The Regulatory & Ethical Environment of Business

The student must cover at a minimum 3 of the following 7 topics: (2) What type of entity is this business (e. . LLC, for- profit entity, nonprofit entity, etc. ) and why is that the best choice for this business? (1) How does the business address ethical or moral issues? (5) What environmental issues does the business deal with? (3) If the business develops, sells or otherwise deals with consumer products, how does the business ensure product safety? (4) Does the business engage in advertising? If so, why? Further, how does it determine what type of advertising best suits its purposes? (6) What employment issues has the business faced? 7) What type of steps does the business undertake to minimize coordination both within and outside the workplace? Papers will be graded on thoroughness and quality of analysis on the chosen topics, including reliance and incorporation of concepts covered in the textbooks. Students may conduct research of the business however they see fit, though it is strongly suggested that the student interview or otherwise correspond with a contact person or persons affiliated with the chosen business. Papers must be double spaced, typed in size 12 Times New Roman font with 1 inch margins. The paper must be a minimum of 10 pages and a maximum of 12 ages.

MGM-6020-EH, 6020-?The Regulatory’ & Ethical Environment of Business Term Paper : Hallelujah Solar (http://move. Holidaymakers. Com/) activities (particularly if you are covering a national “chain” business) Hallelujah Solar named after a massive shield volcano that forms more than 75% of the Hawaiian Island of Maim. The story of the company is not what one would expect. It did not start with a massive research or a group or pro environmental scientist. It all started back in the ass’s, Hallelujah Solar founder, Jim Whitlock,working as a plumber at a golf course, came home after a hard day of work, ready for a nice shower and realized he had no hot water. He called his landlord, and told him all the water he was getting was cold. Mr..

Toby, a long-time local, came over and pointed to a box on the roof and exclaimed in his broken English, “No more sun, no more hot water”. Mr.. Toby went on to explain how the home-made device, copper tubes sandwiched between old window panes connected to a water tank sitting on a rotting wooden stand, used the sun to create hot water. Jim touched the tubes and pulled immediately back from the heat. The proverbial light bulb went off in his head. Holy cow, this actually works”, he thought. And that was it. Jims solar energy journey had begun. Keep in mind back then he was a long-haired hippie surfer, involved in environmental causes like Save Our Surf, a group dedicated to preserving reefs and pristine shorelines from unscrupulous developers.

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In a weird twist of fate, here he is years later, using inspiration he got from an amateur backyard inventor, still helping the environment and along with it, thousands of other lives as well. However, despite the free spirited image Jim was no slacker he was mechanically inclined and good with his hands. It took Jim 60 days to build a solar system prototype whilst working a day job. This was no small feat considering this was before most people owned a computer let alone heard of the internet. He spent most of his extra time in the local library doing research and experimenting with different materials and products and eventually developed an efficient working solar hot water system. The members of the corporation unlike the members of partnership or the proprietors of a business – are financially liable for the debts of the organization only up to the extent of their investments” (Pig 1 52 Shaw). 977, Jim officially started his solar company, Hallelujah Resources Inc. During the 7(Yes, due to the oil embargo in the Middle East, crude prices rose dramatically. Environmental awareness also emerged at this time and the combination of the two’0 triggered tremendous interest in alternative ways to create energy. Solar was a major recipient of this newfound interest and the whole industry took off. Due to the professionalism and integrity of Jim and his services, the now-named Hallelujah Solar quickly became the largest solar company in Maim, eventually installing over 75% of all solar hot water systems on the island.

He expanded to the other islands and soon they were installing systems all over the state. In the mid ass’s, Jim started experimenting with solar cells, creating electricity. With fuel costs constantly rising and photovoltaic technology prices dropping, he envisioned a future in which “people would set up their own small electric companies”. In observing the incredible growth Of solar electric today, we can conclude he was right. Hallelujah Solar has been in business for over 35 years and has installed over ten thousand solar energy systems with satisfied customers all over the state of Hawaii. They believe servicing systems is just as important as installing them.

They are a one-stop shop and service anything solar energy related. Hallelujah Solar truly stands behind their work, and are one of the few solar companies in the state to have been around long enough to actually back up a 25 year warranty. What type of entity is this business (e. G. LLC, for-profit entity, nonprofit entity, etc. ) and why is that the best choice for this business? “When we think of corporation we naturally think of giants such as General Motors, Exxon Mobil, Microsoft or Walter, which exert enormous influence ever our economy and society. But the local independently owned convenience store may be a corporation. ” (pig 152 Shaw).

Jim Whitlock knew that if he to have any kind of success he needed to create a corporation. Corporation has many advantages that suited this particular situation. First of all the expansion factor a non-for-profit entity has harder time justifying expansion since its goal is not revenue generation but rather its mission. Its not the fact that Non-For-Profit organization cannot generate revenue, actually a lot Of them do (For example NCAA (National College Athletic Association)), it is the fact that it cannot use revenues to invest in itself. Revenues of non-for-profit organization usually distributed to shareholders as dividends or invested in projects. Non-for-profit cannot retain profits for self investment.

