Principles of Management Essay

The thorough aim of any give craft is to make net release and increase those profits. Organizations thence in its day to day telephone circuit activities will ceaselessly aim at making the maximum profits at a very(prenominal) low damage of production. This basically federal agency that a confederation wants to make very high profits with bring bulge out incurring a survey of expenses. In minimizing their cost of production while still ensuring that maximum profits argon realized, sometimes companies violate regulations and laws governing them.It is therefore of ut some vastness that there are calve external bodies charged with the function of carrying out checks and balances to escort that companies, businesses and organizations in general do not violate primed(p) knock off regulations as they attempt to maximize their profits at very low costs of production and in like manner that the consumers gets the products at very cheap prices and that the environme nt is not polluted by the by-products of the manufacturing companies. Therefore the first direct of regulating companies is to check over that the consumer on the ground is not shortchanged in equipment casualty of prices.This basically means that without regulations a beau monde may charge immoderately high prices for its products to the disadvantage of the customer. The restrictive bodies therefore ensure that a modular price for every(prenominal) particular product is set and companies are given a limit and extent up to which they are not pass judgment to exceed. Should there be a violation by any company the regulatory dust always steps in and channelizes an immediate accomplishment and if the company had no justifications whatsoever to go against the laid down regulations, disciplinal measures against the company are the next step.Business regulation is viewed by some(prenominal) as a way of enhancing better business environment. jurisprudence is in addition don e to ensure that companies give consumers spirit products for their money. It has been observed over the erstwhile(prenominal) social classs that failure to stabbingly monitor a companys activities leads to recklessness and negligence by manufacturers so that consumers get very lo0w quality products. The laws governing the regulation of a company therefore provide for a regulatory body whose function is basically to check the flesh of products a company arrive ats in term of quality.The issue of quality is almost corresponding to suitability of a product for use by customers in terms of safe(p)ty. A product could be of low quality in that it is not up to the standards expected of such a product. For instance, if it is a vehicle it would be said to be of low quality if it fails to cover the mileage a car of a similar make would be expected to make. tone of voice is also looked at in terms of suitability so that it is distinguished for the regulatory board to establish whe ther a company is making are suitable for use.For instance, if it is a company that manufactures food stuffs, then the regulatory body must ensure that the foods manufactured are actually edible and safe for human consumption. In case of medical products they must ensure chemicals utilize in the manufacture of medicines occupy no side effects on the body of a patient. In case of electronic products it is vital to ensure that the are safe so that they dont blow up on the user of that product. It is for this reason that every country has regulatory bodies cognise as bureaus of standards of goods and products in general are of importtained by the manufacturers.Regulation by external regulatory bodies is also done to ensure do not carelessly dispose off waste products thereby polluting the environment. well-nigh companies if left to go un watchd would cause a l0ot of harm to the environment. This is because of the kind of waste products they produce. Most of the waste products are not solely deadly but also poisonous. The regulatory bodies are therefore very submissive in ensuring that companies treat their waste products prior to releasing them to the outside world. snap off still, they ensure that even with the w3aste products being inured, they are disposed in the remedy place and manner. A case scenario of a company that used to produce to waste products that were venomous and then carelessly release the waste products into the rude air. This in turn caused the surrounding residents great suffering as there was an outbreak of diseases. The regulatory body immediately intervened and the company was closed down indefinitely until they found a lasting solution.It has also been observed that most industries would rather drain their waste products in the water . odies notwithstanding their toxic levels so that they cut down expenses of having to dispose the waste products in the objurgate way. This kills the aquatic animals thus destroying the environme nt. The regulatory bodies in such cases are very quick to ensure that no life both human and that of animals is consecrate in danger. Regulation is also done to ensure prompt defrayal of taxes by companies. Every company in business in every country is required to pay taxes to the government of that particular country.This forms a reference book of income for the government. Most companies as discussed earlier are very evasive because their main finishing is to make maximum profits. Thus they sometimes attempt to evasion of payment of taxes in exhibition to make as high profits. It is no secret that even the consumers on the ground who are the back jampack of the business field are more often than not treated very unfairly by the businessmen as they attempt to get to their principal of maximum profit at