Sample Business Studies Presentation Paper on Regulatory Measures

Regulatory Measures

In business environment, laws are formulated to assist in describing the relationships between individuals and corporations. Their purpose is to guide on morals and ethics of carrying out business operations in a society. Case examples are essential for highlighting how regulatory measures influence ethics in business. For instance, the Food and Drug Administration (FDA) has formulated numerous measures to ensure that all foods and drugs meet the standardized rules. Numerous regulation agencies have been established to enhance business ethics and to safeguard the public from exploitation. This white paper will discuss on how various legislations have affected organizations and how the legislature has taken measures to reform corporate abuse.

Federal Regulatory Agencies

The US federal regulations have managed to control and direct business activities toward customer satisfaction, rather than business needs. This has been observed not only in small and large public organizations, but also in private entities. Congress’ recommendations for self-regulation in organizations have motivated an extensive adoption of ethics, in addition to compliance to various organizational programs that facilitate strong ethics. In 1991, the US Federal Sentencing Guidelines for Organizations (FSGO) were implemented to offer organizations incentives for self-regulation through establishing effective ethics, as well as compliance programs meant to enhance an ethical organizational culture (Warren, Gaspar & Laufer, 2014).

Some of the legislative measures have successfully managed to respond to corporate scandals, as well as restoring confidence in the business environment. The case of the Enron Corp. scandal exposed the management to financial bankruptcy, as the corporate lacked ethical strategy to restrain the management team from financial problems (Livingston, 2012). This scandal led to the enactment of the Sarbanes-Oxley Act (SOX) in 2002 to prevent corporate firms from encountering financial fraud in the future. The SOX’s demand for better internal control procedures, followed by proper documentation, has enabled corporate firms to improve on financial reporting and auditing. The law has emphasized on strictness, as any individual found to obstruct justice is liable for a harsh punishment under the new criminal penalties.

According to Congressional oversight Committee, FDA has a role ensure that the public is protected from harmful drugs and foods through regulating manufacturing and marketing of such products. The recent actions by FDA concerning antibiotics in animal feed were expected to improve on both animal and human health. Such measures formed a part of the business ethics that FDA should focus on in its regulation practices. FDA is concerned about human reaction on corporate conduct, thus, it should restrict food-processing companies from manufacturing products that do not meet human needs. Although economically motivated adulteration do not fall within the level of FDA regulation, the agency should protect consumers from firms that fail to honor business ethics in their production processes.   

Conclusion

Despite strain between businesses and regulatory agencies, the partnership between regulatory bodies and businesses has helped in ensuring business ethics in the market, in addition to minimizing errant behavior. Corporate leaders have tendencies to misuse their powers, leading to intervention by the government to outline ethical conduct to protect the public. The legislature has been involved in drafting regulations that enhance business ethics in public and private organizations. FDA has been involved in offering guidance on food and drug manufacturing firms to ensure safety and quality on such products. The SOX has ensured that firms are open in financial reporting and execution of ethical conduct while the FSGO has stepped in to curb ethical misconduct in organizations.

References

Livingston, P. B. (2012). FEI’s Role in Shaping The Sarbanes-Oxley Act of 2002. Financial Executive, 28(6), 42-45.

Warren, D. E., Gaspar, J. P., & Laufer, W. S. (2014). Is Formal Ethics Training Merely Cosmetic? A Study of Ethics Training and Ethical Organizational Culture. Business Ethics Quarterly, 24(1), 85-117. doi:10.5840/beq2014233.