The Regulatory Cycle Process - Term Paper Example

?Midterm Exam Question The regulatory cycle is a process that involves developing a system then introducingit, reviewing its progress and finally amending regulations (Australian Government). This is so that the system can set objectives and maximize on net benefits. In most cases, it is usually adopted by governmental agencies who take charge of enforcement process as this enables them come up with better strategies. The regulatory cycle easily identifies each segment, which enables easy detection of underdeveloped elements or missing sections in the cycle. Where regulations put in place are non-enforceable; feedback from the regulatory cycle ensures that the necessary adjustments to the legal framework take effect. In a regulatory cycle, consultation should be taken in priority at all stages. When consultations are carried out early in the regulatory process it is easy to understand the nature and extent of the range of possible options that can address it together with potential costs involved. When it comes to government policy and consultation, it leads to establishment of best practice on stakeholder consultation in aim of maintaining a better regulatory process. The regulatory process played a major role in the automobile industry. The cycle required the management to re-strategies their future plans according to the set regulations. As part of the regulatory cycle, carbon constrains policy measures were being introduced into the system, which meant a drastic measure for the automobile industry. The policy is designed to moderate the emission of carbon dioxide (CO2) together with other greenhouse gases. Regulating the emission of carbon dioxide directly affects the motor industry, which means that management decisions in the automotive industry had to be adjusted. The management of automotive industry was forced to change their plans as the new regulations meant that their products were supposed to meet certain standards for them to gain market. The key idea is that if the industry is facing pressure to minimize carbon emission then the costs for manufacturing will definitely go high as a result the vehicle pricing will have to go high. Another thing that management will have to come up with is the change in competitive advantage. Increased technologies, advanced engines, and designs will no longer be the basis of competition this is something that management needs to understand. Instead, management will have to focus on a rather different strategy that incorporates reducing carbon dioxide emission in order to stay competitive. Question 2 After a careful analysis of Kellman’s critique on cost benefit analysis, I find it logical to agree with his ideas as decision-making should be something taken while focusing on all considerations. It is rather unfair for decisions to be made in terms of benefits alone instead of weighing other factors involved such as moral and ethical consequences (Kellman). It is true that on a moral level cost benefit analysis cannot be suitable for making all life decisions. Just as he explains with critical assessment, the negative and positive consequences that are experienced from an act in most cases go beyond the act’s instantaneous consequence. Perhaps one of the most affected group is the minority, as cost benefit analysis never concentrates on the minority. Furthermore, negative group against moral consideration in making decision is another group that Kellman introduces as utilitarian. This group makes decisions on their acts whether they are wrong or right it all depends on its consequence of action. If there were satisfaction then they would maximize their satisfaction believing that whatever they are doing and generally believe that it is right. My opinion would be cost benefit analysis only ought to be made after all other needs are met such as whether the decision is morally accepted and are there any groups of minority. Corporate sustainability is an approach that brings in a long-term employee and consumer value by not building only an environmental friendly strategy but also considering every dimension of the business. These dimensions comprise of social economic and cultural environment. Corporate sustainability is a traditional evolution that foresees phrases that define ethical corporate practices in sustaining the natural environment or engaging with the social environment. A good example of corporate sustainability is by FedEx Company. The company was planning to increase fuel efficiency for its fleet. The company therefore urged the government to set regulations in fuel economy and gas used by commercial vehicles. The key concept was not for it to have benefits in reducing costs lobbying for a market for efficient vehicles. This would also have a positive impact on the environment by reducing carbon dioxide submission into the environment. Question 3 A stakeholder analysis is a method frequently used locates and investigate the force field formed by any group or individual by the growth or achievements of a particular organization. Through stakeholder analysis, the firm gets to understand how different stakeholders affect or influence the activities of the organization. It can be also able tell whether the stakeholders have a positive attitude and ambitions to see the organization’s targets achieved. The stakeholder analysis takes the following steps in its analysis: Identification of stakeholders, understand their needs and interest, balance, prioritize, and finally integrate their needs into organizational strategies and actions. Since in corporate social responsibility requires the organization to give back to the society, it requires prior planning on strategies to deliver such actions. Stakeholder analysis can be a good tool to use to analyze the organizations stakeholder just before carrying out the corporate social responsibility. The analysis will be able to indicate the stakeholders’ potentiality in carrying out the responsibility. In terms of fiduciary duties of management, the analysis affects negatively the decisions of managers and board of governors. This is because with a stakeholder analysis the stakeholders become aware of the entire operations of the company. They take into account strategies implemented their contribution and become aware of what decisions to make which leaves little room for management to influence their decisions. Michael Novak’s solution to the situation is to urge the management and board of governors to focus only on stockholders instead of stakeholders in making their decisions and investment plans. Question 4 The convenient store at the ghetto in California will benefit the most in this case. The low class group in the society will also be part of beneficiaries from the shipping of the defective wafers to the inner city especially those who get to buy the ones that are not defective. They have been given the chance to buy something that was of higher quality and prestige at a very low price. They also get to try something new. The groups that will be harmed because of this shipment include the upper class because they have to forego what they like and prefer because of fear that they will make a loss if they buy it at such a high price and find it is defective. The department where Sarah worked would also face loss because they have to sell the wafers at a very low price and for the defective ones they will have to refund customers a move that will see them incur a great loss. The England Company that shipped the wafers is the one that has to exercise their rights by shipping the wafers and ensuring that they were delivered. The receiving store where Sarah worked were the ones unlucky not to exercise their rights as they were ignored because of the surety where the defectiveness happened. Whether it happened while shipping or at their warehouse despite that, they were unable to convince the England Company that the wafers were already defective. The moral issue in this case is that all the companies were focusing on cost benefit analysis and they did not consider any moral choices as long as they made their profit. None of the companies starting with the England Company, Sarah’s department, and the convenient store at the ghetto; they did not consider the wellbeing of their customers nor their rights as long as they made the sale. The economic outcomes in this situation may flourish in the short term but after a while, trust will be lost and it could cost the economic outcome of the area. Legally the decisions taken by these groups of people were all wrong and the people should abide by contract laws so that another exploits no group of persons. Each group in this case should have carried out their moral duties and shift blame to where it arose instead of exploiting the inferior group in the society. References Australian Government. The Best Practice Regulatory Handbook. Canbera: Office of Best Practice Regulation, 2007. Print. Kellman, Steven. "Cost-Benefit Analysis: An Ethical Critique." AEI Journal on Government and Society Regulation (1981): 33-40. print. Read More