movement throughout the Asia Pacific region;
l To increase the capacity of its members through training and education; advice and technical support; fund raising and project support; and research and information;
l To facilitate networking amongst members and with other civil society organisations and networks working in related areas;
l To keep members and network partners informed of CI’s programme activities and of developments within CI;
l To consult members and represent their views in the formulation of CI’s policies and programmes;
l To represent the consumer interest regionally and internationally; and
l To disseminate and promote the principles and policies of the consumer movement to the wider audience of the Asia Pacific region. The ultimate goal of CI-ROAP is to improve the quality of life of the approximately 3 billion people in the Asia Pacific region with particular attention to the poor, marginalised and vulnerable groups. The Work of CI-ROAP is Twofold i) Industrial building ii) Policy development Since its inception, ROAP has carried out a range of activities on diverse issues and to meet the fast changing needs of consumers in the Asia-Pacific Region. The Mission objectives are to: CI-ROAP’s activities cover a large number of issues concerning consumers. They include projects on:
l Health and hazardous products
l Pharmaceuticals
l Food, nutrition, security and safety
l Trade and economics
l Consumer protection
l Consumer education
l Research
l Advocacy/Lobbying
l Representation
l Networking
l Environment
l Public Utilities
l Standards
52 l Consumer legislation CI-ROAP is actively pursuing these issues. The Consumer Information Documents International Consumer Organisations Centre (CIDOC) offers efficient service by answering consumer queries, compiling literature and research material, and expanding access to information via electronic media. Besides, it also published regularly a quarterly newsletter called “Surya”. Regional Networker for Asia Pacific Telephone: +603 772 61 599 Lot 5-1 Wisma WIM, Fax: +603 772 68 599 7 Jalan Abang Haji Openg, Email: [email protected] Taman Tun Dr Ismail Main contact: Indrani Thuraisingham 60000 Kuala Lumpur, Malaysia Team of Consumers International’s staff Consumers International’s staff, located around the world, work as an agile, well connected global network that plays a vital role in regional Member engagement and networking across the globe. “CI influences policies, standards and practices at the global level, and we work through our Members at the country level utilising their capacities and expertise to bring change that matters to consumers’’. 13.8.2 India: Consumer Protection Programme of Consumers International For many years, the CI-ROAP acted as a contact point and the link between CI and its members and activities. CI-ROAP was also covering the Indian region. Realising the potential significance of the fast growing consumer movement in India, CI-ROAP had felt the need to give more attention to this sub-region. Therefore, an office of a Coordinator was set up at Pune in 1995. This coordinating office was named as the India Consumer Protection Programme (ICPP). The Coordinator, ICCP takes care of Consumers International membership development programmes, policy and information dissemination. The Coordinator also provides education, communication and networking services to CI members for their activities and programmes. The ICPP acts as a link between CI-ROAP and the relevant Government agencies, partners, NGOs and other consumer groups, the donor community and the mass media. The office of ICPP is located at: India Consumer Protection Programme (ICPP) No. 11, Konark Villa Kalyani Nagar Pune 411014 Maharashtra State India Tel. /Fax: 91 212 686 404 13.9 CONSUMERS INTERNATIONAL – ROAP IN INDIA As seen earlier, a lot of work has been carried out by CI and its regional office, the CI-ROAP.Besides the ongoing programme, CI-ROAP,in collaboration with the Consumer Unit and Trust Society (CUTS), organised an international 53 Consumer Organisations conference on Consumer PROTECTION in New Delhi from 22nd to 24th January, 1997. The theme of the Conference was ‘Consumer in the Global Age’. Some 150 participant members of CI, representatives of NGOs, government officials, business leaders and journalists participated and contributed to the attainment of the conference objectives.
The Conference outlined the following objectives;
i) To discuss proposals on the UN Guidelines for consumer protection
ii) To deliberate on a model law for consumer protection which can be used as a framework for governments in the region
iii) To establish a network of government officials who are responsible for consumer protection and welfare.
Such events are milestones in the history of consumer movement in India. A beginning has been made and efforts are on to continue to work for the benefit of the Indian consumer. Even though many of the consumers may not even be aware or might have heard of the existence of consumers International or its regional offices, the good work being done by the Consumers International would benefit the consumers the world over.
Check Your Progress 3
1) Fill in the blanks.
a) CI-ROAP was set up in ...... and its office is at ......
b) ICPP was set up in ...... and its office is at ......
c) Through these organisations, Indian consumers are getting a lot of ...... attention.
d) CI-ROAP acts as a link between ...... and its ......
e) CI-ROAP serve over ...... members in ...... countries.
