This document discusses various concepts related to corporate social responsibility towards competition, including unfair competition, antitrust laws, cartels, intellectual property rights, and determining a just price. It provides examples of unfair trade practices like price fixing between competitors and abusing market dominance. The document also discusses anti-trust laws and how they prohibit practices like price fixing, abuses of market power, and agreements between competitors to restrict output.

1. Corporate Social Responsibility Towards the Competition By Raymund N. Sanchez

2. Agenda Overview of CSR

3. Unfair competition - Definition

4. - Antitrust laws

5. - Microsoft case Cartels

6. Intellectual Property Rights

7. Blood Diamonds

8. CSR Overview CSR policy functions as a built-in, self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms.

9. Unfair Trade Practices Resorting to unethical business behavior to gain a competitive edge (advertising fraud, patent/ trademark infringement, socially irresponsible gimmicks, etc.)

10. Reasons why companies resort to Unfair Trade Practices Globalization of competition

11. Better informed & more discerning customers

12. Increasing number of competitors

13. Rapid advance in both soft & hard technology

14. Advances in scientific fields

15. In short, competition is getting stiffer & stiffer, Any kind of edge will count, which is why some companies resort to unethical practices.

16. When profit maximization becomes the sole driving force of the business that it pursues it with any means necessary. Resorting to: Fraud

17. Violation of human dignity

18. Patent/Trademark infringement

19. Socially irresponsible gimmicks

20. others When does competition become UNFAIR ?

21. Anti Trust Laws Trust: or corporate monopoly was created for the purpose of eliminating competition in an area of business & of controlling the market for a product

22. Coverage of Anti Trust Laws Price fixing between competitors

23. Abuses of market power by a monopolist or dominant firm

24. Agreement between competitors to restrict output

25. Price Fixing between Competitors PRICE: often the principal way by which firms compete

26. Agreements on price initiatives, price ranges, price targets, collusion between competitors on floor prices are generally illegal under antitrust laws

27. Price Fixing between Competitors Are similarity of prices, simultaneous price changes, or high price, indications of price fixing? NO, not always Supply & Demand can cause these. Price fixing must be PROVEN. (systematic exchanges of pricing information between competitors)

28. How do we determine the “Just Price” Pricing Process: requires business to effectively calculate resources/needs, supply/demand.

29. Just Price: one in which both buyer & seller are given what is due them (price a manufacturer charges its customers for G&S is total cost of investment plus normal profit)

30. How do we determine the “Just Price” “ Buying & selling were instituted for the common good of both parties since each needs the product of the other... Therefore, the contract between them should rest upon equality of thing to things. The measure of a value of a thing which is exchanged should be given by its money price. Hence to sell a thing dearer or buy it cheaper than it is worth is unjust” -St. Thomas Aquinas

31. How do we determine the “Just Price” Prada

32. Louis Vuitton

33. Rolex

34. Rolls Royce

35. Q: Do these products ask for a “Just Price”?

36. Abusing Market Dominance Dominance: refers to a position of considerable economic power in a market held over a period of time

37. Abusing Market Dominance Q1: Is Being Dominant bad? Q2: Why is the law punishing companies for being too good at what they do?

38. Abusing Market Dominance Conduct of dominant companies that violate antitrust laws: Refusal to supply for non-objective reasons

39. Unfair discrimination between equivalent transactions

40. Non-objective refusal to grant access to essential facilities

41. Unfair / predatory pricing