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Ethics and Social Responsibility in Procurement

Ethics and Social Responsibility in Procurement

It has become increasingly hard to ignore the fact that some previously-passed laws concerning the U.S. industry suffer from serious limitations and have to be amended to fit the contemporary world of business. In other words, some laws epitomize the source of the economic problems, which are to be resolved within the legislative process of introducing amendments. It is important to mention that while the law functioned well thirty years ago, it would not necessarily produce the same effect at present. Needless to say that many factors are to be taken into considerations while designing the laws or suggesting any changes. Namely, the issue of economic growth, government’s welfare, and humans’ security are vital in planning the laws and regulations.

Doubtless, considerable attention should be given to the overall economic growth as it is one of the major aspects within the commercial activities. To speak about the subject in a more specific way, it is essential to outline that the existing laws should not affect the employment, as it in turn makes a negative impact on the standards of living and, as a result, on the state budget. Additionally, the laws enacted by the government are to regulate the balance between the costs and direct benefits of the industry. In such a way, such strategy will promote a stable income and high industrial employment. However, the industry cannot be regarded as a contributor to the economy unless it is environmentally sustainable; therefore, the laws are to control the impact of business upon the environment. Furthermore, to benefit the economic welfare, it is important to linger upon the laws related to a small business, which in most cases fails to survive due to the misleading policies. Therefore, in the following paper, the Clean Air Act and the legal issue of the Business Licenses and Permits are analyzed and the necessary changes are suggested in accordance with the interests of the Government and the industry.

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The Clean Air Act and Suggestion on Some Changes

Despite that the Clean Air Act was initially aimed at limiting the air pollutants emitted by the factories, the law had a considerable impact on the economy of the U.S. Indeed, the costs spent on the environmental-friendly technology will eventually be compensated by the revenues. To be more precise, saving energy and raw materials will allow manufacturing the products of the same quality but in a larger quantity. Furthermore, as the companies must keep within the law, the demand for the environmental-friendly technology will rise. Ultimately, the government will benefit economically and environmentally from developing the cutting-edge technologies (Lipton, 2006, p. 76).

However, the difficulties arise when an attempt to enforce the law is made. The Clean Air Act does not provide for the initial costs of the company that has opted to become sustainable (Power, 2010). Therefore, such companies are to be supported by the financial assistance. It is desirable that the Government furthers the development of sustainable technologies and makes them accessible for the companies. It is worth emphasizing that the amendments will contribute to a substantial increase in a number of companies that welcome the innovative approach. Besides, the Government’s expenses will be repaid as the rate of the air-pollution-related diseases will be reduced; consequently this fact, presupposes less money spent on the medical treatment. Moreover, the workers of the air-polluting industries tend to stay at home without a good reason not to be exposed to the hazardous emissions. In fact, the adoption of the amendment will result in a reduction of absenteeism among the American workers. As a result, the profit of the Government and the industry will exceed the initial costs if the companies are motivated by the investments and provided with the brand-new equipment.

It is worth admitting that the high taxation of the sustainable industry is undesirable (Power, 2010). It is obvious that the amendments should make provision for such case. To be more precise, it is critical to lower the taxes, so that the rise in wages of the workers is guaranteed. Nevertheless, the Government needs to levy the double taxation on the income of the air-polluting industries. In such a way, the Government will obtain the tax revenues and stimulate the companies to purchase the sustainable technologies.

What is more, it is strongly recommendable that the investors, who want to run the business legally, should donate a particular sum of money to the organization that explores the sustainable technologies. The investors, in turn, will make a profit on annual revenues of the companies, as a certain percentage of income is to be assigned to them. Therefore, such law will contribute to the development of the modern cleaning installations. It is worth admitting that the new amendment will reduce the Government’s initial costs spent on the advanced industrial processes (United States Environmental Protection Agency, 2014).

However, all the previously mentioned changes in the law suffer from a serious drawback. To a greater extent, a moneyed assistance, safe working conditions, rise in the salary, low taxation, and an increase in profit of the whole industry may result in the job shifts in the particular sectors. Consequently, the employment rate in the non-polluting industry remains rather low whereas the major labor sources are likely to be concentrated in the companies equipped with the innovative technologies. Therefore, it is increasingly important for the Government and the industry to enact the law that eliminates a significant change in the employment. For this purpose, the amendments should state that the low taxes are to be levied on the companies that do not emit any poisonous substances.