the lowest practicable cost.Manufacturers and owners of companies always want to be beneficiaries of their browse at no extra cost thus tax evasion and turning away is ver y frequent in the business field. However, they ignore the fact that by engaging in such malpractices of tax evasion and avoidance the government stands s to lose a lot in terms of revenue and as a pull up stakes the countrys population suffers as the government is no weeklong able to sustain their needs due to insufficient revenues. Note that the manufacturers have had nothing to lose as their businesses still go on as desired.It is also important to note that failure of companies to pay taxes automatically means that a lot more will be demanded from the individuals thus suppressing the common citizen. Most people dont find the importance of stipendiary taxes. line of work is an obvious source from which countries can generate cash to inventory human development. It is also one of the means by which they can light to free themselves from dependence on handouts and the punitive conditions often attached to aid.Tax can also help countries determine their own route out of pove rty. How Tax Policies Fleece the Poor, Christian Aid, September 2005, page6) Regulatory bodies therefore ensure that companies pay taxes as they should to avoid suppressing the poor people. Research indicates that evasion and avoidance of taxes by companies has led to a considerable increase in hold dear Added Tax which is the tax imposed on common goods used by ordinary people therefore placing an unfairly heavy burden on poor people. Regulation of companies is also done to ensure that employers respect grok laws put in place to protect rights of employees at the work place.to a greater extent often than not employers ignore the rights of their employees thus employees are made to work under very poor conditions. Therefore the regulatory bodies in articulation with non-governmental bodies come together in defending the rights if the workers and ensuring that companies follow the laws governing the rights of the employees to the letter. The regulatory bodies also ensure that work ers are not treated unfairly in terms of wages by ensuring that they are paid above the marginal wage.It also ensures that employees are not overworked in term s of work load and the number of hours that they work. The regulatory bodies are also very keen in terms of the age limit so that companies do not employ underage employees in send to have cheap labor. another(prenominal) major function of the regulatory bodies is to ensure that companies submit annual returns as they should and at bottom the required time. The annual returns and reports contain the activities of the company for a given period usually one year and include income generated, profits made, expenses incurred and losings made.Most companies default in the submission of these annual reports and returns in give to conceal the profits made and consequently evade being taxed. They also default in submission of the reports as a way of cover up for any activity or activities carried out in the year that contravened any laid down rules. The regulatory bodies therefore step in to ensure that all companies submit their annual returns and reports and that they do so within the required time.Regulatory bodies also play a major determination in ensuring that companies comply with the general requirements of operating and running of a company. This is in relation to the formation of a company, who makes the board of governors, who constitutes members of a company, shareholders and all other requirements a company is expected to comply with in its trading operations. The regulatory bodies are always in the frontline in the protection of investors so that companies do not manipulate them as far as investment is concerned.From the roles discussed earlier, it is very choke that a regulatory body is of great importance in the business field as it ensures that companies operate without the slightest form of flaws. From the discussion, it is very clear. From the discussion, it is clearly spell out that companies cannot by any means regulate themselves. This is for the obvious reasons that regulations of their operations are obviously incompatible with the fundamental principle with their fundamental purpose, goal and objective of making maximum profits at the lowest possible cost.It is unrealistic and almost impossible to expect that companies will regulate themselves while it is very clear that their main objective in business and the labor of regulation totally are not synonymous. It is therefore in order to conclude that if companies are left to be in charge of themselves and asked to regulate themselves while it is very clear that their many objectives in business and the task of regulation totally do no rhyme.It is therefore in order to conclude that if companies are left to be in charge of themselves, they would take advantage, exploit people and the consumer on the ground would be on the losing end. It is therefore correct to state that regulation of companies and other b usiness organizations can only be successfully done by external regulatory bodies separate from the company itself who have no interest whatsoever in any the company or activities.Therefore it is only with the right regulatory measures that a fair playground in the business industry can be achieved. This can be achieved by ensuring that regulatory bodies are established for checks and balances of companies and business organizations at large. Regulation by eternal regulatory bodies has also compete a major role in establishing fair and healthy opposition among businessmen therefore has a level playground to do their business.