...Measuring the Effectiveness of Business Practice Laws Jennifer Torres Fuentes DeVry University Measuring the Effectiveness of Business Practice Laws In the world of business, laws that are intended to protect and ensure fairness amongst competitors and consumers have their ups and downs when it comes to how effective they really are. There are various policies and procedures that are put in place in an attempt to promote fair, balanced and competitive business practices, whose effectiveness suffers because of a lack of enforcement to their terms. Until society as a whole owns up to how badly we have reverted into unethical and demoralized behavior, the effectiveness of laws put into place to encourage us to practice socially responsible behavior will not be effective. When the needs of the many supersedes the needs of the few, only then will these laws, policies and procedures put in place to encourage socially responsible behavior being to have any real effect. The Federal Trade Commission (FTC) enforces federal consumer protection laws that prevent fraud, deception and unfair business practices. The Commission also enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that could lead to higher prices, fewer choices, or less innovation. The Commission has enforcement or administrative responsibilities under more than 70 laws. They are grouped in three categories: (a) Statutes relating to both the competition and consumer...
Words: 930 - Pages: 4
...Part 3: Business Quality – 5 Practice Principles By: Gautam Borah Abstract: “Business Quality – The Fundamentals”, is the first treatise in the series of Business Quality. The first part contended a new Postulate on Quality which addresses the need of an organization and customer in the current global scenario of business. The title “Business Quality - The Delivery Model” is the second treatise on the subject of Business Quality. This is the third part titled “Business Quality – 5 Practice Principles”. This part delineates the principles on which the Business Quality is predicated. The treatise proposes 5 principles which can help an organization to create the DNA of Business Quality. Introduction The first treatise in this series of Business Quality discussed the notion of Quality in the context of current global business environment and a new postulate has been reprised. The second treatise delineated a Delivery Model for the postulate. This article is the Part 3 of the same series which illustrates the Practice Absolutes of Business Quality. The intrinsic notion of the practice principles The principles presented in this article are at practice levels. Unlike strategic principles, the practice principles aim at execution and will assist the organizations to build a culture of business Quality. Besides, practiced with a suitable monitoring and measurement system, these principles will act as the operational building blocks to sustain the Business Quality initiative...
Words: 842 - Pages: 4
...Competitive Business Practices Empress Crenshaw Devry University The United States has several laws that are intended to further fair, balance, and competitive business practices. Do you think that such laws are effective? When climbing up the ladder to successfully own a successful business the drive that one has to succeed is strong. We drive up ideas and plans that will up do and outshine any competition that may stand in the way of success. The key to climbing to the top of market and taking out the competition is by standing within the guidelines, rules, and regulation of the law. The Federal Trade Commissions also known as the FTC are the ones responsible and in charge of upholding and enforcing fair business practices that essential protect those entering in the free market. According to the FTC website the Unfair Business Practice Act was passed by Congress in 1914 and has since been amended multiple times to protect consumers and business from unfair practices and unfair competition. (Unfair and Deceptive Practices) These laws ensure and protect consumers ensuring that businesses don't push out their competition with unfair practices such as false advertisement or shooting up the price of goods. The main two categories these unfair competitive business laws fall within and protect these businesses from being taken advantage of in such a competitive market would be pricing laws and advertising laws. Protecting Business from Unfair Pricing Practices...
Words: 1130 - Pages: 5
...Assignment 2 Discuss key factors in creating a community of practice within a business Name: Aaron Overington Student ID: 05020344 Paper Number: 157.240 Paper Title: Social Media in Business Paper Co-ordinator: Dr. Barbara Crump | In 1991 Jean Lave and Etienne Wenger defined a Community of Practice (CoP) as a group of people who share a craft and/or a profession (Lave & Wenger, 1991). This definition was further refined in 1998 by Wenger who identified three dimensions by which a community of practice defines itself by, namely what it is about, how it functions and what are its outputs (Wenger, Learning as a Social System, 1998). In the writers opinion there are three key factors involved to creating a community of practice in the business environment and this essay will seek to discuss each of these. We will start with the domain of the community of practice, then the community itself and finally the practice. It is the combination of these three factors, according to Wenger, that make up a community of practice and the development of each of the elements in parallel that develops it (Wenger, Communities of Practice, 2006). We need to comprehend initially though that a Community of Practice is not the same as a team. John Brown and Estee Gray suggested in their 1995 article that “At the simplest level, they are a small group of people who’ve worked together over a period of time. Not a team, not a task force, not necessarily an authorised or identified...
