Shakedown Case

“For example, the federal government regulates the quality of food and water, the safety of workplaces and airspaces, and the integrity of the banking and finance system.” (Bianco, Canon 2011, p 582) Regulations find out if the product is a market failure. There are two types of regulations, which are economic and social. “Economic regulations sets prices or conditions on entry of firms into an industry, where as social regulation address issues of quality and safety.” (Bianco, Canon 2011, p 582) Economic regulations are concerned with the price regulation of monopolies.

This case portrays the widely propagated and accepted phenomena of bribes and corruption in developing countries. Specifically how it affects every sector of the Ukrainian society, therefore making it difficult for the American investors to establish companies there and to prosper solely on doing good business. The case describes the types of obstacles and ethical dilemmas being created for the investors as a result of bribery and extortion.

official felt it was important for the government to have some oversight and to have

However, the application of SOX has brought on regulations that public companies must put in place and follow to prohibit these unethical occurrences. One major advantage for associated with SOX is that more thorough audits are being conducted by auditing firms. Audits being conducted more thoroughly will provide accuracy and an increased reliability of financial data. This will affect taxes in a positive way and provide firms with an advantage. Causholli, Chambers, and Payne (2014) suggest that prior to the implementation of SOX in 2002, “an auditor’s opportunity to sell additional non-audit services in the subsequent year, coupled with the client’s willingness to buy services, intensified the economic bond between auditor and client, in turn reducing auditor independence and the quality of financial reporting” (p.681). The regulation of auditor provided non-audit tax services has increased the reliability of tax and financial reporting within companies. Seetharaman, Sun, and Wang (2011) explain that “in a post-Sarbanes-Oxley environment, the benefits of auditor-provided non-audit tax services (NATS) seem to manifest themselves in higher quality tax-related financial statement management assertions” (p. 677).

The GSK case used Article 5, 91, 163, and 164 under the CLPRC, which specify China’s provisional laws on bribery and corruption between drug manufacturers and drug distributors and the level of fines and imprisonment time span one would receive if found guilty on any of the charges.

In both developed and underdeveloped economies, there is a need to put regulations which ensure that profits are not abnormally earned at the expense of the innocent clients. It is therefore the mandate of the territorial authorities to put in place measures that introduce checks and balances in all trades. The respective companies or business must also follow the same suit lest they find themselves in the crossroads of law. However,

We as a society must ensure that small people and small companies are comfortable to call out large corporations on their mistakes and wrongdoings. For example, when Epipens raised their price the public jumped on them and as a result generac brands were created for cheaper prices. As a result, the company lost large sums of money due to their stock price falling.1 The best punishment for a company or corporation is to boycott them and stop buying their products until they change or fix what they're doing wrong. As a precaution, a law should be put in place that states that any company that hides corruption must face multiple fines, the prices of the fines should be based off the company's worth, to ensure real damage is being done. If guy cottages and heavy fines are threatened to companies that hide corruption, many will think twice before silencing people and

inhibits innovation Taxation Government must tax in order to provide the public with things it needs. T thrash our pockets A abolish investment and work decisions X Xceptions can be made But taxation has it's

First we need to look at how we are taxing. The tax system and the endless loops in the system for Corporations and even individuals is cumbersome and creates greed and gaming.

According to The United States Department of Justice, the Foreign Corrupt Practices Act “was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business”. Therefore, Mike O’Brian is facing both an ethical and legal dilemma. If O’Brian is to provide $100,000, plus a “ten percent commission on future parts-and-service revenues”, and agrees with this stipulation, he will be committing an illegal act to both obtain and retain the sales business in Africa. O’Brian has limited options as to making a decision and how he will do so. By keeping the contract offer in place, O’Brian will face ethical dilemmas and will need to determine who he will carry out the sale while obtaining his commission.

Transnational bribery and corruption are intensifying ethics and compliance concerns for companies doing business on a global basis as prosecutors pursue a record number of cases and penalties for offenses escalate dramatically.

The government’s influence over the economy through regulation should stem from decision making that is properly vetted through different sequences. The government needs to be aware of situations that

Continuously rendering effective the institutions that would fight tax evasion by eliminating the persons that could be subject to corruption,

Economic regulation’s theory developed from the 19th century and the literature is now enormous. Economic regulation’s case is premised on the occurrence of the considerable market failures due to economies of scale, the production scope, imperfections of information, occurrence of incomplete markets, as well as the wealth distribution impacts. Studies have suggested that there is more pronunciation of the market failures, and thus the public regulation’s case is

The regulatory system needs straightforwardness and clearness, and conflicting authorization of directions infuses instability into business basic leadership. The work advertises needs adaptability, and casual part business is significant. The government expects to make open spending more proficient, enhance spending straightforwardness, and privatize some misfortune making state-possessed undertakings.