Social Responsibility and Regulation Essay

The purpose of this paper is to determine how governmental Corporate Social Responsibility (CSR) policies assist consumers and organizations; to evaluate if government polices differ throughout the world; to show ways that politics shape the regulation of businesses. CSR Policies and Consumers/Organizations Governmental CSR policies were developed to assist consumers and organizations. For example there was a government regulation enacted to protect the financial community in 2002 called the Sarbanes-Oxley Act (SOX) of 2002.

This Act was enacted in response to corporate scandals that had caused investors, consumers, and most organizations to lose their life savings and go bankrupt. Many employees lost their jobs and some companies were forced to close their doors or go through reorganization. The Sarbanes-Oxley Act was also to “protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes. ” (Sarbanes-Oxley Act of 2002, section I). The Act protects both consumers and organizations in many ways.

First, SOX mandates a set of internal procedures designed to ensure accurate financial disclosures. Organizational management must certify that they are responsible for establishing and maintaining internal controls and have designed such internal controls by signing off on all financials; this holds them directly responsible. SOX assist organizations to establish effective internal control systems to detect fraud and abuse. This will strengthen the CSR role of organizations in terms of disclosing an accurate financial position of the organization. Government Policies

It seems that government policies do not have much difference around the world. The agricultural policies of the United States and Finland are very similar. In Finland their agricultural policy has long been influenced by more than just solely economic considerations. The need to maintain secure food sources caused the Finns to subsidize uncompetitive grain production rather than to allow further specialization in dairy and meat operations. Social concerns drove policies designed to maintain family farms and to give farmers incomes and working conditions more equal to those of other workers.

The desire to maintain settlements in the thinly populated Northern provinces led to heavy subsidies for farmers in those regions. Other goals included stabilizing retail food prices and increasing farm size and efficiency. In an effort to keep new farmers from falling into debt, the government also allowed farmers under the age of thirty-five to apply for state grants when they established a farm. Agricultural policy of the United States is the governing policy of agriculture in the United States and is composed primarily of the periodically-renewed federal U. S. farm bills.

The policy is directed at developing and supporting family farms and the inputs of the total agricultural sector, including land, research, and human labor. Developmental policy included such legislation as the Land Act of 1820, the Homestead Act, which granted 160-acre townships, and the Morrill Act of 1862, which initiated the land-grant college system, which was the first of many acts that provided public support for agricultural research and education. Both countries have concentrated their agricultural policies on ensuring that farmers have the resources that they both need, for example both offer grants and increase farm size.

Politics Shape Regulation Politics shape the regulation of businesses. Regulation is becoming an increasingly important factor for United States businesses. It has become more apparent that corporations must integrate political activity into their overall business strategy and must develop and manage their political capital in the same way that they manage other business assets. The business world has responded to regulatory restrictions by developing alternative mechanisms for exerting political influence.

Many corporations are able to use their substantial economic resources to influence public policy therefore distorting the political process. Governmental CSR policies were developed to assist consumers and organizations, not one or the other. Government policies do not have much difference around the world. The agricultural policies of the United States and Finland are very similar. Businesses must integrate political activity into their overall business strategy to be successful and be more superior to the competition.

References

Finland Agricultural Policy (n. d. ). In Wikipedia. Retrieved from http://www. mongabay. com/history/finland/finland-agricultural_policy. html Fisch, J. (2005, October 1). How do corporations play politics? : The fedEx story. Vanderbilt Law Review. Retrieved from http://www. allbusiness. com/legal/3604586-1. html Sarbanes-Oxley Act of 2002, Public Law 107-204. Retrieved from http://fl1. findlaw. com/news. findlaw. com/hdocs/docs/gwbush/sarbanesoxley072302. pdf U. S. Agricultural Policy (n. d. ). In Wikipedia. Retrieved from http://en. wikipedia. org/wiki/Agricultural_policy_of_the_United_States