Competition is an essential aspect of the economy, having both positive and negative impacts. Companies engage in competition to manufacture high-quality products at affordable prices while minimizing resource misuse. Competition is advantageous for businesses as it guarantees their prosperity. It should be noted that competition can take place within or across industries, typically involving similar kinds of firms.
Business firms also contend with each other when the goods or services of one can be exchanged for those of another. The Philippines is a highly complex society that defies any general classification. Recognizing the variety in people’s interests and abilities is crucial in addressing business competition. Competition encompasses the rivalry between businesses to market their products and services to consumers. Within this competition, it is essential to uphold ethical practices, such as fairness and equitable trade relations, placing service above profit in economic pursuits, and championing equality as a catalyst for business expansion and entrepreneurship.
Competition can effectively enhance productivity. However, it may give rise to various ethical issues in the business realm. A deeper understanding of these problems can be achieved by studying the prevailing values of the individuals involved. It is crucial for businesses to comprehend their management’s interactions with competitors and the challenges that come with competition, enabling them to handle it wisely. While healthy competition stimulates business organizations to enhance their offerings and efficiency, excessive competition can be detrimental to social welfare.
Similarly, individuals engage in competition to sell their skills and abilities, leading to wasteful pursuits and a detriment to social interest. Conversely, competition in this manner motivates individuals to enhance themselves and safeguard their own interests. Business firms also partake in various forms of competition. Price competition refers to competing based on pricing strategies, while additional services such as free delivery and parking space are offered as a means of competition. Businesses also compete through appealing packaging and labeling, aiming for creativity, uniqueness, and attractiveness. Constructive competition necessitates fairness. In an economy, business competition holds great importance as the success of any economic system hinges primarily on competition. Therefore, it is imperative for the government to ensure fair competition and regulate business practices in order to protect public interest.
In every rules or guidelines, ensuring the public’s benefit is emphasized. Currently, business is facing intense criticism due to unethical competitions. Unfair competition arises as a result of fierce rivalry. As noted by Arthur M. Weimer, competition can become chaotic. For instance, “cutthroat” competition may emerge when firms are compelled to sell below cost due to declining demand and the burden of heavy investments and fixed charges.
Predatory competition can occur when a company intentionally lowers prices below cost to drive its competitor out of business. Unfair competition includes activities like extortion, bribery, kickbacks, and providing unequal allowances, commissions, or brokerage fees. Bribery is both unethical and legally punishable. It is important to stop such behavior. Essentially, a bribe refers to a payment made with the purpose of directly influencing someone’s actions.
Granting someone an account to give them preferential treatment in defiance of established organization procedures or policies is a form of bribery. It is crucial for businesses to avoid accepting any personal gifts. Bribery takes place when an individual offers a gift or pledge with the aim of influencing their actions, regardless of the result. Conversely, extortion entails obtaining money or valuable items through violence, threats, or similar measures.
Unfair competition occurs when an individual demands payment for performing or not performing acts that they are obligated to do according to their employment contract. This unethical behavior has led to condemnation in certain cases, as it violates the trust between an employer and employee. These practices are regulated by both legal and ethical standards. However, this type of competition disregards what is morally correct and disregards ethical principles and practices. Ultimately, unfair competition harms the general public.
Two unlawful means, namely the imitation of goods and false advertising, are considered violations in the realm of fair trade. Although there exist numerous laws governing fair trade, upon familiarizing oneself with them, it becomes apparent that compliance is often lacking. In the Philippines, some of the Fair Trade laws encompass the following: a. Price Tag Law b. Price stabilization Law c. Law on fraudulent advertising, Mislabeling or Misbehaving d. Business name law e. Bulk sales law f. Filipino Retailers Law These laws contribute to the promotion of fair trade; however, their implementation causes discomfort.
James Madison believes that government is essential due to human imperfection. The task at hand is striking a balance, where the government can enforce regulations on citizens without misusing power. People have the freedom to act morally according to their own convictions and adapt their behavior accordingly. Nevertheless, exploiting others is deemed unacceptable.
The government has a responsibility to protect individuals from unfair competition and prevent the abuse of power. Businesses can enhance their competitive advantage by identifying and resolving issues. Unfair competition encompasses two forms: illegal actions, such as interfering with a competitor’s contracts or spreading false information about products, and actions that are presently not prohibited by law, such as reducing prices or critiquing competitors. In today’s fiercely competitive setting, possessing talent and determination alone is insufficient for business success. Entrepreneurs prioritize profit generation, whereas numerous public officials lack a comprehensive understanding of business ethics.
The government’s shortcomings in problem-solving are often attributed more to the nature of the problems rather than the nature of government, which ultimately reduces public trust and leads to a crisis of confidence. It is clear that, like any organization, the government is not perfect and must address and rectify these inadequacies. As Tom Bradley said, restoring popular trust cannot be achieved through a single law or leader, a simple slogan, or a dramatic act alone.
However, it is necessary to have a continuous and coordinated endeavor at all levels to elucidate the complexities of policy, engage the public in evaluating various alternatives, recognize uncertainty when evidence is inconclusive, and make pragmatic commitments. This approach is essential for revitalizing our democratic system and restoring public trust. Although there have been cases of dishonesty in the government, a significant majority of its personnel have remained trustworthy and retained the people’s confidence. While competition has played a vital role in economic advancement, it has also brought about adverse effects.
Government regulation is necessary to prevent harmful business competition and protect the general public’s interests. However, it is challenging to provide equitable government services as determining who receives assistance can be problematic. Irresponsible competition negatively impacts businesses and the economy, therefore, the government has a responsibility to support workers, legitimate businesses, and the general public. Distinguishing between these entities and addressing them as separate issues aligns with reality.
It is crucial for the government to establish clear priorities and develop policies that align with both individual interests and organizational goals. This is because the interconnectedness of business and the general public requires clarity in government policies, as people often have to take action without adequate support. Additionally, building personal relationships is vital for success in business competition, as businessmen must earn trust and confidence from their employees.
In order to ensure ethical boundaries are established between personal interests and public responsibilities, it is crucial for business and government to rely on each other and fulfill their needs through agreements. The moral compass of public office in the Philippines primarily depends on the President of the Republic, as emphasized by an editorial in the Manila Bulletin on April 27, 1989. This influence extends to subordinate officials and members of congress, shaping the administration’s moral standpoint. Maintaining high moral standards is vital for the survival of the administration as it impacts public perception. Upholding these standards presents challenges for those who oppose the administration. Trust plays a key role in conducting business due to intense competition. To effectively understand and implement business ethics, it is important to comprehend how individuals perceive and practice them. By gaining insight into its current state, we can better assess its potential.
