Fraedrich And Ferrell: Business Analysis

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According to Ferrell, Fraedrich, & Ferrell, the Better Business Bureau (BBB) is best known for its self-regulation that expresses a commitment to” adhere to certain rules that demonstrate best practices and social responsibility” (Ferrell, Fraedrich, & Ferrell, 2015 p. 476). Moreover, BBB “uses its website, newspapers and the media to inform consumers of businesses who have violated these standards” (Ferrell, Fraedrich, & Ferrell, 2015 p. 476). However, recently there have been reports of BBB favoring the businesses over the consumer because the business pay for statistical information from its consumers’ report while charging the consumer a fee to resolve any dispute or complaint against a business. Furthermore, BBB appears to favor the businesses with a membership over the consumer, which it promised to protect.…show more content…
Moreover, the investigators proved that the local BBB gave accreditation and an A-grade to fake organization that were nonexistent for a fee of $425 (Ellis, and Hicken, 2015). Katherine Hutt, a spokesperson for the Council of BBB, stated that BBB’s response to the “rogue branch proves that the BBB is the leader in advancing marketplace trust between businesses and consumer”, but some consumers questions how can BBB remain a fair, honest and unbiased broker between businesses and consumers when it is fully funded by the business (Tuttle, 2013)? The consumer is in belief that that BBB has incentive to give its paying clients in the best rating regardless of the truth (Tuttle,
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