Discussing incentives to conserve marine biodiversity conservation Essay

Discussing incentives to conserve marine biodiversity conservation within the framework of impure public goods - Essay Example It is important to note that their benefits can be affected when the government decides not to offer the conservation. (Maxwell) Ordinarilly, an externality is the effect of an economic activity felt by those not directly involved in the economic activity. Positive externalities are often described as spillover effects to suggest their effects are felt by consumers who were not directly intended by their producers. The impure public goods such marine biodiversity and other environmental amenities are not to be supplied privately because the provider cannot capture the benefits and therefore no one can be excluded, so free riding is possible. Clearly, some aspects of marine bear the characteristics of a public good. Marine contributes to global biodiversity and enhances the well being of the majority of people. (Bulte) Ordinarily, no one has the appropriate incentive to provide marine habitat or otherwise protect marine as they cannot capture the full benefits from the needed investments. Market failure occurs because the amount of a public good is underprovided, and thus marginal social benefits exceed marginal social costs. In this case, more of the public good should be provided, but it is forthcoming only if society subsidizes a private supplier, or provides it publicly. (Bulte) On the other hand, negative externalities that include the government regulations impose costs on society that extend beyond the cost of production as originally intended by the producer. A producer of a negative externality who does not have to worry about its full cost is likely to produce an excessive harmful amount of the product.Ordinarilly, regulations and fines may deter the production of negative externalities. But the effects of regulation may be limited under conditions such as where negative externalities are so pervasive they encourage free riding attitudes, where negative externalities are so pervasive their producers could

Contemporary business issues Essay Example | Topics and Well Written Essays - 1000 words

Contemporary business issues - Essay Example This paper seeks to critically analyze the way that Tesco has applied the Ethical Trading Initiative Base Code, the objectives and the principles of the Ethical Trading initiative, how the code is enforced and the possibilities of applying the code during the recession. As stated earlier, Tesco has applied the Ethical Trading Initiative Base Code to the suppliers to ensure that the suppliers have adhered to the ETI standards. In this way, the problems that are related to the suppliers can be identified and addressed consequently (Crane & Matten, 2007). The company has implemented a number of steps to ensure their suppliers meet the standards in the ETI. So as to ensure that the codes are strictly effective in their application, the company has organised buyer training programmes that help the buyers to understand and comply to the best quality. The supply of quality products in a company requires the buyers in the company to be given some proper training so that they are keen in accepting the supplies. In Tesco, the commercial staffs who are involved in buying commodities from the UK are expected to have the understanding of the ethical considerations before they purchase anything from the suppliers. The company ensures that its employees are made aware of the ethical considerations that should be put in place when accepting goods from a supplier. This is usually done in the job description of the employee (Michael, 2003). The employees usually take a course known as: Buying With Your Eyes Open where the employees are taught ways in which they can identify potential problems and how they can apply purchasing practices thereby minimising ethical risks. The food buyers and the non-food buyers are given the training differently since the requirement specifications of the items are different. The technical managers are also given some audit trainings so that