Legal and ethical aspects are quite challenging to manage as well as they are ma
ID: 373044 • Letter: L
Question
Legal and ethical aspects are quite challenging to manage as well as they are many time compulsory to follow. It improves the trust of business in the mind of customers as well for the society as a whole.
Legal environment is the part of external environment of a company. Generally, government makes law which are enforceable within the boundaries of the domestic market. But many times , international laws are also important to a business when it will operate in a global market. Many times , IMF, ILO and other global institutions will frame leagal as well as philanthropic binding rules , regulations and dialogue to promote a fair , transparent, reliable, trustworthy and ethical business environment on global front. It helps to develop an integrated sytem across the globe .
Ethical principles are those guidelines for a business which tells it what will be the good or what will be the bad for its interactions with the stakeholders.
For example: A fair and standard product return policy in case of a bad or poor quality products will provide a business good image in the mind of customers.
A good employment practices can also have the same consequences.
Ethical principles can be derived from philosophical theories, religious views , customs and traditions from diverse cultural backgrounds.
A business must be sensitive to the legal environment due to the following reasons,
1) Compliances set by government and other international authorities must be fullfilled so as to avoid any penal or other strict actions against the organization.
2) It provides an organization a good relations with many stakeholders.
3) A company might save its cost of litigation , claims and damage charges imposed by various court of law.
4) By implementing legal system , a company can improve its policy guidelines.
5) It provide trust from employees if a company will follow the labor and other employment legislation to its business operations.
6) Company can save its time and efforts when it will free from legal and judiciously involvement.
7) A company can get more investment by following fair disclosure and compulsory documentations with the government authority.
Explanation / Answer
· Please Help 2Hours to get this answered, i just need some information and examples on this question.
What are the legal and ethical implications for businesses, and why does it matter that businesses be sensitive to the legal environment?
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