There is a need to monitor monopolies and markets which are dominated by a small number of large businesses.
More details here.
Why?
Without government regulation some businesses may exploit consumers by using anti-competitive practices.
- Increasing prices by collusion.
- Restricting consumer choice.
- Market sharing.
The Competition and Markets Authority (CMA) is responsible for serving the interests of consumers.
It can investigate:
Proposed mergers.
Click on the picture for the CMA investigation into the proposed merger between Sainsbury's and Asda.
Investigating markets which may not be operating in the interests of the consumer.
How does competition policy affect businesses?
It allows 'challenger' firms to enter a market.
A more competitive business environment will benefit the economy.
Innovation is encouraged.
Investigations by the CMA may delay a proposed merger or force the disposal of some of the joint firms assets.
An example here.
5. Health and Safety
Legislation designed to protect the physical welfare of everyone who comes into contact with a business.
What do you think are the top ten causes of accidents in the workplace?
The Health and Safety at Work Act 1974 aimed to raise the standards of health and safety in the workplace.
Firms must:
Provide and maintain safety equipment and protective clothing
Provide protection from hazardous substances.
Provide adequate breaks.
Guarantee a hygienic environment.
Maintain appropriate temperatures.
Employees also have a responsibility to follow appropriate health and safety procedures.
How does health and safety legislation affect businesses?
Increased costs.
A written H and S policy will be produced in larger firms.
A H and S Officer may be employed.
Risk assessments may be carried out.
Benefits of H and S legislation.
A firm very compliant with the law will gain a good reputation and attract the best staff.
More loyal and motivated staff.
Less absence from work through accidents.
Penalties:
Fines and possible imprisonment. (Corporate manslaughter).
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