Jim Whitlock had the sights set on expansion and needed the profits and revenues to be invested back into the corporation. So that he can weather downturns in business and have enough financial leverage to expand. Non-for-profit usually relies on donations as the main contribution, Corporations are relied on investors as the main source of contribution. Being an investor is more lucrative than being a donor. With corporation it is easier to get findings not only from people who want to succeed with you but also from financial institutions. If a corporation is generating revenue financial institutions are more inclined to give loan or become an investor. The idea of making money appeals more to the banks rather donations… Go figure.

Last but not least the Non-for-profit tax requirement for compliance are tedious and time consuming not to mention strict regulations code Jim Whitlock needed to focus on the company’s development and its growth instead of raying to comply with government requirements. These are the biggest reasons why Corporation was the right path for Hallelujah corporation rather than the path of non for profit. One Of the most important legal benefits is the safeguarding of personal assets against the claims of creditors and lawsuits. Sole proprietors and general partners in a partnership are personally and jointly responsible for all the liabilities of a business such as loans, accounts payable, and legal judgments. In a corporation, however, stockholders, directors and officers typically are not liable for the company’s debts and obligations.

There is this quote in the book “The problem, of course, is that they are not human beings. Rotor quote Lord Throw an eighteenth-century alai,n. Year, how can you “expect a corporation to have a conscience, when it has no soul to be damned and no body to be 154 Shaw). The fact is that these types of corporations do have souls because it starts with one man’s idea and that man wants to see his idea come to fruition, to grow and to materialize. To start something from basically zero with just an idea a person needs to invest time, a person needs to invest resources and most importantly his soul. The corporation is a shield for personal assets to minimize the already enormous risk a person is taking.

Such shield allows the company to grow and maintain the work force knowing that the corporation just like a person can be braised or blamed, even punished for the decisions management makes and the policies management undertakes. (1) How does the business address ethical or moral issues? The 1973 oil crisis started in October 1973, when the members of Organization Of Arab petroleum Exporting Countries or the OPEC (consisting of the Arab members of OPEC, plus Egypt, Syria and Tunisia) proclaimed an oil embargo. By the end of the embargo in March 1974, the price of oil had risen from US $3 per barrel to nearly $12. This was the wake up call to search for alternative energy source. A lot of articles was posted on the power of solar technology.

Jim Whitlock recognized the niche need for solar powered heaters and decided to turn an idea into reality and in turn to profit. “Pollution and the depletion of natural resources are two aspects of the same problem: Both involve using up natural resources that are limited. Pollution uses up clean air and water, just as extraction uses up the minerals r oil in the ground” (pig 244 Shaw). However, here we have something that is free and taken for granted – Sunlight. Hallelujah Corporation uses sunlight as its primary resource and converts it to heat and electricity the added bonus is no pollution created. In fact studies have confirmed that in the long run installing solar powered equipment reduces cost to the consumer in the long run.

Those costs are not only monetary but also environmental since no additional pollution generated there is no additional cost to improve the environment. The cost of cleaning up pollution “Cost can include time, effort, comfort, and lost opportunities” (pig 248 Shaw). Since solar industry does not generate extra pollution it saves everyone a lot Of time, effort, discomfort and lost opportunities. The longer the solar technology is used the more indirect benefit it generates. Something that deserves to be mentioned a lot of government findings are spent trying to incentives people to switch to cleaner energy consumption. Solar industry falls into this category.

The incentive for solar industry actually comes from two levels the State and The federal both offer tax credits if consumer or a company decides to take a “greener” route. Both the state of Hawaii and the IIS federal government offer generous tax credits for new solar photovoltaic system installations. The state of Hawaii also gives tax credits for solar hot water systems. These incentives dramatically lower the cost of purchasing and installing a solar system and have fueled the huge wave of interest in the last several years for solar energy in Hawaii. We thought we would explain how these tax credits work in order for you to start to understand how you can take advantage of them.

Now lets get into the specifics the federal government gives a 30% tax credit on the cost of equipment and installation of a solar photovoltaic system and applies to all systems placed into service before December 31, 2016. The Hawaii Energy Tax Credit allows solar customers to claim an income tax credit of 35% of the cost of equipment and installation of a solar hot water system. So here we have a savings of 30% from federal and 35% from state on top of this we have a long term savings on the cost of electricity and indirect benefit of no pollution being generated. ” Utilitarianism is the moral doctrine that we should always act to produce the greatest possible balance of good over bad or everyone affected by our actions” (pig 48 Shaw). With so many reason for the use of solar technology there is no moral or ethical counter argument against it.

So what is holding back It is hard to get over the initial investment. Even with all the tax credits solar investment still has a hefty price tag. It is a big investment for a middle class person to shell out for a system that has tendency to be unreliable. That brings us to the next hurdle – unreliability. Even though in this day an age this is almost a non issue because of storage batteries and much more efficient ways to store energy which is being unused. Solar energy does heavily rely on the sun and some parts of the world (other than Hawaii) sun is seasonal and Inconsistent so even with all the incentives it is unpractical in some parts of the world.

