Resources on Product Care and Customer Responsibility

PRODUCT CARE AND CUSTOMER RESPONSIBILITY

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Product development includes not only the creation and launch of new products but also modification or updates to existing products and initiatives to introduce changes to the overall development program including quality improvements, reduction of time to market, enhanced collaboration with suppliers, plant modernization and technology updates.  Regardless of the focus, the goal of the product development process should be to find new and innovative ways to meet customer needs that are not currently being served by the company.  Successful product development is essential for launching a company and for ensuring that the company continues to survive and prosper as competitive conditions and customer requirements change over time, and while a good deal of product development efforts focus on building the company’s existing product line they can also be used to vault the company into an entirely new set of activities, markets and/or industries.  In many industries product development is a core competency that must be acquired and nurtured in order for a company to remain in business and companies have come to realize that they must commit a substantial amount of their investible R&D funds to new product development.  No one academic or organizational discipline can claim complete ownership of product innovation and it has attracted the interest of researchers whose primary focus includes economics, engineering, manufacturing, marketing, operations research and organizational behavior.

An important development driving companies to consider and embrace corporate social responsibility (“CSR”) initiatives is the potential for stronger engagement with customers, an increasing number of which are seeking out products and services that address stakeholder needs, such as health focus or environmental responsibility or societal consequences.  CEO surveys indicate that company leaders are acknowledging that cost, convenience and flexibility, the traditional criteria that customers applied when selecting products and services, will soon be joined by believing that the vendor is committed to addressing wider stakeholder needs.  While the connection between customer engagement and CSR is growing in the US, it is even more important in other areas of the world such as Japan, India and the European countries.

One of the core subjects discussed in ISO 26000 Guidance on Social Responsibility (“ISO 26000”) developed and published by the International Organization for Standardization is “consumer issues”, which are described in Section 6.7.1.1 of ISO 26000 as being issues that are mainly applicable to people who are purchasing the organization’s products and services for private purposes.  According to ISO 26000, consumer issues regarding social responsibility are related to, among other matters, fair marketing practices (i.e., using fair, transparent and helpful marketing information and contractual processes); protection of consumers’ health and safety (e.g., minimizing risks from the use of products and services, through design, testing, manufacture, distribution, information provision, support services and withdrawal and recall procedures); sustainable consumption (e.g., reducing waste by minimizing packing material and, if appropriate, offering recycling and disposal services; and eliminating or minimizing negative health and environmental impacts of products and services, such as noise or waste); consumer service, support and complaint and dispute resolution; consumer data and privacy protection; access to essential products and services; addressing the informational and other needs of vulnerable and disadvantaged consumers (e.g., those with limited vision or hearing, or poor reading ability); and promotion of education and awareness.  ISO 26000 recommends that organizations should look to the UN Guidelines for Consumer Protection for principles that should guide their development and implementation of socially responsible practices regarding the legitimate needs of consumers, which include safety, being informed, making choices, being heard, redress, education, healthy environment and promotion of universal design.

Finnish Textile & Fashion, the central organization for textile, clothing and fashion companies in Finland, included product responsibility as one of the foundational elements of responsible management, emphasizing that companies must uncompromisingly accept responsibility for the safety of the products that they manufacture and/or distribute and take appropriate steps to minimize the risks to the health or property of consumers that use those products.  At a minimum, companies must understand and comply with all laws and regulations pertaining to product safety in the jurisdictions in which they operate and in which their products will be available for sale or use.  Legal and regulatory product safety standards vary substantially around the world and significant investments of time and resources may be required in order to fulfill compliance responsibilities, particularly for companies that distribute their products globally.  In those instances where industry groups have adopted more rigorous standards, companies should seek to meet the applicable goals and objectives and proactively participate in industry product safety efforts to collaborate to develop ideas and techniques that will benefit all consumers and enhance the overall image of the industry itself.

ADDITIONAL RESOURCES

Books

Organizational Strategies and the Sales Function
Product Life Cycle Management – Guide to New Product Development
Product Manager Handbook
Sales Force Organization
Sales Leadership, Management and Supervision
Sales Organization Structure and Sales Force Deployment

Chapters or Articles in Books

Strategic Challenges and Change for Supply Chains

Articles in Journals

Developing Sustainable Products and Services
Green Supplier Selection Decision
Is It Real – Can We Win – Is It Worth Doing?
Issues in Supply Chain Management
Managing Technology Development Projects
Supply Chain Management – Theory, Practice and Future Challenges
Sustainable Manufacturing and Design
Vendor Management – Critical Component of Privacy Compliance

Theses and Dissertations

Business Analysis Process of New Product Development
Foundation for Sustainable Product Development
Managing R&D Processes

Papers

Behind Every Great Product – Role of the Product Manager
Best Practices in New Product Development
Designing Products and Services with Sustainable Attributes
Global Supply Chain Management
Product and Service Innovation in SMEs
Sales Agent versus Company Sales Force
Sales Forces Strategies for a Competitive Advantage
Small Firm Innovation in Non-Clustered Regions
Sustainable Products
Top 12 Product Management Mistakes

Government and Other Public Domain Publications

Cradle-to-Cradle Certified Product Standard
OECD Sustainable Manufacturing Toolkit
Sustainable Procurement Guide