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Legal Issue of the Business Licenses and Permits and Suggestion of Some Changes

Though the environmental regulations pose certain problems to the industry, the economy faces more serious limitations, such as the problem of running small businesses. It is hard to argue that starting a small business involves a risk, as the small companies are particularly affected by the taxation and all procedures, which are necessary to pass. Evidently, the individual has to obtain a number of licenses and permits (The U.S. Small Business Administration, 2014). However, the demands of the Federal, state, and local governments are difficult to meet. In fact, the reduction of small companies has a negative influence on the U.S. economy. Apart from meeting the public safety standards, the micro-companies bring some revenues to the Government; thus, they create an efficient business environment. Indeed, the small-scale companies play an important role in the maintenance of the economic growth, as they promote the creation of the new jobs. Moreover, the development of small companies will lead to the improvement of competitiveness within the market.

It is essential for the Government to motivate the entrepreneurs to start a business. For this purpose, the requirements for getting a license have to be simplified. Otherwise, the business person would fail to correspond to the demands or simply fear the high taxes and inadequate income. The strict rules may result in running a business illegally by evading the taxes. Apparently, such situation is not beneficial for both the Government and the economic promotion.

The issue of simplification of the business registration has raged unabated due to a wide range of reasons. First of all, the local and national governments have a little agreement on the essential permits, which every business person is to obtain. While the National Government struggles for the reduction of the permits, the local government needs to communicate with the small companies without assistance; therefore, it tends to increase the number of requirements to ensure the public safety. In fact, the reason of why the local government put down numerous demands is that it has to be aware of every small business running in the area. This information will contribute to designing the policies, which will be in the best interests of the economic activities.

The plan of simplification of the business registration can be implemented with successful outcomes for the national and local governments, as well as for small businesses. The main aim is to bring the work of the National Government into compliance with the local governments. The organization of such cooperation should be arranged both vertically and horizontally. Therefore, the National Government should promulgate the law, according to which the local authorities will take all the rights to render the permits. In other words, it should be no longer necessary to apply for the national government to start a business.

It is obvious that the local government also has to take some responsibilities in simplifying the process. Therefore, the joint affords will increase the number of small companies and encourage the entrepreneurs. To be more concrete, it is vital to eliminate the requirements, which have become irrelevant. For instance, a serious consideration should be given to the issue of zoning and land use permits (Thomson Reuters, 2014). These requirements may be regarded as additional; therefore, they should refer to the controversial point of the land use management. For the most part, all big manufacturing enterprises have to acquire the environmental impact analysis while very few micro-companies have to pass the same procedure.

Furthermore, some permits are regarded to be redundant as they restate each other. For example, the legal issues that refer to the public safety may be united in one license. Therefore, the fire department permits deals with the safety measures to avoid the conflagration while the health department permit covers various precautions (Thomson Reuters, 2014). To a great extent, both permits ensure the human’s safety and health; consequently, it is possible to merge them in a single license. The following amendment will speed up the process by saving the time and resources of an entrepreneur.

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Conclusion

On the whole, the contemporary laws and regulations should be aimed at creating a business-friendly environment for the Government’s and economic benefit. However, it is somewhat difficult to find a compromise between the private persons and the governing body. Therefore, various changes are suggested to reach a consensus. It is worth emphasizing that a considerable attention should be given to the needs of the private individuals, as they are interconnected and interdependent with the direct interests of the Government.

The Clean Air Act is the federal law, which was promulgated more than forty years ago. Needless to say that, in the twenty-first century, this legal issue has to be altered to perform its functions well in the economic and ecological environment. Therefore, it is fundamental for the Government to encourage the enterprises to use the sustainable technologies by means of laws and regulations. The amended law should make provision for the initial financial assistance, low taxation, and taxes upon the investors in favor of the environmental-friendly companies.

The legal issue concerning small businesses is a major area of interest within the field of economy. Numerous requirements for getting the licenses and permits discourage the entrepreneurs to start a business, so that it has a negative influence upon the economic development. Therefore, it is necessary to reduce the number of demands and, as a result, to simplify the process of the business registration. For this purpose, some permits, which in the course of time have become irrelevant, may be eliminated or merged.