Last but not least, solar technology does require maintenance once in a while, the solar panels do get dusty and dirty and they need to be hosed off. Not everyone has the physical agility to climb the roof so additional expense is required to maintain it. What environmental issues does the business deal with? The Hallelujah solar Inc is the futures answer to the present day pollution. We live in a time when its apparent that the use of energy that comes from the combustion of fossil fuels is something that needs to be left in the past, because these sources of energy are not endless and they have quite a negative impact on our Earth’s delicate echo-system. ‘William T. Blackstone, have gone further to argue that each of us has a right to a livable environment.

In Blackstone view, this is a human right. “Each person has the right qua being human and because a livable environment is essential for one to fulfill his human capacities” This right has emerged as a result of changing environmental conditions, which affect the very possibility of human life as well as the possibility of realizing other human rights” (page 245 Shaw). Solar power is an efficient, echo-friendly, and endless source of energy that does not have the negative effects on our environment. Yet despite the availability of alternative sources most of the power used in the Ignited States is made from dirty fossil fuels including coal, gas, and oil.

Once fossil fuels are burned to generate energy, they cannot be reused and we have to find more to create more energy. The search for more fossil fuels is only going to become more ungenerous and expensive. “Ecosystem which refers to a total ecological community, both living and nonliving. Webs of interdependence structure ecosystems. Predators and prey, producers and consumers, hosts and parasites are linked, creating interlocking mechanisms – checks and balances – that stabilize the system. “(page 243 Shaw). Pollution is a cancer that is slowly eating away at the entire ecosystem. Slowly corroding the interlocking mechanism and destroying the checks and balances.

Air pollution causes damage to crops, animals, forests, and bodies of water. It also contributes to the depletion of he ozone layer, which protects the Earth from the sun’s UP rays. Another negative effect of air pollution is the formation of acid rain, which harms trees, soils, rivers, and wildlife. Some of the other environmental effects of air pollution are haze, transportation, and global climate change. Pollution also has a direct effect on human that becomes apparent and burdensome during our lifetime. Air pollution can cause long-term and short-term health effects. It’s found that the elderly and young children are more affected by air pollution.

Short-term health effects include eye, nose, and throat irritation, teaches, allergic reactions, and upper respiratory infections. Some long- term health effects are lung cancer, brain damage, liver damage, kidney damage, heart disease, and respiratory disease. The sun is a huge source of free, natural and renewable power. Using solar power can help offset energy generated from fossil fuels. About half the electricity in the U. S. Comes from burning coal, which releases toxic emissions, such as nitrogen oxide, sulfur dioxide, and heavy metals like mercury. Using solar electricity reduces our dependence on coal, thus decreasing greenhouse gases and pollution.

Energy produced from green sources, like solar, will help reduce our dependence on imported energy. Solar power can be generated cleanly and safely in the Ignited States, where jobs can be created in sales, installation, and engineering. In addition, home solar provides freedom from electricity rate increases and power outages. Here in Hawaii, this is even more critical as all of our oil is imported leaving us vulnerable to unstable worldwide fluctuations in the prices of crude oil. By going solar, you can hedge the risk Of fluctuating Oil prices. Hallelujah Solar helps fight against the ongoing pollution by offering a bustiest energy source.

Aside from the obvious benefit to the environment Solar company does offer something immediate to an individual such as tax credit. The government sees the benefit to not only get rid of dependence on foreign resources but also the need to take care of the environment. A lot of incentives were offered to the companies and to the consumer to switch over to new solar resource. If business can make money destroying the environment can there be a profitable business that benefits the environment. Apparently it can Solar industry has been gaining a lot of round people are looking to save money and governments are looking to reduce the cost of pollution and to reduce the indirect cost of foreign resource dependency. Social responsibility and environmental sustainability are core business competencies not a fringe activities” (page 245 Shaw) Conclusion and final thoughts, which may include a global view of what you’ve discovered about the business, what the future likely holds for the business, etc A solar industry is finally getting its time in the sun. When I began the research I was curious in the industry and what it had to offer. With today’s sing prices in oil and gas you are forced to look for alternatives. This year on may 9th president Obama stressed the need for US to find alternative energy source and pledged 2 billion dollars to solar industry. Executive actions that will drive investments in solar energy upgrades for government and private sector buildings, improve appliance efficiency standards, strengthen commercial building codes, encourage innovative financing, and create jobs by developing a skilled solar workforce. ” (Washington Post, may 9th). A lot of big corporations such as Apple and Kea are taking a chance on solar energy ND installing it at their locations. First of all there are incentives such as tax credits which save money for corporations in the short run. Second of all, there are saving incentives in the long run since the companies don’t have to pay so much for traditional forms of energy. Third of all, it is a really great publicity stunt which can go a long way with investors. So the government is curious about the future of solar technology, the corporations are curious about yet the public remains blind.

After the research on Hallelujah I have to admit IM curious about it as well. There are too many benefits to it. Not only from monetary point of view but also from the moral and ethical point of view. There is a way to actually help environment while saving money. As more and more people find out about the benefits of solar technology the less pollution will be produced and maybe eventually the burdens of today’s environment will start to alleviate in the near future.