ELEC Ltd. is a consumer-oriented company engaged in the manufacture and sale of household electrical appliances. The company promotes its products…

CA Final · Advanced Auditing, Assurance and Professional Ethics · RTP · May 2026
ELEC Ltd. is a consumer-oriented company engaged in the manufacture and sale of household electrical appliances. The company promotes its products widely through online platforms and advertisements. However, some advertisements overstate the benefits of the products and do not clearly disclose information about environmental impact or safe disposal. Further, customer complaints relating to data privacy breaches and defective products remain unresolved due to the absence of a structured grievance redressal mechanism. The company has also discontinued services to certain low-income regions, stating that it is not commercially profitable. With reference to nine Principles of BRSR, analyse the above situation in relation to the responsibility of ELEC Ltd. towards its consumers.

Suggested Answer and Working Notes:

(a) In the given situation, ELEC Ltd.'s practices, such as overstating product benefits in advertisements, failing to disclose environmental and safe disposal information, leaving customer complaints on defective products and data privacy unresolved, and discontinuing services in low-income areas, indicate gaps in its responsibility towards consumers and conflict with Principle 9 of BRSR – “Provide Value to Consumers in a Responsible Manner. As per Principle 9 "Provide Value to the Consumers in a Responsible Manner", the primary purpose of any business is to create or provide useful products and services to the customer in exchange of reasonable profits. The core elements associated with the principle are: (a) Entities should put in their efforts to reduce the negative impacts of their products and services on consumers, natural environment, and society at large. (b) When conceptualizing, designing, and marketing their products, the organisation should not in any manner prevent the freedom of choice and fair competition. (c) The entities should transparently and accurately disclose all kinds of adverse impacts to the user, planet, society, on the biodiversity from their products. (d) When handling customer data, the right to privacy of the customer needs to be maintained. (e) Entities should inform the customers on the safe and responsible ways of usage, reuse, recycling, and disposal of their products, and ways to eliminate over-consumption. (f) When advertising about their products, the organisations should ensure that misleading and confusing information is not exposed to the customers about their products or its usage. (g) Business enterprises should make available transparent and accessible grievance redressal and feedback management system for their customers to raise their voices or to seek clarifications. (h) Entities, when in the business of providing essential goods and services (e.g., Utilities), should enable universal access, including to those whose services have been discontinued for any reason, in a non-discriminatory and responsible manner.

Topics: Emerging Areas: Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic