Lecture 4 – Legitimate and Illegitimate PDF

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BUS 1004 L4 – Critical Perspectives on Business Growth Legitimate and illegitimate business growth Legitimate – conforming to laws or rules; it can be immoral Illegitimate – not authorized by law or accepted standards Those who wish to start a business is again liked to entrepreneurial characteristics such as: motivation. Furthermore, market research is very much significant into business growth. Allowing a business to evaluate market demand. Those who have the ability for use different capital.

Similarities Criminal business is very much based upon violence and threats. Illegal business also has global supply chains; and also, international divisions. (2007) 25.2% of Sicilian businesses owe money to the Mafia. In addition, many illegitimate businesses have hierarchal structures and also monopolise crimes. There are also cultures where there is expectation for communication and conduct. There is a further distinction as illegitimate business is based on crime. Supply Chains The drugs route follows global supply chains where criminals add value to maximise their returns. But the lack of moral means that products have a large impact upon nations such as $11 bn for illicit drugs (2007). A question of ethics? (Legitimate) Global legitimate businesses do exploit industries such as coffee where the global underclass is those creating coffee whilst remaining poor. Another example, the Enron conglomerate that was previously saw as an innovative company; whilst it promoted illegal growth through its culture, and working together with banks, showing poor ethics to hide cash flow’s ect. A real question of business ethics. Businesses such as McDonalds that hide their moral issues, by sponsoring the Olympics ect. However, their business includes poor working conditions and animal abuse and mistreatment. The impact that the pharmaceutical industry has had influence within politics to promote and protect their own business. Making sure their interests are protected within their biggest market, legally addicting people to prescription drugs to maintain their business growth. Gig-economy The flexibility that offers the people and business. As it helps to offer a sustainable solution for their business. Where the gig economy is spread thought industries. Where there is a growing for a precariat, where there’s a growing group where there’s uncertainty. Where the

resources that deliver this work are using their own resources. For employer’s this cost is not placed upon them; seeking to maximise their profits. But for employees to gain contracts in the gig economy they have to undercut each other; turning against the proletariat as Marxists would argue. This is very much legal however is it immoral? There is a relationship between the two; needing the same resource to grow. Where there’s a cross between the two legitimate and illegitimate. Where there is much ambiguity between the two ....