RELATIONSHIP BETWEEN COMPETITION LAW AND RESPONSIBLE BUSINESS PRACTICES

Abstract

Responsible Business Conduct imposes a responsibility on businesses to take cognizance of the economic, social and environmental impact of their respective activities in order to achieve sustainable development. This means that in a bid to meet their current production needs, businesses should not in any way compromise the ability of generations to come to meet theirs. Competition law on the other hand prohibits activities by firms in form of collusion and concerted practices amongst firms which is targeted at distorting the market. While RBC entails collaboration amongst firms, competition law prohibits such collaborative activities such as price fixing, cartel activities and all forms of agreement which distort the equilibrium in the market and adversely affect the consumers. Competition law can be used as a tool in entrenching good business conduct by deploying and harnessing the available natural resources through productive and dynamic efficiency for the satisfaction of consumers. RBP in terms of sustainable consumption can also be deployed in terms of high quality products fit for the consumer.