For regulation, some laws regulate companies' behaviors. For example, recently, China released a law to ban using the plastic bag free. Store cannot give the plastic bag to people for free. What's the result? Some plastic bag manufacturer closes down or shifts to run some other business. If there is a possible, China allows Vodafone works in China. Vodafone wants to build their 3G network here, and the answer is NO! According to the China regulation, Chinese Telecom Company cannot use foreign technology for 3G, Chinese must use the TD network, which is design and developed by China itself.
As a result, Vodafone has to change its strategy to suit for China's law. Otherwise, Vodafone cannot work here. Vodafone is a great company, it not only follows the legal regulations and also set up its own regulation, and they negotiate with the competitors in mobile industry and make a regulation for this industry. OFCOM- the Office of Communications is the independent body for regulating the communication industry. The Ethical and Environmental Environment Ethical environment is very crucial for influencing business behaviors.
This is difficult to control, to give public a great reputation. In today's world, people not only care about the product you have and also consider whether your company is ethical or environmental. Like the case for IBM. Few years ago, when the truth came out that IBM helped Nazi during the World War 2, which deliver a real bad image to public. The result of that is people really stop buying IBM products, and their sales drops a lot just because of they are not ethical.
For Apple, you can find a every product on its website that with the instruction that tell us the product is green, made by the environmental material and it's easy to disposal. Why does Apple do that? The reason for that is environmental issues has become increasingly important on business behavior. For mobile industry, it's very difficult to avoid this issue. Like I told you Vodafone should take the responsibility for young people avoid the bad content via cell phone, like violet games, gambling and erotic materials. That's ethic work for Vodafone to do.
Another thing for Vodafone to address is environmental environment. Like the world we are living today is getting worse and worse due to the pollution polluted by numerous companies. Vodafone is one of them. This environmental environment affects Vodafone's business. Like the radiation released by the server. And some old machineries that are hard to disposal. Those will change the image to the public, there for their sales will definite relate to this. Moreover, that is unfair for developing countries. In developed countries, the criteria are high if you pollute.
Many companies shift their factories to developing countries. The reason for that is very simple, in developing countries; the law is loss for environmental issue. Normally, the developing countries welcome the foreign investment to come into their countries and solve several problems, like unemployment, tax revenue, etc. Under this circumstance, Vodafone choose to protect our environment, they believe that a short time big cost can help their company continue to growth in the future. It's sustainable development for Vodafone and its entire industry.