Words: 1639 - Pages: 7
...Unethical Business Practices Charles Graham RES351 March 24, 2014 William Greer According to the Department of Justice (GlaxoSmithKline to Plead Guilty and Pay $3 Billion to Resolve Fraud Allegations and Failure to Report Safety Data, 2012), in 2012 pharmaceutical giant GlaxoSmithKline, LLC (GSK) plead guilty to fraud allegations and failure to report safety data, and agreed to pay $3 billion to settle civil and criminal liabilities. GSK was heavily promoting well known drugs for uses other than what they were intended, and approved for by the FDA. These promotions for non-intended uses were being made through back channels, such as directly to physicians through sales representatives, speakers at sponsored events, as well as advertising in medical journals. GSK had been circumventing the approval process to increase sales of drugs such as Paxil, and Wellbutrin, both anti-depressants. The company had neglected to provide information to the FDA regarding specific findings in research done after the drugs had gone to market. In one medical journal, GSK had published a misleading article that was contrary to actual findings. The misleading claims of GSK to healthcare providers regarding the effectiveness of specific drugs have had far reaching affects, of which cannot be immediately determined. Several of the medications are well known and branded for anti-depressants, and diabetes. According to the US Department of Justice release, GSK had made unsubstantiated claims that...
Words: 1160 - Pages: 5
...Yolanda S. Hawkins AC1301917 Instructor: Ms. Sally Lozado Assignment 3 – Illustration Essay: The Importance of Ethical Practices in Business Submission Date: December 16, 2013 In today's business world, favorable ethical practices are paramount. Companies and their employees are required to comply with national, international, and local laws governing their operation. Failure to comply with these standards can be costly in terms of time, resources, brand image, and employee and customer loyalty. Companies with strong ethics programs have found that these efforts can provide access to capitol that increases and stabilizes the company's financial performance, positively influence the company's employee commitment, enhance customer loyalty, and improve the company's reputation. Development of strong ethics initiatives can greatly reduce the chance of fines resulting from wrongful, fraudulent, discriminatory or illegal activities. As early as 1988, a study by the Business Roundtable, "Corporate Ethics: A Prime Business Asset," reported that "a strong corporate culture and ethics are a vital strategic key to survival profitability in a highly competitive era" and that "sound values, purposes, and practices are the basis for long-range achievement." More recently, some academic studies have shown a positive link between the existence of corporate ethics programs and financial performance. A 1997 DePaul University study found that companies with a defined corporate commitment...
Words: 537 - Pages: 3
...etiquette that is still reflected in many social and business practices today. If your organisation is planning to conduct business with Japan, potential success depends upon an understanding of this culturally influenced protocol. Japanese culture - Key concepts and values Wa - The most valued principle still alive in Japanese society today is the concept of 'wa', or 'harmony'. The preservation of social harmony dates back to the first constitution in 604 AD and the teamwork needed when living and working on collective farms. In business terms, 'wa' is reflected in the avoidance of self-assertion and individualism and the preservation of good relationships despite differences in opinion. When doing business with the Japanese it is also important to remember the affect of 'wa' on many patterns of Japanese behaviour, in particular their indirect expression of 'no'. Kao - One of the fundamental factors of the Japanese social system is the notion of 'face'. Face is a mark of personal pride and forms the basis of an individual's reputation and social status. Preservation of face comes through avoiding confrontations and direct criticism wherever possible . In Japan, causing someone to loose face can be disastrous for business relationships. Omoiyari - Closely linked to the concepts of 'wa' and 'kao', 'omoiyari' relates to the sense of empathy and loyalty encouraged in Japanese society and practiced in Japanese business culture. In literal terms it means "to imagine another's...
