Ethical Considerations in Product Packaging

Ethics & Packaging• Have you ever seen commercials for an item that

looks great, but when you actually buy one it doesn't look anything like it did on TV????

• Well that is sometimes what happens with packaged products.

• The product looks great on the outside of the box, but when the box is opened the product is completely different from the way the packaging described it.

• Many products are purchased sight unseen by how they are packaged.

• The consumer assumes that the picture and description of the product are a true and honest representation of it.

• The company who misrepresents its product by covering it up with a fancy box.

Ethics & Packaging (cont.)

• The company will develop a bad reputation as untrustworthy.

• Even if they do have a product that is superior in quality etc, the consumer will not buy it based on another products misrepresentation through the packaging.

• Once bitten, twice shy.

Ethics & Packaging (cont.)

• It is unethical to mislead the consumer, and depending on the severity, the company could face charges.

Ethics & Packaging (cont.)

Ethical Considerations in Product Packaging

• Business Ethics in Product/Service Management

Ethical Considerations in Product Packaging

• Why do you think companies package and label their products?Answer: Create a good impression Help sell product Communicate benefits

• Concerns for Product Packaging?Product Safety- Glass now plastic

Tamper-resistant packages Airtight containers for foods Wasteful packaging Switching for spray cans and pumps

Ethical Considerations in Product Packaging

• Product labeling must inform customers about a product’s contents and give directions for use.

1. Must have name of manufacturer

2. Quantity of contents

3. Nutritional info

4. Health claims are the same on all products; light, fat free, etc.

5. Warnings on products like alcohol and cigarettes

6. How to care for clothes

Ethical Considerations in Product Packaging

• Product labeling must inform customers about a product’s contents and give directions for use.

1. Must have name of manufactures

2. Quantity of contents

Ethical Considerations in Product Packaging

3. Nutritional info

4. Health claims are the same on all products; light, fat free, etc.

Ethical Considerations in Product Packaging

5. Warnings on products like alcohol and cigarettes

6. How to care for clothes

Ethical Considerations in Product Packaging

• In order for a product to say recycled it must show proof that it is retrieved a certain amount of scraps/ recycled materials.

• For a food to be organic it must meet certain standards

Ethical Considerations in Product Packaging

• What happens when a company fails to inform customers about product risks?1. Company can get sued (the company becomes liable)2. Harm to customer

• What is Planned Obsolescence?= Making products that are known to not last long, or change, so that people will need to replace them

–Example: Cell phones are always coming out with newer functions and it makes consumers want to purchase the new and improved cell phones

Ethical issues associated with changing a product’s quality.

• products that are unsafe • poor quality in construction or content • do not contain what is promoted • go out of style or become obsolete before

they actually need replacing

An organization that markets poor quality or unsafe products…

• is taking the chance that it will develop a reputation for poor products or service.

• may be putting itself in jeopardy for product claims or legal action.

Sometimes, however…

• frequent changes in product features or performance.

• such as those that often occur in the computer industry, make previous models of products obsolete.

• such changes can be misinterpreted as planned obsolescence.

Product/Service Management Decisions

• Product and Service Classification System?

• The Product Life Cycle stages?• Growth/Share?• Product Market?