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Project 1

EPA’s Policies EPA’s Policies Ans1. The is “ Incentives for Self-Policing: Discovery, Disclosure, Correction and Prevention of Violations.” It tells that regulatory measures are to be taken for violations of rules and regulations regarding protection of environment and human health, and incentives are provided for self-policing.
Ans2. The incentives provided for self-policing are huge cutback or the removal of the gravity component of civil penalties, the settlement of not putting forward the criminal execution of the disclosing entity and abstaining from daily audit appeal.
Yes, these incentives are appropriate because this provides ease to the businesses and grant some favors of self-policing.
Ans3. The economic-benefit component consists of two variables namely delayed costs and avoided costs. Avoided costs were the maintenance or the operational expenses that were to be incurred but were avoided. Whereas, delayed costs are the ones which were postpones by the violation but will be incurred to attain compliance.
On the other hand, gravity based component are the penalties over and above the economic benefit. The gravity based component is more effective because in this way businesses will be encouraged to self-police and not to violate.
Ans4. The conditions are that the discovery of violation must be through environmental audits or EMS- Environmental management system; Discovery of violation must be voluntarily; agreement of taking steps for preventions should be there. The violation must be disclosed within 20 days after the discovery to EPA. Within 60 days, the violation must be corrected.
Yes, these are appropriate measures and the time limit is also fine because in this way the businesses will be controlled through a strict check.
Ans5. We have learned the ways of conducting business ethically and this article highlights some rules and regulations that regulate the businesses and their environment. It keeps a check and balance that humanity and environment should not be harmed in the process. EPA’s incentives would help the businesses to be proactive from the start and they would not end up violating the rules, thus doing business ethically.
Ans6. The main aim of any business is profit maximization. If the penalties hinder this objective then they will definitely make sure not to violate the rules. Moreover, in order to have a good image they will fulfill their corporate social responsibility.

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