Words: 997 - Pages: 4
...Unethical Business Practices From 1999 to 2006, John Mackey used the internet to post inaccurate information concerning one of his competitors. He was attempting to drive down stock prices, buy out his competitor thereby eliminating competition, and finally create a monopoly. Normally making business profit is not a bad thing. One technique is for a business to cut prices, thereby becoming more competitive -- a plus for the consumer. Another is when a company or CEO uses devious tactics or unethical means to influence the market for corporate or personal profits. According to a statement made by Brian Schactam from CNBC, “John Mackey used a pseudonym on financial message boards to bash rival Wild Oats as a bad business not worth its stock price.” Those inaccurate postings concerning Wild Oats caused their stock prices to fall and deterred other investors from buying the stock. That tactic is highly unethical. An article on Daily Finance blogging dated July 11, 2007 cites the following statements and sources made concerning Whole Food CEO: “John Mackey often criticized Perry Odak, Wild Oats' former CEO, who resigned last year. "While Odak was trying to figure out the business and conducting expensive 'research studies,' to help him figure things out, Whole Foods was signing and opening large stores in OATS territories," Rahodeb wrote in 2005. "Odak drove off most of the long-term OATS natural foods managers" and brought in executives who "didn't know too much...
Words: 527 - Pages: 3
...companies conduct their business in such a way that is ethical. This means that a company should take into account their social, economic and environmental impact as well as consider the human rights also. The organizations that introduces CSR behaves more ethically and contribute to economic development. Many organizations do a lot to contribute to the society and environment. Companies express their citizenship through different practices like waste and pollution reduction, by contributing in social and educational programs (Horrigan, 2010). If an organization implements the CSR concept in a proper manner, it will benefit them in many ways: It can bring them a competitive advantage, like increase in their capital and market, increase in their profit and sales, saves operational costs, improvement in quality as well as productivity, efficient base of human resource, improve their brand image and also their reputation, increased customer loyalty, etc. Sustainability is necessary for an organization's success. It is a question of debate from past many years that should Corporate Social Responsibility be mandatory. This is a vision to become ethical and value driven society, it is easy to say, but difficult to implement. If CSR becomes mandatory it will be very beneficial for them as: CSR means contributing to the society either through company's products, services or operations or by any of its deeds and actions. This can be done by adopting practices that reduces the organization's...
Words: 913 - Pages: 4
...Nike Inc. Nike’s Unethical Business Practices Nike’s Unethical Business Practices Love those Nike shoes your wearing? Have you ever thought how they were made, who made them, and at what price they were made at? I bet you probably don’t. I bet that you see those Nike shoes at the store, and think to yourself, “oh I like those shoes, I have to have them,” and then buy them. What you don’t know is that those pair of shoes you just bought were probably made in a third world factory by employees who are probably working in harsh working conditions. These factories are not owned and operated by Nike, but contracted by Nike. Nike chooses to locate the majority of their production in such countries because of the abundance of cheap labor. Nike contracts factories around the world in effort to get the best product for the cheapest price made, without concern for contracted factory employee. Nike has not been concerned about what goes on in these factories only that the product is made, because Nike is not in the business for Human Rights, they’re in the business of athletic shoes sales. The Ethical Dilemma Nike has been accused with human rights violations. The charges that were made against Nike include the following: the use of child labor in factories, unsafe working conditions including exposure to toxic chemicals and the use of machinery without the proper safety precautions, pay below minimum wage and forced overtime hours. The contracted factories Nike uses to produce...
Words: 1640 - Pages: 7
...Fair Balanced and Competitive Business Practices Abstract The United States has many laws to further fair, balanced and competitive businesses. I believe these laws are useful and are put into place to protect businesses, organizations and consumers. These laws help protect against copyrighting, discrimination, insider trading and trademarking. Businesses must engage in ethical business practices which include abiding by government laws in order to be more successful and profitable. Bovee & Thill (2012) says that there is a great amount of concern regarding the ethics of business leaders, both current and future and the public seems to agree. The changing nature of business from manufacturing to knowledge technology has called for new levels of regulation on the part of federal agencies. Fair Balanced and Competitive Business Practices Business enterprises play an important role in the society. However, these enterprises could exploit other players in the market or affect consumers’ welfare in one way or another. In a bid to promote fair and competitive business practices, the United States formulated and implemented antitrust laws. Among them are the Sherman Act of 1890, Federal Trade Commission Act, and 1914’s Clayton Act (Broder, 2012). Over the years, these laws have proved adequate, suitable, and relevant in the business world. The primary objective of the aforementioned laws is to promote fairness and competition among businesses. In other words, these laws...
