There are those libertarian minded individuals who think one should not force businesses to be rated.
Many think that if it has high value, then it would be provided and funded in the free market.  While this works in the majority of cases, there are a few circumstances where information has a very high cost to acquire and is hard to spread the cost out.



It would not be rational to spend days looking into the labor standards of a factory 1,000 miles away that created a small price widget. It is highly valuable to society for every consumer to quickly know the ratings of that factory because that would force the factory to compete for higher ratings, thus driving up standards. 
Ratings will be a very specialized field where much knowledge is needed and innovated thinking is a must. There are many aspects of a business that will be rated, dealing with the many sectors.  It just is unrealistic or irrational for the common man to know how to acquire, then acquire that amount of information and then assess all that information and compare it to other stores or factory.  The rating system is highly complex, meaning it will also be costly.  However, once the assessment the knowledge is easily disseminated across the web and then on the mandatory signs.
Since, ratings follow the product, retailers will be partly rated by the ratings of the products in their stores.  Walmart and Sears would put pressure on suppliers to have better ratings because it will affect the retailers’ ratings.  Sears and Walmart would be in competition for the best ratings on the products they carry. 
The structure setup for the Rating system will result in solid, well recognized ratings agencies that will compete for people’s trust.  We currently see rating agencies, however few are well trusted for numerous reasons.  The structure set up in the Rating system to collect and analyze the data solves many of those issues. 
 The current system has data collection issues, bias in analyzing the date and company paying for good ratings from rating agencies they set up to put their company in the best light. 

 


Comments


Your comment will be posted after it is approved.


Leave a Reply

    Bill Haley

      Bill Haley started Haley2024 in the spring of 2013 in an effort to his part in restoring freedom to America.

    Archives

    February 2015
    January 2015
    December 2014
    November 2014
    June 2014
    May 2014
    April 2014

    Categories

    All