The article discusses the limitations of the current approach to dealing with health issues caused by tobacco, alcohol, fast food, guns, and cars. The author states that the existing system focuses on policy change, financial incentives, taxes, and community initiatives (Halbert & Ingulli, 2020). For example, the rate of smokers is controlled by banning outdoor smoking or increasing taxes for tobacco companies. Furthermore, more attention is given to voluntary participation in programs and population education.
The alternative introduced in this article is a system of performance-based regulation. As described by the author, it is an approach that places the responsibility for improving health outcomes on the manufacturers and sellers of the discussed products. The goal for reaching a positive change is set, and companies that fail to meet this goal are penalized. A regular measurement system and a penalty system are put in place to organize the process and ensure that it is beneficial for the firms to comply rather than deal with the consequences of failing. Tobacco companies are taken as an example – the rate of smokers has fallen in the last years, but it is still above the desired goal of below 12 percent (Halbert & Ingulli, 2020). The author provides a moral argument that tobacco producers should take responsibility for deaths related to smoking and develop ideas on how to reduce the number of customers.
The reliance on the current approaches is problematic because it results in an ineffective change. First, regulators can make mistakes, stall the process, use their position to their advantage, and follow self-interests. Second, although taxes and subsidies may have positive effects, their use depends on the elasticity of demand and is unstable. Another problem is target inefficiency – the inability to deter consumers from switching to cheaper alternatives instead of quitting unhealthy habits. Litigation also has drawbacks due to the high cost of lawyers and a focus on individual problem solving rather than systemic change.
Reference
Halbert, T., & Ingulli, E. (2020). Law and ethics in the business environment. Cengage Learning.