Political Action Committees (PACs) are specially formed for the purpose of pooling and distributing funds to fund ballot initiatives and facilitate legislation. PACs are unique to United States of America and date back to 1944 CITATION Arc15 \l 2057 (Archie B. Carroll, 2015). They are also a means of lobbying forged by businesses, labour and union organizations as well as special interest groups.
PACs play a significant role in influencing how businesses operate. Businesses have vested interests when making such contributions, specifically to steer legislators to pass legislation that will favour their operations CITATION Ada13 \l 2057 (Bonica, 2013). For example, Walmart was able to worm its way around tax returns and saved sh $2.3 billion between 199 and 2005 through legislation that enabled this act. As a result, economic growth is hampered as corporations focus on contributions to PACs instead of direct business investment CITATION Joh14 \l 2057 (Madland, 2014). Furthermore, businesses have to constantly persuade local governments to give them business either through contributions or bribes. This casts a dark shadow on the integrity and transparency of business transactions.
There have been various arguments against PACs of which some include; they sire poor legislation due to vested interests of the various groups that make contributions to them. Secondly, they enable the alienation of poor people who cannot contribute and therefore their interests are not catered for. Moreover, a remarkable amount of the taxpayers money goes into permitting subsidies, quotas and tax breaks for large corporations that could instead be injected into stimulating the growth of the economy CITATION Arc15 \l 2057 (Archie B. Carroll, 2015).
The Consumers Magna Carta refers to four pillars of consumer rights as spelled out b President J.F Kennedy in his Special Message on Protecting the Consumer Interest. It includes the rights to safety, to be informed, to choose, and to be heard. This entails educating the consumer on the product, for instance what it is and how it should be used; the ability to air their concerns about the product and have an alternative to the said product CITATION Arc15 \l 2057 (Archie B. Carroll, 2015).
Paramount to product marketing is the information that is availed to the consumer through warranties, packaging and labelling. It is completely essential that the consumer is well aware to eliminate or minimize ethical issues that arise as a direct result of advertising perceptions. All in all, despite the Magna Carta, businesses ought to nurture and foster genuine relationships with consumers. This will enable both profitability and customer loyalty to the company.
BIBLIOGRAPHY Archie B. Carroll, A. K. (2015). Business and Society: Ethics and Stakeholder Management.
Bonica, A. (2013, August 30). Princeton University. Retrieved October 31, 2015, from princeton.edu: https://www.princeton.edu/csdp/events/Bonica11072013/SSRN-id2313232.pdf
Madland, J. C. (2014, May 2). Center for American Progress. Retrieved October 31, 2015, from www.americanprogress.org: https://www.americanprogress.org/issues/economy/report/2014/05/02/88917/how-campaign-contributions-and-lobbying-can-lead-to-inefficient-economic-policy/
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