The Legal and Ethical Environment of Business Research Paper

The Legal and Ethical Environment of Business - Research Paper Example 2. Compare the American legal system to the international legal environment of business.   We live in a global economy where goods are manufactured in one country and are packed in other country. In search of cheap labor, raw material and talent, businesses have expanded themselves and have crossed the physical boundaries. The legal of system of every country is different from other. Different countries possess different legal systems however some countries share same legal system for instance countries like Australia, United States and India uses common law systems. In a civil law system, legal system and laws are based upon different and unique circumstances. Some countries legal systems and ideologies are based upon religion for instance Saudi Arabia, Middle East, Pakistan and Iran etc. These nations follow the systems of Koran and Sunnah. Some countries have civil legal system where judges do not have much flexibility and authority to apply law such as Germany, Russia and Franc e. It is highly essential to interpret the legal system and law while doing business international and its affect on commercial activities (Hiray, 2007). 3. Recognize the principal legal and ethical issues facing managers Managers have to face number of issues in their day-to-day dealings. Most of them are related to ethical and legalities. Some principle ethical and legal issues faced by managers are: Ethical Issues Identifying and resolving the dilemmas of ethical situations Maintaining high standards of ethics while conducting business transactions Providing uniform treatment to all the workers in the work environment Keeping the rights, obligations and concern for environment, stakeholders, employees and company Taking decisions after considering the ethical consequences Legal Issues Safeguarding the private and confidential information of the company in accordance with the law Complying with the domestic and international laws while doing business dealings Accepting accountabil ity for the actions and judgments of individual Apart from above mentioned principles, some other ethical and legal issues are related to fraud, marketing tactics and discrimination. 4. Argue the importance of ethics and social responsibility in the business world.   The importance of ethical and social responsibility in any business is that ignoring these important aspects can cause loss of huge time and money to any business. The unquestionable and unethical social practices can be devastating for any size of business. Nowadays, the impact of business decisions on environment has become more important than ever before. Consumers and watchdogs do not leave a single chance to suspect and call out a business, which is mistreating the natural resources and causing devastating effects on environment. Good social and ethical practices are keys to any company’s success. Therefore, nowadays, along with the objective of making profits, the companies are also trying to make an obje ctive of being environmental friendly. The idea that philanthropic efforts are unfavorable to the success and profitability of any business has become obsolete option. 5. Apply ethical frameworks to business situations.   In case of any ethical dilemma, the best way to resolve the issues is to apply ethical framework to that situations. The most widely known ethical framework is mentioned below. Recognizing the Ethical Dilemma Gathering Facts and