Case Study - Better Business Bureau Essay

The systems that have been put in place by the Better Business Bureau to protect businesses and consumers are continually being updated as it should with any organization. The Better Business Bureau has implemented change as it relates to the point system of accreditation (Ferrell, Fraedrich & Ferrell, 2015). This change has allowed the organization to be grade each organization in a more uniform fashion. It is important for organizations to remain unbiased if their mission is service the public. Being fair and unbiased will always hold creditability versus not being fair and biased.

In general, the main criticisms of the PCAOB are that it has not made sufficient it’s regulatory power, it is slow to act in its investigations of enforcement cases, and that it targets enforcement on smaller firms in order to protect the Big 4 firms, which are regarded as “too big to fail.” While I do not disagree with the fact that the PCAOB is slow and has not produced a significant amount of regulation, I do disagree with the criticism of the PCAOB as a regulatory body in general. I feel that certain members of the public desire absolute transparency in financial reporting, but do not understand the economy required to so. It is nearly impossible, not to mention impractical, to breakdown every aspect of a multi-billion dollar corporation to ensure that every transaction is accounted for

“Instead, prior research claims to show that younger, nonminority consumers with relatively high incomes and educational levels are more likely to take advantage of services from third-party agencies, like the BBB” (Garret & Toumanoff, 2010, p. 3). Therefore, the organization created, Council of the BBB (CBBB), changed point system to eliminate points awarded for accreditation, streamlined its processes for receiving complaints, implemented additional procedures for investigating complaints, begun a thorough investigation into its Los Angeles bureau, agreed to review its processes into accrediting businesses, and instituted a procedure requiring an independent third party to help in the review process. Hopefully, these changes will give this organization the ability to regain its reputation with consumers. Since this organization is mainly funded by businesses and accredited membership, one should be confused as to whether these standards will be adhered to by BBB

What principles would you need to be aware of when dealing with the ethical dilemmas in this case study?

In the case of Anthony, a New Jersey resident and owner of a waste disposal company in the state of New Jersey, and his two business associates, Paul and Silvio, whom suffered severe injuries due to a motor vehicle accident caused by a negligent truck driver; they have great standing to sue against the neglectful driver and the company associated with the ownership of the vehicle. Regardless of the diversity of their residency/ citizenship, the affected party can proceed to sue the corporation responsible for the damages caused by their staff and property; reason being that they are protected under the Constitution’s diversity of citizenship, and the privileges and immunities clause. Furthermore, these two constitutional clauses in addition to the commerce clause, dictate the court that the matter needs to be brought to.

The Consumer Financial Protection Bureau (“CFPB”) is tasked with writing and enforcing rules for financial entities to protect consumers from unfair, deceptive or otherwise harmful practices by such entities. A major area of focus for the CFPB is a robust and effective oversight of a financial institution’s third-party providers (vendors) to ensure consumers are not exposed to unnecessary risk of financial or personal harm.

The development of new technologies, the rapid increase in the number of Internet users signal to the insurance business about the opportunities for expanding the client audience and building a new channel - online sales. The Blue Cross and Blue Shield (BCBS) a national family of health benefits companies currently actively use digital marketing. It allows the most recognizable provider in the healthcare insurance industry to hold positions. This Association unities 39 independent Blue Cross and Blue Shield companies, which together cover more than half of all commercially insured persons in the United States.

The Federal Trade Commission (FTC) was created in 1914 primarily as a way for the government to “trust bust” or apply regulations ensuring a free marketplace for U.S. consumers and business enterprises. In this regard, the FTC enforces antitrust viola- tions that could hamper consumer interests, as well as federal consumer protection laws against fraud, deception, and unfair business practices. The commission’s primary enforcement mechanism is the Bureau of Consumer Protection, which is divided into seven divisions: (1) enforcement, (2) advertising practices, (3) financial practices, (4) marketing practices, (5) planning and information, (6) consumer and business educa- tion programs, and (7) privacy and identity protection.21 As the federal

Please answer the questions posed at the end of each case study in essay form.  Each essay will be judged on your capacity to present strong, logical discussions that support your conclusions.

Well-known companies with B Corp status include Etsy, Warby Parker, and Ben & Jerry’s. To get certified, companies are judged on a multitude of topics such as energy efficiency and employee programs, and must score at least 80 out of 200 points in a 150-question online survey. After obtaining six months or more of revenue, a business can apply for a B Corp certification. A B Corp status is a large stamp of approval influencing companies to become more socially and environmentally

(Ormiston, 2010) Other examples of the rating firm’s reliance on others would include police reports, watchdog groups and the public media. A rating organization conducting personal interviews of the organization is sure to have been presented a “one sided” view with the interviewed organization putting themselves in the best manner possible.

Discuss the challenges related to regulating a complex global financial firm and make suggestions for regulatory improvements.

• Governance and oversight: Assessing business model and strategy changes and reinforcing the importance of sound corporate governance appropriate for the size and complexity of the individual bank. A specific focus will be on determining the adequacy of strategic, capital, and succession planning. Examiners will assess whether the plan is appropriate in light of the risks in new products or services. If applicable, examiners will assess the bank’s merger and acquisition processes and procedures.

Have you ever had a colonoscopy or endoscopy – where they take a camera and look through your mouth down into your stomach; or a camera that goes in your rectum that looks through your bowel and intestines?

3. Revise and/or institute strong Code of Ethics that needs to be consciously modeled and enforced.