Words: 539 - Pages: 3
...In business and in the workplace, on the domestic front and in our social lives, we can all benefit from more effective communication skills. Every country has its own way of saying things. Communicating across cultures begins with the basic understanding that one size does not fit all. Simply because you practice certain cultural habits or patterns, does not mean that the rest of the world does. Failing to recognize and adapt to this diversity can mean the difference between a successful transaction and failure. The main criterion for effective communication is to understand the culture of the country you are doing business with. Culture provides a framework for acceptable behaviour and differences in ideals need to be recognised, valued and appreciated before any real communication can take place. Gestures and conversation may vary between your country and France. Topics and gestures you may deem normal and acceptable, may be viewed as taboo subjects . Such errors in communication may have a serious impact on the success of the negotiation process. While France is a culturally aware nation, the French also have high expectations when it comes to understanding their culture – so preparation is a must if you are to create a positive image from the beginning. To become successful as a cross-cultural communicator: • Remember that your own culture provides an acceptable framework for behaviour and belief. • Be aware that your preferences and behaviours are culturally based and...
Words: 314 - Pages: 2
...ECS1260-65 ECONOMICS (FOR BUSINESS AND) MANAGEMENT 2012-13 Seminar Exercises 13 (to take place in Week 16 starting 11th February 2013) 1) Please say whether the following statements are true or false: a. An economy experiences growth if it produces more goods and services than the year before. (T) (An increase in the production means an increase in the GDP) b. Investment in physical capital means hiring more employees. (F) (Human capital is used for workforce) c. The convergence hypothesis asserts that poor countries grow slower than rich countries, thereby widening the income gap between the two sets of countries. (F) d. Trend output fluctuates around actual output, since it is latter that matters most. (F) (Actual output fluctuates around Trend output due to change in trends) e. Real business cycles assume that cycles reflect fluctuations around output, while political cycles reflect fluctuations around the political establishment. (T) ( f. In the business cycle, recession follows boom, and is followed by slump. (T) g. During recession, business profits increase. (F) Multiple Choice: 2) An increase in living standards generally takes place when: a) GDP grows vigorously over a long period of time. b) GDP declines only moderately. c) GDP is volatile. d) GDP long-term trend is flat. 3) Which of the following is NOT an example of an increased standard of living? a) Lower life expectancy. b) Indoor plumbing...
Words: 428 - Pages: 2
...Week 5 Individual Assignment By Felicia Lattimore The SOX Act: Unethical Practices and Behavior in Business Accounting LAW/421 – CONTEMPOARY BUSINESS LAW September 6, 2014 Aretha Somerville Introduction Unethical decisions can ruin a business. Dishonest behaviors by accountants, such as falsifying financial statements, over-billing or misleading regulators, can tarnish a company's reputation, causing loss of customers, employees and/or revenue. In some cases, unethical behavior is also illegal and can result in fines and even jail time for not only accounting executives but management executives as well. The Sarbanes-Oxley Act (SOX) was enacted in 2002 in the wake of a series of high-profile corporate and accounting scandals. SOX introduced major changes to corporate governance and the regulation of financial reporting that affected both publicly traded companies and their auditors. Ten years after the passage of SOX, there has been a dramatic increase in financial statement restatements. This is due to statement issuers complying with SOX during their initial preparation. This trend has been attributed to improved corporate governance as a result of SOX. Although we have not seen restatements as large as those of Enron and WorldCom in recent years, it is not clear that SOX has caused a reduction in the number of restatements across all publicly traded companies. The number of restatements during 2007 through 2009 declined, but they remained...
Words: 823 - Pages: 4
...In the business world, unethical practices are wildly used as an easy way to success in a business, but ethical business practices can be used by businesses to maintain their integrity while being successful financially and in other business aspects. An example of a successful company that has had much favourable outcomes from incorporating ethical practices is IKEA. IKEA was founded in 1943, and since then has been striving to implement ethical conduct. IKEA has demonstrated ethical conduct by its efforts in striving to be environmentally friendly, remaining true to its ‘no bribes’ policy, and its strict rules on child labour. IKEA’s success can be a model by other businesses. Many companies involved with unethical conduct usually face the consequences of their actions in the future. Although the company may be fooled by immediate and positive results from their actions, many have failed because of immoral decisions. Some examples of these failures are bankruptcy, or decrease in customers. Ethical business practices can have a more positive and even long-term impact on a company than unethical business practices. As a company, IKEA prides in itself for delivering affordable, sustainable, and environmentally friendly goods. “The company is doing pretty much everything it can to make its products, and stores, as energy-efficient and sustainably produced as possible as part of its program of ‘never-ending improvements’.” IKEA has implemented many strategies to achieve this...
Words: 1490 - Pages: 6
