Rules for Businesses and Other Activity - Essay Example

Legal Regulation Regulation implies providing frameworks and rules for businesses and other activity. Some elements of business activity such as Advertising standards Authority offers a voluntary code of ethics for regulating advertising behaviors in some countries are self regulating. It is therefore advisable that many areas of business need to be regulated by the government via setting up of compulsory regulation rules supported by legal sanctions like fines to those who violate the rules. Regulation is the ability to control the conduct of oneself in order to conform to the laid down rules or norms. Regulation can adhere to different forms such as self regulation by an organization via social regulation or trade association or legal restriction instituted by the government authority. Regulation in the business sector is very important in that it is mandated by the government in an attempt to yield outcomes which might not be realized, prevent or produce outcomes in distinct places to what might not have taken place or prevent or produce outcomes in distinct timescales than would have occurred. In this manner, regulation can be perceived as implementation of policy statements that aim to bring sanity in business by ensuring that there is neutral for all players to benefit (Scherer, 1996). The State has always regulated companies because it is aware that the safety of the public and their welfare is its priority. If the activities and behaviors of companies or industries are not regulated and reviewed, they can have harmful effects to human health, community structure and financial well being of people. It is plausible to argue that these regulations are put in place with the intention of protecting those people who have set their businesses correctly on the market via acquiring working licenses, inspections and permits that allows them to operate, therefore, the State tries to weed out criminal or undesirable activities that undercut honest industries. The State has always engaged in regulating businesses by stating that efficient and effective business regulation is necessary since it propagates situation where the total benefits of some people do not exceed the total costs of others. Government regulations are important since they aim to achieve various objectives. If businesses are not regulated, then there will high standards of malpractices whereby the consumer will be exploited and deprived of his rights. Because of market failures, it is necessary for the government to control and regulate the behavior of firms since market failures can easily lead to market monopoly whereby the market will be dominated by a single supplier of particular commodity. In addition, regulation of business will lead to public good or collective action whereby the product or goods being distributed to the public is suitable for public consumption and it does not reduce its availability for consumption of others. Further, regulation of business is of great necessity bearing in mind that it promotes collective desires meaning that regulation is concerned about collective demands or desires of the entire society as opposed to individual interests (Murray, 1999). Another reason as to why it is justifiable to regulate business is due to the concept that regulation is perceived in the context of enhancing opportunities for creation of diverse beliefs and preference for particular goods. If businesses are left unregulated, there is the possibility that there will be social subordination of various groups; therefore, once they are regulated, social subordination is reduced thus creating just society. More so, regulation is necessary when viewed in reference to organizational behaviors. In this case, it is important to maintain high standards of professional conduct by stipulating how industries need to behave on the market and avoid consumer exploitation. If such regulatory measures are taken, there is high potential that those companies that weak on the market are protected by the law and cannot be exploited by the strong or big companies. If businesses are well regulated, these results in a scenario where benchmarks or platforms are created that make companies work hand in hand in trying to fix market prices that are favorable to the consumers. Professional code of conduct establishes standards and provide appropriate platform for ethical behaviors. Regulation is important as competitive markets give the best results to deliver services to the consumers in addition to providing incentives to improve service quality and efficiency. In some sectors, economies of scale and network effects create conditions like natural dominations, which, in up to date technological patterns, may limit the view for effective competition. Under such areas, self-regulation will be required over the long term to go on providing important protection on consumers and ensure their interests are promoted through giving good quality, sustainable, and reliable services (Scherer, 1996). Regulation typically caps the prices which dominant companies charge so that fairness and efficiency can be promoted, while at the same time providing them with a return on investments and assets. In doing so, regulators deliver recognizable benefits to the consumers. Moral awareness influences ethical reasoning and moral decision making. This mixture among business sectors influences social self regulation thus making it possible to undertake self regulation in business. It is evident that business personnel with self regulatory characteristics are more ethically aware and thus relate such awareness to building and maintaining personal integrity and interpersonal faith or trust. Those business personnel who have weaker self regulatory characteristics are less ethical or morally aware and therefore, focus more on moral matters relating to loss and failure. People are capable of self regulation because they are consciously aware of the environment that surrounds them. It is this consciousness that directs them to make moral reasoning and ethical decision making. It is true that businesses encounter many issues related to morals in that people involved have to make distinction between personal gain and causing harm to other people. In my perspective, self regulation is possible since it is significant for moral reasoning because everybody self regulate the selection of ends and means within a framework of ethical ideals, values and norms (Tibor & Bruce, 2001). In addition, people self regulate their own behavior and thought in relation to moral identity and laid down laws thus leading to creation of a conducive business environment that respects the needs of everybody. By legally entailing that people behave in particular ways which are not in their best concerns in performing their professional duties; regulation can alter firm’s choices and behavior. For instance, regulation expects people to transfer their values directly to others. Since the conditions of a regulated exchange are forced, they go against the will of at least some participants in the operation. Government regulation only happens when: there is a need efficiently conserve a natural resource, undesirable market structures exist, negative economic externalities such as pollution get associated with a company’s activities, there is a desire to dilute or control huge power blocks in the country’s economy, and if the market of a company is judged with social undesirables (Tibor & Bruce, 2001). Therefore, the government is justified to regulate businesses since failure to do will lead to creation of a consumerist culture where big companies exploit both the customers and small companies. In addition, the government intrusion in regulating business and economics is justified on the grounds that market conditions that are fully competitive do not exist and thus cannot protect small companies and consumers by themselves. It controls smokestack factory emissions and provides tax breaks to firms that offer retirement and health benefits to their employees that meet particular standards. I strongly support the concept of regulation business. More so, individuals are capable of self regulation since it drives them to make moral decisions that influence their interaction. References Murray L. (1999). Business and Government .Upper Saddle River, N. J.: Prentice-Hall.  Scherer, F.M. (1996). Industry Structure, Strategy, Public Policy. New York: HarperCollins. Tibor R., & Bruce, M.(eds.), (2001). Rights and Regulation .Cambridge, Mass., Ballinger Publishing Co. Read More