2) Mention the two fold activities of CI. i) ...... ii) ...... 3) State the objectives of CI-ROAP. i) ...... ii) ...... iii) ......
54 iv) ...... 4) List any five issues for which CI-ROAP is working. International Consumer Organisations i) ...... ii) ...... iii) ...... iv) ...... v) ...... 5) Mention the theme of the Conference which was held in January, 1997 in New Delhi......
13.10 LET US SUM UP Consumers in every country have their own problems. An exchange and sharing of information between various countries would benefit each other. The arrival of MNCs and their marketing strategies demand that the consumers and consumer groups from around the world come together to defend their interests. IOCU was started as an international platform in 1960 by the consumer groups from five countries, as an independent, non-profit making and non-political foundation. In 1995, this organisation was named as the Consumers International and the present membership is 208, large and small consumer groups from 80 countries throughout the world. The over-riding concern of Consumers International is to protect the rights of the consumers. The original structure of Consumers International is to have one Head Office and three regional offices. At present, the Head office is in London and the regional offices are at Panang (Malaysia) Harare (Zimbabwe), and Santiago (Chile). The membership of Consumers International has two categories Full members and Affiliates. CI keeps its members informed and stimulated. It trains its members to sharpen their skills and to become self-reliant. CI believes that strong and effective consumer organisations can transform the world into a more just, equitable place and responsive to the people’s needs. 17 consumer organisations from India are members of the CI. These organisations get benefited from CI in the areas of research, information and education.The main function of CI is to increase consumer interest at the international level. It shares information with its members through its newsletter and other publications. It also maintains a library for ready reference. With CIs funding, Consumer Guidance Society of India has prepared an easy- to-use kit for testing food adulteration. CI also advices governments while formulating legislation on food additives, pesticides, satellite advertising tobacco and other hazardous products. It also lobbies in international bodies for checking 55 Consumer Organisations anti-consumer programmes. CI holds a world congress every three years; the most recent one was held in 1994. CI coordinates its activities with international organisations like the UN, FAO, WHO, UNICEF, UNESCO, ISO, etc. The continued efforts of CI had motivated the UN to adopt guidelines for consumer protection. In 1981, Consumer Interpol was launched as an international consumer policing network to prevent the dumping of banned, hazardous products, technologies and wastes from one country to the other. Consumer safety is the motive behind the Consumer Interpol’s activities. With CIs help, the UN Assembly brought out a document in 1984 with a list of over 1000 products and chemical substances whose consumption and sale has been banned, withdrawn or severely restricted. CI has recognised the significant role that India can play in spreading the consumer movement at the international level. One regional office was set up at Panang to cater to the needs of the Asia- Pacific region (CO-ROAP). For the benefit of the India sub-regional, India Consumer Protection Programme (ICPP) has been set up in 1995 at Pune, Maharashtra. Through these two organisations, Indian consumers are getting a lot of international attention.
13.11 ANSWERS TO CHECK YOUR PROGRESS EXERCISES Check Your Progress 1 1) a) F b) T c) F d) F e) T f) T g) F h) F i) F j) T 2) Important activities of CI are communication, information, education, training and research. 3) The ‘Seven Rights of the Consumer are rights to: i) Safety ii) Be informed iii) Choose iv) Be heard v) Redress vi) Consumer education vii) A healthy environment Check Your Progress 2 1) a) F b) T c) T d) F e) T f) T g) F h) T i) T j) T 2) UN, FAO, WHO, UNICEF, ISO, UNESCO, UNIDO, UN, ECO, and 56 Social Committee, Codes Alimentarius Commission, organisation for Eco. Cooperation and development, Un Commission on Sustainable International Consumer Organisations Development — any four of these education, training and research. 3) i) See Sub-section 13.3.2 and Section 13.4 ii) See Section 13.5 4) i) Access to decision making ii) Protection of consumers economic interests iii) Measures for consumers’ grievance redress iv) Protection for consumer safety v) Standards for goods and services vi) Consumer education and information vii) Access to goods and services viii) Protection of consumer’s health Check Your Progress 3 1) a) 1974, Penang (Malaysia) b) 1995, Pune (Maharashtra) India c) International d) CI, Members e) 70, 19 2) i) Industrial building ii) Policy development 3) i) To discuss priposals on the UN guieliness for consumer protection ii) To deliberat a model paid for consumer profecion which can be used as a framwork for governments in the region iii) In establish a network of Government officials also are responsible for consumer protection and welfare. 4) Any five of the following: i) Trade and Economics ii) Health and hazardous products iii) Food and Nutrition iv) Environment v) Public Utilities vi) Standards vii) Consumer legislation viii) Consumer education 5) Consumers in the Global Age
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