Do My 4 Step Process Law Case Study
The Competition & Consumer Laws mainly refer to the body of laws that are enacted by government in order to excellently prevent any unfair competition among the businesses, with regulate corporate malpractices & also protect rights of consumers. The Competition & Consumer-Laws are normally enacted by the government agencies & deal with the number of inter-related problems. The so-called four step Process/method is the approach developed inside the competition-law compliance process. The competition-law compliance mainly ensures free as well as fair trade with helping companies to perfectly gain competitive benefits over the others.
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Different Advantages of Competitive Law Compliance?
The competition law compliance can help the companies to perfectly avoid many potential consequences of the competition-law infringement. Here are some adverse consequences of the competitive-law infringement defined as:-
- The Companies are required to pay a fine of overall 10% of group turnover
- Adverse reputational impact can be there on the firm’s brand name, this can will disqualify the directors.
- Criminal convictions applicable to the persons involved in the cartel
- The Considerable wastage of the management company’s money and time can occur
- Lawsuit from those who are harmed can lead to the damage considerably.
Apart from that the competition law compliance can have various other positive benefits like:-
- An early detection of the infringement to avoid any financial penalties
- In case of financial penalty levied already, the competition-law compliance may results in overall 10% reduction in amount of financial-penalty
- The Companies who are realizing potential-signs of the non-compliance by different other companies can take timely actions in order to simply avoid being victim of same.
- The effective culture of the competition-law compliance is mainly an essential element of ethical business-culture.
Benefits for a small business can be:-
- Helping small businesses to actively achieve competiveness
- Helps small firms from the cartels of the big companies who mainly impose some unfair conditions on small firms.
The Competition Law Compliance: 4-Step Method
You can achieve competition law compliance with a 4-step approach. This mainly requires each & every company to mainly follow 4-step process in order to achieve some effective culture of the compliance by the help of assessing the risk exposure & internal business culture of their own. According a fair trade, the 4-step approach can be mainly classified as:-
- Risk identification
- Risk assessment
- Risk management
- Review
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- Risk Identification
This involves identification of various potential fields of risk that mainly depends on great extent of nature as well as size of each & every business. Different types of business-threats can be: fixed prices, engaging in the bid-rigging, limit-production, market sharing or share customers. You need to keep following things in mind to avoid meeting with potential risk areas:-
- You need to understand that your customer is also a competitor for you.
- You must ensure that your working staff attends professional associated and trade functions with the competitors
- You need to keep your employee as they might be having commercially sensitive information and that can be transferred to your competitors
- In a relatively small sized industry with a few companies, people can move in and around and may never stick to anyone.
- You need to work with your partners in case of joint venture
- Trades in the market can subjected to the cartel investigations.
The above mentioned factors can create some major risk in association to your business.
Risk assessment
Now is the time to assess your risk with risk management. This can be categorized into:-
- High risk
- Medium risk
- Low risk
Risk Mitigation
Mainly involves a suitable training-activities for bringing some behavioural changes within your organization for achieving the culture of competition-law compliance.
Risk-Mitigation Case Study
Involves studying about the concerned cartel activities and taking some immediate actions upon the same.
Review
Done by the experts to ensure that the company is absolutely capable of clearly adapting to changes that has been occurring inside as well as outside the concerned company.
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