Responsibility of the US Authorities for Harmful Business Activities Report (Assessment)

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The United States Congress is composed of four hundred and thirty-five members of the House of Representatives and one hundred members from the Senate. It should be noted that Congress is a bicameral system composed of the Senate and the House of representatives.

Congress has the duty of representing local interests while at the same time looking into national interests. It does this by carrying out legislation or by shaping public policy. Several issues fall in this bracket. Congress is authorized to make policies on the budget through decisions on taxes, excises, and imports. Sometimes, Congress may borrow money on behalf of the country from foreign nations. Its roles include making rules concerning national defense where they can declare war or decide how the army will be maintained. Additionally, this body is in charge of the establishment of courts or any other measures that are deemed necessary in the running of the country. Some of the issues that are affected include patents, copyrights, and roads (US Congress, 2011).

The structure of Congress in terms of the committee structure highly depends on the kinds of legislation being passed. Lobbyists often introduce a bill and this is examined by a committee initially. The rules committee operates in the House of Representatives and ensures that certain rules are followed in lawmaking. Similarly, a standing-rules committee is responsible for the same functions in the Senate. Standing committees then come in during lawmaking as these committees are often responsible for specialized subjects. Sometimes this committee may carry out its mandate by involving the public.

Congress is related to the President because it is one of the three branches of government so it must work hand in hand with the executive branch to govern the nation. Congress is in charge of investigating the executive. This duty was witnessed during President Nixon’s government when parliament investigated him in the Watergate scandal. It can therefore be said that it plays an oversight role. This branch may impeach a head of state if investigations are incriminatory.

Natural monopoly problem

This is a case where the biggest supplier in any industry has huge cost advantages over and above his potential competitors or existent competitors. Such trends are common in industries that are capital intensive such as the electricity industry or water and sewerage services. Industries that have such huge infrastructural costs will have huge barriers to entry. Once one firm has managed to enter such a market then it will have huge economies of scale and this will prevent other companies from entering the market. A company will be called a natural monopoly when the concerned corporation can supply the entire market after considering the costs of production. This phenomenon emanates from the relatively low marginal costs (Sharkey, 1982).

Natural monopolies may be manifested in industries that offer services that are a social necessity. Examples here include water and sewage. Most private firms are not attracted to these industries because they require the establishment of networks. Therefore, because the service is vital then a government-owned firm will come in. In this regard, the monopoly is created by law. Alternatively, it may come up simply by the circumstances in the industry and the ability of the concerned parties to handle the capital constraints. A natural monopoly may result in abuses by the company and this may prompt government regulation. It could cause excessively high prices of products and abnormal profits. Such industries may also witness slow rates of development and expansion and consumers may not enjoy superior services from natural monopolies as inefficient and poor service quality will not result in consumer departure.

Ethical issues of marketing infant formula in developing countries

Marketing infant formula in development causes mothers to substitute breast milk with these formulas because they may not be well educated on the importance of breast milk. Furthermore, most of them may be illiterate and may not be in a position to accurately read instructions on preparing the formula. This leads to several health complications (Clement, 1978). Alternatively, some may be experiencing financial constraints and may over dilute the formula thus causing severe cases of malnutrition. Alternatively, hygienic conditions in third world countries are very poor and most will use untreated water to prepare the formula which will lead to diarrhea and other similar complications.

The responsibility, in this case, lies in the hands of the marketers who must first give instructions in local languages, emphasize the importance of breast milk and avoid images that make it seem like formula is more superior to mother’s milk. Generally speaking, tactics applied in mass marketing should not be used here. The principles should include no distribution of formulas as free samples, no images or words that make it appear as though the formula is better and no health officers should be seen endorsing this method of feeding. There are several ethical complexities. First, the formula is still a commodity like any other and if individuals are restricted from advertising then very few options will be available to the public yet some mothers cannot genuinely breastfeed. Scientific research has helped in revealing organizations that continue with these practices.

Social responsibility

Businesses have the responsibility of ensuring society’s well-being either through avoidance of harmful activities such as pollution, injuries, and the like or through active roles such as advancement of certain social goals (Kaliski, 2001). In essence, this will lead to self-regulation that will prevent objections brought on by public outcries. The government is responsible for setting standards and ensuring that the rights of the public are protected from any harm or exploitation by businesses. Individuals must make businesses accountable by purchasing products from ethical firms.

References

Kaliski, B. (2001). Social responsibility and organizational ethics. NY: McMillan.

Clement, D. (1978). Infant formula malnutrition: threat to the third world. Christian century, 720-721.

Sharkey, W. (1982). The theory of the natural monopoly. Cambridge: Cambridge university press US Government. (2011). US congress. Web.

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