Government regulation has always been an important part of business as “regulations are essential for the proper functioning of society and the economy” (Ingram , n.d). A business is designed to generate revenue for its employees, employers and shareholders (Chindamo, Pg. 4-9, 2011). In a bid to keep increasing revenue, businesses throughout history have conducted trade using dubious, unsafe, and exploitive methods. In a bid to stem companies conducting business in an unsafe and unethical manner, the government has employed several methods to regulate this issue (Ingram, n.d).
Business regulation has been highly debated in the past as there both advantages and disadvantages, but the benefits of business regulation greatly out way its costs. (Ingram, n.d) The government uses diverse methods of regulation, which include advertising, environmental protection and privacy. (Holt, n.d)
The government regulates businesses in the advertising of products and services. (Holt, n.d) Laws exist by fair trading to protect consumers and keep businesses truthful about products and services. (Holt, n.d) A good example of when a business advertised falsely was in 1990 when a government investigation of GNB Australia Ltd, Pacific Dunlop secondary had falsely mislead the public through advertising that their batteries were made in Australia, when actually their batteries came from Asia and New Zealand (Holt, n.d).
Government intervention made GNB confess that they had been using inappropriate signs, brands and flyers (Holt, n.d). Pacific Dunlop gave actions in February 1991 that involved an obligation to improve its compliance advertising program during five years (mainly on marketing and advertising); remedial marketing; different marketing of batteries. (Tamblyn, pg.157, 1993)
Businesses can often leave carbon footprints when operating. The Environmental Protection Agency (EPA) regulates this aspect of business trading. (Holt M, n.d) They regulate laws about environmental protection through education and have done so when enforcing it through penalties to landlords in the state of Philadelphia America amounting to $14,850 and $5500 for not telling residents of lead-based paint within their properties. (Collins, 2008) These fines, proposed by the EPA on July 28, 1998, are part of the implementation of federal lead-based paint disclosure laws. (Collins, 2008)
In Business practice, privacy is an ethical and potentially unlawful issue, private information is taken from workers and consumers when leasing and whilst business transactions are being conducted, privacy laws are another way governments regulate business to stop businesses from releasing this information at will. (Grossman, 2013) Information taken could be a social security number, address, name, information about health, debit card and bank numbers and private history (Holt, n.d). Many laws exist to stop businesses from releasing his information, and people can indict companies for misuse of their private information (Holt, n.d). Those laws in place are another way why governments should regulate business. (Holt, n.d)
Without government regulation of the key areas of business such as advertising and marketing, companies could take unfair advantage of consumers. The environmental pollution issues which are an ethical issue would have had no stand point if not for government regulation. Privacy would also be violated which is unfair to the consumer and also an ethical issue, which must be addressed in all forms of business. Hence, government regulation of business is needed to keep trade fair and balanced for the good of the economy.
Chindamo P, (2011), ‘national CEO survey: Business Regulation’, Australian Industry Groupm, Pg. 4-9,
Collins M. 26/03/08 “United States Environmental Protection Agency Proposes Large Fines For Residential Property Owners Who Violate Lead-Paint Disclosure Regulation” Viewed 18th February 2013 http://corporate.findlaw.com/business-operations/united-states-environmental-protection-agency-proposes-large.html)
Grossman RJ. 2013. “No Federal Regulatory Relief in Sight.” HR Magazine Vol 58 (issue. 2), pg 24-2
Holt M, n.d, Five Areas of Government Regulation of Business, Viewed 18th February 2013, http://smallbusiness.chron.com/five-areas-government-regulation-business-701.html
Ingram D, n.d, Government Regulation Factors in Business, Viewed 18th February 2013, http://smallbusiness.chron.com/government-regulation-factors-business-2966.html
James G, 25/10/13. “Government regulation is good for business”, Viewed 29th February 2013, http://www.cbsnews.com/8301-505183_162-28552608-10391735/government-regulation-is-good-for-business/
Tamblyn J et al CH 11, Pg. 157, ‘Progress Towards a More Responsive Trade Practices Strategy’, Date published: 1993 (Australian Institute of Criminology), Viewed 29th February 2013, http://www.anu.edu.au/fellows/jbraithwaite/_documents/Manuscripts/businessreg.pdf)