Government Regulation

One issue with competing pressures is that companies will only think about what’s best for themselves, not any other stakeholders. They are less likely to consider their social impact on things like the environment. In the case of Parmesan cheese, the companies that produce in Parma, Italy have the most authentic product, so they want to lobby for laws that ensure their cheese is marketed as the most authentic. However, companies like Kraft want to be able to market their product as “parmesan,” so they want there to be less restrictions. 

One reason for government regulation is to ensure that parmesan cheese stays authentic. If there is no regulation for what can be marketed as parmesan, consumers will have a very difficult time determining which cheese is the most authentic. On the other hand, one argument for limited regulation is that some people don’t care how authentic something is. The guy that loves Kraft cheese in the video would be very happy if there were no regulations on what can be called parmesan, because he can make his own decision on what tastes the best.  

Another issue that has an ongoing debate is the issue over regulation of pollution. The argument for regulation says that companies will not stop polluting the earth without incentives to do so. Since companies are making profit with their current business models, they will not want to change them to help the environment. The other side believes that companies should be able to operate however they see fit. Many times, this would result in activities that lead to profit, but are detrimental to the environment. This side of the argument says that eventually things will get so bad that the companies will change on their own. 

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