Competition is an important characteristic of an economic order of society. It could be either constructive or destructive. Business organizations compete with one another. By increasing this competition, the government provides incentives for the production of quality and reasonably priced goods as well as helps lessen the inefficient use of resources. Competition is healthy for business enterprises. Competition may exist between organizations in different lines of business as well as between organizations in the same line of business. Usually business firms compete only with other firms of the same kind. Business firm also compete when the goods or services of one may be used in place of another.
The Philippines is an extremely complex society that defies every generalization. The people’s differences in interest and capabilities should be understood first in the issue of completion in business. Competition is the rivalry among business to sell their goods and services to buyers. In such competition, it is important to know and to do ethnical practices, such as fairness and fair trade relations, services above profit in economic pursuits, and equality as driving force in business development and entrepreneurship.
In fact, competition can be used effectively to increase productivity. Competition in business, may cause a wide array of ethical problems. They could be understood better by examining the prevailing values among the people. In business, it is important to know management’s relations with rivals, especially the problems of competition, so that you can handle the competition wisely.
Healthy competition will push business organizations to improve their products and services and to become more efficient, but whenever competition leads to wasteful pursuits social interest suffer. Likewise, individuals compete to sell their skills and abilities. Thus, competition encourages individual leads to wasteful pursuits social interest suffer. Likewise, individuals compete to sell their skills and abilities. Thus, competition encourages individuals to improve themselves as well as preserve their interest. Business firms compete in different ways. It may compete in the basis of prices; this competition is more aptly called price
competition. It may also provide extra services such as offering free delivery, parking space, etc. they also compete with packaging and labeling, the more creative, more unique and the more attractive the saleable one, in short the label or the packaging should be eye catching.
Competition, to be constructive, must be fair. Business competition is an important aspect in an economy for the success of any economic system depends primarily on competition. The government therefore, must guarantee the existence of fair competition in the country. It must regulate competition in business to protect public interest. When we say public interest, in every rules or guidelines it will not affect the public, the public will be benefited.
Presently, business is under fierce attack for many unethical competitions in business. Sharp competition leads to unfair competition. According to Arthur M. Weimer. “Sometimes competition becomes chaotic. For example, “cut throat’’ competition may develop if demand deteriorates and firms find it necessary to sell below cost because of the heavy investments and fixed charges they are carrying. Sometimes “predatory” competition develops, as in the case of one company deliberately pricing below cost in order to drive its competitor out of business.’’
Unfair competition enters with extortion, bribery, kickbacks, and the granting of discriminatory allowances, commissions, or brokerage fees. When we say bribery, it is not only unethical practice in business, but it is also a crime punishable by law. It is a desirable that this business practice be stopped. In short, a bribe is a payment made by the intent of influencing directly the conduct of an...
Please join StudyMode to read the full document